What does the nature of a customer complaint letter to the FDIC have to be to require inclusion in CRA Public file? We have a customer who filed a complaint with FDIC. I have a copy, along with FDIC's correspondence to us, and our response to FDIC.

The jist of the complaint was that on an indirect auto loan application, we counteroffered to the dealer because the request was for $4000 over loan value on a used car. Customer claims he was not sent an adverse action letter, which he was and we have documentation to that effect.

Does this correspondence need to go in the Public File? I don't think so, but want to make sure.

From 228.43

(1) All written comments received from the public for the current year and each of the prior two calendar years that specifically relate to the bank's performance in helping to meet community credit needs, and any response to the comments by the bank, if neither the comments nor the responses contain statements that reflect adversely on the good name or reputation of any persons other than the bank or publication of which would violate specific provisions of law;

While it is arguable whether the letter gets to the bank's "performance in helping to meet community credit needs," I would choose caution and place it in my public file. It most certainly deals with a Reg B issue, which is why I would choose that course.

I'm going to answer to the contrary. They do not specifically address CRA or the bank's performance in meeting COMMUNITY credit needs. It discusses an individuals dissatisfaction with your credit response in relation to a particular transaction, not CRA.

I would never put a letter of that nature in my public file.

Thanks Dawnie and Grmasterb - my inclination was to not include it and I think I will stick with my gut instinct.

While it is questionable that this letter is on target; why not included it? You did everything right, and you can prove it. I would include it. Since it is questionable, your examiner may second guess you and they already have a list of the complaints that you have received. At worst, they would tell you that you did not need this letter in your file. Overdisclosure is good.

Perhaps my decision would be different if you have a significant number of complaint letters. We usually have 1-2 and neither of them are CRA related, but the examiners knew that we had them before they asked for the file.

SoccerMomQueen - Not sure I agree with you, but here is a side-note question ...

Let's say I do include it - this is a public file; how do you address the privacy issue of letting anyone see this letter which may not necessarily include non-public information, but does include enough info whereby if I was the customer who sent the complaint letter to the FDIC and then found out that letter was in a public file for anyone to see, I wouldn't be very happy at all.

Dave I'm sure this is a conflict that was never thought of when the regulations were issued. Its a question I would ask examiners as just about any letter would have a privacy issue.

IMO put a copy of the letter in and redact any part that would identify the customer

I have to go with Dawnie on this one. It is not specific to CRA performance. I would not include it.

"1) All written comments received from the public for the current year and each of the prior two calendar years that specifically relate to the bank's performance in helping to meet community credit needs,"

Where does it say the letter has to be CRA related?

It a very broad interpetation to say it has to be CRA related to put in the public file. It also says "All" written comments. If in doubt check with regulator but IMO it would go in the file.

How do you interpret the description of the letter I mentioned in the original post as a comment that relates to the bank's performance in helping to meet community credit needs? It was a car loan application.

I agree with Dawnie's analysis on this, too. This isn't a letter that I would expect to see in a public file if I were doing your CRA exam. AR.

Thank you AnonRegulator for helping restore my faith.

I totally agree! We are in the midst of a CRA exam and have not included routine complaints of that nature in our public file. The CRA examiner said they already know we have no CRA complaints, and was not interested in seeing the well-documented in-house file of other complaints. I would be extremely concerned about showing people's account-related, non-CRA complaints to any member of the public for privacy reasons.

The letter would not go in the CRA Public File.

It does not address the performance of the bank in addressing COMMUNITY credit needs. It addresses how the bank did not (in the opinion of the author)address his personal credit need.

Oh, no! I agree with a regulator! <wink>