Technology

In the past year we have taken big steps toward making consumer financial markets work better for consumers and responsible companies, and consumer complaints have played a major role. We began with credit card complaints in July of 2011, and as time passed, we added complaints about mortgages, bank accounts and services, private student loans, vehicle, and other consumer loans.

We are proud to announce that, starting today, we are accepting complaints about credit reports.

Credit reporting touches the financial lives of nearly each and every American. Credit reports affect whether or not you are able to get a credit card, a home loan, an auto loan, or a student loan, the ability to rent an apartment or get hired, and even tasks as simple as getting a cell phone or electricity for your home. It also can affect how affordable or expensive those things are for you.

Starting today, we can help consumers with individual-level complaint assistance on issues with their credit report. The types of complaints we can work on include:

• Incorrect information on a credit report
• A consumer reporting agency’s investigation
• Improper use of a credit report,
• Being unable to get a copy of a credit score or file, and
• Problems with credit monitoring or identify protection services.

Before you file

If you believe that there’s incorrect information on your credit report, or if you have an issue with a credit reporting company’s investigation start by filing a dispute and getting a response directly from the credit reporting company itself.

There are important consumer rights guaranteed by federal consumer financial law that are best preserved by you first going through the credit reporting company’s complaint process.

After you file a complaint with the credit reporting company, if you are dissatisfied with the resolution, file a complaint with us.

Every complaint we receive helps us understand the challenges facing consumers, and they inform and shape our priorities. Reading your complaints about credit reporting will complement work we have already started in this area, including conducting a study comparing credit scores sold to creditors and those sold to consumers and beginning to supervise of consumer reporting agencies.

Scott Pluta is the Assistant Director for the Office of Consumer Response at the Consumer Financial Protection Bureau.

Update 11/27/12: We issued a bulletin about changes to the rule we intend to propose in December 2012.

Our goal is to make financial markets work. A crucial part of reaching that goal is making sure that honest businesses – particularly small businesses – have what they need to understand and comply with our new regulations, which are designed both to help consumers and make a fair playing field for companies that play by the rules.

Today, we’re releasing our small business compliance guide for our international electronic money transfers rule (also known as the remittance rule), which will take effect on February 7, 2013. This guide will make it easier to understand the new requirements. Although the guide is not a substitute for the rule, it highlights issues that businesses, in particular small businesses and those that work with them, should consider while implementing the new requirements.

We need your help to find areas in the guide that could be better.

How can I provide feedback?

Email comments about the guide to CFPB_RemittanceGuide@cfpb.gov. Your feedback is crucial to making sure the guide is as helpful as possible. We would love to hear your thoughts on its usefulness and readability, and about improvements you think are needed.

We would especially like to know:

1) What kind of business do you operate?
2) Generally, what is the size of your business?
3) Where are you located?
4) How useful did you find the guide for understanding the rule?
5) How useful did you find the guide for implementing the rule at your business?
6) Do you have any suggestions for making the guide better, such as additional implementation tips?

What are some other compliance resources?

We are working on a number of projects to help industry understand and comply with the new requirements, including:

• Issuing a list of countries and other areas to which a particular exception to the rule’s disclosure requirements applies,
• Hosting a live webinar on October 16th,
• Answering specific questions at CFPB_RemittanceRule@cfpb.gov and at (202) 435-7700, and
• Releasing the small business guide.

Questions?

You can reach us at (202) 435-7700.

We’re excited to announce that we’re no longer in beta with our consumer complaint database.

We launched the beta version on June 19th publishing individual-level consumer complaint data — a first for a federal financial regulator.

Since that time, people have been evaluating and sharing the data on social media and in new apps. Today, we are taking additional steps to expand this service to the American people.

First, and as promised, we are releasing consumer credit card complaint data back to December 1, 2011 in the Consumer Complaint Database.

Second, thanks to all of the great feedback and insight we’ve gotten, we are removing the database’s beta tag. While we will continue to expand functionality, data fields, and the “look and feel” of the database, after performing for three months as designed and without incident, the database is no longer a beta product.

One potential area for database expansion is the inclusion of additional products and services. Over the summer we asked for public comment on this idea and got a wide range of comments from a range of interested stakeholders. We are in the process of evaluating those comments and anticipate a final Bureau decision in early 2013.

In addition to expanding the scope of the products covered by the database we continue to evaluate, among other things, the release of consumer narratives, the potential for normalization of the data to make apples-to-apples comparisons more user friendly, and the expansion of functionality to improve user experience.

Thank you for your help in getting the tool where it is today – we’re excited for what you’ll do with the data next.

Scott Pluta is the Assistant Director for Consumer Response at the Consumer Financial Protection Bureau.

Your opinion is important – weigh in now.

As we talked about on Friday, the Bureau is trying to put the customer service back in mortgage servicing. We are proposing nine rules to address issues that consumers face when paying their mortgage loans, dealing with escrow accounts, or figuring out what to do when they have fallen behind on their loans. We want to get rid of surprises and runarounds by servicers, which are often hired by creditors and investors to manage home loans.

You may not know this, but getting comments from the public – you – is an essential part of the agency rulemaking process. Federal law generally requires that the public get an opportunity to read a proposed rule and submit comments before the rule is finalized. Agencies publish the proposed rules in the Federal Register.

All too often, this opportunity passes, and the public doesn’t weigh in. This, in part, is because not everybody skims the Federal Register every day.

We want to make it easier for consumers and small businesses to tell us what they think about the rules that we are working on. To do that, we’ve partnered with Cornell University, which has launched a project called Regulation Room as part of the Cornell e-Rulemaking Initiative, to get your take on our new proposed mortgage servicing rules.

RegulationRoom.org is not a government website. It is operated by students and staff at Cornell, with the goal of making it easy for people to participate in the rulemaking process. They are researching how to remove barriers to public participation, and we are excited to be partnering with them.

• First, the Cornell folks realized that all too often, the public is unaware of the rule-writing process, so they are spreading the word through a social media campaign.
• Next, they realized that most members of the public are not interested in reading a Federal Register notice that may easily be 100 pages or more. They use “layering” of information so you can quickly get an overview, but have the ability to dive deeper if you are interested in a particular point or subtopic.
• Also, they realized rulemakings involve complicated issues that can benefit from dialogue rather than just one-time letter writing. Besides presenting the information, Regulation Room hosts a forum for discussion. Even better, the forum is moderated to help answer questions and get more detailed information and feedback. Feel free to say that you do or don’t like our rule, but be prepared for a moderator to ask you to be more specific: Why do you feel that way? How could it be improved?
• Finally, they realized that most members of the public are unfamiliar with the formal commenting process at Regulations.gov (the official government site). So Regulation Room presents information and conducts a conversation right when a proposed rule first comes out, and then closes its forum down about a week before the end of the comment period so that the Cornell team can assemble all the feedback they have received into an official comment. People who have participated get one last chance to react to the summary before it is submitted formally to the CFPB through regulations.gov. And, like all other formal comments, we will read and consider it.

We are excited about this project for two reasons.

First: We really do want to hear what you think of our proposals on mortgage servicing.

Second: We want to learn as much as possible from this experience about how to get more public feedback in future rulemakings.

So head on over to Regulation Room and let us know what you think!

The Consumer Financial Protection Bureau was fortunate to be born in the digital era. We’ve been able to rethink many of the practices that make financial products confusing to consumers and certain regulations burdensome for businesses. We’ve also been able to launch the CFPB with a state-of-the-art technical infrastructure that’s more stable and more cost-effective than an equivalent system was just ten years ago.

Many of the things we’re doing are new to government, which has made them difficult to achieve. But the hard part lies ahead. While our current technology is great, those of us on the CFPB’s Technology & Innovation team will have failed if we’re still using the same tools 10 years from now. Our goal is not to tie the Bureau to 2012’s technology, but to create something that stays modern and relevant – no matter the year.

Good internal technology policies can help, especially the policy that governs our use of software source code. We are unveiling that policy today.

Source code is the set of instructions that tells software how to work. This is distinct from data, which is the content that a user inputs into the software. Unlike data, most users never see software source code; it works behind the scenes while the users interact with their data through a more intuitive, human-friendly interface.

Some software lets users modify its source code, so that they can tweak the code to achieve their own goals if the software doesn’t specifically do what users want. Source code that can be freely modified and redistributed is known as “open-source software,” and it has been instrumental to the CFPB’s innovation efforts for a few reasons:

• It is usually very easy to acquire, as there are no ongoing licensing fees. Just pay once, and the product is yours.
• It keeps our data open. If we decide one day to move our web site to another platform, we don’t have to worry about whether the current platform is going to keep us from exporting all of our data. (Only some proprietary software keeps its data open, but all open source software does so.)
• It lets us use tailor-made tools without having to build those tools from scratch. This lets us do things that nobody else has ever done, and do them quickly.

Until recently, the federal government was hesitant to adopt open-source software due to a perceived ambiguity around its legal status as a commercial good. In 2009, however, the Department of Defense made it clear that open-source software products are on equal footing with their proprietary counterparts.

We agree, and the first section of our source code policy is unequivocal: We use open-source software, and we do so because it helps us fulfill our mission.

Open-source software works because it enables people from around the world to share their contributions with each other. The CFPB has benefited tremendously from other people’s efforts, so it’s only right that we give back to the community by sharing our work with others.

This brings us to the second part of our policy: When we build our own software or contract with a third party to build it for us, we will share the code with the public at no charge. Exceptions will be made when source code exposes sensitive details that would put the Bureau at risk for security breaches; but we believe that, in general, hiding source code does not make the software safer.

We’re sharing our code for a few reasons:

• First, it is the right thing to do: the Bureau will use public dollars to create the source code, so the public should have access to that creation.
• Second, it gives the public a window into how a government agency conducts its business. Our job is to protect consumers and to regulate financial institutions, and every citizen deserves to know exactly how we perform those missions.
• Third, code sharing makes our products better. By letting the development community propose modifications , our software will become more stable, more secure, and more powerful with less time and expense from our team. Sharing our code positions us to maintain a technological pace that would otherwise be impossible for a government agency.

Get updates from the Technology team.

Email address

Send me email updates

The CFPB is serious about building great technology. This policy will not necessarily make that an easy job, but it will make the goal achievable.

Our policy is available in three formats: HTML, for easy access; PDF, for good presentation; and as a GitHub Gist, which will make it easy for other organizations to adopt a similar policy and will allow the public to easily track any revisions we make to the policy.

If you’re a coder, keep an eye on our GitHub account. We’ll be releasing code for a few projects in the coming weeks.