If you’re a lender and you haven’t seen this video you should take a look (Complaint). CFPB is now posting videos of consumer complaints to bring about awareness of the recourse available when they think they have been wronged by a lender.
Interestingly, in the video posted here, the consumer happens to be an immigrant. Although we do not get the lender’s side of the story, it would seem that, like the cavalry, CFPB swept in at the last minute and saved the day.
Just a side note, based on the certificates on the wall behind the consumer and the stethoscope, it would appear that the consumer, in this case, would be relatively well educated and would have some idea about making financial decisions. To put up a $12,000 “contingency fee” doesn’t make sense. Maybe it was really a lock fee, in which case the lender should have explained the pitfalls and would have also provided a rate lock agreement. We’ll never know all the facts. But, why let facts get in the way of a good complaint.
Lenders need to be aware of this process, as well as the new CFPB complaint database. The consumer can make their case, as they see it while the lender gets very little opportunity to respond and set the record straight. The easiest thing to do in most cases is, as done in the video, apologize and make a rebate, as applicable. However, now CFPB will use that against lenders as well. Seems the lender can’t win.
The best thing to do is do business as best you can, and keep the consumer well informed as to what goes on. Oh yeah, make sure you clearly and conspicuously document everything you do. As I keep saying, train your people in the processes, requirements and in customer service. The customer is still always right; especially in the eyes of the CFPB. Maybe I’m a little paranoid, but that doesn’t mean that somebody isn’t out to get you.
Big Brother is not just watching, he is now telling the stories of what he sees. Don’t become the basis for the plot in this movie. Be wise, be aware, and do whatever you can do to stay off the air.
I believe consumers should have the opportunity to get help and results should be posted after the lender has had ample time to review and respond. The results posted should then provide both sides of the story; good or bad. This is only fair. Consumers will then have the real facts to help them better understand the problems and the process.
Anything done half way is not good. It’s kind of like doing things half fast…