How to file a complaint: Steps and resources

While their intentions are good, many consumers and experts alike have disseminated misinformation about how to complain about a financial company to the regulatory institutions setup by the government.  So, I called the government to get answers, and they were quite helpful.  This post makes sense of the circuitous and often confusing task of finding the right regulatory institution and filing a proper complaint.  

Four major institutions that regulate financial companies are The Federal Reserve Board, The Office of Comptroller of the Currency (OCC), The Federal Deposit Insurance Corporation (FDIC) and The Office of Thrift Supervision (OTS).  Also, The Federal Trade Commission (FTC) is an important agency for having your voice heard about bad business practices. Its primary mission is to promote consumer protection through law enforcement, policy, and education.  Though it does not regulate financial institutions directly, it can sue them for wrongdoing as it did successfully in the recent CompuCredit case.  Definitely, copy the FTC on whatever complaint you are making.  By the way, the FTC has filed and won major law suits against rogue credit card companies and reporting bureaus like Equifax.    

Step 1: Classify your financial institution

The first step in filing a complaint is determining what type of financial institution your issuer is because there are several kinds: Savings Associations, Federal Savings Banks, National Banks, Credit Unions, etc. As for credit cards, you can find your issuing bank either on the front of the credit card or on the back, often times in small print. Sometimes the credit card processor and bank are one in the same, as is the case with American Express and Discover.  Furthermore, it is important to note that companies like Visa and MasterCard are not banks. They simply are processors that must partner with banks.  One example of this relationship is a Visa credit card with Citibank as the issuing bank, the bank that actually loans you the money.

The government has setup a helpful website that allows you to enter your bank’s name and the site will give you tons of information about it, most importantly its government regulator.  (It doesn’t recognize credit unions.)        

Step 2: File your detailed complaint

The second step, once you’ve found the right regulatory institution, is filing your complaint via phone, fax, snail mail or ideally, an online complaint form.  Any one is fine, and the institutions’ websites have detailed information about the process.  However, some institutions like the Office of Thrift Supervision (OTS), which requires a signature with your complaint, are not yet setup for online complaints. In this case, it recommends that you fax your complaint. As I mentioned earlier, copy your complaint to the FTC and your local congressmen.  You can copy other legislators outside of your residence area that are working on regulatory legislation as well, but your first goal should be notifying the regulatory institutions put in place for this very purpose.     

Before filing, make sure that you try to resolve the problem with your financial institution first. Document everything –who you speak with, what they say, and when.  

Finally, it was also encouraging to learn from the government that if your complaint goes to the wrong institution, workers will often take the complaint to the appropriate division.  

Note: Several people have encouraged me to start a petition, but I have learned from politicians that petitions don’t have as much impact as official complaints, especially those that reach a critical mass or tipping point like the 65,000 that prompted the Federal Reserve Board to invoke the Federal Trade Commission Act and enact the credit card rules that go into effect in July 2010.  

Important Links and Resources:

> Classify your bank:
http://www2.fdic.gov/idasp/main_bankfind.asp

> Complaint links of regulatory institutions:

Federal Reserve Board
http://www.federalreserveconsumerhelp.gov/complaintinfo.cfm?info=1

Federal Trade Comission (FTC)
https://www.ftccomplaintassistant.gov/

Office of Comptroller of the Currency (OCC)
http://www.occ.treas.gov/customer.htm

Federal Deposit Insurance Corporation (FDIC)
http://www.fdic.gov/consumers/questions/consumer/complaint.html

Office of Thrift Supervision (OTS)
http://www.ots.treas.gov/?p=ConsumerComplaintsInquiries

> Find your local elected officials:
http://www.usa.gov/Contact/Elected.shtml
 
> Elected officials with legislation on credit card reform:

Senator Chris Dodd (D-CT): Credit CARD Act
http://dodd.senate.gov/

Congresswoman Carolyn Maloney (D-NY): Credit Card Holder’s Bill of Rights
http://maloney.house.gov/

 

Comments

[Caroline E, White]

First Thank you for looking out for the consumer. This credit mess goes both ways creditor/Consumer, however I don't think its fair that the creditor applies the amount of money you pay on a loan towards the interest first, so the principal will be paid after the interest is paid off. Example I pay $293.23 on a loan with CITI financial, however -4.63 is applied to the principal and -288.60 is applied towards the interest, something need to be done about this formula which is not fair, even though we might find ourselves in need of a loan, this is not fair. Also if a creditor(CAPITAL ONE set a credit limit at say $1,000.00, when the fees and interest and maybe paid a day late puts you over the limit, the account should be frozen at that point, no the greed of the creditor continues to add fees, etc. to the point it will never get paid down. It should be frozen at the limit. Thank you for listening. I am presently unemployed and trying to do my best to keep afloat, so anything being done to help the consumer, will eventually be better for everyone, get rid of the greed.

[Marc]

I am trying to make a payment over the phone with Sears and CitiCard, because, I changed my bank info on the Sears site and it won't let me place a payment for 6 business days and CitiCard because they said they felt there was fraudalent activity and replaced my card (which I activated). So I called both companies to make a payment over the phone and they wanted $14.95 for me to PAY THEM. Please Obama do something with these Credit Card companies, they are ripping off the American public and getting away with it.

[Roland Chabot]

I want to file a complaint against The Treasury the FDIC in Atlanta Georgia the RTC and First Union / Wachovia Bank
rjchabot@yahoo.com

Roland Chabot

[wendy cain]

Good luck trying to get your income increased without applying for an increase in your line of credit. I got the royal run around from both Citibank and Chase. I won't give up until I can find out how this is done. I'm "MAD AS HELL AND I'M NOT GOING TO TAKE IT ANYMORE!"

[Heidi]

This is really helpful. I now realize I sent my complaint to the wrong regulator. It can be quite confusing. I was just going off what someone told me. Thanks... This really helps a lot. I don't feel like my complaint is going out in space now.