Financial Protection Bureau Data Shows Exponential Increase in 2021

Recent Analysis of Consumer Financial Protection Bureau Data Shows Exponential Increase in Fintech and Crypto Complaints to CFPB:

The Morning Consult intelligence agency recently investigated consumer complaints filed with the Consumer Financial Protection Bureau (CFPB). The analysis found that consumer complaints related to fintech and cryptography in the CFPB ‘exploded’ in early 2021 compared to the same period in 2020.

Our customers should note that the disclosure of consumer complaints about fintech and cryptocurrencies within the CFPB is well known and that the application of fintech is a priority for the CFPB enforcement agency. The Application Bureau is already active in the fintech space and is looking for new cases for research. Jurisdictions have already been defined between financial regulators and the CFPB wants to declare that it will be the leading financial regulator of financial products and services for consumers in the fintech and cryptographic space and will aggressively exercise oversight if necessary.

Under financial regulators, the CFPB has jurisdiction over a wide range of fintech products and services, many of which are perfectly suited to one or more of the strategic markets in which the CFPB’s oversight body investigates disputes. The most important strategic oversight markets for fintech and cryptocurrency products and services are payments, deposits, equity loans, car financing, credit cards, mortgage loans, dollar loans, and student loans.

If we take a closer look at key strategic markets, ‘payments’ is a broad category that includes payment service providers, peer-to-peer payments, digital wallets, and the infrastructure that enables consumers to make or make payments on their behalf. The deposits also extended to all the new banks, many of which extended beyond the traditional checking and savings functions to offer products such as credit cards, mortgage and financial loans, car finance, and student loans. This is all covered by the CFPB’s other strategic application markets.

‘Fair loan’ is the broader strategic market because it applies to any product or service in the fintech space. Just as an example of how the CFPB thinks about equity lending, the CFPB wants to ensure that the artificial intelligence or machine learning used by fintechs does not discriminate, but fully complies with the equal laws for lending and equities. CFPB’s oversight capability is focused on all of these strategic markets and many more in the fintech space.

And while the Morning Consult article identifies some of the best fintech and cryptocurrency companies by name, the identification should not comfort those who have avoided the offer. The CFPB reviews all fintech players, products, and services and focuses on many of the most popular new products, including access to earnings salaries and buy now, pay later.

Furthermore, there is no reason to believe that the “exhaustion” of consumer complaints from time to time in the analysis of Morning Consult looks at current trends. Instead, the numbers are expected to grow as mainstream consumers increasingly use fintech and cryptocurrency products. The increase in complaints will immediately lead to further investigations by the CFPB, for the simple reason that consumer complaints are one of the main sources used by the regulator to decide whether the investigation continues.

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