UPDATE: Data Show Biggest Sources of Credit-Card Gripes

--Capital One Financial, Citigroup, J.P. Morgan Chase and Bank of America accounted for more than half the 137 complaints

--Banking industry 'disappointed' by consumer bureau's decision to release data and company names

--New database includes complaints received as of June 1, 2012

 
  By Maya Jackson Randall 
 

WASHINGTON--The Consumer Financial Protection Bureau on Tuesday started releasing data on credit-card complaints by consumers, showing that a handful of large banks account for the most complaints.

The agency released data for a limited period that began on June 1, showing that Capital One Financial Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Bank of America Corp. accounted for more than half the 137 complaints the agency has received since the beginning of the month. Bloomberg News, in a public records request, received a larger set of data on financial services company complaints from the CFPB, covering 13,210 complaints from July 21 to Dec. 31, 2011. That set of data, according to Bloomberg, showed Bank of America, J.P. Morgan, Citigroup, Capital One and Wells Fargo & Co. receiving the largest number of complaints, mostly about credit cards.

The new CFPB database, which will be searchable by the public, represents the first time the consumer agency has published searchable information, including the name of the company responsible for the credit card, about individual credit-card complaints.

For the most part, the banks that received the largest number of complaints are also among the top issuers of credit cards in the roughly $2 trillion credit-card industry. J.P. Morgan, Bank of America, and Citigroup are the top three credit-card issuers by number of cards, according to the Nilson Report. Capital One comes in as the eighth-largest issuer, based on that list. In terms of market share, American Express ranks No. 1, followed by J.P. Morgan, Bank of America, Citibank, and Capital One is fifth, based on purchase volume data provided by the Nilson Report.

While the new database only contains credit-card-related complaints the bureau received as of June 1, the bureau, which has been collecting credit-card complaints since last July, is expected to make more of the data it has gathered available to the public.

The database includes searchable information about individual complaints, including the name of the credit-card issuers, the type of complaint and the customer's ZIP code.

For the period beginning June 1, 2012, Capital One was the biggest source of credit-card complaints at 24% of the 137 complaints with the CFPB. Citigroup logged 20% of the complaints, while J.P. Morgan received 18%.

"We're always interested in customer feedback--good and bad--since we are focused on continuous improvement and providing a great customer experience," said a Capital One spokeswoman.

J.P. Morgan said it welcomes feedback from its customers and added that it has taken steps to improve its credit cards, such as simplifying its card-member agreements and extending its payment times.

"While we are pleased with the progress we've made, we look forward to further improving the service our customers expect and deserve and we encourage them to contact us directly if they have any concerns," the company said in a statement.

Citigroup didn't immediately respond to requests for comment.

Still, the financial industry is concerned about the bureau's database and has argued that the data are misleading and will unfairly tarnish banks' reputations. Some groups have even argued that the bureau, by publicizing the complaint data, is going beyond its authority as outlined under the Dodd-Frank financial-overhaul law.

"While our industry stands ready to work with the CFPB to resolve customer concerns, the bureau's plan to release unverified data is disappointing and could mislead consumers," the American Bankers Association said in a statement Tuesday. "Publishing allegations is often different than publishing facts."

The industry group said that, of the more than 383 million credit-card accounts in the U.S., less than one-hundredth of 1% have submitted a complaint to the bureau.

The consumer bureau said it doesn't verify the accuracy of the complaints, but it does take steps to confirm that the complaint is indeed based on a commercial relationship between the consumer and the identified company.

"We believe the disclosure of this data not only serves the public interest, but promotes the advancement of the free enterprise system," said CFPB Director Richard Cordray in comments to reporters Monday.

Write to Maya Jackson Randall at [e-mail].