About the CFPB

CFPB stands for Consumer Financial Protection Bureau. It is a U.S. government agency that protects consumers’ rights in financial matters. If you feel you were treated unfairly in your dealings with a bank, or the bank refuses to honor what it owes you, you can file a complaint through the CFPB. The CFPB will have staff contact the appropriate department at the bank and relay your complaint. Generally speaking, banks take CFPB cases seriously, and many issues that cannot be resolved through direct contact can be handled much more efficiently once the CFPB steps in.

One important thing to note is that the CFPB mainly deals with financial institutions, such as credit card companies, banks, and lenders. It is generally not useful for complaints involving regular shopping merchants. The CFPB accepts complaints related to:

  • Checking and savings accounts
  • Credit cards
  • Credit repair services
  • Credit reports and other personal consumer reports
  • Debt collection
  • Debt settlement
  • Money transfers, virtual currency, and money services
  • Mortgages
  • Payday loans
  • Personal loans like installment and title loans
  • Prepaid cards
  • Student loans
  • Vehicle loans or leases

For disputes with ordinary merchants, you can submit a complaint to the BBB. Bank-related issues can also be submitted to the BBB, but since the BBB is not a government agency, financial institutions may not pay much attention to it.

How to File a Complaint

For example, let’s say I want to file a complaint with the CFPB because Citi closed my credit card. The process is basically similar in most cases, so you can use this as a reference.

First, go to the CFPB homepage and click submit complain in the upper-right corner.

  • After logging in or registering for an account, first choose the type of issue you want to complain about. Since this example is about Citi closing my credit card, select the credit category.
  • Then choose the first option: credit card.
  • Select the option indicating that the bank closed my account and did not resolve the issue.
  • The next step is to describe the problem you encountered.
  • In addition, you need to state what outcome you want, such as compensation, reopening the card, restoring points, and so on. It is also best to upload supporting documents, such as the bank’s account-closure letter and email records of your communications with customer service. In general, the more complete your evidence is, the better your chances.
  • After submission, just wait for a response from the CFPB or the bank you complained about. Usually, you will receive some response within 15 days, and a final decision within 60 days.
We've sent your complaint to the company, and we will let you know when they respond.Their response should include the steps they took, or will take, to address your complaint.Companies generally respond in 15 days. In some cases, the company will let you know their response is in progress and provide a final response in 60 days.

What If the CFPB Complaint Fails?

The CFPB is not a cure-all. For example, PayPal is not particularly afraid of CFPB complaints. If you are not satisfied with the result after CFPB involvement, you can consider suing the bank in small claims court. At that point, the bank will weigh the cost of defending the case versus simply compensating you, rather than focusing purely on who is right or wrong. In most cases, if the amount involved is relatively small, the bank may choose to settle out of court.

Downsides of Using the CFPB

In addition, with some banks such as Chase, AMEX, and Citi, if you are aggressively pushing for a bonus or benefit and then use the CFPB to pressure them, they may satisfy you this time but then effectively blacklist you afterward, meaning you may not be able to apply for that bank’s credit cards for perhaps three to five years. If you let this dispute go instead, and it is only a minor issue, you may be able to apply again after 1-2 years.

So before using the CFPB as a heavy-duty tool against a bank, think carefully about whether the compensation is worth the risk of being blacklisted by that bank for several years.

Several CFPB Examples on Our Site

In one AMEX case, the application showed a bonus and there was no popup warning, but when it came time to award the bonus, it was not given. The author filed complaints with both the CFPB and the BBB, but AMEX argued that the terms gave AMEX discretion over the sign-up bonus decision, so only part of the sign-up bonus was awarded. In the end, the complaint still failed.

Synchrony failed to provide the sign-up bonus on its Cathay Pacific co-branded card, but after CFPB intervention, the bonus was issued quickly. The process was quite efficient.

Chase closed all of the cards on one account. After a CFPB complaint asking Chase for clarification, Chase still only gave fairly vague reasons for the shutdown. In the end, the situation still moved forward without reversal.

A complaint against US Bank successfully recovered the bonus.