Filing a Consumer Complaint About a Bank

Sometimes, it seems as if there's nothing you can do when your bank makes a costly mistake. Whether it's overdraft fees or unauthorized transactions, you feel like you're at the bank's mercy. The good news is that you have options if your bank hasn't treated you fairly.

Many consumers don't realize they have rights when dealing with financial institutions. Here, we'll explain how the complaint process works regarding your bank, mortgage company, or credit union. We will also discuss what type of complaints you can file.

Can I Sue a Bank?

As angry as you may be with your bank, filing a lawsuit against them may not always be an option. Most of the time, contracts with financial institutions include arbitration clauses that prevent you from taking legal action immediately.

Arbitration clauses limit consumers' ability to sue. They require consumers to attend arbitration to settle disputes with financial institutions. This doesn't mean you can never sue your bank or lender. But you may have to jump through a few hoops before doing that.

Depending on the facts of your case, you may be able to sue your bank in small claims court. You may also be able to join a class-action lawsuit against a particular financial services company. If you aren't sure whether this is an option, a consumer protection attorney can look at the facts of your case and determine if you can sue your bank directly.

Beyond filing suit, you can also file a complaint with a government agency about your concern with the bank. This can still result in you getting financial relief.

Common Consumer Credit and Banking Complaints

You can resolve most issues with your bank through their customer service department. However, there are times when this doesn't solve the problem. The bank employee may not understand your complaint. Or you may contact them about an online scam, and they refuse to do anything.

Some more common complaints requiring enforcement actions include:

• Invalid or excessive overdraft fees
• Charging overdraft fees on a payment authorization
• Unauthorized transactions
• Fraudulent charges on your debit card or credit card
• Individuals from other states trying to access your account
• Checks bouncing
• Delays in transaction reversals
• General errors and mistakes

Now that you know the common complaints, it's time to review your reporting options.

Where to File a Consumer Complaint About a Bank

Most consumers today rely on online complaints. It's easier and faster than going to the bank in person. Thankfully, there are several places where you can file a consumer complaint about a bank's business practices. In most cases, you'll need to submit a complaint form with detailed information about your case. You'll also have to submit supporting documents with your complaint form.

Below are some of the places where you can file your consumer complaint. These are only some of the avenues of recourse. For example, you can file a complaint directly with federal regulators, such as the Office of the Comptroller of the Currency (OCC) or the National Credit Union Administration (NCUA). However, we've chosen to focus on the most popular options for our purposes.

Option 1: Federal Reserve Consumer Help

If you have a complaint about a large bank such as Wells Fargo, US Bank, or Chase, the Federal Reserve System might be able to help you. The Federal Reserve is responsible for enforcing many federal laws protecting consumers' dealings with financial institutions.

The Board of Governors in Washington, D.C., works nationwide with the twelve Federal Reserve Banks to ensure commercial banks abide by these laws. The Federal Reserve can help individual consumers by:

• Answering questions about banking practices
• Investigating complaints about specific banks

If it receives a complaint that isn't under its jurisdiction, the Federal Reserve Board refers it to the appropriate federal agency.

What Kinds of Complaints Does the Federal Reserve Investigate?

As a federal regulatory agency, the Federal Reserve System investigates consumer complaints against state-chartered banks that are members of the system. If you think a bank has been unfair or deceptive in its dealings with you or has violated a law or regulation, you have the right to file a complaint.

The Federal Reserve's primary concern is that state member banks comply with federal laws and regulations prohibiting discrimination in lending. For example, if a bank discriminates against a customer based on national origin, that consumer can file a complaint with the Federal Reserve.

How To File a Complaint With the Federal Reserve

Before contacting the Federal Reserve, consumers should try to resolve their problems with the financial institution directly. This may involve contacting senior bank management or the bank's customer service representative for assistance.

If you can't resolve the problem, you can file a written complaint with the Federal Reserve. You must include the following information in your complaint:

• Your name, address, and daytime telephone number
• Name and address of the bank
• Your bank or credit card account number
• The name of the person you contacted at the bank, along with the date, if applicable
• A description of the complaint*

*In your description, state what happened, giving the dates and names of those you dealt with at the bank. Include copies of any letters or other documents that may help the Federal Reserve investigate your complaint. The Federal Reserve asks you not to send original documents. So, send copies. Remember to sign and date your letter.

It's essential to give the Federal Reserve as much information about the problem as possible. This will assist the Federal Reserve in providing a quicker response.

Option 2: Consumer Financial Protection Bureau

If you have an issue with a credit card company, consumer loan, student loan, or mortgage, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a government agency ensuring that banks, lenders, and other financial companies treat consumers fairly by offering consumer protection tools and resources.

You can file a complaint online with the CFPB's free Consumer Complaint Database or by calling its toll-free number, 855-411-2372.

The process is as follows:

1. You submit a complaint to the CFPB.
2. The CFPB reviews your complaint. It determines whether it should forward the complaint to another government agency or the company you're complaining about.
3. The company responds and reports the action they are taking.
4. With your consent, the CFPB publishes information about the complaint on its public Consumer Complaint Database.
5. The CFPB will notify you if and when the company responds.

The CFPB is a helpful intermediary between you and the bank you've had trouble with. With the CFPB's involvement, getting a response and resolution can be easier.

Option 3: Your State Attorney General's Office

Each U.S. state and territory has an attorney general as the top legal officer. Most attorneys general accept complaints from state residents on various consumer issues, including grievances against banks and other financial services.

Your AG's office may decide to investigate the bank or record your complaint publicly or privately. Call your state's AG's office or visit the AG's website for more information.

How To Get Legal Help With Filing Consumer Complaints Against a Bank

Has your bank violated a law or regulation? If you've suffered from unfair lending practices or had deceptive dealings with a financial institution, assert your right as a consumer and file a complaint.

While you can file a consumer complaint against a bank, you should seek help from an attorney experienced in consumer protection law.