The CFPB proposed a new policy Wednesday that would expand theinformation it publicly discloses on its complaint database toinclude consumer narratives.

In July 2011, the CFPB started accepting complaints against the entities itregulates regarding mortgages, credit cards, bank accounts, debtcollection, private student loans, consumer loans, creditreporting, money transfers and payday loans. According to the CFPB,the database contains the nation's largest public collection ofconsumer financial complaints, currently totaling more than400,000.

“When consumers submit a complaint to the CFPB, they would havethe option to share their account of what happened in the CFPB'spublic-facing Consumer Complaint Database,” said a CFPB pressrelease about the new policy.

“Publishing consumer narratives would provide important contextto the complaint, help the public detect specific trends in themarket, aid consumer decision-making and drive improved consumerservice,” the release also said.

According to the official policy statement, allowing narrativesin consumer complaints benefits the bureau.

“By increasing the direct benefits to consumers of submitting acomplaint, publishing complaint narratives may expand the number ofcomplaints submitted to the bureau and thereby enhance the value ofthe Consumer Complaint Database,” the official policy statementsaid.

“The Bureau also would benefit by further establishing itself asa leader in the realm of open government and open data,” thestatement also said.

Companies would also be given the opportunity to post a writtenresponse that would appear next to the consumer's story. In mostcases, this response would appear at the same time as theconsumer's narrative so that reviewers could see both sidesconcurrently.

Both the narratives and responses would be scrubbed to preventpersonal account information from being shared online, the CFPBsaid.

“Credit unions take great care to address their member'scomplaints directly and foster ongoing relationships with theirmembers. NAFCU has serious concerns about the potential for unduereputation risks to financial institutions relative tounsubstantiated claims,” said NAFCU Director of Regulatory AffairsMike Coleman. “NAFCU will closely examine the proposal and itsimpact on credit unions, however, at first blush the risks ofunwarranted reputational harm to good actors far outweigh anybenefits this proposal would create to assist the CFPB to resolvelegitimate complaints.”

CFPB Director Richard Cordray called the consumer experienceshared in the narrative the heart and soul of a complaint.

“By publicly voicing their complaint, consumers can stand up forthemselves and others who have experienced the same problem,” hesaid. “There is power in their stories, and that power can be putin service to strengthen the foundation for consumers, responsibleproviders, and our economy as a whole.”

The complaints submitted include the consumer's name, the entitythe grievance is being filed against and when the incidentoccurred.

Consumers are provided with a text box to explain the details ofthe situation and attach documents to the complaint. The CFPB saidit sends the complaint to the company involved, allows it time torespond, provides the consumer with a tracking number and updatesconsumers on the status of the complaint.

There is a 30-day comment period on the policy after publicationin the Federal Register.

The CFPB currently supervises four credit unions: the $58billion Navy Federal Credit Union, the $28 billion State Employees'Credit Union, the $18 billion Pentagon Federal Credit Union and the$13 billion BECU. The $10 billion SchoolsFirst Federal Credit Unionwill join that group next January.

Complaints collected by the CFPB against smaller credit unionsare forwarded to the NCUA for investigation.