Credit unions could suffer unfair risks to their reputation andconsumers might have confidential data released.

Those are among the concerns raised by CUNA and NAFCU in commentletters to the Consumer Financial Protection Bureau about thebureau's proposed rule on disclosing information about consumers'complaints against credit card issuers.

The CFPB's proposed rule would apply to financial institutionswith assets of more than $10 billion assets but would be a modelfor other regulators. It would allow the CFPB to release thefollowing information: the type of complaint; the name of thecard issuer; the consumer's ZIP code; the date of the complaint;and whether and how the issuer responds.

The rule explicitly states that the bureau will not “publishcredit card complaint information that could enable the consumer tobe identified by any party other than the issuer of the credit cardin question.'' Those assurances aren't enough for the tradeassociations.

CUNA Regulatory Counsel Dennis Tsang urged the CFPB to adjustthe released data so it takes into account differences amongissuers and credit card products, such as the size of the issuerand the relative size of the credit card portfolio.

He also said the agency should ensure complainant privacy byonly listing the state, not the ZIP code. In addition, He alsorecommended that card issuers be given up to 60 calendar days torespond to complaints. Under the proposed rule, the CFPB canrelease information 30 days after a complaint has been filed.

NAFCU President/CEO Fred Becker wrote that “blanket disclosureof all complaints, regardless of their veracity, raises safety andsoundness concerns.'' And these disclosures “unduly place afinancial institution's reputation at risk given contemporary viralmedia.''

He added that while NAFCU and all credit unions favor the CFPBinvestigating legitimate credit card complaints, the systemshouldn't penalize “penalize institutions that may be theoccasional victim of unwarranted complaints.''

The trades have had similar disagreements with the NCUA about its policies fordisclosing consumer complaints.