Quick Answer: CFPB records show credit card complaints benefit both consumers and banks when made public, as exposed banks are more likely to resolve issues and provide monetary relief. Academic research found consumers reward banks that improve their complaint response with new accounts, creating incentives for better customer service.
An interesting academic paper out which studies Consumer Financial Protection (CFPB) complaint reporting found the reporting assisted both consumers and the credit card companies.
The investigation looked at the results of public reporting of complaints and found “Consumers procrastinate in reporting exposed banks while rewarding exposed banks for their improved behavior with new accounts.”
Most interestingly, “both consumers and banks benefit when offending banks are exposed online.”
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Oct 8): A parent's nursing home bill can become yours
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
This is a very interesting question because this site has a reporting opportunity for unhappy consumers.
The Daily Money Brief — Free, at 10 AM
Money you may be owed, scams to dodge, and the fine print decoded — the consumer money news that affects your wallet, every weekday.
When companies receive a complaint on the GetOutOfDebt.org website I typically notify the company and encourage them to respond to the complaint so they can show the public how they respond to issues. Most people are aware problems will arise but the mark of a good company is how they deal with this complaints. Radio silence just tells people the company might not be able to be trusted. Most companies who receive complaints from consumers on this site elect not to provide a response.
The research findings found, “banks are more likely to close a complaint file or answer the relevant concern to a consumer’s satisfaction; more likely to address credit complaint files with explanations as to why the complaint may have occurred or the infraction justified; more likely to provide some level of monitory relief and more likely to provide a degree of non-monitory relief.”
A conclusion drawn by the paper author is exposed firms become slower to cause such complaints. And because of the open complaint data, “confidence in credit card industry was boosted by the open data policy and banks’ increased accountability in response.”
You can read the entire research paper below.
Loading... 
Reload document 
Open in new tab Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Related: what Synchrony’s own SEC filing reveals about credit card fees.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
