Beginning in the near future, credit cardholders' complaints will be addressed by a new arm of the federal agency in charge of protecting consumers from predatory or questionable lending practices from financial institutions.
The Consumer Financial Protection Bureau opened its Office of the Ombudsman on December 8, under the direction of acting ombudsman Wendy Kamenshine, according to a report from U.S. Rep. Carolyn Maloney of New York, writing for the Huffington Post. The purpose of this part of the agency is currently only to advise financial institutions on the way the CFPB will be implementing various aspects of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act.
But beginning this spring, it will also be able to field consumers' complaints related to the way their lenders are handling their outstanding credit card debt, the report said. In addition, it will work to provide information to consumers about their rights when trying to get out of debt.
Currently, the CFPB has a hotline set up on which consumers can lodge complaints about their credit card accounts, particularly if they believe they have been hit by unfair lending practices.