The Consumer Financial Protection Bureau, CFPB, receives over 25,000 complaints a month regarding problems with financial products or services. As of mid-2017, the bureau has received 1,242,800 complaints. So which products and services create the most frustration for consumers? Without further ado, here are the top 10 financial products and services that drive consumer crazy on a daily basis, as compiled by the CFPB:
- Debt Collection
- Credit Reporting
- Mortgages
- Bank Accounts or Services
- Credit Cards
- Consumer Loans
- Student Loans
- Payday Loans
- Prepaid Cards
- Money Transfers
While some financial institutions may look at this report and scatter to make sense of their failures, credit unions know they have 10 opportunities to offer these services the right way and surpass the expectations of everyday members. Credit unions are different from banks in many ways, but the biggest difference is the way they approach serving members. "The Credit Union Difference" was designed by CUNA to highlight the qualities that set credit unions apart from the big banks:
- Credit unions exist to help people, not make a profit.
- People are considered and referred to as members, not just customers.
- And every member is also an owner. It's a shared involvement that gives all parties a piece of the decision making.
While banks may have shareholders that can vote on some direction, their customers don't really have a say in business decisions. Additionally, profits seen in a credit union go back to benefit the members, whereas bank profits benefit the shareholders. This "difference" and approach lets the member know they're more than just a number and that the CU's success is directly correlated to said members. Credit unions acknowledge financial struggles through member services, which were created to solely serve the member first and help them find immediate solutions.
So what about these financial services that frustrate consumers? How do CUs better serve their members and handle these struggles the right way?
Mortgages - It's no surprise that mortgages cause some complaints because of the weight of importance they carry to someone's financial portfolio. With credit unions, every process is relationship focused, including mortgages. As a member, you'll not only know your credit union personally but be reassured that they intimately understand your needs. Credit unions can also often offer lower fees and discounted rates because profit is transferred back to members.
Consumer, Student & Payday Lending - Within the same wheelhouse as mortgages, credit union lending can offer the same benefits on loans for their members. CU's are able to offer members lower loan rates that can help them with the student, consumer and payday loans that cause frustration for the everyday member. Many other financial institutions compete for these types of loans but often times end up trapping the member into debt.
Credit Cards - Late and unexplained fees from big banks have fueled a revolution of consumers looking for better options. Let's remember another defining difference between banks and credit unions...Trust. CU's are known to be more trustworthy because their success depends on their members and how pleased they are with the CU's services. Credit union card management does a better job at educating members and spending the time working with them so that members are not blindsided or hit with fees they didn't know existed.
Services - Services were among the top 10 items that drive consumers crazy. This is why credit unions place the utmost importance on member services. MSR's are trained to effectively communicate while being respectful of members' time. MSR's strive to anticipate the needs of members and educate them in the financial fields they struggle with in order to provide seamless member experience.
