Financial institutions are regulated by a number of different federal and state agencies that ensure they comply with the law. Here are the major players and their functions.
The Consumer Financial Protection Bureau (CFPB)
The CFPB’s mission is to provide consumers with a one-stop shop for registering complaints and getting answers. Since its creation in 2010, the CFPB has drafted a number of rules on mortgage lending, automotive financing, credit and debit cards, debt collectors, student loans and payday and title loans. The Bureau also offers a variety of tools to help consumers make smart financial decisions, such as how to pay for college or navigating the home buying process.
Through the CFPB’s consumer complaint database, you can lodge a complaint against a financial institution and receive a formal case number. The financial institution is legally required to respond and explain their side of the issue. If found at fault, they are required to detail how the problem will be remedied. The database is public, allowing anyone to view recent complaints. This system has been in place for many years now and financial institutions have entire departments dedicated to responding to complaints lodged through the CFPB, so you can be confident that your voice will be heard.
Federal Deposit Insurance Corporation (FDIC)
The FDIC specifically regulates depository institutions, more often known as traditional banks. The FDIC insures bank deposits, meaning if your bank goes out of business or fails, you can be assured that you’ll get your money back—up to a certain amount. The Corporation has a wealth of resources dedicated to working with your bank, things to look out for when selecting a financial institution, and financial education tools. On their website, you can also find a contact form for submitting complaints as well as a phone number if you’d prefer to lodge your complaint over the phone.
National Credit Union Administration (NCUA)
NCUA’s MyCreditUnion.gov website is the consumer-facing end of a regulator body that functions almost identically to the FDIC, but for credit unions. The vast majority of credit unions are covered by NCUA’s depository insurance fund, similar to the FDIC. The NCUA website features a host of resources directed at consumers who are credit union members and also features a consumer complaint form.
Securities & Exchange Commission (SEC)
The SEC is charged with regulating and enforcing the nation’s security laws. This covers any investments you make, including stocks, bonds, exchange-traded funds, mutual funds, 401(k)’s and other retirement accounts. The SEC is also charged with regulating financial planners and other investment professionals, ensuring that they have appropriate credentials and stay current with applicable laws.
Financial Industry Regulatory Authority (FINRA)
FINRA is charged with actively regulating a number of areas that fall into the responsibility of the SEC. Specifically, they regulate the broker-dealers of financial instruments, or in other words, the people you contact or work with to buy and sell stocks, bonds, 401(k)s and more. You can lodge a complaint directly to FINRA about a specific broker-dealer and use their BrokerCheck system to research financial professionals beforehand.
The Commodity Futures Trading Commission (CFTC)
The CFTC regulates the futures and commodities markets. Futures are agreements between individuals to buy a set amount of a product at a specific time. Commodities are the products themselves. The CFTC is likely to refer you to another agency if you submit a complaint or tip to them.
Federal Trade Commission (FTC)
The FTC’s entire role is consumer protection, and not just in financial products. You can complain to the FTC about any company, store or business. The FTC also helps ensure that the economy remains competitive. Generally, complaints about specific financial institutions and their products would flow through the CFPB, but you can also contact the FTC.
The Federal Reserve Board (FRB)
The FRB is chiefly concerned with broad economic policy and altering how money flows in and around the United States. It also works with other countries on market moving issues. There are a variety of consumer protection elements built into the FRB and you can submit a complaint through them if you would like. Generally, however, consumer protection is handled through other agencies, so the FRB will more than likely point you in a different direction.
State and Local Sources
States have different names for the regulatory agency in charge of financial institutions—some use the words banking, insurance or finances. Regardless of the name, each state has an agency that is dedicated to consumer protection.
State Attorneys General are an additional source of consumer protection, in that they can help you investigate any issues you believe may be a crime. Note, that they will not necessarily help you resolve your specific issue, but are rather concerned with broad problems rising to the level of legal remedy.
State Congressional members or local legislators have offices with staff dedicated to helping constituents navigate their way through all sorts of problems, including financial ones.