Retail complaints against banks soar
The OCC says complaints from retail customers of the 1,500 banks it regulates will hit 80,000 this year, according to the Associated Press. If that's accurate, it would be the highest in the 15 years the OCC has tracked complaints and more than double the 2008 total. Complaints are also pouring in at the state level.
What to make of all this? There's no doubt that there is a lot of anger over some obviously shoddy bank practices regarding foreclosures and loan modifications. The OCC says complaints about home loans will likely double to 36,000 this year, making it the No. 1 category. The media's increased reporting about various facets of the foreclosure fiasco certainly may have emboldened some.
Credit cards continue to account for the second most complaints. They now account for 22 percent of all complaints, compared with 37 percent in 2009.
Regulators say they are stepping up their activity, seeking to find solutions to the most common complaints. Banks also say they are mobilizing in spotty areas. The biggest banks are being forced to add a lot of staff or shift existing staff to deal with the new, more stringent foreclosure paperwork requirements.
All in all, it's clear that banks are suffering in terms of public opinion, and it will take years for the damage to be repaired. This cannot be discounted as banks plan their image campaigns for 2011.
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