Sens. Bob Corker (R-TN) and Charles E. Schumer (D-NY), members of the Senate Banking, Housing and Urban Affairs Committee, today introduced the Financial Consumer Hotline Act of 2008.

The legislation, also cosponsored by Sen. Lamar Alexander (R-TN), would establish a single, toll-free telephone number for consumers to call if they have a problem with their bank and want to speak to the appropriate regulatory agency.

Because banks and other institutions where consumers can deposit money in the United States are regulated by one of five federal agencies and potentially a state agency as well, people often don’t know who to call if they have a problem, it was stated.

“This bipartisan legislation will assist consumers in navigating the confusing web of federal regulations of the banking system through one simple toll-free number,” Corker said. “During my administration as mayor of Chattanooga, we recognized that our citizens had difficulty knowing who to call about city services, so we introduced a 3-1-1 call center to eliminate that confusion and witnessed a dramatic positive turnaround in the performance of city government. Establishing a similar one-stop shop for questions about America's financial institutions will enhance consumer protection and inject greater accountability in our nation's banking system, and I look forward to working with my colleagues to pass this bill so we can help Americans feel more secure about their bank accounts.”

“Figuring out who to get in touch with when you’ve got a problem with your bank can be very frustrating,” Alexander said. “This bill provides consumers with a common sense way to make sure they’re getting the help they need.”

The bill amends the Federal Financial Institutions Examination Council (FFIEC) Act to require the Council to establish a single telephone number that consumers with complaints or inquiries can call and be routed to the appropriate federal banking agency or state bank supervisor. The Act also requires the Council to issue a report six months after enactment on the agencies’ efforts to establish a public interagency Web site designed to direct and refer consumer complaints and inquiries received on the Internet to the appropriate federal or state financial regulatory agency.

According to testimony given to the House Committee on Financial Services, in the last five years, the Federal Deposit Insurance Corporation (FDIC) has redirected an average of 54.3 percent of the telephone complaints it has received, and an average of 30 percent of written ones. This is a very high percentage of the total complaints received and demonstrates the need for a one stop routing number.

The Federal Financial Institutions Examination Council is an existing interagency body established by statute to prescribe uniform principles and standards for financial institutions and to coordinate regulatory activity among the federal banking regulators. The Federal Reserve, the FDIC, the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS) are all members of FFIEC. The legislation directs FFIEC to set up the hotline and to work with state banking regulators to integrate them into the hotline service. Currently, federal banking regulators each have telephone and Internet contacts for consumers; this bill would create a central referral service and ensure that consumers were routed to the correct entity to handle their inquiry or complaint.