On August 25, 2015, the CFPB released its monthly consumer complaints snapshot. This is the second monthly report highlighting trends from consumer complaints. Each month, the report focuses on a specific product, provides an overview of national complaints, and provides a geographic spotlight.
This month the snapshot called out data derived from consumer complaints about credit reporting companies. The CFPB noted a drastic increase month over month and year over year for this product. Specifically, the data showed a 56% increase from last month and an increase of over 45% compared to the same time period last year. A vast majority of these complaints involved incorrect information showing up on credit reports. Approximately 97% of the complaints involved the three nationwide credit reporting agencies.
Nationally, the most complained about financial product or service was debt collection, representing almost a third of all complaints. In addition, the snapshot noted that consumer loan complaints, including pawn loans, title loans, and installment loans, showed the greatest increase in reports filed, increasing over 60% year over year. Conversely, bank account or service complaints showed the greatest decrease year over year of 4%.
Rounding out the report, the CFPB reported on complaints coming out of the Los Angeles, California metro area. The most complained about product in Los Angeles was mortgages, representing 35% of total complaints—7% higher than the national average. Los Angeles also registered fewer credit reporting and debt collection complaints than the national average.
For more information, please contact Venable's CFPB Task Force.