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WBK Industry News - Federal Regulatory Developments

CFPB Releases June 2016 Complaint Report

The CFPB released its June 2016 complaint report which is the twelfth in its series of monthly complaint reports. According to the June 28, 2016 Monthly Complaint Report (Vol. 12) as of June 1, 2016, the CFPB has handled over 906,400 complaints, including approximately 23,800 complaints in May 2016.

Consistent with last month’s report, complaints about student loans showed the greatest percentage increase from March – May 2015 (683) complaints to March – May 2016 (1,098 complaints), representing about a 61 percent increase. Payday loan complaints showed the greatest percentage decrease from March – May 2015 (479 complaints) to March – May 2016 (405 complaints), representing about a 15 percent decline. As of June 1, 2016 debt collection complaints represented more than any other type of complaint, representing about 29 percent of complaints submitted in May 2016. Prepaid complaints showed the greatest month-over-month percentage increase (28 percent). Debt collection, credit reporting, and mortgage complaints continue to be the top three most-complained-about consumer financial products and services, collectively representing about 68 percent of complaints submitted in May 2016.

This month the CFPB spotlighted Consumer Loan complaints. The most common types of consumer loan consumers complain about are vehicle loans (52 percent) and installment loans (31 percent). The majority of complaints about consumer loans are those when consumers are managing the loan, lease, or line of credit, and problems when the consumer is unable to pay.

For this month’s complaint report, Arkansas and the Little Rock metro area are the CFPB’s geographical spotlight. As of June 1, 2016, about 4,200 complaints were from Arkansas consumers, of which about 1,600 (38 percent) were from the Little Rock metro area.