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WBK Industry News - Federal Regulatory Developments

The CFPB Releases its November 2016 Complaint Report

According to the December 2016 Monthly Complaint Report (Vol. 18), as of December 1, 2016, the CFPB has handled over 1,058,100 complaints, including approximately 23,100 complaints in November 2016.

Complaints about student loans showed the greatest percentage increase from September – November 2015 (546 complaints) to September – November 2016 (1,202 complaints), representing about a 120 percent increase. Prepaid complaints showed the greatest percentage decrease from September – November 2015 (444 complaints) to September – November 2016 (183 complaints), representing about a 59 percent decline. Debt collection complaints represented more than any other type of complaint, representing about 6,730 of the total cumulative complaints (23,134) in November 2016. Debt collection, credit reporting and mortgage complaints continue to be the top three most-complained-about consumer financial products and services, collectively representing about 64 percent of complaints submitted in November 2016.

This month the CFPB spotlighted Debt Collection. The CFPB has handled approximately 285,800 debt collection complaints since July 21, 2011, making debt collection the most-complained-about product, representing 27 percent of total complaints. The most common issues are continued attempts to collect debts not owed (39%), communication tactics (18%), disclosure verification of debt (16%), taking or threatening an illegal action (11%), false statements or representation (9%) and improper contact or sharing of information (7%).

For this month’s complaint report ,Arizona and the Phoenix metro area are the CFPB’s geographical spotlight. As of December 1, 2016, about 23,300 complaints were from Arizona consumers, of which about 15,000 (64 percent) were from Phoenix.