CFPB Monthly Complaint Report Focuses on Credit Reporting

The CFPB issued its monthly report on consumer complaints this week.  The report is a high level snapshot of trends in consumer complaints. The Report provides a summary of the volume of complaints by product category, by company and by state.  Additionally, it highlights a product type.  As it does monthly, the product “spotlight” rotates monthly. This month’s report highlights credit reporting which was last in the “spotlight” in August 2015.  In its press release, the CFPB confirmed that consumer reporting agencies, including specialty consumer reporting agencies, are a “major focus” for the CFPB. Here are the highlights of this month’s report:

 

• Complaint Volume by Product
  • The three products which yield the highest volume of complaints on a three month average remain debt collection, mortgage and credit reporting;
  • A trend worth noting is that the number of debt collection complaints remains almost flat;
  • For the three month period, student loans indicated the highest increase in change –  48% when compared to 2015; and
  • On a monthly basis, debt collection, mortgage and credit reporting complaints were all down in April compared to March.

• Highlighted Product: Credit Reporting
  • The CFPB notes that, as was the case last August, the overwhelming most common credit reporting complaint in July was incorrect information on credit reports (77% of all credit reporting complaints);
  • The CFPB report indicates that these complaints frequently involved accounts in collection for which the consumer complained were not accurately reflecting the status of the collection;
  • The CFPB report notes that consumers are reporting difficulties with disputing inaccuracies with their credit report.  A lot of these complaints center on issues with customer service. 
  • The report notes that the majority of the complaints the CFPB receives are directed at the three major consumer reporting rather than the furnisher of information; and
  • The Report also notes that the Bureau is receiving complaints against specialty consumer reporting agencies and highlighted complaints involving rental, background and employment screening complaints.  The Report highlights that consumers commonly complain that erroneous information reported by specialty consumer reporting agencies involve identity theft.