WASHINGTON—The CFPB has released its latest monthly consumer complaint snapshot, highlighting consumer complaints related to debt collection.
The report shows that the most common debt collection complaint is about attempts to collect on a debt the consumer reported was not owed. As of March 1, 2016, the Bureau has handled approximately 834,400 complaints across all products.
“Today’s report shows that inaccurate information about debts continues to be a source of frustration for many consumers,” said CFPB Director Richard Cordray. “We will continue to hold debt collectors accountable for ensuring that they are collecting the right amount from the right person.”
Debt collection has been the most-complained-about financial product to the CFPB by consumers, the Bureau stated. As of March 1, 2016 the Bureau had handled approximately 219,200 debt collection complaints.
Some of the findings in the snapshot include:
- Collection on debts not owed: The most common debt collection complaint had to do with both first- and third-party debt collectors attempting to collect on a debt the consumer reported was not owed. These types of complaints accounted for 38% of all debt collection complaints submitted.
- Debt collectors repeatedly calling consumers: Another frequent complaint from consumers was about communication tactics used by debt collectors, the agency said. Consumers complained about receiving multiple calls weekly and sometimes daily from debt collectors. Consumers often complained that the collector continued to call even after being repeatedly told that the alleged debtor could not be contacted at the dialed number. Consumers also complained about debt collectors calling their places of employment.
- Consumers unable to verify debts owed: Consumers complained that they were not given enough information to verify whether or not they owed the debt that someone was attempting to collect.
- Most-complained-about debt collection companies: The two companies that the CFPB received the most debt collection complaints about were Encore Capital Group and Portfolio Recovery Associates, Inc. Both companies, which are among the largest debt buyers in the country, averaged over 100 complaints submitted to the Bureau each month between October and December 2015. In 2015, the CFPB took enforcement actions against these two large debt buyers for using deceptive tactics to collect bad debts.
Some of the highlights from the statistics in this month’s snapshot report include:
- Complaint volume: As of March 1, 2016, debt collection complaints represented 26% of total cumulative complaints submitted to the CFPB, surpassing mortgages as the most-complained-about product or service since the Bureau began accepting complaints in July 2011.
- Product trends: Complaints submitted relating to credit reporting rose 13% between January and February 2016. During the month of February, 3,832 credit reporting complaints were submitted to the Bureau.
- State information: Of the five most populated states, New York (12%) experienced the greatest month-to-month complaint volume percentage increase, while Texas (8%) experienced the greatest month-to-month percentage decrease. Complaints from the five most populous states, California, Texas, New York, Florida, and Illinois account for over 40 percent of complaints submitted to the CFPB since July 2011.
- Most-complained-about companies: The top three companies about which the CFPB received the most complaints between October and December of 2015 were Equifax, Experian, and TransUnion.