Complaints Decline For Debt Collection, But Not For Credit Cards
According to the latest monthly complaint report from the Consumer Financial Protection Bureau, the complaint volume for debt collection has decreased by 10% over last year, while the complaint volume for credit cards has increased 7% over the same period. Total complaints across all sectors were roughly the same between the second quarter2015 and the second quarter 2016, at 23,979 and 23,968, respectively.
Student loans saw the biggest increase in complaint volumes, jumping up 64%. Payday loans saw the biggest decrease in complaints, dropping 19% over the term. The three companies receiving the most complaints were Equifax, Experian, and Transunion, followed by Bank of America and Wells Fargo.
Since its inception, the CFPB has handled approximately 954,400 complaints. The new data suggests a shift in the way consumers perceive their financial institutions and credit reporting agencies. Even though the total number of complaints has not shifted much from year to year, the types of complaints people are submitting has changed significantly.
The CFPB recently proposed new regulations on debt collectors to help protect consumers from harassing collection attempts. The rules would allow consumers to control when and how debt collection agencies got in touch with them, and would force debt collectors to verify a person’s identity before contacting them about a debt. If enforced, these regulations could help further decrease the debt collection complaints coming into the agency.