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CFPB issues new consumer complaint report
The CFPB Thursday issued a new report that recognized a significant increase in consumer complaints over the last 18 months, particularly in loan origination and credit reporting. Of note, complaints regarding loan origination are 50% higher than they were at the beginning of 2018, while student loan servicing and performing and delinquent servicing complaints declined.
In addition, the report identified that complaints differed in wealthier communities and communities with higher percentages of white residents from communities of color and lower income communities.
“The report, the first analysis of its kind, finds that consumers from lower income and predominantly Black and Hispanic communities submitted credit reporting and delinquent servicing complaints at a higher rate per resident than consumers from higher-income and predominantly white, non-Hispanic communities, who were more likely to submit complaints related to loan origination and performing servicing,” said CFPB Acting Director Dave Uejio in the release. “Asian American and Pacific Islander communities had higher rates of submitting credit reporting complaints than predominantly white, non-Hispanic communities; however, they also had a lower share of delinquent servicing complaints.”
NAFCU will continue to provide credit unions with insights from the CFPB, especially as it relates to consumers. View the full report here.