What We Know

CFPB Monthly Report Focuses on Debt Collection

May 23, 2016 | by Caren D. Enloe

The CFPB issued its monthly report on consumer complaints, and the focus was back to debt collection. The Report is a high-level snapshot of trends in consumer complaints and provides a summary of the volume of complaints by product category, by company and by state. Additionally, it highlights a product type and a geographic area. The focus of this month’s report centers on debt collection.

Here are the highlights:

  • Debt collection, mortgage and credit reporting continue to be the leaders in complaint volume;
  • Debt collections complaints comprise 26% of the total cumulative complaints received to date by the CFPB;
  • Credit reporting complaints showed the greatest month-over-month percentage increase with a 13% increase;
  • As was the case when the CFPB last highlighted debt collection in July 2015, the most common debt complaint involves collection attempts on debt not owed;
  • The second most common issue for first-party debt collectors centers on communication tactics;
  • The second most common issue for third-party collectors involves disclosure/verification of debt;

The Report also highlights the following additional concerns held by consumers:

  • Frequent or repeated calls from debt collectors;
  • Workplace phone calls; and
  • Refusals by debt collectors to honor requests to cease communication;

 

Caren Enloe is a partner who concentrates her practice in consumer financial services litigation and compliance, bankruptcy, and commercial litigation with an emphasis on creditor’s rights. She has a deep understanding of the complex compliance environment surrounding the financial services industry and regularly advises financial service companies on licensing and compliance issues involving state and federal consumer protection and finance statutes. Caren is the author of a daily blog titled: Consumer Financial Services Litigation and Compliance where she posts timely and informative updates regarding the CFPB, FTC, and a host of topical litigation issues involving consumer protection law....LEARN MORE

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