CFPB Consumer Response Annual Report Complaints Are 79% for Reporting 7% for Collections

Complaints are a crucial component of any business’s integrity. But all too often complaints are overlooked because of the very nature of them. The rise of grievances being aired across social media platforms has desensitized many financial institution compliance professionals from identifying a problem that may exist. Many complaints are general grievances of dissatisfaction with a product or service that simply did not meet the customer’s expected level of satisfaction. But upon closer look, as a financial institution subject to many consumer compliance rules and regulations, there may be a direct link to an error, oversight, or operational weakness on the institution’s part. Although unintended, inadequate complaint management processes can result in significant consumer monetary harm, increased regulatory scrutiny, and negative reputational effect or loss of customer growth.

Is anyone listening?

While it may appear that consumer complaints are going unheard, the Consumer Financial Protection Bureau (CFPB) and other regulating bodies are absolutely listening. The CFPB, who generally oversees depository institutions and non-depository financial institutions, encourages consumers to report complaints regarding financial products and services through their website.[1] Complaints submitted to the CFPB are not just limited to those reported by the general public, the CFPB may receive complaint referrals from the White House, congressional officers, and other federal and state agencies.

Each year the CFPB publishes an annual report of complaints received throughout the year. The CFPB accepts, responds to, and monitors complaint activity deriving from all 50 states, the District of Columbia, Puerto Rico, and other U.S. territories. The report encompasses a detailed breakdown of all consumer complaints reported to the CFPB between January and December.

The 2023 report shows approximately 1,657,600 complaints were reported to the CFPB from consumers.[2] The majority of complaints (81%) were sent to the companies for review and response, and only 13% were found to be non-actionable complaints. Other highlights include:

• Complaints from Georgic, Florida, District of Columbia, Delaware, and Nevada are the highest per capita.
• Complaints concerning consumer or credit reporting were the highest by volume; consumers are increasingly facing issues with information contained in credit reports and credit scores; the most frequently reported problem was due to “incorrect information on your report.”
• Consumer or credit reporting, debt collection, checking/savings accounts, and mortgage related complaints represented approximately 96% of all complaints.
• Issues relating to various financial products like credit cards, mortgages, and personal loans were often reported due to a lack of transparency or fairness in transactions.
• Complaints are categorically summarized in the following table: