CFPB Debt Collection Complaints Surpass 3,300 in February
Service provider WebRecon determined vehicle financing cases still only represented a small amount of the complaints recently sent to the Consumer Financial Protection Bureau.
WebRecon chief executive officer Jack Gordon reviewed the regulator’s database and found the CFPB received 3,380 complaints associated with debt collection in February.
While the total amount represented a 3.1-percent jump on a sequential basis, the figure was nearly flat year-over-year. Furthermore, WebRecon noticed that just 2 percent of the total — only 73 cases — were connected with auto financing.
Gordon explained in a company blog post that the year-over-year rise in CFPB complaints registered in February wasn’t close to what he spotted in January when the overall figure moved 7.1 percent higher. But Gordon said the complaint total “will likely continue to edge up as more complaints go public.”
Gordon’s analysis also broke down the top reasons for the complaint, including:
— Continued attempts to collect debt not owed: 1,522 or 45 percent
— Disclosure verification of debt: 590 or 17 percent
— Communication tactics: 562 or 17 percent
— False statements or representation: 278 or 8 percent
— Improper contact or sharing of info: 252 or 7 percent
— Taking or threatening an illegal action: 176 or 5 percent
Finally, Gordon also shared the top 10 states where complaints originated, including:
1. California: 435
2. Florida: 304
3. Texas: 285
4. New York: 196
5. Ohio: 130
6. Illinois: 128
7. New Jersey: 125
7. Georgia: 125
9. Pennsylvania: 111
10. Tennessee: 95