YouÕre Not Alone CFPB... · 2019-05-09 · ,01.-,." $! !!

May 2019

You’re Not Alone: CFPB Complaints On The Rise

You're Not Alone CFPB Consumer Complaints on the Rise

U.S. PIRG Education Fund

Ethan Lutz, Mike Litt, and Ed Mierzwinski

May 2019

Acknowledgments U.S.PIRGEducationFundsincerelythanksIraRheingold,ExecutiveDirectoroftheNationalAssociationofConsumerAdvocates,andRuthSusswein,DeputyDirectorofNationalPrioritiesforConsumerAction,fortheirreviewofadraftofthisreport.U.S.PIRGEducationFundthankstheFordFoundationforsupportingourworkonconsumerprotectionissues.Additionalthankstoindividualcontributorsfortheirgeneroussupportofourworkontoxics,publichealth,andconsumerissues.Theauthorsbearresponsibilityforanyfactualerrors.PolicyrecommendationsarethoseofU.S.PIRGEducationFund.Theviewsexpressedinthisreportarethoseoftheauthorsanddonotnecessarilyreflecttheviewsofourfundersorthosewhoprovidedreview.TheCFPBdidnotcontributetothisreportnordoesitendorsethisreport,U.S.PIRGEducationFund,oritsaffiliates.SomeRightsReserved:2019U.S.PIRGEducationFund.SomeRightsReserved.ThisworkislicensedundertheCreative

CommonsAttribution4.0License.Toviewacopyofthislicense,visithttps://creativecommons.org/licenses/by/4.0/orsendalettertoCreativeCommons,POBox1866,MountainView,CA94042,USA.CoverPhotoiStockCredit:Nikolaev AboutU.S.PIRGEducationFund:Withpublicdebatearoundimportantissuesoftendominatedbyspecialinterestspursuingtheirownnarrowagendas,U.S.PIRGEducationFundoffersanindependentvoicethatworksonbehalfofthepublicinterest.U.S.PIRGEducationFund,a501(c)(3)organization,workstoprotectconsumersandpromotegoodgovernment.Weinvestigateproblems,craftsolutions,educatethepublic,andoffermeaningfulopportunitiesforcivicparticipation.FormoreinformationaboutU.S.PIRGEducationFundorforadditionalcopiesofthisreport,pleasevisitwww.uspirgedfund.org.

Table of Contents Executive Summary 1

Consumer Complaints by Company 2

Consumer Complaints by Product 10

Consumer Complaints by State 16

Conclusion 20

Methodology 21

End Notes 24

You’re Not Alone: PIRG’s CFPB Consumer Complaint Database Report May 2019 1

Executive Summary Createdinthewakeofthe2008financialcrisis,theConsumerFinancialProtectionBureau,orCFPB,hasbeenacriticalallyforconsumersinthefinancialmarketplace.Throughoutitshistory,theCFPBhassecured$12.4billioninreliefformorethan31millionwrongedconsumers,1providedrecoursetoconsumersfacingproblemswithfinancialcompanies,andactedagainstcompaniesthatbreakthelaw.Inlate2011,theCFPBestablishedits“ConsumerComplaintDatabase,”whichismeanttofacilitateresolutionstoproblemsfacedbyconsumersandholdcompaniesaccountable.TheCFPBhasreceivedmorethan1.5millioncomplaintsandpublished1,197,145ofthemasofJanuary14th,2019.23In2018, theCFPBpublishedmore than257,000complaints,more thananypreviousyear. Inabout97%ofcases,companiesrespondtoconsumersinatimelymanner.The CFPB database can be searched and filtered by several criteria, including by company, byproduct,bystate,andbyresponsefromthecompany.Usingthisdataset,wewereabletoidentifyproblems in the financial marketplace, as well as suggest actions that can improve consumers’financialexperiences.Inthisreport,weanalyzethecomplaintdatabaseonanationalandstatelevelandproviderecommendationsforhowtoprotectconsumers.Keyfindingsinclude:

● Nearly half of the complaints in the database are filed against ten companies: Equifax,Experian,TransUnion,BankofAmerica,WellsFargo,JPMorganChase,Citibank,CapitalOne,Navient,andOcwen.

● Thethreenationwidecreditreportingagencies-Equifax(9%ofcomplaints),Experian(8%)andTransUnion(7%)-arethemostcomplainedaboutcompaniesinthedatabase.Theyhavealsobeenthemostcomplainedaboutcompaniesforeachofthepastfouryears.

● “Credit reporting, credit repair services, or other personal consumer reports” complaintsmadeup43%oftotalcomplaintsin2018,upfrom23%oftotalcomplaintsin2016.

● “Credit reporting, credit repair services, orotherpersonal consumer reports” is themostcomplainedaboutproductcategoryin29statesandtheDistrictofColumbia,withEquifaxreceivingthemostcomplaintsin25statesandtheDistrictofColumbia.

● 69%ofcomplaintsinthedatabaseareaboutthreeproducts:“creditreporting,creditrepairservices,orotherpersonalconsumerreports,”“mortgage,”and“debtcollection.”

● 97 percent of complaints received a timely response. Additionally, more than 223,000complaints resulted in relief for consumers, including more than 75,000 who receivedmonetaryrelieffromthecompaniestheycomplainedabout


Consumer Complaints by Company Therewere1,197,145complaintsloggedintheConsumerFinancialProtectionBureau(CFPB)complaintdatabase,asofJanuary14th,2019.4Welookedatthesecomplaintsbycompany,product,andstate.Ofthenearly1.2millioncomplaintsinthedatabase,thetoptenmostcomplainedaboutcompaniesgeneratednearlyhalf(49%)ofalltotalcomplaints.(SeeFigure1.)Amongthosetoptencompanies,thethreemajorcreditreportingagencies(alsoknownasCRAsorcreditbureaus)-Equifax(9%oftotalcomplaints),Experian(8%),andTransunion(7%)-arethethreemostcomplainedaboutcompanies. Figure 1.

Thenextfivemostcomplainedaboutcompaniesarebigbanks-BankofAmerica,WellsFargo,JPMorganChase,Citibank,andCapitalOne.RoundingoutthetoptenareNavientSolutions,astudentloanservicer,5andOcwenLoanServicing,amortgageservicer.


Onastate-by-statebasis,Equifaxisalsothemostcomplainedaboutcompanyinhalfofthecountry.6EquifaxisfollowedbyBankofAmerica(11states)andWellsFargo(7States).(SeeFigure13.)Amongthemostcomplainedaboutcompanies,creditbureaushavebeenunderincreasingscrutinyinrecentyears.CreditbureaucomplaintsskyrocketedsincenewsofthemassiveEquifaxdatabreachinSeptember2017.(SeeFigure6.)ThefirmexposedtheSocialSecuritynumbersandbirthdatesofnearly150millionAmericans.7Still,creditbureauproblemsfacedbyconsumerslongprecedetheEquifaxbreach.Thethreenationalcreditbureaushavebeenthemostcomplainedaboutcompaniesforeachofthepastfouryearsinarow.(SeeTable1.) Table 1. Top 5 Most Complained About Companies Per Year

Rank 2018 2017 2016 2015 2014 2013 2012

1 Equifax Equifax Equifax Equifax Bank of America

Bank of America

Bank of America

2 Experian TransUnion Experian Experian Experian Wells Fargo Wells Fargo

3 TransUnion Experian TransUnion TransUnion Equifax JPMorgan Chase

JPMorgan Chase

4 JPMorgan Chase

Navient Wells Fargo Bank of America

Wells Fargo Citibank Citibank

5 Wells Fargo

Wells Fargo Bank of America

Wells Fargo

TransUnion Experian Capital One

Thethreecreditbureausdrew88,333ofthetotal257,193complaintsin2018,representing34%ofcomplaintsfortheyear.In2018,theleastcomplainedaboutcreditbureau(TransUnion)stillreceivedmorethanthreetimesasmanycomplaintsasJPMorganChase,themostcomplainedaboutnon-creditbureaufortheyear.(SeeFigure2.)


Figure 2.

Thecomplaintsagainstthethreenationwidecreditbureausareparticularlyworrisomesinceconsumersdonotchoosetodobusinesswiththesecompanies.Aconsumercanrespondtowrongdoingbyabank,forexample,bysimplychoosingacompetitor.Butwithcreditbureaus,youcannotvotewithyourfeet.Thebureauscollectandsellyourinformationwithoutyourconsent,whichiswhystrongoversightbytheCFPBisneeded.8Since2011,complaintsagainstthetopthreecompanies,Equifax,ExperianandTransunion,weremainlyaboutthe“creditreporting,creditrepairservices,orotherpersonalconsumerreports.”9ForBankofAmerica,JPMorganChase,andWellsFargo,thetopcomplaintproductcategorywas“mortgage.”ForbothCapitalOneandCitibank,“creditcardorprepaidcard”complaintswasthemostcommonproductcategory.(SeeTable2.)TheCFPB’sdatabasealsotrackswhethercomplaintswereresolved.Accordingtoa2018CFPBannualreport,“monetaryrelief”isdefinedas“objective,measurable,andverifiable”monetaryrelieftotheconsumerinresponsetothecomplaint.“Non-monetaryrelief”representsotherobjectiveandverifiablereliefinresponsetoacomplaint,includingmortgageforeclosurealternativesthathelpconsumerskeeptheirhomes,protectingconsumersfromunwanteddebtcollectioncalls,andcorrectingincorrectinformationoncreditreports.10


Table 2. Most Complained About Products for the Ten Most Complained about Companies Since 2011

Rank Company Most Complained About Product

1 Equifax Credit reporting, credit repair services, or other personal consumer reports

2 Experian Credit reporting, credit repair services, or other personal consumer reports

3 TransUnion Credit reporting, credit repair services, or other personal consumer reports

4 Bank of America Mortgage

5 Wells Fargo Mortgage

6 JPMorgan Chase Mortgage

7 Citibank Credit card or prepaid card

8 Capital One Credit card or prepaid card

9 Navient Solutions Student loan

10 Ocwen Loan Servicing Mortgage

Companiesprovidemonetaryornon-monetaryrelieftoconsumers18%ofthetime.Morethan223,000complaintsresultedinreliefforconsumers,includingmorethan70,000whoreceivedmonetaryrelieffromthecompaniestheycomplainedabout.(SeeTable3.)


Table 3. Company Responses to Complaints11

Company Response Number of Complaints Percentage of Total Complaints

Closed with explanation 944,180

79%

Closed with non-monetary relief 147,162

12%

Closed with monetary relief 75,887

6%

Closed (without relief or explanation)

17,611

1%

In progress 6,354

1%

Untimely response 5,945

1%

Companiescanalsoberankedbythepercentageofcomplaintsresultinginmonetaryornon-monetaryrelief.(SeeFigure3.)


Figure 3.

Ofthetenmostcomplainedaboutcompanies,complaintsagainstExperian,Citibank,andBankofAmericaresultedinthehighestpercentagesofrelief.(SeeTable4.)Atabout18%,Citibankhadthehighestpercentageofcomplaintsresolvedwithmonetaryrelief.Experian,whichprovidedthehighestoverallrateofrelief,resolvedjustunder1%ofcomplaintswithmonetaryrelief.Creditbureausarefarlesslikelytorespondtocomplaintswithmonetaryrelief,asallthreenationwideCRAsprovidedmonetaryreliefinlessthan1%ofthecomplaintsagainstthem.12ThereisalargedifferenceinthereliefratesbetweenExperiananditsdirectcompetitors,EquifaxandTransUnion.ComplaintsagainstExperianareresolvedwithrelief40%ofthetime,comparedto16%forTransUnionandEquifax.13AnFTCstudyfoundthataquarterofconsumersallegeincorrectinformationonatleastoneofthreecreditreports.14Duetothese mistakesoncreditreports,alackofreliefcouldpreventconsumersfromgettingapprovedforcreditorgettinghiredforajob. Ofthetenmostcomplainedaboutcompanies,NavientSolutionsandOcwenLoanServicingprovidedthelowestrateofrelieftoconsumers.ThisisparticularlyworrisomebecauseNavienthasbeenaccusedofmisappliedpayments,surprisefees,processingdelays,andsteeringofborrowersintomorecostlyrepaymentoptions.15OcwenalsorecentlysettledwithMassachusettsandagreedtopay$2millioninrestitutiontoborrowersduetoservicingabuses.16

obscure notices, processing errors,


Table 4. Top Ten Most Complained About Companies Ranked by Rate of Relief Provided to Consumers

Rank Company Total Complaints % of Complaints Resulting in Relief

% of Complaints Resulting in Monetary Relief

1 Experian 92,905 40% 1%

2 Citibank 46,733 32% 18%

3 Bank of America 80,215 25% 12%

4 Capital One 32,237 21% 11%

5 JPMorgan Chase 57,407 18% 12%

6 TransUnion 85,696 16% 0%

7 Wells Fargo 68,368 16% 9%

8 Equifax 104,208 16% 0%

9 Navient Solutions 27,696 7% 3%

10 Ocwen Loan Servicing

27,358 1% 1%

Onceacompanyrespondstoacomplaint,eitherwithorwithoutrelief,theconsumercanchoosetodisputetheresponsetothecomplaint.Consumersdisputedresponsesfromcreditbureausatthelowestrateforthetoptenmostcomplainedaboutcompanies,despitehavingsubmittedthemostcomplaintsagainstthesecompanies.(SeeTable5.)Ocwen,whichonlyprovidedrelieffor1%ofitscomplaints,hadthehighestrateofdisputedresponses.


Table 5. Top Ten Most Complained About Companies Ranked by Percent of Responses Disputed

Rank Company Total Complaints

Disputed Responses

% Disputed

1 Ocwen Loan Servicing LLC 27,358 5,719 21%

2 Bank of America, National Association

80,215 14,387 18%

3 Wells Fargo & Company 68,368 11,717 17%

4 JPMorgan Chase & CO. 57,407 9,523 17%

5 Citibank, N.A. 46,733 6,697 14%

6 Capital One Financial Corporation

32,237 3,655 11%

7 Navient Solutions, LLC. 27,696 3,083 11%

8 Equifax, Inc. 104,208 10,079 10%

9 TransUnion Intermediate Holdings, Inc.

85,696 5,638 7%

10 Experian Information Solutions Inc.

92,905 5,330 6%


Consumer Complaints by Product Inadditiontobreakingthecomplaintsdownbycompany,thedatabaseisalsobrokendownbyproductsthathavenegativelyaffectedconsumers.Whensubmittingacomplainttothedatabase,consumerscancurrentlychooseaproductfromninedistinctproductcategories.17Ofthenearly1.2millioncomplaintsfiledintheCFPBdatabase,69%areaboutthreetypesofproducts:“creditreporting,creditrepairservices,orotherpersonalconsumerreports,”“mortgage,”and“debtcollection.”(SeeFigure4.) Figure 4.

Complaintsaboutcreditreportingissueshaveskyrocketedinrecentyears.Creditreportingcomplaintsfor2018weremorethandoublethenumberforthesecondmostcomplainedaboutproduct,debtcollection.(SeeFigure5.)Creditreportingcomplaintsin2018comprisedover43%oftheyear’stotalcomplaints,upfrom23%in2016.(SeeFigure6.)


Figure 5.

Figure 6.

Mortgagecomplaintshavedeclinedoverthepastfiveyears,whiledebtcollectioncomplaintsaresteadilyincreasing.(SeeFigure7.)


Figure 7.

Creditreportingcomplaintshaveincreasedsincethe2017Equifaxdatabreachthataffectednearly150millionAmericans.The2017CFPBConsumerResponseAnnualReportsayscomplaintsagainstcreditbureausincludebreachcomplaintsaswellascustomerserviceissuesintheaftermathofthebreach.18However,complaintsagainstcreditbureausalsoincreasedduringrecentyearspriortothebreachascomparedtototalcomplaints,showingthatconsumerproblemswithcreditreportinggobeyondthedatabreach.In2018,61%ofconsumersidentifiedincorrectinformationastheirmainissuewithcreditreporting.19AccordingtoNationalConsumerLawCenter’sChiChiWu,causesofincorrectinformationincludefurnishersgivingcreditbureausincorrectinformation,creditbureausincorrectlymatchingindividualfiles,andcreditbureausfailingtoremovefraudulentactivityonreportscausedbyidentitytheft.20AccordingtoWu,incorrectinformationonacreditreport“cancostaconsumerthousandsofdollarsinhigher-pricedcredit,orworseyet,resultinthedenialofajob,insurancecoverage,anapartmentrental,theabilitytoopenasmallbusiness,ortobuyahouse.”21Stricterverificationstandardsareneededforcreditbureaustoconfirmcorrectinformation.Withinthecreditreportingindustry,thethreenationwidecreditreportingagencies(Equifax,Experian,andTransUnion)represent278,249creditreportingcomplaints,or85%ofallsuchcomplaints.(SeeFigure8.)MostcomplaintsagainsttheBig3creditbureauscitemistakesoncreditreports,whichtheymaybelessresponsivetosolvingbecauseconsumersarenottheirdirectcustomers.22


Figure 8.

Inthemortgageproductcategory,themostcomplainedaboutcompaniesincludemanyofthenation’slargestbanks.3outofthetop5companiesthatreceivedthemostmortgagecomplaintsareBankofAmerica,WellsFargo,andJPMorganChase.(SeeFigure9.)Thereasonforthishighnumberofcomplaintsmaypartiallyhavetodowiththesecompaniesbeingamongthelargestinthenationandthushavingasignificantshareofthemarketplace.However,thebiggestbanksengagedinabusivemortgagepracticesthatcontributedtothe2008economiccrash.A$25billionsettlementwasreachedwiththe5largestmortgageservicersin2012forabusessuchasdeceptiveloanmodificationofferingsandfailuretoprovidealternativestoforeclosure.23OfthemortgagecomplaintsintheCFPBdatabase,thetwobiggestissuesincludeproblemswhenconsumersstruggletopayandhavetroubleduringthepaymentprocess.24AccordingtoCFPBannualreports,someissuesthatconsumerswhoarestrugglingorunabletomakepaymentsfacearedelaysandambiguitywithmodificationapplicationsaswellassurprisefeesassociatedwiththeforeclosureprocess.25Consumersalsoreportproblemsduringthepaymentprocessduetoconfusionoverthetransferoftheirloantoanewservicerorachangeinthepointofcontact.26Byimprovingcommunicationchannelsandtransparency,mortgageprovidersandservicerscanimprovecustomerrelations.


Figure 9.

DebtcollectionisthethirdmostcomplainedaboutproductintheCFPBdatabase.Amongthecomplaintsfiledagainstdebtcollectioncompaniesin2018,attemptstocollectdebtnotowedisthemostcommonissuethatconsumersclaim,makingup44%oftotaldebtcollectioncomplaints.27Debtcollectionproblemsarisefromdeceptiveandpredatorytactics,includingtargetingconsumersthatdonotowedebt.Additionally,thefactthatthetoptenmostcomplainedaboutdebtcollectioncompaniesmakeupjust22%oftotaldebtcollectioncomplaintsmightbeanindicationthatthedebtcollectionindustryisnotasconcentratedasotherindustries.2829TheCFPBshouldcontinueitseffortstowarddraftingaruleondebtcollectionbutonlyifitensuresthatitsproposalsserveconsumers,notdebtcollectors.30AccordingtotheCFPB’sConsumerResponseAnnualReport,consumersoftencomplainedaboutdebtsappearingontheircreditreportswithoutreceivingwrittennoticeofthedebt.Insomecases,consumersclaimedtohavereachedouttothecompanytotrytoverifythedebtbutstruggledtogetaresponse.31Belowisachartshowingthetoptenmostcomplainedaboutdebtcollectioncompanies.(SeeFigure10.)


Figure 10.


Consumer Complaints by State ThenumberofcomplaintsintheCFPB’sdatabasevariesfromstatetostate.Weanalyzedcomplaintsbystatebyadjustingforthenumberofresidentslivingineachstate.32(SeeFigure11.)TheDistrictofColumbiahadthemostcomplaintsper100,000residents(924),followedbyDelaware,Georgia,Maryland,andFlorida.(SeeTable6.) Figure 11.


Table 6. Most Complaints per Capita per State

Rank State Total Complaints Population

Complaints per 100,000 Residents

1 DC 6,491

702,455

924

2 DE 5,843

967,171

604

3 GA 62,068

10,519,475

590

4 MD 34,691

6,042,718

574

5 FL 115,910

21,299,325

544

6 NJ 45,102

8,908,520

506

7 NV 14,848

3,034,392

489

8 CA 165,522

39,557,045

418

9 VA 35,330

8,517,685

415

10 NY 80,404

19,542,209

411

Wealsolookedatthemostcomplainedaboutcompaniesandproductsineachstate.WhileEquifaxisthemostcomplainedaboutcompanyinhalfofthecountry(25statesandDC),BankofAmericageneratesthemostcomplaintsin11states,includingontheWestCoastandinNewEngland,andWellsFargoisthemostcomplainedaboutin7states.(SeeFigures12and13).


Figure 12.

FIGURE 13.

*Equifaxreceivedthemostcomplaintsin25statesandtheDistrictofColumbia.Justascreditreportingisthemostcomplainedaboutproductnationally,itisalsothemostcomplainedaboutin29statesandDC.DebtcollectionisthemostcommoncomplaintinMontana,Nebraska,Oklahoma,SouthDakotaandWyoming,whilemortgageissuesmakeupthemostcommoncomplaintontheWestCoast,inNewEngland,andinsixotherstates.(SeeFigure14.)


Figure 14.


Conclusion Inthisreport,welookedatallcomplaintsintheCFPBcomplaintdatabaseandfoundthatconsumersarestillfacingproblemsinthefinancialmarketplace.TheCFPBhasreceivedmorethan1.5millioncomplaintsandpublished1,197,145ofthemasofJanuary14,2019.Asseeninouranalysisofthecomplaintsinthedatabase,nearlyhalfofcomplaintsinthedatabaseareagainsttencompanies,withthethreenationalcreditbureaus(Equifax,Experian,andTransUnion)receivingthemostcomplaints.Whenanalyzingtheproductsinthedatabase,“creditreporting,creditrepairservices,orotherpersonalconsumerreports,”“mortgage,”and“debtcollection”werethetopthreemostcomplainedaboutproducts,generating69%ofcomplaints.ActioncanbetakenbytheCFPBtoprotectconsumers,includingconductingoversightofthecreditbureaustoensurecompliancewiththeFairCreditReportingAct,introducingstricterverificationstandardsforcreditreportinformation,requiringmortgageservicersandoriginatorstoimprovetheircommunicationchannelsandtransparency,andcontinuingtodraftaruleondebtcollection.TheCFPBdatabasehasbeenausefultoolinhelpingresolveproblemsfacedbyconsumersandholdingcompaniesaccountable.Goingforward,weencouragetheCFPBtomaintainpublicaccesstoavibrant,transparent,andcompleteconsumercomplaintdatabasethatencouragesconsumers,competitors,academics,otherresearchers,andthecomplained-about-companiesthemselvestostudywaystoreformthemarketplace.


Methodology CFPBconsumercomplaintdataweredownloadedfromhttps://www.consumerfinance.gov/data-research/consumer-complaints/onJanuary14th,2019.ComplaintsweredownloadedinbulkasaCSVfile,andtotaledbycompany,product,relief,andstateusingMicrosoftAccess.WeanalyzeddatapostedinthedatabasefromDecember1st,2011,whentheCFPBbegancollectingcomplaints,toJanuary14th,2019,whenwedownloadedthedata.ThisanalysisreflectsonlythosecomplaintspublishedintheCFPB’sonlineConsumerComplaintDatabase.Asaresult,complainttotalsandbreakdownsareslightlydifferentfromtheCFPB’sowncomplaintresearch,whichisbasedontotalcomplaintsreceived,ratherthanjustthosecomplaintsthatarepublished.33TheCFPB’sonlinecomplaintdatabaseonlypublishescomplaintsthatinvolvefinancialproductswithintheCFPB’sjurisdiction,aresubmittedbyconsumerswithprovencommercialrelationshipswiththeidentifiedcompanies,arenotduplicatecomplaints,andarenotwhistleblowercomplaints.34 PopulationdataweretakenfromtheU.S.CensusBureau2018NationalandStatePopulationEstimates.35Wethendividedthenumberofconsumercomplaintsbyindividualstatepopulationstonormalizeforstatepopulationsize.Tablecalculationsinvolvingpercentageswereroundedtothenearestwholenumber,meaningthetotalpercentagemaynotaddupto100%. Product Labels InApril2017,labelsforproducts,issues,andsub-issuesintheCFPBdatabasechanged.Forthepurposeofthisreport,wecombinedoldandnewlabelsthatrepresentthesameproductcategories.WefollowedtheCFPB’sguideonwhicholdandnewlabelsrepresentthesameproductcategories:https://files.consumerfinance.gov/f/documents/201704_cfpb_Summary_of_Product_and_Sub-product_Changes.pdf.Below(Table7)arethenewproductlabelsasofApril2017,withanexplanationofwhicholdlabelscorrespondwiththem.


Table 7. Product Category Name Changes

Current Product Label Previous Labels

Credit reporting, credit repair services, or other personal consumer reports

Credit reporting and Credit repair (which was a sub-product of Other financial services)

Mortgage No change to label

Debt Collection No change to label

Credit card or prepaid card Credit card and Prepaid card (excluding the Mobile wallet sub-product)

Checking or savings account Bank account or service

Student loan No change to label

Vehicle loan or lease Vehicle loan and Vehicle lease (which were sub-products of Consumer loan)

Payday loan, title loan, or personal loan

Payday loan and Installment loan, Pawn loan, Title loan, and Personal line of credit (which were sub-products of Consumer loan)

Money transfer, virtual currency, or money service

Money transfers; Mobile wallet (which was a sub-product of Prepaid card); and Check cashing, Debt settlement, Foreign currency exchange, Money order, Refund anticipation check, and Traveler’s/Cashier’s check (which were sub-products of Other financial services)


Company Response Labels Companyresponselabelschangedinthedatabaseovertime.Wecombinedcomplaintswithdifferentcompanyresponselabelsthatrepresentedthesametypeofresponse.The“closedwithrelief”labelisanoriginallabelinthedatabasethatwasusedforcomplaintsthatwereonlyclosedwithmonetaryrelief.36Itwasdiscontinuedin2012.The“closedwithmonetaryrelief”labelisusedforcomplaintsthatresultedinobjective,measurable,andverifiablemonetaryrelieffortheconsumer.37Therefore,wecombined“closedwithrelief”complaintsand“closedwithmonetaryrelief”complaints.The“closedwithoutrelief”labelisanoriginallabelinthedatabasethatwasusedforcomplaintsthatwereclosedwithoutreliefbutwithanexplanation.38Itwasdiscontinuedin2012.The“closedwithexplanation”labelmeansthatthecompanyprovidedanexplanationthateithersatisfiedtheconsumerwithoutprovidingrelieforexplainedwhynofurtheractionwouldbetaken.39Therefore,wecombined“closedwithoutrelief”complaintsand“closedwithexplanation”complaints.The“inprogress”labelisusedwhenacompanyindicatesthatitneedsmorethanthestandard15calendardaystorespondtoacomplaint,givingthecompanyupto60calendardaystorespond.40The“untimelyresponse”labelisusedwhenaresponsetothecomplaintisprovidedbeyondthe15or60daytimeframe.41The“closed”labelwasusedforcomplaintsthatwereclosedwithoutrelieforanexplanationandwasdiscontinuedinApril2017.42


End Notes

1 Consumer Financial Protection Bureau, We’re the CFPB, accessed at https://www.consumerfinance.gov, 25 April 2019. 2 Ibid. 3 The CFPB cites a higher number of total complaints received. However, the CFPB’s online complaint database only publishes complaints that involve financial products within the CFPB’s jurisdiction, are submitted by consumers with proven commercial relationships with the identified companies, are not duplicate complaints, and are not whistleblower complaints. See Bureau of Consumer Financial Protection, Disclosure of Consumer Complaint Data, 25 March 2013. 4 We analyzed data posted in the database from December 1st, 2011, when the CFPB began collecting complaints, to January 14th, 2019, when we downloaded the data. See the methodology section of this report. 5 Navient was created to service federal student loans once serviced by Sallie Mae. While Sallie Mae now focuses on private loans, Navient services federal student loans. See Sallie Mae, Sallie Mae Board Approves Strategic Separation of Navient Corporation, Sets Record Date and Distribution Date (press release), 10 April 2014. 6 Equifax is the most complained about company in 25 states and the District of Columbia. 7 The loss of Social Security numbers and birthdates puts consumers at risk of identity theft and other types of fraud for the rest of their lives, as this information cannot be changed like a credit card number. For more information, see the U.S. PIRG report on the Equifax data breach: Mike Litt, U.S. PIRG Education Fund, Equifax Breach: One Year Later, 6 September 2018. 8 The Dodd-Frank Act of 2010 gave the CFPB enforcement, rulemaking, and supervisory authority over the national consumer reporting agencies for compliance with the Fair Credit Reporting Act (FCRA). Consumer rights under the FCRA include the right to dispute errors on credit reports, to receive a free annual report from each bureau, and to place free credit freezes. 9 The CFPB created the “credit reporting, credit repair services, or other personal consumer reports” product category on April 22nd, 2017. Previously, the product label was “credit reporting,” while “credit repair” was part of “other financial services.” We therefore combined complaints with those three labels for the purpose of this report’s analysis. For further explanation of how labels changed in the database and were combined for this report, see the methodology section of this report. 10 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019. 11 Company response labels changed in the database over time. See the methodology section of this report for an explanation of which company response labels we combined for this table and what the labels mean. 12 The most common credit reporting issue is “incorrect information on your report,” which can be resolved non-monetarily by correcting mistakes on reports. See Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019. 13 U.S. PIRG has not determined the reason for Experian’s better relief rates as compared to their competitors, Equifax and TransUnion. 14 Federal Trade Commission, In FTC Study, Five Percent of Consumers Had Errors on Their Credit Reports That Could Result in Less Favorable Terms for Loans (press release), 11 February 2013. 15Consumer Financial Protection Bureau, CFPB Sues Nation's Largest Student Loan Company Navient for Failing Borrowers at Every Stage of Repayment (press release), 18 January 2017. 16 Ben Lane, “Ocwen Settles with Massachusetts over Alleged "Widespread" Mortgage Servicing Issues,” Housingwire, 29 March 2019. 17 Product category labels changed in April 2017. There are currently nine products to choose from on the CFPB complaint form. For more information on the labels that have changed, see the methodology section of this report. 18 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2018. 19 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019.


20 For an explanation of these and other causes of credit reporting errors, see Chi Chi Wu, Testimony before the U.S. House of Representatives Committee on Financial Services, 26 February 2019. 21 Ibid. 22 In fact, a 2019 report shows that credit bureaus are biased against consumers in cases of a dispute. Credit bureaus take part in “parroting,” or adopting furnisher responses without reviewing the case themselves. See Chi Chi Wu, Michael Best, and Sarah Bolling Mancini, National Consumer Law Center, Automated Injustice Redux, February 2019. 23 United States Department of Justice, Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses (press release), 9 February 2012. 24 Mike Litt and Edmund Mierzwinski, U.S. PIRG Education Fund, Mortgages and Mortgage Complaints, July 2015. 25 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2016. 26 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2018. 27 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019. 28 The ten most complained about debt collection companies accounted for 50,341 complaints out of the 229,603 total debt collection complaints. 29 The CFPB's larger participant debt collection rule was estimated to apply to about 175 out of the 4,500 debt collection companies in the marketplace, which could also be an indication that this industry is not as concentrated as others. See Bureau of Consumer Financial Protection, Defining Larger Participants of the Consumer Debt Collection Market, 31 October 2012. 30 Bureau of Consumer Financial Protection, Consumer Financial Protection Bureau Releases Report on 2018 Administration of the Fair Debt Collection Practices Act (press release), 20 March 2019. 31 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2018. 32 See the methodology section of this report for how we normalized the data to account for state population size. 33 The CFPB has received more than 1.5 million complaints, but as of January 2019 it had published just under 1.2 million. 34 Bureau of Consumer Financial Protection, Disclosure of Consumer Complaint Data, 25 March 2013. 35 United States Census Bureau, 2018 National and State Population Estimates, 19 December 2018, available at https://www.census.gov/newsroom/press-kits/2018/pop-estimates-national-state.html. 36 Consumer Financial Protection Bureau, Consumer Response Annual Report, 31 March 2012. 37 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019. 38 Consumer Financial Protection Bureau, Consumer Response Annual Report, 31 March 2012. 39 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2019. 40 Ibid. 41 Ibid. 42 Bureau of Consumer Financial Protection, Consumer Response Annual Report, March 2018.

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