CFPB: Mortgages no longer in top spot for complaints
Debt collection practices received the most complaints in March
The Consumer Financial Protections Bureau’s monthly consumer complaint report listed debt collection as receiving the most complaints from consumers in March, instead of mortgages.
This is the first time mortgages have not been No. 1 since the Bureau began accepting complaints in July 2011.
These numbers, however, are national, and some state still claim mortgages as the top complaint. In Florida, for example, it is the most complained about product, and produces about 30% of total complaints, according to the report.
For some, this is not surprising, as Florida is a judicial foreclosure state. Foreclosure processes take longer and even slow the market down in its recovery process in states that require judicial foreclosures, according to Pro Teck.
March’s trends show that the most common debt collection claim is collectors attempting to collect on debt that the consumer does not believe they owe, according to the report. As of March 1 2016, the bureau has handled 834,400 complaints across all products. Of those, about 219,200 have been debt collection complaints.
“Today’s report shows that inaccurate information about debts continues to be a source of frustration for many consumers,” said CFPB Director Richard Cordray. “We will continue to hold debt collectors accountable for ensuring that they are collecting the right amount from the right person.”