WASHINGTON–The Consumer Financial Protection Bureau (CFPB) has released its list of the top issues raised by consumers during 2021, and the top issue will look familiar.
At the top of the list, the 121,700 complaints received related to debt collection, with consumers complaining about debt not being theirs, problems with written notifications, and being threatened with a negative or legal action.
The data was included in the latest report to Congress on the CFPB’s activities under the Fair Debt Collection Practices Act (FDCPA).
According to the Bureau, attempts to collect a debt that the consumer reports is not owed has been the number-one complaint since the CFPB began accepting debt collection complaints in 2013.
Among consumers also reported that the debt resulted from identity theft (36%). In these complaints, consumers often reported that they learned about the debt after reviewing their credit report.
Also on the List
Other complaints related to debt collection include:
- The second-most-common issue cited in debt collection complaints received by the Bureau involve written notifications about debt, with 74% of consumers who complained about written notifications saying they had not received enough information to verify the debt. The CFPB said consumers claimed notices were vague and did not have sufficient information to identify the account in question; in their complaints, consumers often asked for additional information, including supporting documentation.
- The third most complained about issue was threats to take a negative or legal action. Including threats that consumers’ credit histories would be damaged. Other complaints related to seizures or attempts to seize property (9%), threats to arrest or jail consumers if they did not pay (5%), collection of or attempts to collect exempt funds such as child support or unemployment benefits (5%), being sued in a different state from where the consumer lives or where the consumer signed the contract (2%), or threats of deportation or turning the consumer over to immigration (less than 1%).
False Statements
The CFPB said the majority of complaints about false statements or representations were about attempts to collect the wrong amount from the consumer (81%). Consumers also reported companies impersonated an attorney or a law enforcement or government official (13%), indicated the consumer committed a crime by not paying debt (5%), or indicated that the consumer should not respond to a lawsuit (2%)
For the full report: Fair Debt Collection Practices Act Annual Report 2022
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