WASHINGTON—Problems opening and managing an account were the number-one complaint of consumers when it came to financial institutions during October, according to the CFPB’s just-released “complaint snapshot.”
In the same report, the CFPB also noted a high number of consumers were complaining about problems with accounts being closed “without explanation,” while residents of Idaho showed the biggest increase in complaints.
As of Nov. 1, 2015, the Bureau said it had handled approximately 75,300 bank account or service complaints. Some of the findings in the snapshot include:
- Problems opening and managing an account: Of all the complaints about this product, 44% involved consumers complaining about account management. Consumers complained about not being able to open an account. Many of these consumers complained that they were uncertain as to the reasons why they were unable to open an account, the CFPB said. In addition to problems opening accounts, consumers also submitted complaints saying their account was closed with no explanation.
- Consumers struggle to dispute transactions: Some consumers complained about being unable to obtain resolution for disputed transactions on their accounts. These consumers reported issues when they tried to submit complaints over the phone, as well as problems receiving refunded payments for cancelled transactions, the CFPB said.
- Issues with depositing and withdrawing funds: Consumers complained about having restricted access to their funds and blocks being placed on their accounts. More specifically, consumers submitted complaints saying holds were placed on deposited checks, and that they were unable to make deposits via their mobile wallets.
- Most-complained-about companies: Bank of America, Wells Fargo, and JPMorgan Chase were the three companies about which the CFPB has received the most bank account or service-related complaints. Between June and August 2015, the three companies averaged around 229 such complaints. “Company-level information should be considered in the context of company size and activity in the relevant market,” the CFPB reminded.
According to the CFPB, company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. That data lags other complaint data in the report by two months to reflect that companies are expected to close all but the most complicated complaints within 60 days. After the CFPB forwards a company the complaint, the company has 15 days to respond, confirming a commercial relationship with the consumer.
As of Nov. 1, 2015, the CFPB has handled 749,400 complaints nationally. The CFPB said that some of the highlights from the statistics in this month’s snapshot report include:
- Complaint volume: For October 2015, the most-complained-about financial product or service was debt collection, representing about 28% of complaints submitted. Of the 24,300 complaints handled in October, approximately 6,903 of them were about debt collection. The second most-complained-about consumer product was credit reporting, accounting for approximately 4,588 complaints. Overall, the CFPB saw a 6% rise in complaint volume between September and October 2015.
- Product trends: In a year-to-year comparison examining the time periods of August to October, complaints about prepaid products rose 193%. Between Aug. 1 and Oct. 31, the CFPB received 417 complaints about prepaid products. Payday loan complaints showed the greatest decrease—20%—during the same time period.
- State information: Idaho showed the greatest complaint volume increases from the same time last year by a wide margin. The volume of complaints from Idaho rose by 66%, while the next largest complaint volume increase—Arkansas—rose by 42%.
- Most-complained-about companies: The top three companies about which the CFPB received the most complaints between June and August of 2015 were Equifax, TransUnion, and Experian. TransUnion’s complaint volume nearly doubled from the same time period in 2014.