WASINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) claimed in a report issued this week that it recovered more than $1 million in relief for servicemembers, veterans, and their families. And out of the approximately 14,100 complaints received over a four-year period, approximately 600 complaints were related to vehicle and other consumer loans.
This was the second report the CFPB issued on military-related complaints; the first one was released in May 2013. And like the May report, auto registered at less than 7% of complaints received by the bureau. Leading the way was mortgage with 4,700 complaints, followed by debt collection (3,800) and credit cards (1,700). The report, which covered the period from July 21, 2011, to Feb. 1, 2014, noted that complaint volume among military consumers has risen 148% from 2012 to 2013.
“As you can see in the report, our complaint volume has steadily risen since July 2011 when we first started taking complaints,” stated Holly Petraeus, assistant director for the CFPB’s Office of Servicemember Affairs. “I am particularly pleased to report that servicemembers, veterans and their families who complained to the CFPB about financial products and services have recovered more than $1 million.”
Approximately 62% of all complaints recorded by the CFPB were submitted through the agency’s website and 23% via telephone calls. Referrals from other regulators and agencies accounted for 8% of all complaints. The rest were submitted by mail, email and fax.
And of the total complaints received, 9,700 complaints were sent to companies for review and response. The remaining complaints were referred to other regulatory agencies (20%), found to be incomplete (6%) or are pending with the consumer or the CFPB (5%). Additionally, companies have responded to approximately 8,700, or 90%, of the complaints sent to them for response.
The most common auto- or consumer loan-related complaint, which the CFPB began accepting on March 1, 2012, related to managing the loan, lease or line of credit at 43%, followed by unable-to-pay issues at 23%. Issue related to taking out a loan accounted for 19% of auto- and consumer-related complaints.
Additionally, approximately 300 vehicle or other consumer loan complaints were sent to companies for review and response. The rest were referred to other regulatory agencies (34%), found to be incomplete (3%) or are pending with the consumer or the CFPB (2%).
Companies have responded to approximately 300, or 91%, complaints sent to them for response. The median amount of monetary relief reported by military consumers was $129 for the approximately 22 vehicle or other consumer loan complaints. The report also showed that consumers have disputed approximately 80, or 26%, company responses.
For mortgage-related complaints, the medium amount of relief was $470, followed by credit cards at $143 and bank account or service at $125.
To view the full report, click here.
