The Consumer Financial Protection Bureau (CFPB) has released its most recent Monthly Complaint Report. Your BBB would like to share information contained in the report. Mortgage complaints were the product spotlight in this report. Consumers are still experiencing problems with mortgage servicing, especially during certain circumstances such as when they apply for loan modification to avoid foreclosure, according to the report.
CFPB Director Richard Cordray said in the Press Release announcing the report, “Despite strong protections that have been put in place to protect homeowners, this month’s complaint report shows consumers are still having problems when dealing with their mortgages. The Bureau will continue to work to make sure that consumers are being treated fairly on their mortgage issues.”
According to the report the mortgage market is the largest consumer financial marketplace in the country with a total value exceeding $10 trillion. The CFPB began accepting consumer complaints in 2011, and since that time they have processed approximately 192,500 mortgage-related complaints.
Consumers complained about
• Continued problems preventing foreclosure including delays, lack of information when applying for a loan modification, and loan servicers proceeding with foreclosure while the modification application is still being reviewed
• Mortgage companies transferring loans without notifying consumers resulting in confusion about where to make payments
• Having trouble making payments due to companies not accepting partial payments or not properly applying payments
The monthly report also contains a national complaint overview. Some highlights in the overview are
• The CFPB has processed 702,900 complaints nationally as of September 1, 2015. Debt collection was the most-complained-about financial product or service, about 29% of complaints submitted.
• Compared to 2014, consumer loan complaints increased by 47% and payday loan complaints decreased by 12%.
The CFPB accepts complaints on many consumer financial products, including credit cards, mortgages, bank accounts, private student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection, and payday loans. According to the Press Release, in June 2012 the CFPB unveiled its Consumer Complaint Database which is “the nation’s largest public collection of consumer financial complaints.”
Consumers may also file a complaint with your BBB at at www.bbb.org/complain. Both the BBB and CFPB Complaint Services are free to the public. On the BBB website, consumers may also read complaint details as well as consumer reviews on individual companies. Consumers can find helpful information on managing their finances at at www.bbb.org/council/managing-credit-made-simpler/new-to-credit/ and tips for managing debt at at www.bbb.org/debt/.
For more information you can trust, visit bbb.org/evansville.