The Consumer Financial Protection Bureau (CFPB) has provided Congress with its Consumer Response Annual Report for 2020. This report has shown an increase of nearly 54% over the previous year with 542,300 complaints.
More than half of these complaints, 58%, were associated with credit and consumer reporting companies. Followed by debt collection, credit card companies, bank account providers, and mortgage providers, respectively.
The increase in complaints is likely due to the effects of the pandemic on the consumer financial marketplace, which normally depends on consumers and companies responding to each other promptly. Due to the pandemic, this back-and-forth dialogue has been greatly disrupted, preventing a resolution to consumers’ problems.
This has been especially shown by complaints of inaccurate information on credit and consumer reports which were among the largest increases in complaints last year. In these cases, the credit reporting agencies, which bore the largest brunt of complaints, failed to provide as detailed of responses as in previous years, leaving more consumers than ever dissatisfied with the response.
In response, the CFPB announced they will release a report regarding complaints of incomplete or inaccurate information on consumers’ credit reports later this year.