Every month, the CFPB utilizes its database of consumer complaints to highlight a specific product. This month’s product is credit cards.
“According to the CFPB Reports, credit card products are one of the most complained about financial service products, fourth only to debt collection, credit reporting and mortgage. Credit card providers and servicers should pay close attention to this month’s report as it highlights what are likely to be points of emphasis with regulators in upcoming examinations”
Many of the complaints gathered by the CFPB referenced billing disputes, account closures, and payments.
- “The most common complaint involves billing disputes. According to the report, consumers are confused as to how and when late fees can be assessed. Other consumers indicated confusion as to how to properly and timely make a billing error dispute. 16% of all credit card complaints are categorized by the CFPB as involving billing disputes.
- Another issue highlighted by the CFPB is the concern with credit card accounts being closed without notice due to concerns by the credit card companies as to fraud and identity theft.
- Consumers also complained about their inability to allocate payments as they desire and expressed confusion where portions of accounts were subject to differing interest rates, promotions, and expiration dates.
Overall, the Report did not contain any surprises. So what might the credit card industry expect to see from regulators? Based upon the current complaint trends, the credit card industry is likely to continue to see a continued focus on to their application of credit card payments, as well as scrutiny as to the accuracy of their disclosures for 0% balance transfers and other promotions.”
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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