Washington, Oct. 25, 2016 – Today the Consumer Financial Protection Bureau (CFPB) released a monthly complaint snapshot highlighting consumer complaints about prepaid products. The report shows that consumers continue to experience issues trying to manage their accounts and access funds. This month’s report also highlights trends seen in complaints coming from North Carolina. As of Oct. 1, 2016 the Bureau has handled approximately 1,008,500 complaints across all products.
“For many unbanked and underbanked consumers, prepaid products are a vital source of financial security,” said CFPB Director Richard Cordray. “We want to make sure consumers using prepaid products can easily access their funds and companies are working to resolve consumers’ issues.”
The Monthly Complaint Report can be found at: www.consumerfinance.gov/data-research/research-reports/monthly-complaint-report-vol-16/ Category Spotlight: Prepaid Products .
Prepaid products present an important financial alternative to consumers who are unable to utilize a traditional checking account. By loading funds onto prepaid cards, consumers can make payments, withdraw cash, receive direct deposits from employers, and send funds to other consumers. Last month the CFPB finalized rules requiring financial institutions offering prepaid products to limit consumers’ losses when funds are stolen or cards are lost as well as new Know Before You Owe disclosures for prepaid accounts. As of Oct. 1, 2016, the Bureau had handled approximately 6,000 prepaid product complaints. Some of the findings in the report include:
More information on prepaid accounts can be found at: consumerfinance.gov/prepaid National Complaint Overview
As of Oct. 1, 2016, the CFPB has handled approximately 1,008,500 complaints nationally. Some of the findings from the statistics being published in this month’s snapshot report include:
Geographic Spotlight: North Carolina
This month, the CFPB highlighted complaints from North Carolina and the Charlotte metro area. As of Oct. 1, 2016, consumers in North Carolina have submitted 27,600 of the 1,008,500 complaints the CFPB has handled, with 8,000 of them coming from the Charlotte metro area. Findings from the North Carolina complaints include:
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established consumer complaint handling as an integral part of the CFPB’s work. The CFPB began accepting complaints as soon as it opened its doors in July 2011. It currently accepts complaints on many consumer financial products, including credit cards, mortgages, bank accounts and services, private student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection, and payday loans.
In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints. When consumers submit a complaint they have the option to share publicly their explanation of what happened. For more individual-level complaint data and to read consumers' experiences, visit the Consumer Complaint Database at: www.consumerfinance.gov/complaintdatabase/ .
Company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. This data lags other complaint data in this 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 complaint to a company, the company also has 15 days to respond, confirming a commercial relationship with the consumer. Company-level information should be considered in the context of company size.
To submit a complaint, consumers can:
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov .
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information: bankcardlife.com?orid=33533&opid=1 .
Source: Company press release.
SRM acquires Accourt Payments Specialists
Alkami launches SDK wizard 'Merlin'
PSCU/Co-op, Gulf Coast Educators FCU team up
NVIDIA honors WPP for innovation in EMEA
Fime to support UAE’s domestic card scheme set up
Anna Porra joins Paymentology as CRO
Lemon raises £500K to help SMBs save on SaaS funding
BHMI releases 'Configurable Summary'