There were only two categories of complaints filed by consumers with the Consumer Financial Protection Bureau that fell between 2022 and 2023 and debt collection was one of them. In fact, the size of the drop was also the largest in terms of the number of complaints and the percentage change year over year. There were 109,900 complaints filed by consumers about debt collection which was down from 115,800 complaints in 2022.
Credit reporting was the most common category of complaint filed in 2023, accounting for nearly 80% of all complaints (debt collection complaints accounted for 7%, which was second). The number of credit reporting complaints increased 34% from 2022 to 2023, which was the third-highest increase behind credit card complaints (which increased 38%) and vehicle loans or leases and prepaid cards (which both increased 34% on a year-over-year basis).
Among the different types of complaints, debt collection and credit reporting were the only two categories where the volume of complaints that were closed with monetary relief was below 1%. For prepaid cards, it was 24%, by comparison.
Looking at the types of debt collection complaints that were filed by consumers in 2023, “I do not know” was the most common type of debt complained about, representing 27% of all complaints, filed by “other debt” (25%), and credit card debt (23%). Interestingly enough, medical debt, which the CFPB has focused on intensely for the past seven months, accounted for 11% of complaints.
Attempts to collect a debt that was not owed was the most common complaint filed by consumers, accounting for 53% of complaints, followed by written notification about a debt (19%), and taking or threatening to take negative or legal action (10%).
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