CFPB issues report on servicemember complaints

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The CFPB’s Office of Servicemember Affairs has issued a report on complaints submitted by servicemembers, veterans or their spouses and dependents (“servicemember complaints”) over the period from January 1, 2012 through December 31, 2012.

In 2012, the CFPB received 3,455 servicemember complaints, with predominately mortgage complaints, followed by credit card and credit reporting complaints. Of the mortgage complaints, the top issue was loan modification, collection and foreclosure. The top issues for credit card and credit reporting complaints were, respectively, billing disputes and incorrect credit report information.

For all servicemember complaints, the median monetary relief was $170. However, the median monetary relief for mortgage complaints and private student loan complaints was significantly higher than the overall medium relief. For mortgage complaints, the median monetary relief was $494 and for private student loans, such relief was $1866.

In October 2012, the Office of Servicemember Affairs, together with the CFPB’s Student Loan Ombudsman, issued a report on the servicing of student loans to servicemembers. The report indicated that, due to servicing errors, many servicemembers were not receiving various benefits for active-duty servicemembers with student loans to which they were entitled. The higher relief for private student loan complaints could in part reflect adjustments made to correct such errors.

Topics:  CFPB, Mortgages, Private Student Loans

Published In: General Business Updates, Consumer Protection Updates, Finance & Banking Updates, Military Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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