CFPB Snapshot: Prepaid Complaints Drop 21% from Previous Month
It may come as no surprise that the CFPB’s latest monthly complaint snapshot released Oct. 25 focuses on complaints related to prepaid products, considering the agency released its long-awaited final prepaid accounts rule earlier this month. But despite the bureau’s contention that “the report shows that consumers continue to experience issues trying to manage their accounts and access funds,” prepaid-related complaints to the bureau dropped 21 percent in September and continue to be dwarfed by complaints consumers made about other products. The CFPB received 192 complaints in September, down from 244 the previous month. What’s more, the CFPB received a total of 26,372 complaints across several industries, and the monthly total for prepaid represents less than 1 percent of that total.
“With complaints regarding prepaid accounts hovering near 0.6 percent of total complaints submitted, the CFPB’s monthly consumer complaint report simply highlights the strong value proposition our products provide to consumers and the commitment the industry has made to quickly resolve disputes before consumers feel compelled to file a complaint with the bureau,” Brad Fauss, NBPCA president and CEO, tells Paybefore.
The 192 complaints related to prepaid products received last month is below the monthly average of 215 complaints. The three-month average total of complaints lodged against prepaid products during July through September this year increased 18 percent to 215 compared with an average of 182 during the same period a year ago.
The 192 prepaid complaints received last month were dwarfed by the top three categories: debt collection (7,352), credit reporting (4,715) and mortgages (4,501).
“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.”
According to the report, consumers complained about transactions they did not recognize appearing on their accounts, difficulty registering and using prepaid cards after purchasing them, claims of stolen funds that resulted in “prolonged investigations,” and delays receiving credit on cards after notifying the company of fraudulent or unauthorized transactions.
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