Having Problems with Your Bank?
You are not alone! It is more common than you think.
Topping the list is Mortgage issues followed by Debt Collection and Credit issues. Student and Consumer Loans accounted for less than 5% each of the reported problems.
Among the states, Californians topped the list with reported issues (17%), followed by Florida (11%) and Texas (9%).
Bank of America was the top bank with complaints against, followed by Wells Fargo. Equifax and Experian were next on the list, likely caused by credit reporting problems.
Mortgage Issues Top the List
Based on an analysis of over 750000 complaints from the Federal Financial Services Consumer Complaint Database, the top issues that consumers face when dealing with financial institutions are as follows.
- Mortgage Issues top the list at 225317 complaints.
- Debt Collection problems is the next at over 143000 issues.
- Let us not forget Credit Reporting issues at more than 137000 cases.
- Credit Card problems? You bet! More than 88000 cases.
- Bank Account problems come in next at over 85000 reports.
- Surprisingly for the amount of noise generated, Student Loan problems stand at 31000 issues, way less than some of the other issues.
The chart below shows the percentages of the issues reported.
Reporting the issue can help
This study confirms that reporting any issues you have to the concerned bank can help reduce the problem. 97% of issues reported elicited a prompt response from the company.
How Satisfying is the Response?
Of the issues reported and responded to by the company, 76% of the responses were satisfactory to the consumer. The consumer did not further dispute it.
How were the issues resolved?
This graph shows how the issues were resolved, including:
- Closed with explanation (564996 cases)
- Closed with non-monetary relief (93578 cases)
- Closed with monetary relief (50462 cases)
- Closed without relief (17863 cases)
- Closed (17446 cases)
- Closed with relief ( 5298 cases)
- Untimely response ( 4276 cases)
- In progress ( 4060 cases)
Companies with the Most Complaints?
These are 25 companies with the most complaints against them. While it might be that some companies are universally bad at dealing with consumers, most likely these companies service a lot of consumers so they might face a lot of complaints.
States with Most Complaints
These were the states whose residents were the most likely to complain (top 25 only). Again, this might be more dependent on the state population than anything.
Have a Mortgage? Watch out for these issues
Mortgages are the #1 issue that people are facing issues with. Among mortgages, loan modification, collection and foreclosures are the top issues.
Debt Collection Brings out the Worst
Filed for bankruptcy but the debt collectors keep calling? Most common problem followed by threatening arrest or jail for non-payment. Can you say “ruined my day”?
How about contacting your employer for non-payment? Real smart – eliminating the source of funds to repay.
Credit Reporters Must be Reported
Credit reporting issues fall into these major categories. Not surprisingly, incorrect information on the credit is the whopper. Failed to get a mortgage or a credit line increase? Here is the culprit.
And how about the “investigation” conducted by these reporting agencies? Can we vouch for them?
Here is a detailed look at the credit reporting issues.
How do Credit Card Companies Fare?
Again, we have here a problem with credit reporting, followed by balance transfer and credit card and debt repayment.
Banking on Banks
The most pressing issue with bank accounts was the issue of opening or closing an account.
Student Loans – Expensive Education
Less than 5% of the problems reported was with Student Loans. Probably because the students are not yet full aware of the deep hole they are in! The crunch comes later when they need to start paying it back.
For those loans that do not fall under credit card, student loans, etc. This category covered about 4% of the total issues. We present the details of these issues in the chart below.
For all the bad rap the payday loan gets, it accounted for less than 1% of the reported problems.
To recap, mortgages topped the list of issues when dealing with financial institutions, followed by debt collection and credit reporting. Prompt reporting of issues is important as 97% of consumer complaints elicited a response from the company, of which 76% did not result in further action by the consumer.