The CFPB report titled, "Consumer complaints throughout the credit life cycle, by demographic characteristic," revealed that complaints from wealthier communities and communities with higher percentages of white, non-Hispanic residents were more frequently about loan origination and performing servicing, while the complaints from communities of color and lower-income communities were more frequently about credit reporting, identity theft, and delinquent servicing.
Additionally, a larger increase in complaints about loan originations in 2020 was centered in higher-income census tracts with fewer minorities. The CFPB also reported that census tracts with the highest share of white, non-Hispanic consumers submit complaints about loan originations at more than twice the rate as the census tracts with the highest share of Black or African American consumers.
“Today’s report confirms that the experiences and concerns of communities, with consumer financial products and services, vary by race and wealth,” said CFPB acting director Dave Uejio. “Our consumer complaint data is a crucial tool for understanding varying consumer experiences, including across racial and economic divides.”
Unsurprisingly enough the CFPB stated that the volume of consumers submitting complaints to the CFPB has increased significantly over the last 18 months, from February 2020 to July 2021. The bureau experienced a large increase in the volume of consumers with credit reporting and loan origination complaints that roughly coincided with the declaration of COVID-19 national emergency in March 2020.
