John Zasada, Compliance Consulting Director, Financial Institutions Group

On May 21, 2020, the Consumer Financial Protection Bureau (CFPB) released the Complaint Bulletin, reflecting complaint data received by the CFPB as of May 11, 2020. The bulletin discloses changes in overall complaint volume before and after the declaration of the COVID-19 pandemic. In 2020, 143,609 complaints have been received by the CFPB, with 4,541 related to COVID-19. At least 99% of the complaints were timely responded to by companies. More complaints were filed in March and April 2020 than in any other months in the CFPB’s history. Credit reporting and debt collection are the two most complained about issues. Mortgage and credit card complaints mention COVID-19 the most.

In terms of the content of the complaints, consumers were concerned about whether they will have to pay the lump sum at the end of the forbearance period. Many consumers stated companies offering forbearance periods told them there would be a balloon payment equal to the entire amount placed in forbearance. Some consumers indicated they needed a longer forbearance period and will not be able to make a lump sum payment in 90 days.

If you have any questions regarding compliance related to the COVID-19 pandemic, contact Doeren Mayhew’s regulatory compliance specialists.