Pub. 8 2018 Issue 3

12 www.azbankers.org An interesting decrease for March was that “Money transfer or service, virtual currency” decreased approximately 14% to 696. As noted previously, that category averaged 1,000 complaints each month for the first quarter of 2018. Comparing January 2018 to March 2018, there was an approximate 54% decrease in the number of complaints in March. The statistics indicate that January 2018 was an anomaly for the number of complaints in this category. In fact, January 2018 was the first time that the office received more than 1,000 complaints for this category and coincided with the large price drop in Bitcoin. Also, the Report includes a list of the average complaint per capita by state. It does not break down the type of complaints by state, but the list is interesting nonetheless as it shows the location of the complainants. Washington D.C. is the location of the most com- plaints per capita by a wide margin – nearly 60% more complaints per capita than the state with the second-most complaints, Dela- ware. In fact, Washington D.C. has more than 4 times the amount of complaints than 18 other states. This large discrepancy may likely be attributed to the fact that D.C. is the nation’s capitol, and, thus, the D.C. citizens are more aware of the CFPB’s ability to handle complaints. Generally, there are fewer complaints per capita in the Midwest states. This report also compares the changes in the number of complaints per state from the first quarter of 2017 to the first quarter of 2018. The three states with the largest increase in complaints were: Mississippi with a 30% increase, Alaska with a 29% increase, and Louisiana with a 19% increase. South Dakota, North Dakota, and Maine all had a significant decrease in the number of complaints with decreases of over 40%. Overall, there was an increase in the number of complaints in only 13 states. Debt collection remains one of the areas that consumers complain about most. When the CFPB receives a debt collection complaint, it contacts the companies for review and response. Over half of the debt collection complaints come from the “Other debt” and “I do not know” categories. Nearly 40% of those complaints were for “Attempts to collect debt not owed.” A prevalent issue was the lack of written notifications about the existence of debt. Some consum - ers did not learn of existing debts until the debts appeared on their credit report. In fact, they had to request information about the debt, including the amount in collection, from the debt collector. Tracking the types of complaints will be interesting over the com- ing months and years. Using the reports published by the CFPB, bankers have the ability to monitor the practices that are causing consumers the most problems, and an opportunity to correct any potential issues that may arise. To investigate the entire report, find it here: https://s3.amazonaws.com/files.consumerfinance.gov/f/docu - ments/bcfp_complaint-snapshot_debt-collection_052018.pdf. w Zack serves as Associate General Counsel for Compliance Alliance working on our hotline aiding members with compliance questions. He received his B.B.A in finance from the University of Texas at Austin and his J.D. from Baylor Law School. Prior to joining C/A, Zack specialized in tax law where he represented clients in front of the IRS.