Credit card complaints in the US on the rise

Credit card complaints in the US on the rise

Billing disputes and fraud, identity theft and embezzlement are among the most common complaints that US consumers have about their credit cards, according to the Consumer Financial Protection Bureau (CFPB).

Banking Technology‘s sister publication Paybefore reports.

The federal agency’s latest month snapshot report highlight credit card complaints, of which 116,000 have reached the CFPB since July 2011.

Credit card complaints account for 10% of all complaints received by the CFPB. Credit cards stand as the fourth-most-complained-about product.

The average monthly number of credit card complaints increased 17% between December 2016 and February 2017 compared with the same three-month period a year ago.

The average monthly number of prepaid complaints increased only 1% – from 219 to 220 complaints – over that same period.

Types of credit card complaints

Billing disputes account for 17%of those credit card complaints, the CFPB says.

Some of the other common complaints include:

  • Other – 11%
  • Fraud, identity theft and embezzlement – 10%
  • Closing and cancelling account – 7%
  • APR or interest rate – 6%
  • Late fee – 4%
  • Customer service – 4%
  • Advertising and marketing – 4%
  • Delinquent account – 3%
  • Credit determination – 3%

When it comes to the largest increase in credit card complaints by state, Mississippi led that pack with a 257% jump in December 2016 to February 2017 compared with December 2015 to February 2016. Washington, DC (93%) and Alabama (91%) also had high rates of growth in complaints.

For decreases in complaints, Rhode Island (down 32%), Oklahoma (22%) and Nevada (13%) were the leaders.

“Credit cards are a vital financial tool used daily by more than half of all adults in this country,” says CFPB director Richard Cordray. “Consumers deserve clear guidance and need to be able to resolve problems that arise with their cards.”