Collection Complaints Decline in September

Complaints logged against the collection industry by the Consumer Financial Protection Bureau dropped 22.4% in September (2,640) compared with August (3,232) but the number is expected to go up in the next few weeks, according to WebRecon, a Grand Rapids, Mich.-based company that pulled the data for an analysis.

In September 2013, there were 2,009 complaints filed against collectors, 31.4% lower than last month.

There were a total of 670 debt collectors complained about in September. The types of debt behind the complaints include:
    •    782 Other (phone, health club, etc.) (30%)
    •    577 Credit card (22%)
    •    547 Unknown (21%)
    •    345 Medical (13%)
    •    150 Payday loan (6%)
    •    91 Mortgage (3%)
    •    65 Auto (2%)

    •    44 Non-federal student loan (2%)
    •    39 Federal student loan (1%)

The breakdown of complaint types includes:
    •    1,135 Continued attempts to collect debt not owed (43%)
    •    486 Communication tactics (18%)
    •    414 Disclosure verification of debt (16%)
    •    250 False statements or representation (9%)
    •    179 Improper contact or sharing of info (7%)
    •    176 Taking/threatening an illegal action (7%)

 The status of September's complaints includes:

    •    1,846 Closed with explanation (70%)
    •    367 Closed with non-monetary relief (14%)
    •    193 In progress (7%)
    •    112 Closed (4%)
    •    81 Untimely response (3%)
    •    41 Closed with monetary relief (2%)

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