The Consumer Financial Protection Bureau (CFPB) said this week that debt collection generated the most complaints about financial products or service received by in in August.  About 29 percent or 7,582 of the 25,732 consumer complaints it during the month were about collection practices while credit reporting was second with 5,733.  While the total number of complaints declined by nearly a thousand compared to July, consumer loans which include pawn, title, and installment loans have nearly doubled over the last year.  Payday loans had the largest percentage decrease, dropping 12 percent over the June-August period in 2015 compared to the same time-frame in 2014.  

As of Sept. 1, 2015 the Bureau has handled over 702,900 complaints across all financially-related products. Company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. This data lags other complaint data in this report by two months to reflect that companies are expected to close all but the most complicated complaints within 60 days.  After the CFPB forwards a company the complaint, the company also has 15 days to respond, confirming a commercial relationship with the consumer. The three companies about which the CFPB received the most complaints in August were the same three that topped the list the previous month; Equifax, Experian, and Bank of America.

Mortgages have been the source of the most consumer complaints overall since the CFPB began accepting them in 2011.  As of Sept. 1, 2015 the Bureau had handled approximately 192,500 mortgage-related complaints.

Complaints about mortgages in August were largely about servicing, particularly as related to distressed loans.  Over 50 percent of the mortgage-related complaints arose out of the inability of consumers to make payments.  Consumers complained of delays and a lack of information when applying for a loan modification. Additionally consumers complain that servicers often move forward with foreclosure proceedings while the consumer's modification application is still under review.  

Nearly a third of mortgage complaints came from consumers saying that they have trouble making the proper payments on their mortgage loans. Consumers describe companies not accepting payments of anything less than the full balance owed, or finding that their payments were not properly applied despite instructions from the consumer.

Consumers also reported experiencing confusion and frustration about where to make payments when loans are transferred. When the loan transfers occur, consumers complain that payments often increase unexpectedly. Consumers also say that they do not feel properly informed about their loans being transferred in the first place.

Wells Fargo, Bank of America, and Ocwen were the three companies about which the CFPB has received the most mortgage-related complaints. Between April and June 2015, the three companies averaged around 430 complaints per month but CFPB said company level information should be considered in the context of company size (it would be nice if they provided a 'complaint per loans' metric -ed).

"Despite strong protections that have been put in place to protect homeowners, this month's complaint report shows consumers are still having problems when dealing with their mortgages," CFPB Director Richard Cordray said. "The Bureau will continue to work to make sure that consumers are being treated fairly on their mortgage issues."

Consumers can submit complaints about financial products and services at the CFPB website, www.consumerfinance.gov/complaint/ or by phone, fax, or U.S. mail. Instructions for the later methods are also available on the website.