New York Fed Cites Jump in Credit Card Debt
By Charlene Crowell
Despite the rate of inflation slowing from last year’s 40-year high, elevated household costs still plague most families. Findings from recent reports from the Consumer Financial Protection Bureau (CFPB) and the New York Federal Reserve help illuminate the top financial concerns of consumers.
Congress requires CFPB to monitor and regularly publish reports on key credit issues. One such report is an annual compilation and analysis of the concerns consumers bring to its attention. Known as CFBP’s Consumer Response Annual Report, the 2022 edition shares that nearly two million consumers from every state as well as American territories like Puerto Rico and the Virgin Islands filed complaints last year.
Regardless of how complaints are filed – website, by telephone, or mail – each is monitored to assess compliance with consumer laws and risks in the marketplace. The agency allows up to 60 days from the date they receive complaints to provide a final response to the CFPB and the consumer. Last year, more complaints, per capita, came from Georgia than any other state, followed by Delaware, Florida, and the District of Columbia
Nearly 95 percent of these complaints in 2022 were about credit or consumer reporting; debt collection, credit card, checking or savings account; and mortgages. .
For example, 76 percent of last year’s complaints – or 978,00 total – were about the three national credit reporting bureaus, Equifax, Experian, and TransUnion. More than half of 2022 complaints in this category came from consumers under the age of 62, reflecting the importance of credit bureaus’ role in determining which consumers can access affordable credit to buy a home, secure auto financing, or obtain a credit card..
