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CFPB Releases State-Level Snapshot of Consumer Complaints

Report Provides National and State-by-State Overviews of the Complaints Submitted to the Bureau

WASHINGTON, D.C. - Today the Consumer Financial Protection Bureau (CFPB) released a special edition of its monthly complaint report, providing a snapshot of consumer complaints submitted across the country. For each state and the District of Columbia, the report provides statistics on complaint volume, the products and services generating the most complaints, company response rates, and a look at complaints from servicemembers and older Americans. The report also gives a national overview and spotlights narratives submitted by consumers regarding their experience with the CFPB's complaint process. Overall, the Bureau has received over 1,218,600 complaints as of June 1, 2017.

"The Bureau's ability to receive and process consumer complaints enables us to hear directly from people about their concerns and helps us prioritize our work to protect others against similar problems," said CFPB Director Richard Cordray. "This report provides valuable information to the CFPB and the public about issues and trends we are seeing from each state."

View the report at the CFPB

More employers promoting financial wellness among employees

Surveys show employees' money angst hurts productivity

After several high-profile and well-paid professional athletes retired from their sport in near-bankruptcy, leagues began providing rookies with some financial coaching in addition to athletic coaching.

It's made a difference, as more players now have diversified portfolios to fall back on when their playing days are over.

When you boil it down, it's an example of a financial wellness program -- learning good habits to build wealth and avoiding financial mistakes. These days, businesses are adopting a similar approach, with financial wellness programs becoming a popular employee benefit.

SunTrust has just rolled out a financial wellness program and reports Home Depot, Delta Airlines, Equifax, McKee Foods, Waffle House, Haverty's, and 1-800 Contacts are among the early adopters.

Financial fitness programs

"More than 40% of Americans live paycheck to paycheck, and 75% report experiencing financial stress," said Bill Rogers, CEO of SunTrust. "Progressive companies can improve overall wellness in America by offering a financial fitness program for their employees."

Participating employees take part in workshops and online sessions to learn how to establish financial goals. The program stresses the importance of having an emergency savings fund and managing spending habits.

SunTrust says a follow-up survey found employees who had a household budget rose from 43% before the start of the program to 87% when it was completed. By the time the program ended, nearly all participants had set up an emergency funds and increased their contributions to retirement savings accounts by 35 percent. Read more at CONSUMERAFFAIRS

Who are the unbanked?

Consumer advocates often use the word "predatory" to describe payday lenders and check cashers, yet many Americans still turn to these services over traditional banks. Lisa Servon, a professor of city planning at the University of Pennsylvania, said that's because in many cases, it's a rational financial decision - or the only option. Her research, which included working as a check casher in the South Bronx and a payday lender in Oakland, California, aims to better understand who uses these services today and why.

Marketplace Morning Report host David Brancaccio spoke to Servon about her book, "The Unbanking of America: How the New Middle Class Survives." Below is a transcript of their conversation.

Brancaccio: So people bring in their paychecks. Just give me a sense of the types of jobs people were doing that would come in to that location in the South Bronx?

Servon: A lot of them were, I would say, kind of service sector work, restaurants, home health aides. People whose jobs I think epitomize a lot of the new jobs in the new economy, where people are getting paid by the hour instead of salary work - often jobs that don't come with benefits necessarily. I think that people often came in because they needed their money right away. If they deposited those checks in a bank, it would, they would take three or four days to clear. But if they brought them into the check casher, they could cash them for a small fee, give them the money right away, which they needed.

Brancaccio: That comment targets the most controversial part of this: the small or the big fee. Critics of payday lending say these places are a bad deal, and the subtext, it often suggests that it's about financial education. Anyone who knew anything about money would steer clear, but you conclude that it's a rational decision to turn to a payday lender like this? Read more at MARKETPLACE.ORG

Why your credit score could go up

KANSAS CITY, Mo. -- Twelve-million Americans credit scores will go up this weekend.

The changes come after the Consumer Finance Protection Bureau said the credit bureaus weren't doing enough to fix credit report errors. Now they will eliminate tax liens and civil disputes from credit reports.

"Your credit score actually affects a number of different things, everything from getting a loan, are you eligible to get a loan, but also the terms of the loan you are going to get," Adam Hoopes explained.

Estimates are the changes could boost people's score as much as 20 points.

"Twenty points when you are on the cusp of trying to get a loan can mean the difference between yes and no, but it can also mean the difference of the interest rate that they will give you the loan," Hoopes said.

While many see the changes as a positive, it's likely only to raise the scores of about seven-percent of Americans. It's still unclear the effect it will have on everyone else.

"The other school of thought is it is going to be a dilusion of all the scores, so the other 93 percent who don't have these items affecting their scores aren't going to go up and they are going to look lower in relative nature to these people, what I would say is probably somewhere in the middle," said Hoopes. Read more at FOX4KC.com

Why Are Lenders Loosening Credit Standards?

Lenders are continuing to loosen up their credit standards-and they plan to keep on doing it as the year goes on, according to the Q2 2017 Mortgage Lender Sentiment Survey released by Fannie Mae on Monday. In fact, the share of lenders who say they plan to ease credit standards on GSE, non-GSE, and government loans over the next three month has hit its highest point since the survey's inception.

Overall, the share of lenders who say they have eased credit standards has risen steadily since Q4 of last year. But this uptick in looser credit standards is no surprise, especially given the number of lenders who reported declining purchase activity this quarter.

"Across the three loan types, the share of lenders who reported growth in purchase mortgage demand dropped to the lowest net reading in years for the second-quarter period," Fannie Mae reported. "The drop in purchase mortgage demand also reflects the latest findings in the Fannie Mae National Housing Survey, in which the net share of consumers who reported that now is a good time to buy a home dropped to a record low. The results of both surveys mirror the ongoing narrative for housing: Tight inventory has pushed up home prices, which is weighing on affordability and constraining sales."

According to Doug Duncan, SVP and Chief Economist at Fannie Mae, lenders are concerned about being outpaced by their competitors. Read more at DS NEWS

State of Tennessee Treasury Department Acquires 7,674 Shares of Rent-A-Center Inc.

State of Tennessee Treasury Department boosted its position in Rent-A-Center Inc. (NASDAQ:RCII) by 17.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 50,849 shares of the company's stock after buying an additional 7,674 shares during the period. State of Tennessee Treasury Department owned about 0.10% of Rent-A-Center worth $451,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Barings LLC bought a new stake in shares of Rent-A-Center during the fourth quarter worth approximately $285k. United Capital Financial Advisers LLC boosted its stake in shares of Rent-A-Center by 11.1% in the fourth quarter. United Capital Financial Advisers LLC now owns 307,158 shares of the company's stock worth $3,456m after buying an additional 30,714 shares during the period.

Read more

Change how CFPB is run

Having just celebrated July 4, remember Americans support checks and balances: Opposing view

The Consumer Financial Protection Bureau's (CFPB) leadership structure must change to a bipartisan commission to promote greater accountability, fairness and transparency. A diverse group of experts directing the agency, as opposed to a single individual, would benefit consumers, small business and the economy.

The Financial CHOICE Act passed by the House is a good start to discuss reforming the Dodd-Frank Act. However, the House missed the opportunity to change leadership to a bipartisan commission at the nation's most powerful regulatory agency.

Advocates of maintaining the status quo at the consumer agency, or deconstructing it, fail to acknowledge the middle ground. The CFPB's current governing structure provides unilateral authority to a single individual to direct agency policy. Having just celebrated Independence Day, we should all be well aware Americans have a long history of supporting checks and balances.

In fact, a recent Morning Consult survey found voters across eight key 2018 battleground states prefer a bipartisan commission at the agency by a 3-1 margin. Only 14% believe the agency's structure should remain unchanged. Read more at USA TODAY

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