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Columbus – Ohio consumers file more complaints about Capital One than any other credit card company, according to a report released today by the Ohio PIRG Education Fund. The report, which looked at data from the Consumer Financial Protection Bureau’s (CFPB) public Consumer Complaints Database, also found that Ohio consumers are 19th most likely to file credit card complaints,
“The CFPB is empowering consumers to demand accountability from their credit card companies,” said Bryan Stewart, Associate for the Ohio PIRG Education Fund. “Finally, consumers ripped off by junky credit card add-ons or unfair billing disputes have somewhere to turn.”
The report, "Credit Cards, Consumer Complaints: The CFPB's Consumer Complaint Database Gets Real Results for Credit Card Holders"”, is the fourth in a series of reports by the Ohio PIRG Education Fund that analyze the complaints in the CFPB’s consumer complaints database. The CFPB has been accepting complaints about credit cards since July 2011, and has expanded since then to accept complaints about a variety of financial products and services. Previous reports in the series have analyzed complaints about bank accounts, private student loans, and credit reporting.
Some key findings:
- The most complained-about credit card company in Ohio is Capital One. Nationally, GE Capital Retail generated the most complaints when adjusted for purchase volume, followed by Capital One. Capital One also generated the most complaints overall.
- Nearly 40% of credit card complaints to the CFPB result in tangible relief to the consumer. Over 7,300 consumers have received monetary relief through the CFPB, and over 2,300 additional consumers have received non-monetary relief such as adjusting interest rates or correcting information with a credit reporting agency. In total, the CFPB has helped nearly 10,000 consumers get relief from credit card problems.
- The median amount of monetary relief for credit card complaints was $128.
- Ohio ranks 19th nationally in complaints per 100,000 residents.
- Consumers were most likely to complain about billing disputes (16 percent of complaints), followed by difficulties with APR or interest rates (10 percent) and trouble with identity theft, fraud, and embezzlement (7 percent).
- Consumers disputed about 20 percent of the responses from credit card companies.
In addition to the complaint database, the CFPB has numerous tools for making credit cards work better for consumers. It enforces provisions of the 2009 Credit CARD Act that helps consumers avoid penalty fees and unfair interest rate increases. And after a significant number of complaints about credit card add-ons, the CFPB’s first enforcement actions in 2012 addressed these issues head-on. CFPB actions against Discover, Capital One, American Express, Chase, and GE Capital Retail credit cards have totaled over $800 million in refunds to consumers.
“The CFPB does not just serve as a watchdog but takes proactive steps to address consumer complaints against credit card companies that cheat or use unfair and dishonest practices against them. When you file a complaint with the CFPB, you are demanding action and get results.” stated Senator Charleta B. Tavares, Assistant Minority Leader.
The report also highlighted several recommendations to the CFPB in order to improve the usefulness and accessibility of the database, such as developing a mobile app version for smartphone users. Most importantly, the CFPB should analyze the data regularly and continue to hold companies responsible for deceptive practices.
“The CFPB has taken great strides in holding credit card companies accountable,” said Stewart. “Thanks to its work with consumer complaints and enforcement actions, the CFPB is getting results for credit card holders.”
Download the report, “Credit Cards, Consumer Complaints: The CFPB’s Consumer Complaints Database Gets Real Results for Credit Card Holders” http://www.ohiopirg.org/reports/ohp/credit-cards-consumer-complaints.
This is the fourth in a series of five reports by the Ohio PIRG Education Fund that analyze the complaints in the CFPB’s public Consumer Complaints Database. The next report will analyze complaints relating to debt collection.
Visit the CFPB’s public Consumer Complaints Database: www.consumerfinance.gov/complaintdatabase/
The Ohio PIRG Education Fund works to protect consumers and promote good government. We investigate problems, craft solutions, educate the public, and offer meaningful opportunities for civic participation. www.ohiopirgedfund.org
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