The average household with credit card balances now owes $7,879, a surging trend indicating that consumers are reverting to pre-recession debt levels of more than five years ago.
The CFPB said its investigation found that the companies inaccurately reported information for more than 84,000 accounts on a “widespread and systemic basis.”
Bank repossessions — often the last phase of a foreclosure when the lender takes back ownership of a home — were up 60 percent last month, compared to a year ago.
The $21.3 billion in new credit card debt added in Q3 2015 is the largest third-quarter buildup since the Great Recession – 71% higher than the post-recession average.
One impact: Fewer homes for sale, especially lower-priced homes that are both more likely to be underwater, and more likely to be sought by first-time and entry-level homebuyers.
Auto loan balances increased for the 18th straight quarter, this time by $39 billion, and stand at $1.05 trillion as of the end of September.
A provision in the congressional budget bill allows companies to robocall Americans’ cellphones to collect any money owed to or guaranteed by the government, including federal student loans, mortgages and taxes.
Consumers’ most frequent complaints were about incurring late fees and credit report problems “due to confusing payment processing schedules and difficulty disputing bill inaccuracies,” the CFPB says.
Just 48 percent of millennials are aware of their credit score (compared to 60 percent of Boomers), and only 37 percent of millennials are confident in their ability to manage credit, finds a new report by LoanDepot.
“With one out of four student loan borrowers struggling to repay their loans or already in default, cleaning up the servicing market is critical,” said CFPB Director Richard Cordray.