CFPB: Most debt collection complaints in 2023 were attempts to collect debts not owed.

In its annual Fair Debt Collection Practices Act (FDCPA) report, the Consumer Financial Protection Bureau (CFPB) identified the most common consumer complaints related to debt collection in 2023. The most frequent issue involved attempts to collect debts that consumers claimed they did not owe, making up 53% of all debt collection complaints submitted to the agency last year.

According to the CFPB, this trend was consistent with the complaints received in 2022.

Trends Contributing to Consumer Complaints

One factor the CFPB highlighted as a possible driver of these complaints is the growing "financialization" of consumer markets. This refers to the expansion of financial products and services, particularly in sectors like medical billing and rental housing, which has introduced new complexities and challenges for consumers.

Focus on Medical Debt

A significant portion of the report was dedicated to issues surrounding medical debt collection. Debt collectors were found closing or returning accounts, financial institutions were partnering with non-profit hospitals to offer medical credit products, and consumers reported difficulty navigating disconnected communication between medical providers, insurers, and debt collectors.

2023 Complaint Statistics

In total, the CFPB reported receiving 109,000 debt collection complaints in 2023. Of these: 9% were deemed non-actionable, 28% were referred to other regulatory agencies, and 63% were forwarded to companies for review and response.

Regulatory Actions & Enforcement

Beyond summarizing consumer complaints, the report also provided insights into CFPB supervisory examinations and enforcement actions. It detailed debt collection violations discovered during CFPB oversight efforts and highlighted legal actions taken by both the CFPB and the Federal Trade Commission (FTC) against debt collectors engaging in unlawful practices.