McGlinchey in the News
Consumer confusion prompts 22% increase in vehicle finance complaints to CFPB in 2020
Member Kelly Lipinski (Cleveland) was quoted in an Auto Finance News article on consumer confusion around loan modification programs and repossession moratoria.
The uptick in complaints may partly be due to the end of COVID-era credit reporting suspensions, as well as consumer confusion, Kelly Lipinski, member at McGlinchey, told Auto Finance News. She noted these complaints are expected to continue in 2021.
Probably next year’s report, we will see more specificity, maybe some greater volume of egregious activity, as companies start to ramp things up,” Lipinski said.
Auto also made up about 4% of the 82,700 debt collection complaints last year. The Bureau saw a 10% year-over-year increase in the number of debt collection complaints, and referred 16% more of those complaints to companies than the previous year, potentially reflecting a
“more engaged CFPB on debt collection issues,” Lipinski said.
“The fact that the CFPB referred more than the increase in the number [of complaints] that have been coming in suggests the CFPB … felt the need to protect consumers in a greater manner or obtain greater information from the companies,” Lipinski added, noting that COVID-19 may have been a factor.
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