Consumers & Credit Cards: Confusion, Fraud, Disputes Posted by AVCU on 11:28 AM

The Consumer Financial Protection Bureau (CFPB) has issued a report on its first 3 months of collecting credit card complaint data. CFPB’s Consumer Response Office began with credit card complaints, but will now do similarly with home mortgages. The CFPB expects to handle all financial product complaints by the end of 2012. After monitoring 3 months of consumer credit card complaints, the CFPB's first report concludes:

1. Confusion - many complaints show consumers struggling to understand the terms of credit cards and associated products such as debt protection services. These complaints show a mismatch between consumer expectations and the way the product functions. 
2. 3rd-Party Fraud: Complaints show some alleged fraudulent credit card charges made by third parties. The CFPB has helped to obtain redress for defrauded consumers in these instances. In some cases, the Bureau has consulted with the appropriate criminal authorities. 
3. Factual Disputes: There are a large volume of complaints presenting factual disputes between consumer and issuer. The Bureau has generally found that issuers have been willing to resolve these complaints. 

Read the Consumer Response Credit Card Interim Report here.