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ARM Industry Claims Increase Across the Board in August

ARM Industry Claims Increase August litigation rebounded with double-digit increases for the FDCPA, TCPA and FCRA as well as monthly consumer complaints to the CFPB, according to the latest report from WebRecon.

10/07/2022 2:20 P.M.

2 minute read

WebRecon’s latest report shows litigation increased across the board in August in Telephone Consumer Protection Act, Fair Debt Collection Practices Act and Fair Credit Reporting Act cases, after a slow summer.

FDCPA suits increased 15.5% from July to August, TCPA suits increased 33.3%, FCRA cases increased 11.9%, and consumer complaints to the CFPB increased 12.5%, according to WebRecon.

Here is a breakdown of claims under accounts receivable management industry laws as well as CFPB complaints for August.

Fair Debt Collection Practices Act

FDCPA claims increased by 15.5% to 372 in August compared to 322 in July. Compared to claims from Jan. 1 through Aug. 31, 2021, FDCPA claims declined 25.5% from 4,510 to 3,358 during the same period this year.

Telephone Consumer Protection Act

TCPA claims increased by 33.3% to 168 in August compared to 126 in July. Compared to claims from Jan. 1 through Aug. 31, 2021, TCPA claims declined 20% from 1,283 to 1,027 during the same period this year.

Fair Credit Reporting Act

FCRA claims increased by 11.9% to 497 in August compared to 444 in July. Compared to claims from Jan. 1 through Aug. 31, 2021, FCRA claims increased 4.2% from 3,674 to 3,830 during the same period this year.

Consumer Financial Protection Bureau Complaints

Consumer complaints filed with the CFPB increased 12.5% from 4,431 in July to 4,984 in August.

There were 6,190 complaints in August 2021 compared to the 4,984 complaints in August this year—a 19.5% decrease.

The types of debt behind the complaints were:

  • 1,415 Other debt (28%)
  • 1,176 I do not know (24%)
  • 1,135 Credit card debt (23%)
  • 718 Medical debt (14%)
  • 247 Auto debt (5%)
  • 141 Payday loan debt (3%)
  • 91 Mortgage debt (2%)
  • 40 Private student loan debt (1%)
  • 21 Federal student loan debt (0%)

The most common type of complaint was about attempts to collect debt not owed, at 54% or 2,680 complaints, followed by complaints about written notification about a debt at 18% or 903.

Read the complete WebRecon report here.

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