Litigation increased across the board in May for FDCPA, TCPA and FCRA claims, according to the latest report from WebRecon.
07/11/2023 2:50 P.M.
1.5 minute read
WebRecon’s latest report shows litigation increased across the board in May in Fair Debt Collection Practices Act, Telephone Consumer Protection Act and Fair Credit Reporting Act claims after a slowdown in April.
FDCPA suits increased 14.1% from April 2023 to May 2023, TCPA cases increased 98.2%, FCRA cases increased 20%, and CFPB complaints decreased 0.7%, according to WebRecon.
Here is a breakdown of claims under accounts receivable management industry laws as well as CFPB complaints for May 2023.
Fair Debt Collection Practices Act
FDCPA claims increased by 14.1% to 331 in May compared to 290 in April. Compared to claims from Jan. 1 through May 31, 2022, FDCPA claims declined 28.5%, from 2,267 to 1,621, during the same period in 2023.
Telephone Consumer Protection Act
TCPA claims increased by 98.2% to 224 in May compared to 113 in April. Compared to claims from Jan. 1 through May 31, 2022, TCPA claims increased 17.6%, from 602 to 708, during the same period in 2023.
Fair Credit Reporting Act
FCRA claims increased by 20% to 504 in May compared to 426 in April. Compared to claims from Jan. 1 through May 31, 2022, FCRA claims decreased 8.5%, from 2,436 to 2,229, during the same period in 2023.
Consumer Financial Protection Bureau Complaints
Consumer complaints filed with the CFPB decreased by 0.7% to 5,521 in May compared to 5,558 in April.
There were 5,864 complaints in May 2022 compared to the 5,521 complaints in May 2023—a 5.8% decrease.
The types of debt behind the complaints were:
1,725 Other debt (31%)
1,469 I do not know (27%)
1,243 Credit card debt (23%)
571 Medical debt (10%)
258 Auto debt (5%)
115 Payday loan debt (2%)
89 Mortgage debt (2%)
29 Private student loan debt (1%)
22 Federal student loan debt (0%)
The most common type of complaint was about attempts to collect debt not owed, at 54% or 2,972 complaints, followed by complaints about written notification about a debt at 17% or 963.
Read the complete WebRecon report here.