After the Consumer Financial Protection Bureau released its 2020 Consumer Response Annual Report, Online Lenders Alliance CEO Mary Jackson issued the following statement:
“In a year of record consumer complaints, the Bureau’s complaint data for 2020 shows that the products OLA members offer performed very well with consumers. Out of more than half a million total complaints received by the CFPB, personal loans (which includes installment and line of credit loans) constituted less than one percent.
“We believe the data in this report reflects OLA and its members’ commitment to the highest industry standards, and it provides compelling information about consumers’ use of online loans during the health and financial crisis that gripped our nation in 2020.”
Highlights from the CFPB report:
- The CFPB received 542,300 total complaints in 2020
- The total complaint volume was 50% higher during the pandemic in 2020 than in 2019
- Most financial services and products saw double and triple digit percentage growth in their complaint totals between 2020 and 2021
- The CFPB received approximately 4,700 complaints related to personal loans
- The CFPB’s data shows that 42% of the personal loans were online; 34% were in person or at a store; and 25% did not indicate.
- The total volume of personal loans represented less than one percent of the Bureau’s complaint volume The total volume of personal loans in 2020 was only 2 percent higher than in 2019 – effectively remaining static during the pandemic
- Last week, Morning Consult released consumer survey data showing that many consumers who borrowed from a fintech company said their credit scores increased after taking out their loan. The largest net improvements were among lower- and middle-income consumers, with Black and Hispanic consumers declaring the biggest gains in their credit scores.