Written by: Kristen Jowers, MS & Nichole Huff, PhD, CFLE
The Office of Servicemember Affairs in the Consumer Financial Protection Bureau (CFPB) generates an annual report detailing military families’ chief complaints for the previous calendar year. Published in September 2024, the report highlights complaints received between January and December of 2023. Understanding the recurring issues experienced by service members can help service providers offer proactive and informed support to military consumers.
Complaints Overview
In the past thirteen years, the CFPB has received more than 407,600 complaints from military families, including veterans. In 2023, the CFPB received an average of 230 daily complaints totaling over 84,000 complaints last year. The number of complaints is on the rise. Last year, the number of complaints made by the military community increased by 27% since 2022 and 98% since 2021.
The types of complaints range from issues with credit reporting, and debt collection to student loan servicing. Last year, active duty service members saw notable increases in issues related to mortgages (47%), credit cards (41%), and bank accounts (41%). The increase in complaints suggests a good starting point for asking service members about their experience in these areas.
Comparison to Civilian Community
Knowing what issues may be similar to or different from their civilian counterparts enables service providers to tailor support for the military community. In 2023, credit or consumer reporting made up the highest category of complaints from the military community (55.3%), though it was less than the general population (79%). Credit or consumer reporting remains the highest complaint overall for both civilians and the military community. However, this is the only category where the general population reported a higher percentage than their service member counterparts.
Military consumer complaint rates are higher on the topics of checking/savings accounts and credit cards compared to non-military consumers. The opportunity for military service providers is apparent in the higher rates of complaints surrounding debt collection for military consumers. Debt collection complaints from military families were double that of all consumers. Extension resources, like Utah State University Extension’s debt elimination calculator, PowerPay is a useful tool for service providers to assist military families in creating debt payoff schedules.
Recurring Complaints
Knowing the types of complaints frequently made by military families can help service providers triage support before, during, and after an issue arises. Some ongoing complaints reported by service members are student loan servicing issues. These include long wait times, errors in income-driven repayment plans, and challenges with the Public Service Loan Forgiveness (PSLF) program. The recurring issue of colleges withholding transcripts may be a barrier to career and education opportunities for some families.
Service providers can help service members understand consumer protections like the Servicemembers Civil Relief Act (SCRA) and Military Lending Act (MLA). You can also provide military-specific resources from the Office of Financial Readiness. To dive deeper into the complaint types, specific military audiences (e.g., active-duty, reserve/guard, retirees), and company responses to service member complaints, you can find the 2023 CFPB full report here: https://files.consumerfinance.gov/f/documents/cfpb_osa-annual-report-cy2023_2024-09.pdf
To find out other trends affecting military family finances view the OneOp webinar, 2024 Personal Finance Year in Review.
Photo by Timon / Adobe Stock
