Report: Complaints from servicemembers skyrocket while CFPB protections at risk

Veterans’ groups have benefited from Consumer Financial Protection Bureau

WASHINGTON — Complaints from servicemembers, veterans and their families about problems with financial companies rose by 165% between 2020 and 2024, according to a new report from U.S. PIRG Education Fund and Frontier Group that analyzes complaints published by the Consumer Financial Protection Bureau (CFPB). The report, Protecting those who serve: Why servicemembers and veterans need a strong CFPB, was released Tuesday.

“The men and women who have served in the military deserve to have their finances defended,” said Douglas H. Phelps, chairman of U.S. PIRG Education Fund. “The CFPB’s public complaints database delivers for servicemembers, veterans and their families and is just one of the many ways the bureau has protected their financial security.”

Highlights from the report include:

• 98.5% of servicemember complaints to the CFPB received a timely response from the financial institution in question.
• 84,017 complaints — 23.5% — resulted in monetary or non-monetary relief.
• 53.8% of the 357,065 published complaints were about credit reporting issues including incorrect information, misuse of credit reports and inadequate investigations.
• Complaints are most concentrated in areas near military bases or with large veteran populations, particularly the Atlanta area and several cities in Texas.

Since opening its doors in July 2011, the CFPB has:

• Recovered $363 million from enforcement actions involving harm to servicemembers and veterans.
• Enforced the Military Lending Act to ensure servicemembers’ rights and protections are upheld in the financial marketplace.
• Educated servicemembers about their legal rights through its Office of Servicemember Affairs. 

Veterans organizations joined U.S. PIRG Education Fund in calling attention to the critical role the CFPB plays in protecting servicemembers and veterans from financial harm.

“Many of our IAVA members have relied on the Consumer Financial Protection Bureau to have their backs when others did not. They’ve recovered millions of dollars lost to predatory lenders, helped troops navigate complex financial systems, and held bad actors accountable,” said Kaitlynne Yancy, director of membership programs for Iraq and Afghanistan Veterans of America (IAVA). “Disabling the bureau would no doubt threaten military readiness and the stability of those who serve, in addition to sending a message to those who’ve relied on the CFPB that their concerns didn’t matter.”

The vice president of government affairs for Student Veterans of America concurred.

“For years, the CFPB has been committed to protecting servicemembers, veterans, and their families. We have seen firsthand the CFPB’s Office of Servicemember Affairs champion our military-connected community, working tirelessly to protect them from some of the most harmful and predatory financial practices,” said Tammy Barlet. “Those who have served our country deserve protection and thanks to the CFPB, they have a dedicated champion ensuring their rights and financial well-being are defended.”

The CFPB recently withdrew its decade-plus-old internal guidance for publishing consumer complaints — a move that could be the first step toward eliminating public access to the complaints database altogether.

“Public access to the complaint database is worth fighting for. Without it, servicemembers, veterans, and all consumers are less likely to get their problems resolved when they are wronged,” said Quentin Good, Frontier Group policy analyst and report co-author. 

This move is one of a series that threatens to diminish the CFPB’s ability to help our armed forces and all Americans. In April, following an earlier attempt in February, the bureau moved to fire as many as 1,500 employees, leaving approximately 200 staff members to continue the agency’s essential work. A federal judge has since temporarily halted these firings, which would have gutted nearly all CFPB offices — including the Office of Servicemember Affairs and the Office of Consumer Response, which handles consumer complaints.

“To fulfill the CFPB’s mission, the bureau’s leadership should not dismantle it from within,” said Mike Litt, consumer campaign director at U.S. PIRG Education Fund and report co-author. “Acting Director Russell Vought should use all available tools and resources to protect our servicemembers, veterans and all consumers.”