Consumer watchdog CFPB cuts would undermine response to complaints
June 3, 2025
-
New report finds dramatic spike in complaints from military families between 2020 and 2024
-
Over half of complaints relate to credit reporting issues; nearly a quarter resulted in relief
-
Watchdog agency CFPB faces internal cuts that could undermine critical protections
A new report reveals a sharp rise in complaints from servicemembers, veterans, and their families about financial companies, surging 165% between 2020 and 2024. The analysis, published Tuesday by U.S. PIRG Education Fund and Frontier Group, underscores growing concern about financial protections for those who serve.
The report, titled Protecting Those Who Serve, is based on publicly available data from the Consumer Financial Protection Bureau (CFPB). It highlights how the agency has played a key role in defending military-connected consumers recovering $363 million through enforcement actions, ensuring compliance with the Military Lending Act, and responding to tens of thousands of complaints.
Among the key findings:
-
98.5% of complaints received timely responses from the financial institutions.
-
84,017 complaints (23.5%) led to monetary or non-monetary relief.
-
53.8% of all 357,065 complaints related to credit reporting problems like inaccurate information and failed investigations.
Most complaints were concentrated in areas near military bases or large veteran communities including regions in Texas and Georgia.
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 CFPBs public complaints database delivers for servicemembers, veterans and their families.
Cutbacks threaten progress
But the report also comes with a warning: internal moves at the CFPB could undermine the very protections it was created to uphold. In April, the bureau attempted to lay off as many as 1,500 employees a decision now temporarily blocked in court and it recently rescinded guidance related to publishing consumer complaints, raising fears that public access to this critical data could soon disappear.
Veterans groups such as Iraq and Afghanistan Veterans of America (IAVA) and Student Veterans of America are calling on federal leaders to preserve and strengthen the CFPB.
Disabling the bureau would no doubt threaten military readiness and the stability of those who serve, said Kaitlynne Yancy of IAVA.
Consumer advocates are urging Congress and agency leadership to defend the CFPBs mission. To fulfill the CFPBs mission, the bureaus leadership should not dismantle it from within, said Mike Litt, co-author of the report.
#Complaints #servicemembers #veterans #financial #firms #soar