The Consumer Financial Protection Bureau released its monthly complaint report Wednesday (May 31) that showed older consumers frequently report servicing problems with reverse mortgages, difficulties recovering money after financial scams, confusion around deferred interest credit cards and frustration when experiencing charges for unauthorized add-on products.
In a press release, the CFPB said the snapshot provides an overview and analysis of more than 103,100 complaints submitted to the Bureau by consumers voluntarily reporting their age as 62 or older.
“Older consumers who may be on a fixed income are at a greater risk for financial trouble if they encounter problems with financial products or services,” said CFPB Director Richard Cordray in the press release. “The complaints submitted by older consumers are important for the Bureau to ensure we are properly looking out for this segment of the population.”
Among the main problems seniors are facing, many pointed to reverse mortgages, which are exclusively available to people over 62 years of age. The CFPB said older consumers with reverse mortgages seeking to stay in their house following the death of the borrowing spouse report servicing problems that sometimes result in foreclosure proceedings.
Another common complaint among older consumers: getting money back after falling victim to a financial scam. The CFPB said older consumers are targeted for financial scams and identity theft. Older consumers working to recover from scams or exploitation have complained about difficulty with correcting credit reports, disputing charges with credit card companies and attempting to regain money that was withdrawn from their bank accounts.
While credit cards can be confusing for all sorts of people, the CFBP said older Americans complained during May about the confusion over deferred interest and zero interest credit card offers. Some older consumers on fixed incomes use credit cards to pay for unanticipated large expenses, such as medical needs. Consumers complained about confusion understanding credit card terms and conditions.