FinEx Resource Inventory

Resource inventory for
financial educators
CFPB Financial Education Exchange

March 2016

Resource inventory
Are you a financial educator? Do you help consumers take charge of their financial lives? The
Consumer Financial Protection Bureau (CFPB) is here to help you help the people you serve.
The CFPB Financial Educators Exchange (CFPB FinEx) provides financial educators with the
latest news and research on consumer financial behavior and effective practices. The CFPB
FinEx also connects financial educators to each other for support and sharing best practices.
Sign up to receive the latest news and invitations to webinars at consumerfinance.gov/adultfinancial-education, or send email to CFPB_FinEx@cfpb.gov. As part of CFPB FinEx, we hold
virtual learning opportunities for financial educators like you. We also encourage you to share
what you’ve learned from using our tools — and from your own work — with us and your peers
by signing up for the CFPB Financial Education Exchange.

Reports, resources, and tools for financial educators
Below is an inventory of CFPB materials that you can use for free. Scan the titles and short
descriptions, then follow the links for more information. The materials fall into four groups:
1. Understanding the financial education field and practices — Keep up with the
financial education field and with promising and effective practices
2. Understanding consumers — Gain insights into consumer behaviors, motivations,
perceptions, and attitudes, including challenges consumers face in the financial
marketplace.
3. Tools for financial educators — Explore training materials and toolkits designed to
improve your effectiveness and service to clients.
4. Tools for consumers — Help your clients with easy-to-digest Web tools and guides
tailored to their needs.

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1. Understanding the financial
education field and practices
Resources on the financial education field, and what financial education practices are promising
and effective.

1.1

Research reports

For each report, you can jump to a brief summary of key points at the end of the document, and
read the full report online.

Increasing saving at tax time and promising practices for the field
Tax time can offer an opportunity to set some money aside for goals or a rainy day. This report
identifies ten promising practices that may help tax preparation programs be more successful at
informing consumers about their tax-time saving options. (Published in 2015).
Read key takeaways in Appendix A.
View full report at: http://files.consumerfinance.gov/f/201509_cfpb_increasing-saving-at-taxtime-and-promising-practices-for-the-field.pdf

Empowering low income and economically vulnerable consumers: Report on a national
convening
The low-income and economically vulnerable population includes as many as 100 million

people, many of whom are un-banked, under-banked, or have thin or no credit files. These
consumers are diverse in culture, geography, stage of life, and financial status. In 2012, the
Office of Financial Empowerment hosted a forum to examine the unique consumer financial
product and service needs of low-income and economically vulnerable consumers. This report

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captures the reflections and insights of attendees and describes some of the strategies the
Bureau is pursuing to address the issues identified. (Published in 2013).
Read key takeaways in Appendix B.
View full report at: http://files.consumerfinance.gov/f/201311_cfpb_report_empoweringeconomically-vulnerable-consumers.pdf

Findings from the e-closing pilot
This report shares the results of a pilot program where the CFPB explored changes that can help
consumers better navigate the closing process by accessing and signing their closing documents
in different ways. Specifically, we examined what would happen if there was more technology
involved in the mortgage closing process, with documents being delivered electronically earlier
together with online tools and resources. (Published in 2015).
Read key takeaways in Appendix C.
View full report at: http://files.consumerfinance.gov/f/201508_cfpb_leveraging-technology-toempower-mortgage-consumers-at-closing.pdf

Feedback from the Financial Education Field
Report that summarizes what we heard through listening sessions and a public comment
process about effective financial practices and challenges facing the financial education field.
(Published in 2013).
Read key takeaways in Appendix D.
View full report at http://www.consumerfinance.gov/reports/feedback-from-the-financialeducation-field/

Navigating the Market: A comparison of spending on financial education and financial
marketing
This report provides an estimate of the amounts spent in the U.S. on financial education and on
the marketing of certain types of financial products. (Published in 2013).
Read key takeaways in Appendix E.
View full report at http://www.consumerfinance.gov/reports/navigating-the-market/

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Rigorous evaluation of financial capability strategies: Why, when, and how
Report that summarizes a roundtable discussion with researchers, practitioners, and funders
who have conducted or supported randomized controlled trials in the field of financial
capability. (Published in 2014).
Read key takeaways in Appendix F.
View full report at http://www.consumerfinance.gov/reports/rigorous-evaluation-of-financialcapability-strategies-why-when-and-how/

Transforming the Financial Lives of a Generation of Young Americans
Report that contains policy recommendations for supporting the financial education and
capability of American youth. (Published in 2013).
Read key takeaways in Appendix G.
View full report at http://www.consumerfinance.gov/reports/transforming-the-financial-livesof-a-generation-of-young-americans/

Financial Wellness at Work
Report that contains case studies designed to educate employers about practices that can
improve employees’ financial health and increase worker productivity. (Published in 2014).
Read key takeaways in Appendix H.
View full report at http://www.consumerfinance.gov/reports/financial-wellness-at-work/

Building financial capability in youth employment programs
Report that includes information on integrating financial education into youth employment
programs, establishing partnerships with employers, and identifying effective strategies to
collaborate with financial institutions. (Published in 2014).

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Read key takeaways in Appendix I.
View full report at http://www.consumerfinance.gov/reports/building-financial-capability-inyouth-employment-programs/

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2. Understanding consumers
Resources that provide insights into consumer behaviors, motivations, perceptions, and
attitudes, including data about the challenges facing consumers in the financial products and
services marketplace.

2.1

Research reports

Digests on consumer financial challenges
These short digests provide ideas on how financial educators can help consumers manage
common financial challenges. The digests cover savings for emergencies, budgeting, using
credit cards, and managing cash flow. (Published in 2015).
Saving for Financial Shocks and Emergencies
Organizing and Managing Finances
Using Credit Cards
Managing Cash Flow and Bill Payments

Credit Invisibles

This report provides analysis of consumers with limited credit histories. (Published in 2015).
Read key takeaways in Appendix J.

A closer look at reverse mortgage advertisements and consumer risks
The CFPB conducted focus groups to explore the issue of reverse mortgage advertisements,
which are marketed to older homeowners and are found across many of the major media

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channels in the United States, including television, radio, print, and internet. (Published in
2015).
Read key takeaways in Appendix K.
View full report at: http://files.consumerfinance.gov/f/201506_cfpb_a-closer-look-at-reversemortgage-advertising.pdf

Mid-year update on student loan complaints

The Bureau received more than 2,300 private student loan complaints and more than 1,300
debt collection complaints related to student loans between October 2013 and March 2014. This
mid-year update discusses specific co-signer issues reported by borrowers and also offers
analysis and discussion to address other issues reported by consumers in the student loan
marketplace. (Published in 2015).
Read key takeaways in Appendix L.
View full report at: http://files.consumerfinance.gov/f/201506_cfpb_mid-year-update-onstudent-loan-complaints.pdf

Complaints received from servicemembers, veterans, and their families: A snapshot by
the Office of Servicemember Affairs
This is the Bureau’s third report detailing the data and trends surrounding complaints from
servicemembers, veterans, and their families. This report discusses the types and trends of
military consumer complaints the CFPB has handled since opening our doors in July 2011.
(Published in 2015).
Read key takeaways in Appendix M.
View full report at: http://files.consumerfinance.gov/f/201504_cfpb_snapshot-of-complaintsreceived-from-servicemembers-veterans-and-their-families.pdf

Annual report of the CFPB student loan ombudsman 2015

This report takes a closer look at the problems experienced by certain student loan borrowers.
The CFPB is particularly concerned about repayment problems facing those with older federal
student loans that were made by banks and other private lenders. The Bureau found that

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servicing issues may make repaying student debt even harder for this group of borrowers, in
particular. (Published in 2015).
Read key takeaways in Appendix N.
View full report at: http://files.consumerfinance.gov/f/201510_cfpb_annual-report-of-thecfpb-student-loan-ombudsman.pdf

Financial Well-Being: The goal of financial education
Report that provides a conceptual framework for defining and measuring success in financial
education by delivering a proposed definition of financial well-being and insight into the factors
that contribute to it. (Published in 2015).
Read key takeaways in Appendix O.
View full report at http://files.consumerfinance.gov/f/201501_cfpb_report_financial-wellbeing.pdf
Other resources related to financial well-being are listed below.

Financial Well-Being: What it is and how to help
Short digest that summarizes the key findings of the Financial Well-Being Report and is
intended as a tool to help financial education practitioners use the findings in a
meaningful way to assist consumers.
View the digest at http://www.consumerfinance.gov/reports/financial-well-being/

Measuring financial well-being: A guide to using the CFPB Financial Well-Being
Scale
User guide to the Financial Well-Being Scale, a set of questions designed to allow

practitioners and researchers to accurately and consistently measure the the financial wellbeing of consumers. (Published in 2015).
View the user guide at http://www.consumerfinance.gov/reports/financial-well-beingscale/

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Consumer Voices on Credit Reports and Scores
Report based on focus groups with consumers about their experiences with and perceptions of
credit reports and scores. (Published in 2015).
Read key takeaways in Appendix P.
View full report at http://www.consumerfinance.gov/reports/consumer-voices-on-creditreports-and-scores/

Consumers’ Mortgage Shopping Experience
Report using data from the National Survey of Mortgage Borrowers to examine the early stages
of getting a mortgage, consumer knowledge of the process of getting a mortgage, and the sources
of information consumers relied on. (Published in 2015).
Read key takeaways in Appendix Q.
View full report at http://www.consumerfinance.gov/reports/consumers-mortgage-shoppingexperience/

2.2

Data Point and snapshot series

These reports include data on how consumers are faring in using financial products and
services. The data is drawn from the CFPB’s database of consumer complaints, or other research
that we have conducted.

A Snapshot of Debt Collection Complaints Submitted by Older Consumers
Read key takeaways in Appendix R. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/a-snapshot-of-debt-collectioncomplaints-submitted-by-older-consumers

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A Snapshot of Reverse Mortgage Complaints
Read key takeaways in Appendix S. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/snapshot-of-reverse-mortgagecomplaints-december-2011-2014/

Data Point: Medical Debt and Credit Scores
Read key takeaways in Appendix T. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/data-point-medical-debt-andcredit-scores/

Data Point: Checking Account Overdraft
Read key takeaways in Appendix U. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/data-point-checking-accountoverdraft/

Data Point: Payday Lending
Read key takeaways in Appendix V. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/cfpb-data-points-payday-lending/

Consumer Response: A Snapshot of Complaints Received
Read key takeaways in Appendix W. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/2014-consumer-response-annualreport/

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Complaints received from servicemembers, veterans, and their families 20112014
Read key takeaways in Appendix X. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/complaints-received-fromservicemembers-veterans-and-their-families-2011-2014/

Consumer Credit Reports: A Study of Medical and Non-Medical Collections
Read key takeaways in Appendix Y. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/consumer-credit-reports-a-studyof-medical-and-non-medical-collections/

A Snapshot of Older Americans and Mortgage Debt
Read key takeaways in Appendix Z. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/snapshot-of-older-consumersand-mortgage-debt/

Credit Reporting Complaint Snapshot
Read key takeaways in Appendix AA. (Published in 2014).
View full report at http://www.consumerfinance.gov/reports/credit-reporting-complaintsnapshot/

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3. Tools for financial educators
Resources that you can use in your programming to improve your effectiveness and service to
consumers.

3.1

Toolkits and other resources

Protecting Vulnerable Youth from Credit Reporting Problems
The Bureau developed tools, including sample letters for ordering credit reports for foster youth
and for disputing credit report errors. The tools include tip sheets to provide guidance to
caseworkers who are responsible for pulling and cleaning up credit reports for youth in foster
care. (Published in 2014).

Specialty Credit Reporting list
This guide is an updated list of consumer reporting agencies (CRAs) — companies that collect
information and provide reports on consumers that are used to decide whether to provide
consumers credit, insurance, or employment, and for other purposes. If consumers find
information in their report that they believe is inaccurate or incomplete, they have the right
under the FCRA to dispute the report’s content with the CRA and the company that furnished
the data. (Published in 2015).

Managing Someone Else’s Money State Guides
Millions of Americans are managing money or property for a loved one who is unable to pay bills
or make financial decisions. To help financial caregivers, the Bureau released easy-tounderstand Managing Someone Else’s Money guides. Each guide contains information on the
fiduciary’s responsibilities and tips on how to spot financial exploitation and avoid scams. Also,
each guide includes a ‘Where to go for help’ section with a listing of relevant agencies and

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service providers. For each guide we provide links to download the guide as a PDF, which is best
for web viewing, or to order a printed copy through GSA. (Published in 2013).

LinkedIn CFPB Financial Education Discussion Group
The LinkedIn CFPB Financial Education Discussion Group is a forum through which financial
educators, researchers, and others can share information and best practices with the Bureau,
learn from one another, and see what the Bureau is doing to help consumers and advance the
work that financial educators, researchers, and others do.

Advancing K-12 Financial Education: A Guide for Policymakers
A resource guide meant to help connect policymakers with tools, information, and insights to
enhance K-12 financial education efforts. (Published in 2015).

Youth Financial Education Curriculum Review Tool
This resource can help subject-matter experts such as curriculum developers and practitioners
to review financial education materials and determine which curriculum best suits their
students. It identifies relevant evaluation criteria and offers parameters for reviewing materials
so direct comparisons can be made. (Published in 2015).

Ready, Set, Save! Resources for tax preparers
For tax preparers, we’ve created a training webinar and workbook, promotional materials, and
taxpayer tools to help you encourage taxpayers to save part of their refund. (Published in 2015).

Teacher Online Resource Center
In conjunction with the Federal Deposit Insurance Corporation, the Bureau developed resources
to help teachers incorporate financial education into the classroom.

The Money Smart Program for Youth
The Money Smart Program is a financial education program for youth that the Bureau
developed in conjunction with FDIC.

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Your Money, Your Goals
Toolkit for social services organizations that equips case managers and frontline staff to be
competent and comfortable in providing financial empowerment services to their clients. There
are also associated available training materials, including a recorded train-the-trainer webinar.

Libraries: Community Education Project
Helps librarians identify, build, and document opportunities for collaboration; a collection of
free government financial education materials for libraries; marketing materials to promote
financial education in the library; financial education training for librarians; and programming
ideas that have proven successful for other libraries and financial education providers.

Remittances campaign materials
Materials to help consumers understand their rights related to transmitting money overseas.

Money Smart for Older Adults
Instructor-led training curriculum developed jointly by the FDIC and the The CFPB. The
curriculum is designed to raise awareness among older adults and their caregivers on how to
prevent elder financial exploitation. (Published in 2013).

Managing Someone Else’s Money
Guides for nonprofessional financial caregivers, specifically agents under powers of attorney,
court-appointed guardians, trustees, and government fiduciaries (Social Security representative
payees and VA fiduciaries). (Published in 2015).

Protecting residents from financial exploitation – A manual for assisted living
and nursing facilities
Guide created to help assisted living and nursing facility staff better protect the people in their
care from financial exploitation through prevention and early intervention. (Published in 2014).

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Employer’s Guide to Assisting Employees with Student Loan Repayment
Toolkit providing resources for public service employers – like school districts and nonprofit
organizations – to help their employees tackle student debt and qualify for existing student loan
repayment benefits. (Published in 2013).

Find a Housing Counselor
Searchable database allowing financial educators or consumers to find housing counselors in
their geographic area.

3.2

CFPB publications

Brochures and Fact Sheets
The CFPB has a set of brochures, bookmarks, fact sheets, fliers, worksheets, and posters that can
be downloaded or ordered in bulk. Many of these publications are available in other languages,
as noted below.

3.2.1

Accounts

Do You Know If You Have Opted in for Debt and ATM Overdraft Coverage?
What you must know about debit card and ATM overdraft coverage. Plus, how to reduce or
eliminate debit card and ATM overdraft fees.

Keep a Lid on Checking Account Fees
Six steps to reduce your checking account fees.

Moving Your Checking Account Checklist
A 10–step checklist for closing your current checking account and opening a new checking
account.

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3.2.2

Brochures about the CFPB

Ask CFPB Bookmark
Two bookmarks: #1 highlights the Consumer Finance Protection Bureau’s “Ask the The CFPB”
program; #2 encourages consumers to share their financial services experiences.

Consumer Financial Protection Bureau – The CFPB
How the Consumer Financial Protection Bureau empowers consumers through financial
education, market supervision, and enforcement of financial protection laws.

How to Submit a Complaint
Explains to consumers how to submit a complaint to the The CFPB. Includes contact
information and the issues that we are taking complaints about.

Unwrapping Gift Cards. Know the Terms and Avoid Surprises
Explains the rights consumers have when it comes to gift cards. It also explains what to do if you
give or get gift cards.

Your Disaster Checklist
Checklist to help consumers gather the financial information they would need after an
emergency. It contains spaces for account information and customer service numbers as well as
checklists of other important documents they should have in case of an emergency.

3.2.3

Credit

Act Fast if You Can't Pay Your Credit Cards
Three steps to take when you don't have enough money to pay your credit card bill. How to
avoid debt-counseling scams.

Check Your Credit Report
Free ways to check your credit report to find and fix mistakes, update your information, and
guard against identity theft.

Understand your credit score
Banks, credit card companies and other businesses use credit scores to estimate how likely you
are to pay back money you borrow.

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Credit Discrimination is Illegal
Eight warning signs of credit discrimination and what to do if you believe you've been
discriminated against.

How to Find the Best Credit Card for You
Consumers may not be aware that add-on services are optional or cost more. This consumer
advisory warns consumers to watch out for these extra fees.

How to fix mistakes in your credit card bill
Follow these five steps to dispute incorrect charges or fees.

How to Stop Mystery Credit Card Fees
Eight warning signs of credit discrimination and what to do if you believe you've been
discriminated against.

Know your rights when a debt collector calls
When a debt collector calls, your best response is to confront the situation head-on.

Watch accounts closely when card data is hacked
Keep a close eye on your account activity and report suspicious transactions quickly if you
believe someone stole your credit or debit card information.

You Have a Right to See Specialty Credit Reports
Consumers may not know about all the specialty credit reporting agencies collecting information
about them. This consumer advisory instructs consumers that these agencies exist and that they
have the right to get free reports every 12 months.

3.2.4

Money management

Choosing your student loan
These action steps will help guide you toward the right student loans for you.

Manage your college money
These action steps can steer you to the best banking services as you start college.

My New Money Goal
Having a plan is the easiest way to reach new money goals, navigate changes in income, or

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switch priorities in our lives. You would not start a road trip without mapping it out first, and
the same is true with your finances. This guide will help you gain a clear view of where your
money goes now so you can more easily decide where you want it to go in the future.

Remittance Transfer Rule Factsheet for Stakeholders
This detailed factsheet is designed to help stakeholders, counselors, instructors and others
explain the remittance transfer rule, its protections and consumer rights. It explains when the
rule applies, to whom, the information given to consumers and what to do if errors occur. This
two-page factsheet is also available in Spanish.

Save Some & Spend Some
Free and easy ways to split your tax refund between accounts so you can spend some and save
some of your money.

SAVED: Five steps for making financial decisions
To find the best deal when you buy a financial product or service stop, ask, verify, estimate and
decide.

Send Money Abroad With More Confidence
This 8.5–by–11–inch flier is perfect for downloading and printing from your computer. It
reminds senders of international money transfers that new protections are available to them.
This flier is also available in Spanish, Chinese, French–Creole and Tagalog.

Send Money Abroad With More Confidence (Poster)
Help senders of international money transfers learn about the new protections and rights
available to them with this 24–by–36–inch poster. The poster contains the The CFPB's phone
number and Web address for more information, or order Send money abroad with more
confidence brochures and consumer factsheets too. This poster is also available in Spanish,
Chinese, French-Creole and Tagalog.

Send Money Abroad With More Confidence (Brochure)
This 3.75–by–8.5–inch brochure outlines the new protections now available to senders of
international money transfers. It also reminds consumers that not all companies that send
international money transfers are covered by the new federal rule. This brochure is also
available in Spanish, Chinese, French-Creole and Tagalog.

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Send Money Abroad With More Confidence (Fact Sheet)
This fact sheet offers consumers a more detailed explanation about their new rights and
protections when they send international money transfers covered by a new federal rule. This
single–side 8.5–by–11–inch fact sheet can be downloaded and easily printed.

3.2.5

Mortgages

Act Fast to Avoid Foreclosure
What to do when you can't afford your mortgage payment. Lists what you need to have in hand
when you make the call for help.

Considering a Reverse Mortgage
Important questions to ask when you talk to a housing counselor about your reverse mortgage
options and alternatives.

Ready to buy a home?
Owning a home can give you stability and security, and protection from rising housing costs.

Shopping for a mortgage
Make it your goal to compare at least three loan offers from different lenders.

Should I refinance?
Refinancing happens when you pay off your current mortgage with money from a new mortgage.

Take control to avoid foreclosure – a checklist for consumers
This short checklist provides troubled borrowers with quick action steps to get help and find out
about options to avoid foreclosure.

Tips for homebuyers: Make the most of the new The CFPB mortgage rules
In one page, find out how you can take advantage of federal mortgage rules to keep your
mortgage-related fees low, get better information about market prices and make sure you are
getting advice that is in your best interest.

The 2014 "Make the most of your mortgage" checklist
Explains how consumers can get important information about their mortgage, check for delays
in posting mortgage payments, fix mistakes by mortgage servicers and avoid foreclosure.

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What the new The CFPB mortgage rules mean for families and homeowners
Useful for housing counselors and others who need a step-by-step, detailed breakdown of the
The CFPB foreclosure procedures and mortgage servicing policies related to loss mitigation
applications.

Summary of The CFPB foreclosure avoidance procedures
Summary of The CFPB foreclosure rules for mortgage servicers. Summarizes key timelines and
deadlines for borrowers to apply for alternatives to foreclosure that may be available.

Need help with your mortgage? Don't get scammed
Describes what a mortgage relief scams are and offers tips on how to spot and avoid them. It
also includes information on how to get help.

Ready to buy a home? (Spanish)

This document outlines some of the questions consumers should ask when they are ready to
purchase a home.

Should I refinance? (Spanish)

This document provides common reasons for refinancing and some of the warning signs to
check for before refinancing.

Shopping for a mortgage (Spanish)

This document outlines a number of important questions to ask when shopping around for a
mortgage.

How to avoid foreclosure (Spanish)

This document provides four important steps that consumers can take in order to take control
when they are having trouble paying a mortgage.

3.2.6

Special populations (older Americans,
servicemembers)

The CFPB Office of Servicemember Affairs
How the The CFPB provides servicemembers, military families and veterans with information
and tools to make wise financial decisions and avoid unfair financial business practices.

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For Servicemembers: Tackling student loan debt
Servicemembers: You have options for lowering your student loan interest rate, reducing your
monthly payments now and possibly qualifying for loan forgiveness after 10 years. Learn the
steps.

Know your financial adviser
Important questions to ask when you are shopping for financial advice or services.

Military Money 1-2-3: How to Pick a Bank Account
Follow these guidelines to find a military-friendly bank account that meets your needs and offers
good rates.

Financial Literacy Annual Report
The report details the The CFPB's strategy and three-pronged approach to improving financial
literacy opportunities for consumers: education initiatives, evidence-based research, and
outreach to consumers and financial education stakeholders.

Pension Advance Products
Be wary of loans based on your pension or benefits payments. They may charge outrageous
interest rates and in the case of veterans are often against the law.

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4. Tools for consumers
Bureau tools aimed at consumers, which financial educators can use in working with their
clients.

4.1

Web tools and consumer guides

Owning a Home
This is a suite of tools and resources to help consumers navigate the home-buying process. The
tools included in Owning a Home are listed below.

Loan Estimate Explainer

This tool helps consumers review their Loan Estimate and get definitions for unfamiliar
terms.

Closing Disclosure Explainer

Lenders are required to provide Closing Disclosures three business days before a
scheduled closing. This tool will help consumers double-check that all the details in a
Closing Disclosure are correct.

Explore Interest Rates

This tool uses data from real lenders and is updated every business day in the evening.
The lenders in our data include a mix of large banks, regional banks, and credit unions.

Your Closing Checklist

Closing is one of the most important parts of the home-buying process. This guide will
help consumers prepare for closing so they can sign your papers with confidence.

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Guide to Closing Forms

This tool provides descriptions of four important closing forms: The Promissory Note, the
Mortgage/Security Instrument, the Initial Escrow Disclosure, and the Right to Cancel
form.

Your Home Loan Toolkit
This booklet is a toolkit that can help consumers make better choices along their path to
owning a home. It is designed to help home-buyers get the best mortgage for their
situation, understand the closing costs and what it takes to buy a home, and a few ways to
be a successful homeowner.

Help for Struggling Borrowers
This guide will aid in determining when a borrower is delinquent for purposes of
Regulation X’s early intervention requirement, sets forth a step-by-step guide to the loss
mitigation process under the new servicing rules, and discusses when a servicer can
initiate a foreclosure under the new rules. The guide also discusses how to resolve
servicer errors and how to request information from a servicer. This guide summarizes
certain mortgage rules finalized by the CFPB in 2013, but it is not a substitute for the
rules.

Shopping for a Mortgage? What You Can Expect Under Federal Rules (Also
available in Spanish, Chinese, French, Haitian Creole, Korean, and Tagalog)
This 18-page booklet explains the federal rules that protect consumers when they are
shopping for a new mortgage.

Have a Mortgage? What You Can Expect Under Federal Rules (Also available in
Spanish, Chinese, French, Haitian Creole, Korean, Tagalog)
This 11-page booklet explains the federal rules that protect consumers as they manage
their mortgage payments.

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CFPB en Español
CFPB en Español provides Spanish-speaking consumers a central point of access to the Bureau’s
most-used consumer resources available in Spanish.

Submit a complaint
To submit a complaint about a consumer financial product or service, visit
consumerfinance.gov/complaint or call 855-411-CFPB (2372). The CFPB’s contact centers can
assist consumers in over 180 languages.

Ask CFPB
Ask CFPB is an interactive online tool that gives clear, unbiased answers to common financial
questions.

Paying for College
This is a suite of tools and resources to help students and former students to make smart
decisions about financing their college education.

Tell your story
This feature allows consumers to share experiences and stories with the CFPB to provide insight
into how we work to protect consumers and create a fairer marketplace.

Newcomer’s Guides to Managing Money
These guides are intended to provide recent immigrants with straightforward information about
basic money decisions. Each guide features short tips to help new immigrants and people who
may be new to the U.S. banking system avoid financial pitfalls. (Published in 2015).

Checking Account Guides
These guides are resources to help consumer select a checking account product that is suited to
their financial needs. (Published in 2016).

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Resources for parents
This page provides a range of information to help parents communicate with their children
about money and financial issues.

Know Your Financial Adviser
This is a four-page guide to help ask the right questions in shopping for an adviser with a title
suggesting expertise in senior financial planning.

Debt Collection Sample Letters
These are five action letters that consumers can consider using when replying to debt collectors.
These letters can help consumers get valuable information about claims being made against
them or protect themselves from inappropriate or unwanted collection activities.

4.2

Consumer advice blogs

This is a compilation of blogs that offer advisories and tips for consumers.

Servicemember fraud alert
The Fraud Alert Fact Sheet provides servicemembers with the information they need to know
about getting protective alerts inserted into credit reports when they’re away.

Choosing a Financial Professional
This advisory encourages servicemembers and veterans to check the financial adviser’s
background before deciding where to get help in making important financial decisions. Not all
titles or credentials for financial professionals are the same.

Consumer Advisory: Are unpaid debts a military career-killer?
Military personnel who have trouble handling their personal finances can very quickly find their
duty status, potential promotions and even military careers in jeopardy. And, over time, the
lingering burden of debt can add stress to their personal relationships and damage their credit

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profile. This advisory helps military consumers think about what they should do when a
financial problem arises.

Four things older Americans can do about debt collection problems
This advisory helps older consumers who are experiencing debt collection problems.

Consumer advisory: Protect your retirement
This advisory helps older consumers understand the risks of pension advance loans.

Consumer advisory: Your benefits are protected from garnishment
Threats to garnish federal benefits cause older consumers and veterans significant distress,
especially when they depend on this income to pay essential living costs. We’ve created an
advisory and sample letter to help consumers protect themselves against improper garnishment.

Consumer Advisory And Investor Bulletin - Planning for diminished capacity and illness
This joint CFPB and SEC advisory & bulletin helps consumers plan for the possibility of
incapacity.

Consumer advisory: Three steps you should take if you have a reverse mortgage
This advisory helps existing reverse mortgage borrowers and/or family members who may be
experiencing a problem with a loan.

Consumer Advisory: Don’t be misled by reverse mortgage advertising
This advisory helps prospective reverse mortgage borrowers understand some key features of
reverse mortgage loans, which are often not mentioned in advertisements.

Consumer advisory: Fact-check your specialty consumer report
There is a list of consumer reporting agencies that consumers can fact-check to ensure that their
personal report data is accurate and complete.

Good Credit - I Want That!

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You Could Still End Up Paying Interest on a Zero Percent Interest Credit Card
3 Pension Advance Traps to Avoid
Three Steps You Should Take If You Have a Reverse Mortgage
7 Ways to Keep Medical Debt in Check
Four Steps You Can Take If You Think Your Credit or Debit Card Was Hacked
Virtual Currencies and What You Should Know About Them
Stop Getting Sidetracked by Your Student Loan Servicer
Prepare Your Finances for Emergencies
Protecting and Rebuilding Your Finances After a Disaster
Accessing Your Scholarships and Student Loan Funds
So How Many Consumer Reporting Companies Are There?
Don’t Fall for a Foreclosure Relief Scam or Bogus Legal Help

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Appendix A:

Increasing saving at tax time and
promising practices for the field
For the past three years, the Consumer Financial Protection Bureau has provided information
and training to staff and volunteers at community VITA programs around the country to
promote saving at tax time. Through these engagements with VITA providers and other experts
in the field, we have identified ten promising practices that may help tax preparation programs
be more successful at informing consumers about their saving options, which in turn may help
consumers follow through on their savings goals while filing their tax return. These practices
are:
1. Communicate with consumers about saving before they come to the tax site.
2. Offer the saving option more than once at the tax site.
3. Make sure tax preparers know how to help consumers save while filing.
4. Dedicate staff or volunteers to promoting saving.
5. Use “anchoring” and prompts to help consumers focus on a savings goal.
6. Make sure all staff and volunteers commit to encouraging savings.
7. Don’t overwhelm consumers with too many different types of options.
8. Provide incentives to encourage saving.
9. Provide multiple options for saving.
10. Make saving fun.

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Appendix B:

Empowering low income and
economically vulnerable
consumers: Report on a national
convening
The CFPB’s Office of Financial Empowerment hosted a national convening in Washington, DC
on November 28-29, 2012 to discuss strategies that address the unique consumer financial
product and service needs of low-income and economically vulnerable consumers. Participants
in this convening ncluded representatives from financial institutions, federal, state and
municipal government, industry innovators, researchers, funders, regulators, consumer
advocates, senior CFPB staff and others. This report summarize the views expressed by
participants at the convening. Key insights from the convening included:

30

•

Access to financial services. Consumers with low incomes face a number of policy-related,
institutional, and personal barriers that restrict their access to the financial system. Institutional
barriers range from lack of physical access, identification requirements, unaffordable service fees,
and lack of products that align with their needs. Participants suggested that financial institutions
and service providers can pursue several strategies to counteract barriers to accessing basic
financial services, including actions to:
o Better understand the needs of the consumer and create products that fit those needs,
o Meet consumers where they are, sometimes away from the branch in the community,
o Engage with partners that already serve low-income consumers, to build trust,
o Provide incentives for participation in the mainstream financial system,
o Craft technology solutions that work for low-income consumers, and
o Maintain engagement for consumers who are not technologically proficient or prefer the
human touch.

•

Access to credit. Consumers with low incomes are less likely than other consumers to be able
to access affordable credit; they often use high-cost alternative products to meet their needs.
Several features of the credit market are particularly challenging for many consumers with low
incomes. Some of the biggest barriers include their inability to qualify for loans because they have

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little, poor, or no credit history; lack of general understanding about credit and the type of loans
that would be most useful; lack of knowledge about how to correct their credit reports or improve
their scores; and a general perception that the credit system is inaccessible to them. Participants
reported that consumers could greatly benefit from:
o Increased access to credit reports and scores,
o Specialized financial education, and
o More accessible and affordable products and services that are tailored to fit their credit
needs and capacity to repay.

•

Financial outcome metrics. There is wide agreement among stakeholders in the
empowerment field that it is extremely important to have accurate and descriptive
outcome and impact metrics to measure consumers’ progress. There is agreement as well
on the need to improve and possibly standardize outcome measures so that various
approaches can be compared. But it is difficult to establish uniform standards to
measure progress toward financial empowerment because of the variety of strategies and
interventions used and the multiple dimensions of human situations. Inside many
service organizations, there are institutional challenges to generating consistent
information. These include inexperience in evaluation, lack of capacity, lack of funding,
and privacy concerns. To address some of the challenges, participants suggested:
o Dedicating more funding for evaluation and separating it from funding for
service delivery,
o Clarifying why and how metrics help the initiative succeed,
o Engaging consumers and clients by using metrics,
o Understanding the client base and how it is evolving, and
o Timing the collection of program outcome data so that it serves the client, the
service provider, and the researcher alike.
Convening participants identified several roles that government could play in
rationalizing financial-empowerment data collection, including:
o
o
o
o
o

•

31

Improving the accuracy and consistency of outcome data to make it more
credible,
Connecting practitioners with professional evaluators,
Creating a financial health index that could be used as a standard in the field,
Enhancing existing national financial surveys to include more empowerment
indicators, and
Creating a mechanism to expand knowledge-sharing within the empowerment
field.

Scale: defining it, planning for it, achieving it. Participants defined scale in a
variety of ways: penetration within a specific population; reaching large numbers of
people; and/or increasing efficiency to reduce the unit costs of service delivery. Among
the identified barriers to achieving scale were misaligned public policies, lack of

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sufficient infrastructure, and resource limitations that constrain growth. To address
these barriers, participants suggested:
o Leveraging partnerships to increase capacity and efficiency,
o Aligning incentives for both users and key stakeholders to maximize benefit,
o Defining success measures and establishing benchmarks in advance,
o Improving information-collection systems to better analyze cost, and
o Using universal design principles to create efficient and equitable delivery
systems.
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Appendix C:

Findings from the e-closing pilot
As part of the CFPB's broader efforts to improve the mortgage process for consumers, the
Bureau looked at one important part of a mortgage transaction: the closing process - the last
step before a consumer is contractually obligated to their loan. This report examines what
would happen if there was more technology involved in the mortgage closing process, with
documents being delivered electronically earlier together with online tools and resources. The
electronic delivery and signing of closing documents using electronic signatures is sometimes
referred to as eClosing.
We conducted a pilot research program, with lenders and technology vendors, to evaluate
eClosing processes and their role in influencing the consumer experience. The purpose of our
pilot was to explore whether the use of eClosing technology combined with more time to review
closing documents with embedded educational tools can help consumers navigate the closing
process. We also wanted to see how these changes might improve efficiencies in the lending
process.
Seven lenders participated in this pilot; some had prior experience conducting eClosings and
others instituted the necessary process changes for this pilot. In addition to gathering data from
lenders and settlement agents, we also surveyed consumers who closed loans with these lenders.
We decided to evaluate the eClosing solutions of the pilot on three dimensions of the consumer
experience: empowerment, understanding, and process efficiencies during the closing process.
Evidence from the data, surveys, and interviews collected during this pilot indicates that
eClosing solutions enhanced certain aspects of the overall consumer experience with the
mortgage closing process. For example:
•

33

On average, eClosing borrowers in the pilot had higher scores than paper borrowers on
our measured outcomes, including perceived empowerment, understanding (perceived
and actual), and efficiency.

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The largest differences between borrowers who participated in an eClosing and a
paper closing were in our measures of perceived empowerment and efficiency.
Consumers who received and reviewed documents before the closing meeting reported
feeling more empowered in the closing process, with higher levels of perceived
understanding and efficiency. Additionally, these consumers had higher scores on the
actual understanding quiz relative to those who did not review documents before the
meeting.
o Differences were particularly pronounced in purchase transactions.
o Early document review was more prevalent in eClosing than in paper closings.
Most pilot borrowers with access to CFPB educational materials stated that they used
these materials and reported that they were useful.
o Borrowers in the pilot who used educational materials reported higher
empowerment in the closing process, less confusion, and clearer understanding
than those who did not use them.
Detailed analysis revealed important nuances among transaction types on eClosings
relative to paper closings in the pilot.
o For purchase transactions in the pilot, borrowers experiencing an eClosing scored
higher than consumers in the paper closing group on perceived understanding
and actual knowledge, and the relationship was even more pronounced in
measures of perceived empowerment.
o For refinance transactions in the pilot, results were mixed on the measured
outcomes among paper closings, base eClosings, and advanced eClosings.
eClosing transactions in the pilot exhibited shorter closing meetings and earlier
document delivery, which matched higher scores on consumer perceptions of efficiency.
o On average, consumers experiencing an eClosing in the pilot received the
documents more quickly after the documents were cleared to close and
consumers had longer periods of time to review documents than consumers who
did a paper closing.
o eClosing meetings in the pilot, on average, were reported to be much shorter than
paper closings, particularly for purchases.
o Borrower perceptions of efficiency were higher for eClosing borrowers than for
borrowers in the paper closing group
First-time homebuyers, low/moderate income borrowers and borrowers with the most
years of formal education all had the largest positive gains between paper and eClosing,
yet all scored relatively low on our measures of understanding and perceived
empowerment.
o

•

•

•

•

•

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Appendix D:

Feedback from the Financial
Education field
The CFPB conducted a national public comment process and listening sessions in four regions of
the country (St. Louis, New York City, the Mississippi Delta region, and San Francisco) to learn
about effective financial practices and challenges facing the financial education field. What we
learned included the following:


Some consumers are unaware of basic principles of how to manage their financial lives
and often find the financial services marketplace challenging to navigate due to its
complicated language, legalistic orientation, and general complexity.



Many consumers struggle to balance competing financial priorities and many seek help
only when deeply in crisis.



Many consumers did not necessarily lack information that was relevant to financial
decision making, but such information was often both overwhelming and
incomprehensible.



There are a number of challenges facing financial education efforts nationally. Those
challenges include the multitude of approaches, providers, and standards of quality.



There is little systematic evidence about which approaches are most effective, for whom,
and under what conditions. An additional challenge is that funding for financial
education does not appear to be sufficient relative to the demand.



There are significant challenges regarding financial education research and data. One set
of challenges relates to the lack of adequate data on the financial well-being of
consumers. Other challenges focus on the uncertainty of a clear connection between
financial knowledge and behavior.

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Appendix E: KEY TAKEAWAYS

Navigating the Market: A
comparison of spending on financial
education and financial marketing
To understand the wide range of information sources consumers are exposed to in making
financial decisions, the CFPB commissioned a study of the size and scope of the financial
information field. The study found the following:


Approximately $670 million is spent annually on providing financial education by
federal, state, and local governments, financial institutions, nonprofit organizations,
charitable foundations, and others.



The financial services industry spends approximately $17 billion annually marketing
consumer financial products and services (not including marketing of products related to
retirement, college loans, and other investments).



As a nation, we spend about two dollars per person per year on financial education.



Spending in financial services marketing translates to about $54 per person per year.



This translates to 25 times as much spent every year on the marketing of financial
products and services as is spent on financial education.

These results are estimates and should not be treated as precise measures of spending. While
the study does not explore the effect of this spending disparity on consumer decisions, it
provides a meaningful comparison when we consider consumers’ financial education needs.
Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/navigating-the-market/
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Appendix F:

Rigorous evaluation of financial
capability strategies: Why, when,
and how
Randomized controlled trial (RCT) evaluations select units (individuals, schools,
neighborhoods, etc.) at random from the same population, and assign them to one of at least
two groups: treatment (sometimes called experimental) or control. Such a process helps to make
the treatment and control groups equivalent—for example, with respect to motivation, ability,
knowledge, socioeconomic and demographic characteristics, etc.—at the start of the study. Then,
if all goes well, any differences in outcomes between the treatment and control groups observed
after the intervention can be attributed to the intervention specifically. Where feasible, the RCT
is the preferred way to measure a program’s effectiveness. However, not all financial capability
programs are well-suited to be the subject of such rigorous evaluation. Those that are best
suited have the following elements:


Scalability and replicability



Organizational capacity and size



Program stability



Adequate funding for program operations and evaluation and buy-in from funders



Buy-in and research planning participation from front line staff



Close working relationship between evaluators and providers

Researchers face a number of challenges in designing and executing RCT evaluations of financial
capability programs. The convening participants identified common obstacles to do with
research design, research implementation, and data collection and analysis, and they offered
ideas for overcoming these challenges.

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Even the most elegantly designed RCT can face difficulties when study implementation begins.
Practitioners need the most support when transitioning from planning the study to starting the
study. Participants had the following insights for moving smoothly from the design to
implementation phases.


Prepare, prepare, prepare



Enlist (and budget for) a research coordinator



Align data collection efforts



Expect bumps along the way

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/rigorous-evaluation-of-financialcapability-strategies-why-when-and-how/
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Appendix G:KEY TAKEAWAYS

Transforming the Financial Lives of
a Generation of Young Americans
The white paper provides an overview of the financial decision-making context and surveys
some existing efforts in the K-12 financial education field, and addresses each of these elements
with a comprehensive youth financial education strategy. The paper includes five overarching
policy recommendations:


Introduce key financial education concepts early and continue to build on that
foundation consistently throughout the K-12 school years. In addition, CFPB encourages
states to make a stand-alone financial education course a graduation requirement for
high school students.



Include personal financial management questions in standardized tests.



Provide opportunities throughout the K-12 years to practice money management
through innovative, hands-on learning opportunities.



Create consistent opportunities and incentives for teachers to take financial education
training with the express intention of teaching financial management to their students.



Encourage parents and guardians to discuss money management topics at home and
provide them with the tools necessary to have money conversations with their children.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/transforming-the-financial-lives-of-ageneration-of-young-americans/
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Appendix H: KEY TAKEAWAYS

Financial Wellness in the Workplace
This report is a resource for employers, nonprofits, and others interested in promoting financial
wellness in the workplace. In the wake of the recession, many employers have seen how
financial distress reduces worker productivity, increases absenteeism, and undermines
employee health. Forward-looking employers have begun to take action, adopting creative
approaches to enhance employee financial well-being. This report looks at how innovative
companies are leveraging technology, peer-to-peer relationships, and promising practices to
find low-cost, high-impact ways to promote financial wellness at work.
Promising practices to promote financial wellness in the workplace include the following:


Listening to employees and establishing trust.



Tapping peer-to-peer support.



Leveraging technology to lower costs and deliver scale.



Forging or tapping into public-private partnerships.



Presenting financial wellness at onboarding.

Additional observations from employers include the following:


Successful financial wellness programs are cost-effective.



Employers say employees highly value effective financial wellness programs delivered in
the context of a trusting work environment.



Some financial wellness programs support the development of more successful financial
habits by addressing emotional factors that may contribute to poor financial decisionmaking.



Employers would find it helpful to better quantify how financial wellness programs
benefit employees and employers.

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Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/financial-wellness-at-work/
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Appendix I: KEY TAKEAWAYS

Building financial capability in youth
employment programs
Youth employment programs present a promising opportunity for helping disadvantaged youth
acquire the financial knowledge, skills, and access to resources they need to effectively manage
their finances through adulthood. This report provides an overview of lessons learned during a
2013 roundtable we convened in collaboration with other federal agencies on the Financial
Literacy and Education Commission (FLEC). The roundtable focused on three important
components: integrating financial education into youth employment programs, establishing
partnerships with employers, and identifying effective strategies to collaborate with financial
institutions.
Key takeaways from the roundtable include:


Partnerships with the private sector, nonprofit organizations, government agencies,
financial institutions, and youth are necessary for successful program implementation.
The key to creating successful partnerships is to identify overlapping priorities or goals
of each participating organization, and to align the role of each partner with the
resources (time, money, etc.) that they can dedicate to the effort.



Financial education should be tailored to the needs of youth, employers, and financial
education providers. Financial education is more efficient when seamlessly integrated
into a program’s structure to account for the time and resource constraints of youth,
employers, and financial education providers. In addition to structure and delivery,
financial information should be tailored to address a young person’s specific needs and
priorities. Youth are a diverse population, and financial information delivered in a youth
employment program should be “just in time,” or relevant at the time someone is facing
a particular life choice or for a decision they will face in the near future. Financial
education should also be actionable and provide opportunities to apply knowledge in real
time so that it is appropriate to a young person’s current life priorities.

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

Financial products offered to youth should be carefully selected by weighing the costs
and risks of various options. All of the communities highlighted here seek to capitalize on
the “teachable moment” of employment to provide safe and affordable financial products
for youth to use, with the goals of helping youth avoid high fees, encouraging savings,
and connecting young people to mainstream financial services. However, financial
institutions’ understanding of, and compliance with, identification, residency and “know
your customer” regulatory requirements may pose barriers to entry into the financial
system for youth.



Organizations should develop explicit strategies for engaging youth in the short and long
term. Efforts to engage youth are important both during and after the employment
program. During employment programs, organizations have used social media, peer
training facilitators, and incentives to encourage more youth to adopt positive financial
habits. Organizations have a captive audience while the young people are employed.
However, organizations struggle to make the financial components persistent, or
“sticky,” after youth exit the program. Long-term engagement strategies include
involving family members and friends, and providing access to financial education and
products outside the employment program.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/building-financial-capability-inyouth-employment-programs/
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Appendix J: KEY TAKEAWAYS

Credit Invisibles
Key takeaways:
•

As of 2010, 26 million consumers in the United States were credit invisible, representing
about 11 percent of the adult population. An additional 19 million consumers, or 8.3
percent of the adult population, had credit records that were treated as unscorable by a
commercially-available credit scoring model. These records were about evenly split
between those that were unscored because of an insufficient credit history (9.9 million)
and because of a lack of recent history (9.6 million).

•

There is a strong relationship between income and having a scored credit record. Almost
30 percent of consumers in low-income neighborhoods are credit invisible and an
additional 15 percent have unscored records. These percentages are notably lower in
higher-income neighborhoods. For example, in upper-income neighborhoods, only 4
percent of adults are credit invisible and another 5 percent have unscored credit records.

•

Blacks and Hispanics are more likely than Whites or Asians to be credit invisible or to
have unscored credit records. About 15 percent of Blacks and Hispanics are credit
invisible (compared to 9 percent of Whites and Asians) and an additional 13 percent of
Blacks and 12 percent of Hispanics have unscored records (compared to 7 percent of
Whites). These differences are observed across all age groups, suggesting that these
differences materialize early in the adult lives of these consumers and persist thereafter.

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Appendix K: KEY TAKEAWAYS

A closer look at reverse mortgage
advertisements and consumer risks
Key Takeaways:
•

Some reverse mortgage advertisements tend to confuse the consumers they seek to
reach. Therefore, it’s important for those considering a reverse mortgage to understand
how long their loan proceeds will last them given the loan’s interest rate, their living
expenses, home equity balance, and age.

•

The “fine print” on both paper advertisements and television ads was not legible by
consumers in the focus groups

•

The marketing of reverse mortgage proceeds as “tax free” unquestionably contributed to
some consumers’ confusion that reverse mortgages are not loans.

•

Consumers misunderstood the role of government in several reverse mortgage loans

•

Consumer reported that the primary use for their reverse mortgage loans was “lifestyle
enhancement”, which was emphasized in the advertisements for these loans

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Appendix L: KEY TAKEAWAYS

Mid-year update on student loan
complaints
Key Takeaways

•

The CFPB received more than 3,100 private student loan complaints between October
1,2014, and March 31, 2015, a 34% increase over the prior reporting period. The CFPB
also received approximately 1,100 debt collection complaints related to student loans
during this period.

•

Many private student lenders advertise options to release a co-signer from a private
student loan. However, lenders’ and servicers’ policies related to this benefit are often
opaque and may create significant roadblocks for borrowers seeking to release a
cosigner. Most lenders and servicers generally do not proactively notify borrowers when
they may be eligible. Consequently, the overwhelming majority of private student loan
borrowers in our sample did not apply for a co-signer release. Of those who did apply,
the rejection rate was 90%, on a weighted average basis.

•

Borrowers submitted complaints to the CFPB noting that private student loan companies
rejected their application for a co-signer release because they had previously accepted
the servicers’ offer of postponing payment through forbearance. These company policies
can permanently ban a consumer from seeking co-signer release for the life of the loan.

•

The CFPB reviewed a selection of private student loan contracts representing the
majority of the market. Most contracts include clauses that have been interpreted to lead
to a default in some cases even if the loan is in good standing, such as “auto-default”
clauses where private student lenders and servicers place a loan into default when a
borrower’s co-signer dies or files for bankruptcy. These practices may constitute a
violation of the law, depending on the circumstances.

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•

Private student loan companies claim that they do not intend to trigger these defaults.
However, the CFPB continues to receive complaints from borrowers subjected to an
auto-default, particularly when their loan has been sold or is held in a securitization
trust.

•

To increase the quality of customer service related to co-signers in the private student
loan market, private student lenders and servicers should clearly state the required
factors to obtain a co-signer release, proactively notify borrowers when they can apply,
and warn borrowers about actions that might lead to disqualification.

•

The market for student loan refinance products has rapidly grown, but current practices
by some student loan servicers have created bureaucratic barriers for borrowers to
pursue lower rates through refinancing. Complaints received by the CFPB indicate that
borrowers are having trouble obtaining accurate payoff statements in order to refinance,
as well as experiencing payment processing errors and delays. Depending on the
circumstances, this may constitute a violation of the law.

•

To increase the quality of customer service related to refinancing in the private student
loan market, private student loan servicers should make payoff statements electronically
available to borrowers and cooperate with innovators to facilitate a simpler refinance
process.

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Appendix M:

Complaints received from
servicemembers, veterans, and
their families: A snapshot by the
Office of Servicemember affairs
Key takeaways:
•

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) created the
Office of Servicemember Affairs (OSA) to see that military personnel and their families receive a
strong financial education so they can make better-informed consumer decisions; to monitor
their complaints about consumer financial products or services; and to coordinate the efforts of
Federal and State agencies to improve consumer protection measures relating to those products
or services for military families.

•

Between July 21, 2011 and December 31, 2014, approximately 29,500 complaints were submitted
by servicemembers. The most common type of complaints dealt with debt collection and
mortgage. There were also many complains about credit reporting, credit cards, bank accounts or
services, consumer loan, student loans and payday loans.

•

The most common type of debt collection complaint is about continued attempts to collect a debt
that is not owed. In many of these cases, the attempt to collect the debt is not itself the problem;
rather, servicemembers assert that the calculation of the underlying debt is inaccurate or unfair.

•

The most common type of mortgage complaint involves problems servicemembers face when they
are unable to make payments, such as issues relating to loan modifications, collections, or
foreclosures.

•

Many servicemembers who submit credit reporting complaints highlight the ongoing fear that any
negative information on their credit report may cause their security clearance to be pulled when
it’s up for review. Military consumers have an added fear that any missed payments or inaccurate
reporting could potentially affect their military career.

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•

During 2014, OSA connected with approximately 7,000 servicemembers, veterans, military
families, and other stakeholders through a number of live events across the United States and
abroad.

•

Throughout 2014, we received numerous complaints from servicemembers and their families
telling their stories about fees. These complaints all underscored one central fact: due to an aspect
of their military service, fees associated with their credit cards or bank accounts were difficult to
avoid, causing unnecessary stress and additional financial hardship. As a result, the OSA has
three suggested practices:

o

Companies should provide clear instructions on how a person designated by a
servicemember may gain access to an account, and what things that person can
and cannot do with the account. If different levels of access exist, this should be
clearly explained, along with instructions on how the servicemember account
holder can authorize each level.

o

Companies should proactively notify military consumers about any POA
company policies. This should include whether or not POAs are accepted, and, if
so, which type is required based on the consumer’s needs. If a company requires
a specific format or language for a POA, that should be provided on its website.
Legal Assistance offices within the military routinely prepare both General and
Specific POAs, and can generally include whatever specific language a client
needs within the Specific POAs. Companies should provide clear guidance to
their military consumers about the language or format they require so that the
servicemember can be sure to create a sufficient POA.

o

Companies should ensure they have feasible methods of communication for all
their consumers. For military consumers, limiting communication to telephone
or fax to resolve issues greatly impacts the ability of deployed servicemembers to
conduct bank business, especially if that communication is only available during
US business hours.

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Appendix N: KEY TAKEAWAYS

Annual report of the CFPB student
loan ombudsman 2015
Key takeaways:
•

Between October 1, 2014 and September 30, 2015, the Bureau handled approximately 6,400
private student loan complaints, an increase of approximately 23 percent compared to that of the
previous year. The Bureau also handled 2,300 debt collection complaints related to private and
federal student loans.

•

Borrowers with both private and federal student loans continue to submit complaints describing
servicing and debt collection practices that create barriers to enroll in alternative repayment
plans, including income-driven repayment plans for borrowers with federal loans. As private
student lenders expand proprietary modification offerings for borrowers in distress, private
student loan borrowers report that they encounter servicing problems, including lack of access to
timely and accurate information on availability or eligibility criteria to enroll in alternative
repayment programs.

•

This report highlights how economic and other incentives for student loan servicers may
encourage servicing practices that contribute to borrower distress, particularly for federal student
loans originated by private lenders under FFELP. These loans constituted the vast majority of all
new federal student loans until Congress eliminated this program in 2010. From 2006 to 2009,
these loans made up more than 75 percent of all new federal student loans. As of June 30, 2015,
consumers still owe more than $370 billion in student loans made under this program.

•

The following report details analysis from a voluntary request sent by the Bureau’s
Student Loan Ombudsman to certain market participants, asking for data about loans
originated under FFELP and held by private investors. The report also describes certain
limitations of this data, noting that it may not be representative of all borrowers with
FFELP loans and differences in loan maturity, portfolio composition, and availability of
certain benefits may contribute to these results. This analysis finds:

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o

The FFELP data we received shows that less than 6 percent of borrowers in our
sample are enrolled in income-driven repayment plans. In contrast, borrowers
with federal loans made directly by the Department of Education enroll in these
plans at nearly three times the rate.

o

The FFELP sample shows substantial signs of borrower distress. More than 20
percent of FFELP borrowers in this sample are delinquent or have suspended
their monthly payments by using forbearance, but are not yet in default.

o

FFELP borrowers in the sample with past-due balances owe higher balances than
delinquent borrowers with Direct Loans, raising questions about whether
borrowers who may be able to benefit from income-driven repayment plans are
not enrolling.

•

The report also offers recommendations to policymakers, calling for the compilation of
regular performance metrics on student loan servicing, including data on delinquencies
and defaults as well as data on borrower performance in income-driven repayment
plans. Policymakers should consider compiling and publishing data on a periodic basis
to facilitate comparison in performance among student loan servicers.

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Appendix O:

Financial Well-Being
This report describes our initial research into how people acquire financial capability. We
undertook this work using a team of expert researchers to specifically to inform financial
education and improve consumer outcomes. Our overarching objective is to determine how to
define and measure the success of different financial literacy strategies so that we have a basis
for measuring different strategies’ effectiveness. And for this, we need to define the end goal of
financial education.
This project provides a conceptual framework for defining and measuring success in financial
education by delivering a proposed definition of financial well-being, and insight into the factors
that contribute to it. This framework is grounded in the existing literature, expert opinion, and
the experiences and voice of the consumer garnered through in-depth, one-on-one interviews
with working-age and older consumers.
FINANCIAL WELL-BEING DEFINED

The definition of financial well-being that we propose is based on the consumer perspective
revealed by the nearly 60 hours of open-ended interviews our research team conducted. Our
research suggests financial well-being can be defined as a state of being wherein you:


Have control over day-to-day, month-to-month finances



Have the capacity to absorb a financial shock



Are on track to meet your financial goals



Have the financial freedom to make the choices that allow you to enjoy life

FINANCIAL BEHAVIORS

Four types of behaviors are hypothesized to support financial well-being:


Effective routine money management, which encompasses often unconscious habits,
intuitions, and decision-making shortcuts (heuristics)

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

Financial research and knowledge-seeking, which support purposeful, informed financial
decision-making



Financial planning and goal-setting, which give purpose and structure to individual
financial decisions



Following through on financial decisions, the final step between intentions and desired
outcomes

FINANCIAL KNOWLEDGE



Knowing when and how to find reliable information to make a financial decision



Knowing how to process financial information to make sound financial decisions



Knowing how to execute financial decisions, adapting as necessary to stay on track. A
growing consensus points toward this notion of financial ability: that in addition to the
acknowledge component, financial literacy has an action component—that is, the ability
or skills to put financial knowledge to use

PERSONAL TRAITS



Comparing yourself to your own standards, not to others (internal frame of reference)



Being highly motived to stay on track in the face of obstacles (perseverance)



Having a tendency to plan for the future, control impulses, and think creatively to
address unexpected challenges (executive functioning)



Believing in your ability to influence your financial outcomes (financial self-efficacy)

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/financial-well-being/
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Appendix P: KEY TAKEAWAYS

Consumer Voices on Credit Reports
and Scores
This report summarizes the work CFPB has done to better understand consumers’ perspectives
on their credit reports and scores. To better help consumers make well-informed financial
decisions and achieve their financial goals, we at the CFPB have sought to increase our
understanding of what consumers know and how they think about key financial topics. Listening
to consumers informs how we design our financial education initiatives. CFPB conducted focus
groups with consumers from diverse backgrounds across the country. Through this research, we
examined issues such as whether consumers were checking their credit scores and reports, how
they were doing it, and what motivated them to check it.
Key findings include:


Consumers who had seen their reports or scores accessed them from a variety of
channels



Some consumers reported being confused and frustrated about how to check credit
reports and scores, what information these include, and how to improve them.



Consumers may lack information to take action to improve their credit histories



Consumers who are more engaged in the financial system check their credit reports
regularly

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/consumer-voices-on-credit-reportsand-scores/
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Appendix Q:KEY TAKEAWAYS

Consumers’ Mortgage Shopping
Experience
This report uses data from the National Survey of Mortgage Borrowers to examine the early
stages of getting a mortgage, consumer knowledge of the process of getting a mortgage, and the
sources of information consumers relied on. Key findings of this report include:


Almost half of consumers who take out a mortgage for home purchase fail to shop prior
to application; that is, they seriously consider only a single lender or mortgage broker
before choosing where to apply. The tendency to shop is somewhat higher among firsttime homebuyers.



The primary source of information relied on by mortgage borrowers is their lender or
broker, followed by a real estate agent. Fewer consumers obtain information from
outside sources, such as websites, financial and housing counselors, or personal
acquaintances (such as friends, relatives, or coworkers).



Most consumers report being “very familiar” with the types of mortgages, available
interest rates, and the process of taking out a mortgage. Those who are unfamiliar with
the mortgage process are less likely to shop and more likely to rely on real estate agents
or personal acquaintances.



A sizeable share of borrowers report that factors not directly related to mortgage cost,
including the lender or broker’s reputation and geographic proximity, are very important
in their decision making. Borrowers who express such preferences are much less likely to
shop.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/consumers-mortgage-shoppingexperience/
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Appendix R: KEY TAKEAWAYS

A Snapshot of Debt Collection
Complaints Submitted by Older
Consumers
This data point report highlights the primary source of complaints from consumers age 62 and
older. Key findings included:


Older consumers submit more complaints about debt collection than about any other
product or service.



Older consumers experience a range of problems – from the dearth of basic information
about the debts being collected, and collection attempts that target the wrong consumer,
to collectors’ use of coercive, offensive or misleading communications.



Consumers in general often tell us that these practices lead to confusion about how to
respond to collection attempts and some say it causes them severe distress and anxiety.



A rising number of older consumers carry debts into retirement.



Informed debt management and protection from collector misconduct are increasingly
critical to older consumers’ long-term financial security and well-being. This holds
especially true for those older consumers who live on a fixed income, derive their income
primarily from federal benefits, or lost significant assets and savings in the recent
recession.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/a-snapshot-of-debt-collectioncomplaints-submitted-by-older-consumers
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Appendix S: KEY TAKEAWAYS

A Snapshot of Reverse Mortgage
Complaints
Reverse mortgages are a special type of loan that allows homeowners, 62 and older, to borrow
against the accrued equity in their homes. Reverse mortgages can help some older homeowners
meet financial needs, but they can jeopardize retirement security if not used carefully.
This report provides an overview of consumer complaints submitted to the CFPB involving
reverse mortgages from December 2011 through December 2014. The most common reverse
mortgage complaint is about difficulty with changing the loan terms, and problems
communicating with loan servicers. Key findings include:


One of the most common types of reverse mortgage complaint involves requests to
change loan terms. Consumers report frustration with the terms of their loans, often due
to confusion with loan requirements. For example, reverse mortgage loan amounts and
repayment triggers are structured around the age of the borrower, and some consumers
complain that they are unable to add an additional borrower to their loan in order to
extend the life of the loan and defer repayment.



The second most common complaint the CFPB receives on reverse mortgages concerns
loan servicing issues. Some consumers describe slow, unresponsive, or inconsistent loan
servicing operations. Examples include:



Unreturned phone calls or written requests



Delays in processing information requests and performing appraisals



Inaccurate or inconsistent record keeping for loan documents



Married couples that borrowed in the name of only one spouse continue to face
challenges.

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

Non-borrowing spouses have submitted complaints distraught that they are facing
foreclosure after their borrowing spouse dies.



Some consumers complain that they were unaware they would lose their home after the
borrowing spouse dies. Some consumers report that they were misled by their loan
originator that they could add the non-borrowing spouse at a later date.



Borrowers continue to default on reverse mortgages due to non-payment of property
taxes and homeowners insurance.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/snapshot-of-reverse-mortgagecomplaints-december-2011-2014/
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Appendix T:

KEY TAKEAWAYS

Data Point: Medical Debt and Credit
Scores
This data point report looks at whether medical and non-medical collections are equally
predictive and whether paid and unpaid medical collections are equally predictive of consumer
delinquency rates. The findings are:
Consumers with more medical than non-medical collections had observed delinquency



rates that were comparable to those of consumers with credit scores about 10 points
higher.
Consumers with more paid than unpaid medical collections had delinquency rates that



were comparable to the rates of consumers whose credit scores were roughly 20 points
higher. That is, consumers with paid medical collections were less likely to be delinquent
than other consumers with the same credit score.
Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/data-point-medical-debt-and-creditscores/
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Appendix U:

KEY TAKEAWAYS

Data Point: Checking Account
Overdraft
This data point report presents the results of several analyses of consumers’ experiences with
overdrafts at a number of large banks. Key findings of this report with respect to the banks
studied include:


Overdraft and non-sufficient funds (NSF) fees constitute the majority of the total
checking account fees that consumers incur. For opted-in consumers, overdraft and NSF
fees account for about 75 percent of their total checking account fees and average over
$250 per year.



Most overdraft fees are paid by a small fraction of bank customers: eight percent of
customers incur nearly 75 percent of all overdraft fees.



The propensity to overdraft generally declines with account holder age, with 10.7 percent
of the 18-25 age group having more than 10 overdrafts per year, but only 2.8 percent of
the 62 and over age group falling into this category.



The number of overdraft transactions and fees varies substantially with opt-in status.
Opted-in accounts are three times as likely to have more than 10 overdrafts per year as
accounts that are not opted in. Opted-in accounts have seven times as many overdrafts
that result in fees as accounts that are not opted in. Disentangling the causal nature of
the relationship between opt-in status and overdrafting would require further analysis.



Transactions that lead to overdrafts are often quite small. In the case of debit card
transactions, the median amount that leads to an overdraft fee is $24 and the median
amount of a transaction that leads to an overdraft fee for all types of debits is $50.



Most consumers who overdraft bring their accounts positive quickly, with more than half
becoming positive within three days and 76 percent within one week.

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Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/data-point-checking-accountoverdraft/
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Appendix V:

KEY TAKEAWAYS

Data Point: Payday Lending
This data point report presents the results of several analyses of consumers’ use of payday loans.
The focus of the analyses is loan sequences, the series of loans borrowers often take out
following a new loan. Key findings of this report include:


Over 80% of payday loans are rolled over or followed by another loan within 14 days (i.e.,
renewed). Same-day renewals are less frequent in states with mandated cooling-off
periods, but 14-day renewal rates in states with cooling-off periods are nearly identical to
states without these limitations. We define loan sequence as a series of loans taken out
within 14 days of repayment of a prior loan.



While many loan sequences end quickly, 15% of new loans are followed by a loan
sequence at least 10 loans long. Half of all loans are in a sequence at least 10 loans long.



Few borrowers amortize, or have reductions in principal amounts, between the first and
last loan of a loan sequence. For more than 80% of the loan sequences that last for more
than one loan, the last loan is the same size as or larger than the first loan in the
sequence. Loan size is more likely to go up in longer loan sequences, and principal
increases are associated with higher default rates.



Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer.
Among new borrowers (i.e., those who did not have a payday loan at the beginning the
year covered by the data) 22% of borrowers paid monthly averaged at least one loan per
pay period. The majority of monthly borrowers are government benefits recipients.



Most borrowing involves multiple renewals following an initial loan, rather than multiple
distinct borrowing episodes separated by more than 14 days. Roughly half of new
borrowers (48%) have one loan sequence during the year. Of borrowers who neither
renewed nor defaulted during the year, 60% took out only one loan.

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Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/cfpb-data-points-payday-lending/
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Appendix W: KEY TAKEAWAYS

Consumer Response: A Snapshot
of Complaints Received
This report provides an overview of how Consumer Response handles complaints and presents
an analysis of complaints received over the period from between January 1, 2014 and December
31, 2014. During this time, the CFPB received approximately 250,700 consumer complaints.
Approximately 67% of all consumer complaints were submitted through the CFPB’s website and
9% via telephone calls. Referrals accounted for 15% of all complaints received. The rest were
submitted by mail, email, and fax.
DEBT COLLECTION COMPLAINTS (35% OF ALL COMPLAINTS)



The most common type of debt collection complaint is about continued attempts to
collect a debt that the consumer reports is not owed. In many of these cases, the attempt
to collect the debt is not itself the problem; rather, consumers assert that the calculation
of the amount of underlying debt is inaccurate or unfair. In other cases, the consumer
complains about the furnishing of information to credit reporting agencies.



Consumers also complained about the lack of debt validation received from debt
collectors and consumers often ask collectors for additional documentation to support
the debt.



Complaints about communication tactics, particularly telephone collections, are another
common type of consumer complaint.

MORTGAGE COMPLAINTS (20% OF ALL COMPLAINTS)



The most common type of mortgage complaint continues to involve problems consumers
face when they are unable to make payments, such as issues relating to loan
modifications, collections, or foreclosures. In particular, consumers still complain about
delays and ambiguity in the review of their modification applications.

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Consumers also complained about issues they encountered while pursuing short sales or



after foreclosure proceedings had been initiated
Other common types of mortgage complaints address issues related to making



payments, including loan servicing, posting of payments, or management of escrow
accounts.
CREDIT REPORTING CARD COMPLAINTS (18% OF ALL COMPLAINTS)

The most common type of credit reporting complaint continues to be about incorrect



information appearing on the consumer’s credit report, such as information that does
not belong to the consumer, incorrect account status, and incorrect personal
information.
Among consumers’ complaints about incorrect information appearing on their credit



report, the most common concerns were about incorrect account status and information
that does not belong to the consumer. Some consumers report having to deal with the
reappearance of incorrect account information on their credit reports, including
inaccurate collection accounts, they had previously disputed and corrected. Other
consumers express frustration with having to correct information that does not belong to
them.
Another common type of complaint is about issues with credit reporting companies’



investigations of information disputed by consumers. Consumers report that credit
reporting companies sometimes return findings on their disputes within only a few days,
and consumers question the depth and validity of such quick investigations.
Bank accounts or services (8%), credit cards (7%) , consumer loans (4%), student
loans (3%), payday loans (2%), and money transfers, prepaid, and other financial
services (less than 2% combined) made up the remainder of the complaints.
Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/2014-consumer-response-annualreport
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Appendix X: KEY TAKEAWAYS

Complaints received from
servicemembers, veterans, and
their families 2011-2014
This report provides an overview of the handling and analysis of complaints submitted by
servicemembers, veterans, and their families to the Bureau from July 21, 2011 through
December 31, 2014. Between July 21, 2011 and December 31, 2014, the CFPB handled
approximately 518,400 consumer complaints. Approximately 59% of all consumer complaints
were submitted through the CFPB’s website and 9% via telephone calls. Referrals accounted for
22% of all complaints received, with the remainder submitted by mail, email, and fax.
DEBT COLLECTION COMPLAINTS (39% OF ALL COMPLAINTS)



The most common type of debt collection complaint is about continued attempts to
collect a debt that is not owed. In many of these cases, the attempt to collect the debt is
not itself the problem; rather, servicemembers assert that the calculation of the
underlying debt is inaccurate or unfair.



Complaints about communication tactics, particularly telephone collections, are another
common type of consumer complaint. Servicemembers complain about telephone
collections that are too frequent and that come at inconvenient times of the day. They
also complain about debt collectors calling their place of employment or third parties.



Many servicemembers who have submitted debt collection complaints report troubles
with the collection of unpaid amounts on their military-affiliated credit cards.
Specifically, servicemembers have reported garnishment of their wages and tax refunds
years after the original debt was incurred.

MORTGAGE COMPLAINTS (24% OF ALL COMPLAINTS)



The most common type of mortgage complaint involves problems servicemembers face
when they are unable to make payments, such as issues relating to loan modifications,

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collections, or foreclosures. Servicemembers with successfully completed loan
modifications have complained that some servicers do not amend derogatory credit
reporting accrued by servicemembers during trial periods – even when documents
provided to the consumers by servicers indicated that they would do so.
CREDIT REPORTING CARD COMPLAINTS (9% OF ALL COMPLAINTS)



The most common type of credit reporting complaint is about incorrect information
appearing on the consumer’s credit report, such as information that does not belong to
the consumer, incorrect account status, and incorrect personal information.



Many servicemembers who submit credit reporting complaints highlight the ongoing
fear that any negative information on their credit report may cause their security
clearance to be pulled when it’s up for review. Military consumers have an added fear
that any missed payments or inaccurate reporting could potentially affect their military
career.

Bank accounts or services (8%), credit cards (7%) , consumer loans (5%), student
loans (3%), payday loans (2%), and money transfers, prepaid, and other financial
services (less than 2% combined) made up the remainder of the complaints.
Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/complaints-received-fromservicemembers-veterans-and-their-families-2011-2014/
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Appendix Y: KEY TAKEAWAYS

Consumer Credit Reports: A Study
of Medical and Non-Medical
Collections
Roughly half of all collections tradelines that appear on credit reports are reported by debt
collectors seeking to collect on medical bills claimed to be owed to hospitals and other medical
providers. These medical debt collections tradelines affect the credit reports of nearly one-fifth
of all consumers in the credit reporting system.
This paper describes characteristics of the medical and non-medical collections tradelines on
consumers’ credit reports, and the processes by which they appear and disappear. It draws on
analysis of data contained through our Consumer Credit Panel (CCP); consumer complaints to
the CFPB about collections; and interviews with debt collection agencies, healthcare providers,
and other observers of the healthcare billing and payment processes. Key findings include:


Collections tradelines affect many consumers. Nearly one-third of consumers
with credit reports (31.6 percent) have one or more collections tradelines on their credit
reports. About 19.5 percent of credit reports - nearly one in five - contain one or more
medical collections tradelines, while 24.5 percent contain one or more non-medical
tradelines.



Most collections tradelines result from unpaid bills rather than unpaid
loans. Over half are medical. More than two-thirds of all collections tradelines (67.5
percent) – and over 80 percent of those tradelines that can be attributed to a particular
creditor or provider -- are reported on accounts that originated with a healthcare
provider, utility company, or telecommunications company. These are companies that
generally do not regularly report payment history to the national credit reporting
agencies and almost all rely on their collection agencies to report on accounts in
collections. Medical collections tradelines account for over half (52.1 percent) of all
collections tradelines with an identifiable creditor or provider.

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

Most collections tradelines are for small amounts. Medical collections
tradelines are even smaller than non-medical tradelines. The median unpaid
non-medical collections tradeline is $366 (with an average of $1,000). Medical unpaid
collections tradelines are even smaller with a median of $207 and average of $579. These
contrast with the much larger amounts that are due on credit cards or student loans that
are seriously delinquent (more than 120 or 150 days past due). Such accounts average
several thousand dollars.



Information on collections tradelines are furnished to the three largest
nationwide consumer reporting agencies by a vast array of collectors. We can
identify approximately 1,400 different entities that furnish collections account
information in our 5percent sample of credit reports. The degree of fragmentation varies
significantly by the type of debt in collections. Medical debt reporting is highly
fragmented, with the top furnisher accounting for only 3 percent of medical collections
tradelines and the top 10 furnishers accounting for only 18 percent of those tradelines. In
contrast, the top furnisher for telecommunications collections accounts for 37 percent of
collections tradelines while the top 10 furnishers account for 83 percent of collections
tradelines in that industry.



Third-party contingency collectors who furnish much of the collections
tradeline information have indirect and short term ties to the underlying
debt. Third-party collectors report information about their accounts in collections only
during the time that they are assigned the accounts by their creditor clients. Most of
these tradelines appear on credit reports when the account is assigned to the third party,
and then disappear or “fall-off” the report at the end of the assignment period. Rates of
fall-off vary by collections type, with medical debt having a lower fall-off rate than other
types of collections tradelines. The large number of collectors furnishing information on
collections tradelines and their indirect affiliation with the debt introduces potential
sources of error in collections reporting.



Collections tradelines can represent a wide variety of consumer
circumstances when they appear on credit reports. There are no objective or
enforceable standards that determine when a debt can or should be reported as a
collections tradeline. Creditors may elect to sell a debt to a debt buyer or send a debt to a
third-party collections agency or in-house collections department at varying times in the
collection cycle. Debt buyers and collectors determine whether, when, and for how long
to report a collections account as a collections tradeline. Practices vary by type of account

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and within particular industries. Because of these variations, there is only a limited
relationship between the recency and severity or of a delinquency and when or whether a
collections tradeline appears on a consumer’s credit report.


Medical bills can be a cause of confusion and uncertainty and can result in
collections tradelines for consumers who are uncertain about what they
owe, to whom, when, or for what. The process of incurring medical expenses and
the process by which such expenses are turned into medical bills differs from recurring
bills issued by installment lenders, credit card companies, utilities, and
telecommunications companies. Lack of price transparency and the complex system of
insurance coverage and cost sharing means many consumers, including those who have
health coverage, receive medical bills that are a source of confusion. Among consumers
who have submitted complaints to the Bureau about debt collection problems, medical
collections complaints are much more likely to be about the existence, amount, or
information pertaining to the debt than non-medical collections complaints.



A large portion of consumers with medical debts in collections show no
other evidence of financial distress and are consumers who ordinarily pay
their other financial obligations on time. 22 percent of consumers with collections
tradelines (7 percent of all consumers with credit reports) have only medical collections
tradelines. These consumers owe less, have more available credit which they could use to
repay their debt, and are more reliable payers than consumers with non-medical
collections tradelines or than consumers with both types of collections tradelines.
Indeed, of the consumers with only medical collections tradelines, approximately 50
percent have otherwise “clean” credit reports with no indication of serious past
delinquencies.

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/consumer-credit-reports-a-study-ofmedical-and-non-medical-collections/
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Appendix Z: KEY TAKEAWAYS

A Snapshot of Older Americans and
Mortgage Debt
This snapshot includes analysis of survey data, which describes the growing number of older
consumers carrying mortgage debt, and the risks that this trend presents to their financial
security.
Key findings include:


More senior homeowners with mortgages: Older consumers are carrying more
mortgage debt into their retirement years than in previous decades. For homeowners age
65 and older, the percentage carrying mortgage debt increased from 22 percent to 30
percent from 2001 to 2011.



Median mortgage debt for seniors increased by 82 percent: From 2001 to 2011,
the median amount older homeowners owed on mortgages increased 82 percent from
about $43,300 to $79,000.



Less affordable housing: More than half of the 4.4 million retired homeowners with
mortgage debt spend 30 percent or more of their household income in housing related
costs.

The study also looked into mortgage complaints submitted to the CFPB by older consumers:


From July 2011 through December 2013, consumers age 65 and older have submitted
approximately 15,500 complaints on a range of financial products and services.



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About one third (32 percent or 4,936) of their complaints are about mortgages.

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

The most common types of mortgage complaints from older consumers (46 percent) are
about problems they face when they are unable to make payments (such as issues
relating to loan modifications, collections, or foreclosures).



Other common types of mortgage complaints (32 percent) involve problems older
consumers have when making payments (such as issues with loan servicing, payments,
and escrow accounts).

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/snapshot-of-older-consumers-andmortgage-debt/
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Appendix AA: KEY TAKEAWAYS

Credit Reporting Complaint
Snapshot
Listening to consumers and reviewing and analyzing their complaints is an integral part of our
work in understanding issues in the financial marketplace, and helping the market work better
for consumers. Between October 22, 2012 and February 1, 2014, we handled about 31,000
complaints from consumers frustrated with credit reporting companies. Key findings include:
INCORRECT INFORMATION ON A CREDIT REPORT



73% of consumers’ credit reporting complaints are about incorrect information
appearing on a credit report. Other common types of credit reporting complaints are
about issues with credit reporting companies’ investigations of information disputed by
consumers (11%) and the inability to get a credit report or credit score (9%).



Among consumers’ complaints about incorrect information appearing on their credit
report, the most common concerns were about incorrect account status (35%) and
information that doesnot belong to the consumer (19%).

CREDIT REPORTING COMPANY’S INVESTIGATION



Some consumers report having to deal with the reappearance of incorrect account
information on their credit reports, including inaccurate collection accounts, they had
previously disputed and corrected. Other consumers express frustration with having to
correct information that does not belong to them.



In complaints where consumers had issues with credit reporting companies’
investigations of information they disputed, consumers most commonly reported
problems with the company’s statement of dispute (4%) and problems with not having
received notice of the investigation’s status or results (4%).



Consumers sometimes question the depth and validity of the investigations performed,
given how quickly credit reporting companies sometimes return findings. Additionally,

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consumers report frustration when they have submitted documentation that should call
into question the accuracy of the information provided by the data furnisher.


Consumers are also sometimes confused about the extent to which the credit reporting
agencies are obligated to provide consumers with validation and documentation of a
debt which appears on their credit report.

INABILITY TO GET CREDIT REPORT OR CREDIT SCORE



Consumers’ complaints about an inability to get credit reports or credit scores most
commonly reported problems getting their free annual report (4%) and getting their
credit report or credit score (4%).

Source: Consumer Financial Protection Bureau
Learn more: http://www.consumerfinance.gov/reports/credit-reporting-complaintsnapshot/
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