Prepaid card complaints increased 215% over the same rolling three-month period from a year ago, according to the latest CFPB monthly complaint report.
The December 2015 report showed the three-month period from September through November for prepaid cards gained the highest number of complaints for the reported period.
Money transfers tied for second place with other financial services, recording a 49% increase year-over-year for a total of 207 complaints, compared to 139 complaints a year ago, according to the report.
Money transfers were highlighted in the report. The most common complaints (42%) were accusations of fraud or scam.
Other complaints included recipients not receiving the remittances, the amount received was smaller than expected, or significant and unanticipated delays occurred. Additionally, complaints involved error resolution, cancellation and request for refunds.
Fraudulent money transfers included the common fraud of "person-in-need," in which the fraudster poses as a family member asking for money to pay for bail or other emergency needs. Among other complaints relating to money transfers were customer service issues and consumers being charged a higher reported exchange rate, as well as the funds not being received in the same currency in which the transfer was funded.
Kentucky experienced the greatest percentage increase in complaints, followed by Kansas and Iowa at 600%, 400% and 300% respectively. Oregon saw the greatest decrease at -33%, followed by North Carolina at -31% and Oklahoma at -25%.
MoneyGram was the company with the highest increase in complaints with a 223% increase over the previous year period, followed by Western Union with a 2% increase. Western Union led the group in untimely responses with a 3% increase for the three-month timeframe.
Of the credit unions in the report, only the $72 billion Navy Federal Credit Union received money transfer complaints. Navy FCU had four complaints during the covered period in 2015, three of which were fraud or scam related.
The $14 billion BECU had eight total complaints during the three-month period, while Navy FCU had 132 and SECU had nine.
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