WebRecon's April 2025 report presents an intriguing mix of data in the consumer complaints and litigation landscape. Despite a downturn in April's case filings compared to March of this year, the year-to-date (YTD) statistics reveal considerable growth across several significant consumer finance protection categories, signaling important implications for companies in this space.
Key Statistics:
- Telephone Consumer Protection Act (TCPA) Litigation: 235 TCPA cases filed, down 2.9% for the month but up 44% YTD.
- Fair Debt Collection Practices Act (FDCPA) Cases: 335 FDCPA cases filed, seeing a 17.5% month-on-month decrease, and down 8% YTD.
- Fair Credit Reporting Act (FCRA) Cases: 606 FCRA cases filed, dropping 5.6% for the month, up 10.2% YTD.
- CFPB Complaints: 20,915 complaints filed with the CFPB; a fall of 2.1% in April, yet surged 100.4% YTD.
- The Consumer Financial Protection Bureau complaints predominantly centered around issues related to incorrect debt collection practices, with a substantial 45% not acknowledging the debt's invalidity, followed by 29% pointing to insufficient notice about the debt.
- The top states where complaints were filed: Texas (4184), Florida (2415), Georgia (1630), California (1486), Illinois (862), New York (826), Pennsylvania (779), North Carolina (714), Virginia (690), and Michigan (590).
Notably, April’s figures underscore the prevalence of class actions, particularly in TCPA litigation, with 78.3% of TCPA filings identified as class actions. This sharp trend highlights a growing risk for businesses, as class actions typically carry elevated penalty exposure and heightened reputational risks. The continued rise in TCPA-related class actions should prompt companies engaged in telemarketing to strengthen internal controls and ensure strict compliance with applicable telemarketing and consumer protection laws.
While April may reflect a temporary lull in filings, the YTD growth emphasizes that consumer finance companies must remain vigilant and proactive, particularly in jurisdictions with high complaint volumes. Understanding these evolving trends and strategically responding to their regulatory and litigation implications will be essential to maintaining compliance in an increasingly litigious environment.
