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Top consumer complaints may suggest bankruptcy as solution

A recent study shed some light on American consumers' top complaints. Not surprisingly, car and home improvement problems, as well as credit and debt issues top the list in Michigan and elsewhere. However, mortgage and debt made the list as some of the top fastest-growing and worst overall complaints, according to data collected by The Consumer Federation of America (CFA). Among the top five fastest-growing complaint categories were consumer fraud, abusive debt collection and mortgage-related problems. It appears that many of the issues that concern American consumers could be ameliorated through a personal bankruptcy filing.

Respondents claim that mortgage problems are especially concerning. Some point to the seeming inability on the part of lenders to stop foreclosures, even in cases where the homeowner has the ability to catch up and make their monthly payments. Although there has been a $25 billion settlement in the matter, many consumers remember the recent robo-signing scandal that led to some individuals wrongly losing their homes to foreclosures that never should have taken place.

Another highly cited consumer complaint was debt collection practices. Some stated that 'debt buyers' who purchase large volumes of uncollected debt sometimes use aggressive collection tactics. Examples given were calling a debtor as many as 50 times per day and threatening to have individuals arrested and jailed if they did not pay up.

In an already struggling economy, consumers are feeling the pinch in virtually every aspect of their finances. For many in Michigan, their outstanding debt load has far outpaced their ability to pay, and they must look for other solutions. In some cases, filing for personal bankruptcy can be the most financially responsible move that an individual can make, and can lead to a new financial start free of the vast majority of consumer debt.

Source: Forbes, "Top 10 Consumer Complaints, Mortgage And Debt Collection Are The Fastest Growing," Halah Touryalai, July 31, 2012

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