This dataset contains over 700,000 consumer complaints related to various banks across the USA. Complaints span issues such as debt collection problems, credit issues, and more. Like many large datasets, it required significant cleaning due to numerous null values, which consumed a substantial amount of time. However, thorough cleaning is essential to ensure accurate insights and reliable information. By refining the data, we can uncover valuable trends and patterns to better understand the nature of consumer complaints.
With this dataset, we can explore critical questions such as which cities and regions report the most problems, which banks receive the highest number of complaints, and which channels (email, phone, etc.) consumers use to submit their grievances. Additionally, we can analyze the most common types of issues consumers face and how banks handle these complaints. By examining trends over time, we can also identify whether some banks have improved in managing complaints or if specific institutions continue to struggle. Let’s dive deeper to uncover actionable insights from this data.
The most reported issue among consumers is related to mortgages, with over 200,000 complaints. This is significantly higher than the next categories, such as debt collection, credit reporting, credit cards, and student loans. Mortgage-related complaints highlight common struggles with loan modifications, collections, and foreclosure processes, emphasizing the need for financial institutions to improve their services in this area.
Bank of America leads with over 65,000 complaints, followed by Wells Fargo with more than 50,000. While these banks receive the highest number of complaints, they have shown improvement in recent years, read more down here about it.
Most consumers chose to submit their complaints online, with over 500,000 cases filed through web platforms. This demonstrates the convenience and accessibility of digital channels for addressing grievances. Referrals are the second most common method, followed by phone submissions, indicating that traditional communication methods still play a role but are less favored compared to online platforms.
Some states report minimal complaints, with as few as 10 to 100 cases, possibly due to fewer consumers or limited operations by these companies. On the other hand, California leads with over 100,000 complaints, followed by Florida with more than 70,000, and Texas in third place. Larger states naturally show higher complaint volumes due to their larger populations and financial activity.
Complaint Trend over Time
The number of consumer complaints has been increasing gradually since 2012, with a noticeable surge starting in 2014. Even though the data for 2017 is incomplete, the first few months show the highest number of complaints ever recorded, indicating a threefold increase in complaints between 2012 and 2017 a significant rise.
The second graph illustrates this trend clearly, highlighting how complaints have grown over time. However, not all companies are following this trend. Some, like Bank of America, have seen their complaints decrease or remain constant due to better complaint management. Bank of America has the highest total complaints at over 65,315, followed by Wells Fargo Bank with more than 50,000.
The third graph shows that while these banks initially had high complaint rates, they improved over time, except for certain spikes like Wells Fargo's increase in 2016 before improving again. Meanwhile, Equifax and TransUnion Intermediate Holdings, Inc. have consistently seen an increase in complaints, especially from 2015 to 2017, marking them as the worst performers in terms of rising complaint rates. Conversely, OCWEN Loan Servicing LLC has shown commendable improvement, with its complaints steadily decreasing each year.
The most common issue varies between companies. For example, Bank of America frequently receives complaints about loan modifications, collections, and foreclosures, while issues related to incorrect information on credit reports account for over 100,000 complaints, making it the most reported issue across all companies. Notably, Equifax leads in complaints about incorrect credit report information, further emphasizing the challenges faced by this company. The data reveals significant disparities in how companies address consumer grievances, with some demonstrating notable progress and others struggling to keep pace.
Conclusion and Insights
This analysis highlights the critical issues driving consumer complaints, particularly in mortgage-related services. While some banks have made noticeable improvements, others still face rising dissatisfaction. States with high complaint volumes, like California, Florida, and Texas, require focused attention from financial institutions. Additionally, the dominance of online submissions underscores the importance of maintaining efficient and responsive digital complaint-handling systems.
For those interested in the code and analysis behind this study, you can explore the Python Jupyter Notebook available on my GitHub repository. It contains detailed code, visualizations, and insights used for this exploration.