Checking and Savings Account Complaints Increased by 31.9% in 2023

There can be little room for mistakes with money. Maybe that’s why checking and savings account complaints filed with the Consumer Financial Protection Bureau (CFPB) have risen, according to the latest DepositAccounts study, with account management, account closures and outside charges making up the bulk.

Here’s what else we found.

Key findings

• Consumer complaints about checking and savings accounts reached a record high in 2023. Consumers filed 44,924 checking and savings account complaints last year, up 31.9% from 2022. Specifically, checking account complaints increased by 29.9% to 40,429 in 2023, while savings account complaints rose by 52.8% to 4,495. Through July 22 this year, 22,813 complaints have been filed. If this trend continues, we estimate 36,699 complaints in 2024 — a significant drop-off.
• January 2023 has seen the most complaints in a month since the start of tracking. That month, 5,962 complaints were filed, 169.4% more than the monthly average of 2,213 claims. Notably, 53.0% (or 3,162) of checking and savings account complaints in January 2023 were related to Wells Fargo.
• Since the database started, 6 in 10 (60.0%) consumer complaints have been about account management. The next most common complaints are about account closures (12.8%) and lenders or other companies charging consumers’ accounts (10.6%). Drilling deeper by subissue, the most common complaints include issues with deposits and withdrawals, problems with using a debit or ATM card and unauthorized transactions.
• Consumer complaints resulted in monetary relief 3.5 times more often than nonmonetary relief. Of the claims filed, 17.7% resulted in monetary relief, while 5.1% resulted in nonmonetary relief. The bulk — 76.5% — were closed with explanation.
• From April 21, 2017, through July 22, 2024, Americans filed 58.8 checking and savings account complaints per 100,000 residents. The District of Columbia had the highest complaint rate at 184.0 per 100,000 residents, followed by Nevada (95.0) and Delaware (94.3). The lowest rates of complaints were filed in North Dakota (13.8), Iowa (23.7), and Montana and Maine (both 24.0).

Consumer complaints rose more than 30% annually

Consumer complaints submitted to the CFPB about checking and savings accounts have consistently risen between 2017 (the start of the database) and 2023, reaching a record 44,924 in 2023. That’s a 31.9% increase from 2022.

Breaking that down:

• There were 40,429 checking account complaints in 2023, a 29.9% increase from 2022.
• There were 4,495 savings account complaints in 2023, a 52.8% increase from 2022.

Matt Schulz, LendingTree chief credit analyst and author of "Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life,” suspects that some of the growth is due to people switching financial institutions to chase higher yields.

“Changing banks or credit unions can be a little messy and doesn’t always go as smoothly as one would hope, which is partly why people can be reluctant to do it,” he says. “However, with many financial institutions offering sign-on bonuses and high yields for new customers, many people are choosing to take the plunge.”

Also, he believes complaints could rise as people pay closer attention as their budgets tighten. “When you’re feeling great financially and have plenty of disposable income, you may not sweat it too much when you get hit with a surprise fee or some other complication with your bank,” Schulz says. “However, when you’re living paycheck to paycheck and every dollar is crucial, you’re much more likely to fight for what you feel is yours. That’s likely the case for many today.”

So far, 22,813 complaints have been filed in 2024 through July 22. If this pace were to continue, we estimate there will be 36,699 complaints by the end of the year — a noticeable decrease from 2023 but still the second-highest since the database started.

Five financial institutions have accounted for more than half (50.8%) of consumer complaints since the database started: Bank of America, Wells Fargo, JPMorgan Chase, Citibank and Capital One.

In July 2023, the CFPB ordered Bank of America to pay more than $100 million, alleging it charged “junk fees” to customers with insufficient funds and used sensitive personal information without customer knowledge to open fake accounts.

Earlier, in December 2022, Wells Fargo was ordered to pay a whopping $3.7 billion after being accused of practices including charging junk fees, unlawfully freezing accounts for an average of at least two weeks and deceptively claiming waiver availability for a monthly service fee. According to the CFPB, 1 in 3 American households is a Wells Fargo customer and may have been affected by these practices.

As consumers become aware of such actions, it’s understandable that other account holders may feel prompted to file similar complaints.

With that in mind, January 2023 saw the most complaints in a month since the start of tracking. There were 5,962 complaints filed that month, or 169.4% more than the monthly average of 2,213 claims. Perhaps unsurprisingly given the prior month’s CFPB enforcement, 53.0% (or 3,162) of checking and savings account complaints during the month were related to Wells Fargo.

Most recently, the CFPB is reportedly investigating how banks — including JPMorgan Chase, Wells Fargo and Bank of America — manage complaints from customers who dispute transactions made through Zelle.

60% of complaints are about account management

Breaking complaints down by type, 6 in 10 (60.0%) filed from April 21, 2017, through July 22, 2024, have been about account management — making it the most common type.

“There could be an issue with a deposit or withdrawal not being made on a timely basis or in the correct amount,” Schulz says. “Someone may not be able to access their account or use their debit or ATM card. There could be a glitch with autopay. That’s part of why it’s so important that you keep a close eye on your accounts. Mistakes happen, technology fails and things go wrong. When they do, the onus often falls on you to make sure the bank makes things right.”

Account management is followed by account closures, at 12.8% of complaints. Next, 10.6% of complaints are about lenders or other companies charging consumers’ accounts.

By subissue, problems with deposits and withdrawals (22.3%) make up the largest portion of complaints. That’s followed by problems with using a debit or ATM card (12.4%) and unauthorized transactions (8.7%).

Notably, there was a 169.2% increase in overdraft fee complaints in 2023 compared to 2022 — from 711 in 2022 to 1,914 in 2023. This comes alongside increasing public attention toward overdraft fees, despite overdraft fee revenue decreasing across major financial institutions.

Following, there was an 81.3% increase in fee problem complaints and a 52.5% increase in complaints about accounts being closed by the company.

Complaints are more likely to end in monetary relief than nonmonetary

There’s some good news: Consumers are more likely to see monetary relief than nonmonetary relief. Across all claims filed, 17.7% resulted in monetary relief, while 5.1% resulted in nonmonetary relief.

Most complaints, however, were closed with explanation, accounting for 76.5% of claim resolutions.

More good news: The majority (98.9%) of claims were answered on time. According to the CFPB, companies are required to respond within 60 days, though resolutions generally come within 15 days.

The District of Columbia has the highest rate of complaints

In the period analyzed, Americans filed 58.8 checking and savings account complaints per 100,000 residents.

The District of Columbia had the highest complaint rate by a wide margin, at 184.0 per 100,000 residents. Comparatively, Nevada had a rate of 95.0 and Delaware had 94.3 — ranking second and third, respectively.

It’s hard to say why D.C. has such a high rate of complaints, but the physical presence of federal agencies and regulatory bodies may play a role, making consumers more vigilant and likely to report financial issues.

On the other end of the list, North Dakota (13.8) had the lowest rate of complaints. Iowa (23.7) ranked second, with Montana and Maine tying for third (both 24.0).

Full rankings

Filing a complaint: What to know

You should keep a few things in mind when filing a complaint. Schulz recommends:

• Go through the bank first. “Most of the time, issues can be resolved pretty quickly with a call, message or visit to a local branch,” he says. “That should be your first move if something goes wrong. However, if you go down that road and don’t feel like you’re getting the response you need, don’t hesitate to complain to the CFPB.”
• Document everything. “As you dispute the issue with the financial institution and then with the CFPB, be meticulous in your recordkeeping,” he says. “That would include any records you’d have of the specific transactions in question, but it would also include notes on your conversations with the institution. Be sure to note who you spoke with, when you spoke with them, what was said and anything else that may be pertinent to your case. You don’t need to write down every word of these conversations, but noting the highlights and the key points can help you make sure you’re being treated fairly.”

Methodology

DepositAccounts researchers reviewed consumer complaints to the Consumer Financial Protection Bureau (CFPB) from April 21, 2017, through July 22, 2024, focusing on checking and savings accounts.

To calculate the states with the highest complaint rates, researchers used population counts from the U.S. Census Bureau 2022 American Community Survey with five-year estimates.