WHICH COMMUNITIES COMPLAIN TO POLICYMAKERS? EVIDENCE FROM CONSUMER SENTINEL

Devesh Raval

Economic Inquiry, 2020, vol. 58, issue 4, 1628-1642

Abstract: Consumer complaints provide a signal of the problems that different American communities face. I use a large database of millions of complaints to examine how per capita complaint rates vary across communities, as well as heterogeneity in who complains to different agencies and about different consumer protection issues. I find higher complaint rates in more heavily Black, more educated, higher income, older, and more urban communities and lower complaint rates in more heavily Hispanic and higher household size communities. The demographics of complaints are quite different for the Consumer Financial Protection Bureau, with much higher rates of complaints from Black and college educated areas compared to the Federal Trade Commission or Better Business Bureaus. I also find much higher rates of finance related complaints from Black communities across all reporting agencies. (JEL D18, H50, J10)

Date: 2020
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