Financial Crime World

Puerto Rico Struggles to Access Fair Financial Services: CFPB Study Reveals Alarming Statistics

The Consumer Financial Protection Bureau (CFPB) has released a study highlighting the financial struggles faced by Puerto Ricans, emphasizing the need for increased efforts to prevent financial crime and promote fairness in the market.

Financial Well-being in Puerto Rico

The study analyzed data from the National Financial Capability Study 2021 survey and found that:

  • The average financial well-being score among adults in Puerto Rico is a dismal 52 out of 100, two points lower than the national average.
  • Nearly 18% of Puerto Rican adults live below the federal poverty line.
  • Approximately 13% lack medical insurance.
  • One-in-five report skipped medical treatment due to cost.

Limited Access to Financial Products and Services

The CFPB report also found that:

  • Many residents in Puerto Rico have fewer options for financial products and services compared to those living in the 50 states.
  • A recent CFPB study on consumer complaints revealed that 8 out of 10 complaints from Puerto Ricans were related to credit or consumer reporting agencies.

Systemic Barriers

Systemic barriers, including:

  • Limited English proficiency
  • Rapidly rising housing costs

further exacerbate these issues, making it difficult for Puerto Ricans to achieve economic mobility. The lack of access to fair financial services leaves families vulnerable to financial shocks, with broad implications for Puerto Rico’s economic growth.

CFPB Efforts to Address the Challenges

The CFPB is working to address these challenges by:

  • Urging financial institutions to present opportunities for people with limited English proficiency to build their financial capabilities.
  • Providing consumers with a platform to submit complaints about consumer financial products or services online or by calling (855) 411-CFPB (2372), available in more than 180 languages, including English and Spanish.

Call to Action

The study’s findings underscore the need for increased efforts to prevent financial crime and promote fairness in the market. As Puerto Rico works towards economic recovery, it is essential that policymakers and financial institutions prioritize addressing these systemic barriers and challenges to ensure fair access to financial services for all residents.