Service members' difficulties in dealing with student loan servicers were among the most common financial challenges mentioned in complaints, according to an annual report by the Consumer Financial Protection Bureau. (Richard Salomon/U.S. Air Force)

Money matters are becoming a growing problem for the military community as complaints of veterans scams rise and service members say they’re unable to access essential financial services, according to the federal government’s consumer agency.

The annual report of the Consumer Financial Protection Bureau’s Office of Servicemember Affairs shows that the number of complaints fielded by the office has almost doubled in two years.

Released Tuesday, the report highlights the financial struggles of service members, veterans and military families.

The 84,600 complaints the bureau received in 2023 from people it considers part of the military community represented a 27% increase from the previous year. And it was 98% higher than the 2021 figure.

There were significant increases in the number of complaints about credit reporting, debt collection, credit cards, bank accounts and mortgages, according to the report.

Active-duty service members were particularly affected, with mortgage complaints from them up by 47%, and credit card and bank account complaints rising by 41%.

The varied issues raised in the complaints could jeopardize service members’ credit, security clearances, career advancement and ability to focus on their missions, the report warns.

Veterans and retirees experienced similar spikes, with checking or savings account complaints up by 34%, credit and consumer reporting issues up by 31%, and credit card complaints up by 30%.

Credit or consumer reporting remained the most frequent complaint category among service members, accounting for 55.3% of all complaints.

However, this was one area where the general public filed a higher percentage of complaints, with 79% of all consumer complaints related to credit reporting.

Debt collection complaints were more common in the military community, making up 13.8% of all complaints, compared with 6.6% for the general public.

Complaints about credit card and bank accounts are on the rise among service members and veterans, according to a new report by the Consumer Financial Protection Bureau. (LaTunya Howard/U.S. Navy)

In a case that made headlines last month, a federal court in Tulsa, Okla., issued a permanent injunction against three men who fraudulently demanded hefty payments from military personnel, veterans and seniors for bogus medical debts.

Among the most salient trends highlighted in Tuesday’s report was the ongoing difficulties service members have with student loan servicers. Many such complaints, especially from overseas service members, tell of agonizing attempts to reach servicing firms by telephone.

Hourslong waits and frequent disconnections were compounded by time zone differences, the report said.

Along with loan servicing errors, the communication issues often prevented military personnel from enrolling in income-driven repayment plans or accessing the federal Public Service Loan Forgiveness program, according to the bureau.

Complicating matters further, some colleges and universities withheld transcripts from service members as a means of collecting disputed fees or debts. This practice is particularly damaging to military personnel as they often need transcripts for career advancement or further education.

Another vulnerable group identified in the report is veterans, particularly those over 60.

The bureau received about 9,300 complaints from older veterans in 2023, a 17% increase from the previous year. Of that total, 48% of the complaints related to money transfer fraud or scams.

The report highlighted “claim sharks,” or unaccredited claims agents, as a significant threat to older veterans. They often exploit veterans by charging exorbitant fees for help with benefits claims, sometimes taking a portion of veterans’ future payouts.

The report provided a state-by-state breakdown. Georgia led the nation with 684 military complaints per million residents, followed by Hawaii with 549, South Carolina with 548 and Nevada with 518.