Furniture repair company says it is now making money on selling furniture
Furniture repairs are booming, but many consumers are still paying a premium for their home renovations, says a new study.
In a recent report, a New York-based nonprofit called the Consumer Financial Protection Bureau touted the trend as a major economic boon for consumers.
“Many people are getting out of the mortgage and into the home improvement business,” said CFPB President Richard Cordray, in an interview.
“The demand is going up.
People are starting to buy bigger homes and bigger apartments, and people are buying a lot more expensive furniture.”
But not everyone has been buying the pricey new furniture.
A survey released last month by the consumer research firm Fitch Ratings said a whopping 1.5 million Americans are still spending at least half their income on furniture and furniture accessories, a number that rose from last year.
Some experts worry that the trend is also a drain on the economy, particularly for people with high levels of debt.
A study published in March by research firm NerdWallet found that only 29% of consumers say they’re satisfied with the quality of their homes.
More: How the average American spends $11,000 a year on their home and other goodsSource: NerdWallet/Financial PostThe Consumer Financial Safety Commission (CFSC), the agency that regulates mortgage insurance and consumer finance products, has also warned of the growing trend.
The bureau has said that it’s seeing more than 500,000 consumer complaints a month about mortgages, auto loans, credit cards, and other financial products.
It’s not clear how many of those complaints are legitimate, but experts say the trend could be more widespread than initially thought.
According to a study from the Consumer Federation of America, between 2009 and 2015, the number of complaints against mortgage lenders rose from 6.5% to 17.9% .
At the same time, the number of people filing consumer complaints about auto loans rose from 3.4% to 25.4%.
“The trend is just a reflection of the fact that people are going to be buying more,” said Michael Biesecker, CEO of the consumer finance company Biesekes International, in an interview with Reuters.
“There’s just a lot of pressure to do that and it’s just really expensive for companies to respond.”
Bieseckers said that while consumers may have more money to spend on items like home renovations and furniture repair, they’re also taking on more debt to get there.
Biesek’s average loan balance has increased by more than 100% over the past five years, from $9,000 to $25,000.
He added that he thinks the trend of consumers getting out from under their mortgage debt and into furniture and other services could cause the financial crisis to reoccur.
“If it’s a little bit like the ’80s, there’s a lot to do there, and you can get a lot done,” Biesenk said.
Many consumers are paying a hefty premium for repairs, with the average repair bill now more than $6,000 per year, according to the consumer advocacy group Fair Debt Collection Practices Act.
And in many cases, consumers are getting more for their money.
When consumers file complaints against their mortgage lender, they can get refunds, with a small premium.
But the amount paid depends on a number of factors, including the type of loan, the lender, and whether the debt is in default.
Another factor is whether the repair is necessary or the amount needed is reasonable, Boesenk told Reuters.
For example, if the lender had defaulted on a mortgage and required the repairs, they could get a refund, but if they had to pay the full amount and it was in the “reasonable range,” the borrower would have to pay more.
“In the past, you might have had to fix the problem at your own expense, and that might not be the case anymore,” Boesen said.
“You’re taking out a loan for a house that’s worth $200,000 and you’re paying $4,000 for a $100,000 house.
So you’re getting a refund.
You’re not paying anything upfront.
You might get a discount, but you’re still paying.”
The Consumer Federation is also urging Congress to pass the Mortgage Fairness Act of 2017, which would make it illegal for companies like the ones in this industry to make false promises about the quality and quality of products or services they provide.
But Beesekes says that while there’s no shortage of companies selling expensive products, consumers should be aware of the potential pitfalls.
People have to be aware when they’re going to have to make a decision, because they can’t predict exactly how long it’s going to take or how much money they’re saving,” he said.”
They can’t be guaranteed to make the money