Credit Problems Top Consumer Complaints

In observance of National Consumer Protection Week, Attorney General Spitzer today issued his annual "top ten" list of consumer complaints to his office.

According to an analysis of nearly 55,000 written consumer complaints in 2004, credit and banking complaints - including credit cards, identity theft, debt collection and credit reporting - eclipsed auto-related complaints. Internet concerns continued to receive the third most complaints to the Attorney General’s office.

"Consumers are encouraged to contact my office for assistance in handling disputes with commercial entities and for tips on protecting themselves before making purchases," Spitzer said. "My staff is dedicated to aggressive enforcement against fraudulent and illegal business practices and has an impressive track record in mediating individual consumer complaints."

Similar to the statewide numbers, consumers in the Plattsburgh-area filed the highest number of complaints about credit-related issues. Telemarketing received the second-most complaints, followed by mail order. Many of these complaints are related to advance fee credit card scams and mail order companies operated out of Canada that maintain a private mail box address in the region to give the impression to consumers that they are based in the United States.

The Attorney General’s office - through its Consumer Frauds and Protection Bureau, Internet Bureau and Telecommunications and Energy Bureau - investigates and prosecutes businesses and individuals engaging in fraudulent, misleading, deceptive and illegal trade practices. It also mediates thousands of complaints from individual consumers.

Last year, these three public advocacy bureaus, joined by the Attorney General’s 13 regional offices, were responsible for nearly 120 enforcement actions - including lawsuits and settlements - to protect consumers.

Based on these efforts alone, in 2004, Spitzer’s office obtained more than $18 million in restitution through settlements, court judgments and mediation of consumer-oriented cases. An additional $13 million was recovered by consumers through the New and Used Car Lemon Law Arbitration Programs administered by the Attorney General’s office. The office also collected nearly $4.8 million in civil penalties and costs. The foregoing figures do not include recoveries by the Attorney General’s office in cases brought by other public advocacy bureaus.

The following is a list of top statewide consumer complaints by industry in 2004:

Industry Complaint Numbers

1. Credit 6,724
2. Automobiles 6,255
3. Internet 6,013
4. Telecommunications 5,091
5. Mail Order 2,757
6. Home Repair/Construction 2,610
7. Services (non-auto) 2,512
8. Retail Sales 2,274
9. Landlord/Tenant 2,064
10. Travel 1,639

This list does not include cases and complaints handled by the Attorney General’s Health Care helpline, which each year handles nearly 7,800 calls. A separate report analyzing health care complaints and providing consumer tips is available at the Attorney General’s website at http://www.ag.ny.gov/bureau/healthcare-bureau.

The following is a list of top complaints to the Plattsburgh Regional Office, which covers the counties of Clinton, Essex, and Franklin.

Industry Consumer Complaints

1. Credit 527
2. Telemarketing 361
3. Mail Order 302
4. Automobile 41
5. Home Repair/Construction 39
6. Landlord/Tenant 35
7. Utilities 25
8. Telecommunications 23
9. Retail Sales 18
10. Furniture/Major Appliance 11

In 2004, Spitzer’s Plattsburgh Regional Office handled nearly 1,750 consumer complaints and obtained nearly $370,000 in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $5,750 in fines.

One of the cases handled by this regional office in 2004 includes an agreement with Plattsburgh Ford in which the auto dealership paid a $5,000 fine to settle allegations of false advertising.

Spitzer noted that his office stands ready to assist consumers in resolving their problems. He encouraged individuals to contact his consumer helpline at (800) 771-7755. Consumers can access a wide range of consumer tips by visiting his website at www.ag.ny.gov.