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."

Consumers in the Upper Hudson Valley complained most about automobile issues followed by credit problems. Landlord/tenant disputes received the third-most complaints.

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 Poughkeepsie Regional Office, which covers the counties of Dutchess, Orange, Sullivan and Ulster.

Industry Consumer Complaints

1. Automobile 270
2. Credit 187
3. Landlord/Tenant 151
4. Home Repair/Construction 150
5. Furniture/Major Appliance 128
6. Services 128
7. Telecommunications 115
8. Retail Sales 113
9. Mail Order 55
10. Utilities 46

In 2004, Spitzer’s Poughkeepsie Regional Office handled over 1,880 consumer complaints and obtained over $622,000 in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $20,500 in fines.

Some of the 2004 cases significant in the region include:

• Settlements with two on-line mattress retailers to reform their business practices after dozens of consumers complained about extended delays in shipping and failure to honor return policies. Affordable Mattress Direct and Quality Sleep Systems agreed to pay $14,000 in restitution to thirteen consumers and $2,500 in civil penalties. Spitzer’s office and the Better Business Bureau also obtained approximately $30,000 in relief for consumers, including numerous chargebacks to credit card accounts;
• A settlement with Heartland Auto Group, Inc., including Heart Acura and Heart Kia in Wappingers Falls, in which the auto dealership paid $10,000 in civil penalties. Spitzer’sinvestigation revealed that the auto dealership engaged in false and misleading advertising including: "Push-Pull-Drag Trade-In" ads that failed to disclose that the prices of cars offered in the ads are generally increased to offset the minimum trade-in price; ads that promoted deep discounts in bold print while describing stringent restrictions on the offer in fine print; and ads that violated federal advertising regulations that require the disclosure of crucial loan and leasing terms.

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.