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 Lower Hudson Valley filed the highest number of complaints about automobile issues. Credit problems and retail sales represented the second- and 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 Westchester Regional Office, which covers the counties of Putnam, Rockland and Westchester.

Industry Consumer Complaints

1. Automobile 226
2. Credit 200
3. Retail Sales 167
4. Telecommunications 152
5. Mail Order 110
6. Home Repair/Construction 92
7. Landlord/Tenant 86
8. Services 81
9. Furniture/Major Appliance 60
10. Sweepstakes 49

In 2004, Spitzer's Westchester Regional Office handled over 1,800 consumer complaints and obtained over $615,000 in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $715,500 in fines.

Some of the 2004 cases significant in the region include: