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 statewide numbers, the top consumer complaints in the Southern Tier region were related to credit and automobiles. Home repair and construction 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/bureaus/health_care/about.html.

The following is a list of top complaints to the Binghamton Regional Office, which covers the counties of Broome, Chemung, Chenango, Delaware, Otsego, Schuyler, Tioga, and Tompkins.

Industry Consumer Complaints

1. Credit 197
2. Automobile 188
3. Home Repair/Construction 160
4. Services 129
5. Landlord/Tenant 97
6. Retail Sales 90
7. Telecommunications 89
8. Mail Order 42
9. Direct Mail/Unsolicited Fax 41
10. Furniture/Major Appliance 36

In 2004, Spitzer’s Binghamton Regional Office handled nearly 1,500 consumer complaints and obtained over $529,000 in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $22,500 in fines.

Some of the 2004 cases significant in the region include:

• A court order against the promoter of a pyramid scheme, "Seasons of Sharing," required her to pay $22,500 in restitution and $1,500 in civil penalties. In resolving the matter, Spitzer’s office also obtained repayment of more than $300,000 for participants who were incorrectly told that participation in the program was not illegal;
• A court decision permanently barred a Broome County home improvement contractor from the business. J.E.S. Building and Remodeling and its owner John E. Stratton were sued for failing to perform promised work and failing to complete other jobs. The court issued a judgment that requires Stratton to pay a total of $57,650 in restitution to at least eight consumers and $8,190 in civil penalties;
• A judgment was obtained against a Steuben County motor home dealer, Painted Post Car Mart Truck and RV, Inc., that had been accepting trade-ins as partial payment toward the purchase of new motor homes, but failed to pay off existing loans on trade-ins. Spitzer’s investigation also revealed that the motor home dealer failed to deliver motor homes paid for by consumers and submitted loan applications on behalf of consumers without their knowledge or consent. The court judgment provides $1.02 million in restitution to over 50 consumers, plus $28,500 in civil penalties and costs; and
• The office reached a settlement with Royal Chrysler Oneonta, an Otsego County auto dealership, that paid $6,000 in penalties to resolve allegations of false and misleading 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.