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."

Locally, in the New York City regional offices in Brooklyn and Harlem, consumers complained most about landlord/tenant issues and credit problems.

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 Consumer Frauds Bureau’s Manhattan office and the regional offices in Brooklyn and Harlem.

Manhattan

Industry Consumer Complaints

1. Internet 5293
2. Automobile 2275
3. Credit 1534
4. Telecommunications 1371
5. Mail Order 833
6. Services 677
7. Retail Sales 503
8. Health Clubs 444
9. Travel 400
10. Landlord/Tenant 399

Brooklyn Harlem

Industry Consumer Industry Consumer
Complaints Complaints

1. Landlord/Tenant 335 1. Credit 240
2. Credit 240 2. Landlord/Tenant 196
3. Automobile 232 3. Services 185
4. Health Clubs 198 4. Telecommunications 163
5. Telecommunications 166 5. Automobile 86
6. Services 125 6. Mail Order 68
7. Mail Order 123 7. Furniture/Appliance 65
8. Retail Sales 76 8. Retail Sales 47
9. Home Repair/Const. 75 9. Utilities 34
10. Internet 64 10. Health Services 25

In 2004, the Manhattan Consumer Frauds and Protection Bureau handled more than 16,000 consumer complaints and obtained a total of nearly $2.3 million in restitution for consumers through mediation efforts and enforcement actions.

Spitzer’s Brooklyn Regional Office handled an additional 2,110 consumer complaints and obtained over $446,000 in consumer restitution. The Harlem Regional Office handled more than 1,500 complaints and obtained nearly $353,000 in refunds for consumers.

In addition, it collected approximately $2.8 million in civil penalties and costs.

Some of the Attorney General’s significant New York City consumer cases in 2004 include:

• Three lawsuits were filed against the operators of several fraudulent pay-per-call services in New York City. The respondents advertised such things as "city jobs," "no-fee apartments" and "credit cards" in classified ads in the Daily News and other newspapers, and on billboards in various sections of the city. Calls to respondents’ advertised "540" phone numbers cost $29, but resulted in no jobs, no apartments and no credit cards. In settling the cases, the respondents paid a total of $410,000 in restitution;
• A settlement of an investigation into Samsung Electronics that requires the company to fulfill more than 41,000 manufacturer rebate claims that were wrongfully denied. Eligible consumers will receive the aggregated total of over $200,000. Spitzer’s investigation revealed that the company’s rebate program - which limited its rebate offers to one per household - failed to recognize that many consumers live in apartment buildings and other multiple unit dwellings where they share an address;
• A total of $272,000 worth of refunds were issued to more than 200 consumers who were stranded when Plus Ultra Tours, a Queens-based travel agency, suddenly closed. The majority of these consumers had pre-paid for direct charter flights for their families to travel to Galicia, Spain to spend summer holidays with relatives and friends.
• A settlement was reached with a Brooklyn-based wedding photographer who missed appointments, failed to deliver commissioned photographs, performed poor quality work and ignored consumer complaints. Under the settlement, Leah Flanagin, doing business as Leah Flanigan Photography, will reimburse at least 20 consumers who paid for services the photographer failed to provide. In addition, the photographer will turn over any and all negatives, proofs and photographs to those who filed complaints against her.
• A lawsuit alleged that Edwin Rivera targeted Spanish-speaking communities, offering legal services on immigration matters even though he is not an attorney. Rivera operated under the names "Inmigración Hoy" and "Inmigración Hoy News Today." He charged consumers $1,500 to process applications pursuant to the Development, Relief, and Education for Alien Minors Act of 2003 ("DREAM Act"), a federal proposal that has not been enacted. His advertisements falsely indicated that the DREAM Act was passed on November 25, 2003. If enacted, the DREAM Act would grant conditional permanent residency status to college students who meet certain residency qualifications.

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.