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."

Oneida and Herkimer County consumers complained most about home repair and construction 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 Utica Regional Office, which covers the counties of Herkimer and Oneida.

Industry Consumer Complaints

1. Home Repair/Construction 94
2. Automobile 88
3. Credit 48
4. Telecommunications 38
5. Furniture/ Major Appliance 30
6. Retail Sales 28
7. Utilities 19
8. Mail Order 19
9. Landlord/Tenant 18
10. Sweepstakes 13

In 2004, Spitzer’s Utica Regional Office handled over 580 consumer complaints and obtained over $113,000 in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $13,000 in fines.

A significant case handled by the Utica Regional office includes a lawsuit filed against Daniel Bragg, who did business as Daniel G. Bragg Home Improvement Contracting. Spitzer’s investigation revealed that at least six customers were defrauded by Bragg. Some complained that they paid large up-front deposits and received nothing for their money. Others indicated that some work or materials were provided, but the project was never completed or the work was shoddy.

In August, a state court judge affirmed Spitzer’s allegations and granted all relief sought by the office, including an order that Bragg pay full monetary restitution to all injured consumers, including at least $16,000 to the nine individuals who filed complaints. The court also ordered Bragg to pay over $16,000 in civil penalties and banned him from the home improvement industry unless he posts a $50,000 performance bond. The case against Bragg is not final. Spitzer’s Utica Regional Office is currently working to resolve additional allegations about his home repair work.

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.