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."

In Central New York, consumers filed the most number of complaints about telecommunications issues. A great number of these complaints were related to settlement with AT&T to resolve customer billing errors and to provide over $3 million in refunds and credits. Home repair/construction and automobiles received 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 Syracuse Regional Office, including the counties of Cayuga, Cortland, Madison, Onondaga and Oswego.

Industry Consumer Complaints

1. Telecommunications 1208
2. Home Repair/Construction 271
3. Automobile 246
4. Credit 230
5. Retail Sales 162
6. Services 143
7. Landlord/Tenant 110
8. Mail Order 73
9. Health Clubs 48
10. Health 45

In 2004, Spitzer’s Syracuse Regional Office handled over 3,100 consumer complaints and obtained a total of over $3.7 million in restitution for consumers through mediation efforts and enforcement actions. In addition, this regional office obtained $408,000 in fines.

Some of the 2004 cases significant in the region include:

• A settlement was reached that requires the state's leading long distance telephone company to issue refunds and credits to as many as 311,000 New Yorkers to correct improper billings. As part of the settlement, AT&T has also reformed its billing procedures, provided consumers with additional information on telephone services and paid $400,000 in penalties and costs. The investigation was the result of numerousconsumer complaints related to a change in AT&T's billing policies in which the company sought to impose a monthly fee of $7.72 on "basic rate" customers. However, many of the consumers charged this monthly fee were not AT&T long distance customers at all or were unaware that their telephone lines were connected to AT&T for long distance service;
• A settlement was reached with VIP Companion Care that resolves allegations that it failed to conduct mandatory criminal background checks on employees who provided services in the homes of aged and infirm clients. In addition to immediately conducting such background checks, VIP agreed to modify advertising practices and reform its billing procedures, and to pay for an independent audit of its billing practices to ascertain whether it had overbilled clients. VIP agreed to pay $18,000 in restitution and fines.

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.