Attorney General Chris Koster recently released the top 10 consumer complaints and scams reported to his office in 2010. Complaints against debt collectors led the list, with more than 2200 calls to the Attorney General’s office from consumers.
“Even though you may be responsible for the debt the collectors are calling about, there are federal laws governing just how far the debt collector can go,” Koster said. “Your best protection against harassing and abusive calls from debt collectors is to know your rights.”
Koster directed the public to The Federal Trade Commission’s Debt Collection FAQs: A Guide for Consumers. It can be found on their website at www.ftc.gov.
Koster’s office reported the top 10 scams the past year were:
1. Debt collectors (2,225 complaints). There has been an increase in the number of complaints filed against debt collectors. Many consumers who file complaints indicate they are being harassed by debt collectors for debts they may not even owe. Others claim the debt collection agencies are abusive, threatening, and include repeated calls when attempting to collect a debt. Other complaints indicate consumers have notified the debt collection companies to cease contacting them, but without success.
2. Credit and debit card (1,575 complaints). Telemarketers continue to find ways to scam consumers out of their money. Complaints continue to rise from individuals who have had their money taken through unauthorized debits from their checking account or by accessing their credit card information. Scams such as these can occur by telephone, email, or text messaging. The Missouri Attorney General continues to advise consumers not to provide any personal information to an unknown source and/or unless they initiate the call themselves.
3. Telephone cramming (1,477 complaints). Cramming happens when you receive a charge to your phone bill for services you did not order. For consumers to understand that they are a victim of telephone cramming means they have to thoroughly review their telephone bill. Cramming charges can be as small as $1 or $2 and consumers may not pay attention to such detail. In other cramming related charges, consumers may be charged a much higher amount and believe they actually owe the fee. The Missouri Attorney General advises consumers who notice unwarranted charges to contact your carrier and request the charge be removed.
4. Mortage/foreclosure/loan modifications (1,204 complaints). Many struggling homeowners have filed complaints concerning foreclosure on their homes and the loan modification process. Homeowners complain about the relentless requests for paperwork already provided and/or lost by the lender. In addition, complaints have been filed because consumers who actually get temporary loan modifications fail to get permanent solutions.
5. Home repair and remodeling (1083 complaints). Complaints against home improvements/home repair contractors are usually the most common consumer complaint. The typical scammer will go door to door asking for money up front from vulnerable consumers. Most door-to-door schemes involve asphalt driveway scams, roof and chimney repairs, and remodeling work inside the home. These types of complaints involve scam artists that are not licensed, are not from the area, do not provide a detailed contract, and usually demand cash payments.
6. Lotteries and sweepstakes (933 complaints). “Congratulations, you have just won $10,000!” The Missouri Attorney General warns consumers to be leery of telephone calls, emails or letters with statements like this. Scam artist often use the promise of a valuable prize or award to entice consumers to send money, buy overpriced products or services, or contribute to bogus charities. People who fall for their ploys may end up paying more and more for the products – if they ever get them at all. Foreign lottery promotions are the largest type of lotteries that affect consumers nationwide.
7. Pre-need burial plans/funeral homes/cemeteries (887 complaints). The Missouri Attorney General actively pursues companies that do not properly handle money paid to them by consumers for pre-need services. Under Missouri law, the funeral home is required to put 80 percent of the purchase price into a trust fund accessible only to cover funeral expenses. Consumers have a right to see a record of all transactions on their behalf in the trust account.
You can cancel a pre-paid funeral plan at any time and get your payments refunded, minus 20 percent of the original purchase price. As an alternative to pre-paid funerals, consumers can set money aside in their own savings or trust account, to be used for a funeral at the time of death.
8. Cable/satellite services (864 complaints). Complaints with cable and satellite companies continue to be on the rise. In addition to faulty installations and price discrepancies, many consumers have filed complaints with regard to cable and satellite companies ceasing free programming or channels in which consumers purchased specific packages, such as NFL. This past year, the Attorney General has aggressively pursued companies such as Dish Network and Direct TV to prevent further deceptive and unfair practices.
9. Automobile repair. (644 complaints. Automobile repairs make up one of the largest groups of consumer complaints. While most repair shops are honest, it is very easy for an unethical mechanic to convince car owners that unnecessary repairs are needed because the average person does not know much about their car. People often have no idea that they have been ripped off. The Attorney General advises consumers to make sure they get a written estimate before repairs are made, have repairs made by a certified mechanic who honors the existing warranty, and make sure repairs are guaranteed.
10. Automobile warranty/service contracts (624 complaints). The Missouri Attorney General continues to receive complaints from consumers who purchased automobile extended service contracts. Complaints vary from misleading purchases through the telemarketers selling the product, refunds, and undisclosed limitations on coverage.
The Attorney General’s office encourages consumers to file complaints with its Consumer Protection Hotline so the office can help mediate a complaint, investigate scams, and take legal action against businesses if necessary. Consumers can register complaints with the hotline at 800-392-8222 or online at ago.mo.gov.
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1. Debt collectors
2. Credit and debit cards
3. Telephone cramming
4. Mortgage/foreclosure/loan modifications
5. Home repair and remodeling
6. Lotteries and sweepstakes
7. Pre-need burial plans/funeral homes/cemeteries
8. Cable/satellite services
9. Automobile repair
10. Automobile warranty/service contracts