February 7, 2007

            LANSING - To highlight National Consumer Protection Week, Attorney General Mike Cox today announced the top ten consumer complaints for 2006.  Identity theft and privacy issues continue to be a problem and relate to almost all of the top ten complaint categories.

            "Consumer protection is the backbone of this office, because every citizen is a consumer at some point," Cox said.  "The marketplace only works when customers are treated fairly.  When consumers don't get a fair shake, then our office gets involved."

            The complaint categories are compiled from more than 19,465 written complaints and inquiries received by the Attorney General's Consumer Protection Division.  In addition to written complaints and inquiries, Cox's Consumer Protection Division fielded about 85,600 consumer calls in 2006.

            The top ten complaint categories from 2006 are as follows:

            1.  Credit and Financial Concerns:  Includes identity theft complaints, predatory lending, disputes about credit reports, collections, billing and finance charges, and misrepresenting the terms of credit.

            2.  Internet:  Rising from its number five spot in 2005, this category includes Internet purchases and auctions, failure to deliver or refund, fraudulent e-mail solicitations, Internet service provider complaints, and identity theft complaints.  2006 can be called the "Year of Computing Dangerously."  Computer security experts say 2006 saw an unprecedented spike in junk e-mail and sophisticated online attacks from increasingly organized cyber crooks.  These attacks were made possible, in part, by a huge increase in the number of security holes identified in widely used software products.

            3.  Telecommunications and Cable or Satellite TV:  Includes telemarketing, do-not-call violations, cell phone issues, cell phone billing issues, cramming (unauthorized charges), slamming (unauthorized switch of a service provider), and identity theft complaints.

            4.  Retail:  Includes problems with the quality of merchandise, rebates, scanner or pricing errors, and identity theft complaints.  

            5.  Mail Order:  Rising from its number eight spot in 2005, this category includes failure to deliver merchandise, unsolicited merchandise, contest deceptions, and failure to refund complaints.

            6.  Small Business Providers:  Includes complaints by small businesses receiving unauthorized services or goods, including advertising and directory publications, unsolicited faxes, and leases for business equipment that cannot be cancelled.

            7.  Motor Vehicle or Automobile:  Includes lemon law, advertising, warranty, quality, and misrepresentation complaints.

            8.  Gasoline/Fuel/Energy:  Falling from its number four position in 2005, this category includes allegations of businesses charging a price grossly in excess of competitors, complaints of high utility rates, billing errors, and contract misrepresentations.

            9.  Contractors/Home Improvement:  Includes problems with the quality of work, failure to deliver services or a refund, and warranty issues. 

            10. Personal Service Providers:  This category includes complaints about failure to refund, failure to cancel a contract, and failure to deliver services.

            In 2006, the Consumer Protection Division obtained more than $6.3 million in consumer refunds and forgiven debts.  Additionally, the Consumer Protection Division recovered more than $2.3 million for the State. 

            "These numbers speak volumes once again about my continued commitment to protecting Michigan consumers," continued Cox.  "Every year during National Consumer Protection Week in February, advocates across the country emphasize education.  In 2006, my staff gave more than 100 consumer education seminars.  My office has also used the Senior Protection Brigade, where seniors trained and educated their peers to conduct more than 120 identity theft seminars."

            Other consumer education efforts include publishing consumer alerts.  Cox's consumer protection staff publish consumer alerts in an effort to help consumers recognize rip-offs, avoid scams, find frauds, and protect their personal financial information.  The alerts are also used to encourage consumers to take proactive steps to protect themselves, such as periodically ordering a free copy of their credit report and using the report to look for any fraudulent accounts or transactions. 

            National Consumer Protection Week runs from February 5 thru February 11.  Consumers interested in receiving electronic mail notification of Attorney General Consumer Alerts can sign up on the Attorney General's home page (www.michigan.gov/ag) by accessing the "Join the AG Mailing List" icon.  Consumers may also elect to receive electronic notices of press releases and formal opinions. 

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