Complaints often linked to weak economy, report finds

PDF: Consumer complaints report 2009

Complaints often linked to economy AVirginia woman was miffed over what she said was a botched service job at a dealership repair shop that left her car engine damaged.

The dealership denied that it caused any damage. But after the woman complained to the Virginia Office of Consumer Affairs, it refunded her money and the case was closed.

Disgruntled consumers in 19 states complained most often about auto industry issues last year -- no change from 2007, according to the latest Consumer Complaint Survey Report released in late July by the Consumer Federation of America and co-sponsors.

Because of the tough economy, though, debt collection was the fastest-growing complaint topic, while complaints about foreclosure rescue scams were the most egregious, according to 34 agencies that participated in the study.

Three of the agencies are in Virginia: the Office of Consumer Affairs, part of the Virginia Department of Agriculture and Consumer Services; the Virginia Beach Consumer Affairs Program; and Fairfax County's Department of Cable Communications and Consumer Protection.

All 34 agencies received 265,324 complaints in 2008. They recovered $247.5 million for consumers.

Many complaints were directly related to the poor economy.

Susan Grant, the consumer federation's spokeswoman, said auto and home improvement complaints have always been at the top of the list.

"They're big-ticket items," she said. "When people have a problem with those, they're likely to complain to somebody. Not only is it a major expense, but it affects you in a very direct and tangible way."

In Virginia, consumers were the most ticked off about raw deals they got while buying electronics, mostly computers bought through financing alternatives, said Tina Holt, supervisor of the Office of Consumer Affairs' counseling, intake and referral unit.

Holt said the agency received 3,279 complaints in 2008, a 22 percent decline from 2007. Both years, electronics topped the list, accounting for 818 complaints in 2008, down 33 percent from the prior year.

Here's what consumers griped about the most in the 19 states, based on how many times each category appeared on Consumer Federation's top list:

Auto: Misrepresentations in advertising or sales, lemons, faulty repairs, leasing and towing disputes.

Home improvement and construction: Shoddy work, failure to start or complete a job.

Credit and debt collection: Billing and fee disputes, mortgage fraud, credit repair, debt settlement, predatory lending, illegal or abusive collection tactics.

Utilities: Service problems, billing disputes.

Retail sales: False advertising, defective merchandise, problems with rebates, coupons, gift cards, gift certificates, nondelivery.

Services: Misrepresentations, shoddy work, failure to have the required licenses, failure to perform. Example: A Virginia wedding photographer absconded with couples' money.

Household goods: Issues with major appliances and furniture, nondelivery, misrepresentations, faulty repairs.

Landlord and tenant: Unhealthy or unsafe conditions, failure to make repairs or provide promised amenities; deposit and rent disputes, illegal eviction tactics.

Internet sales: Misrepresentations, nondelivery.

Home solicitations: Misrepresentations, nondelivery, do-not-call violations.

Health products and services: (new on the list) Misleading claims, failure to deliver.

Contact Iris Taylor at (804) 649-6349 or .