March 10,  2010

            LANSING -  Attorney General Mike Cox today announced the Department's Top 10 Consumer Complaints for 2009.  The annual list, released during National Consumer Protection Week, is compiled from more than 17,000 written complaints and more than 77,000 calls the Attorney General's Consumer Protection Division received in 2009.

"Because of Michigan's economic crisis, it is no surprise that credit and financial concerns top the list of complaints," said Cox.  "Especially in these tough times, scam artists are looking for any opportunity to put your money in their pocket."

In 2009, Attorney General Cox recovered more than $1.7 million in consumer refunds and forgiven debts and has recovered more than $22.8 million since taking office in 2003.

Cox also worked to proactively protect Michigan consumers with the launch of the SeniorBrigade.com website.  The program provides seniors and their caregivers with trusted and useful information on financial matters, common senior scams, health care and veteran's affairs, while also providing links to a variety of state and federal programs to help seniors make informed decisions.  The office also offers in-person Senior Brigade presentations on topics such as: Phone and Mail Scams; Identity Theft; Investment Fraud; Home Repair and Equity Scams; and Residential Care Facilities.

Cox also reminds consumers they can save money on prescription drugs by using michigandrugprices.com, a website initiated by Cox where seniors and the uninsured can shop for the best price on more than 150 prescription drugs at stores anywhere in Michigan.

            As an example of economic scams, the Consumer Protection Division notes that they continue to receive a large number of questions related to counterfeit cashier's checks.  The scammer reaches out to victims by letter, fax, email or even a phone call.  The common trend is an elaborate counterfeit check that takes the bank longer than usual to discover is fake, and the victim, mistakenly thinking the check has cleared, sends funds back to the thief.  This leaves the victim responsible for paying back the bank for the entire amount of the counterfeit check.

Another prevalent scam is connected to the federal stimulus.  Scam-artists target homeowners at risk of foreclosure, consumers looking for help to lower credit card debt or interest rates, or people looking for work by offering "services" that sound as if they are related to the federal stimulus but require the victim to pay a fee upfront.  Consumers should never pay a fee up front for what is described as a state or federal program, and should be aware there are free federal and state programs available to help consumers in need during these tough economic times.  Always call the Attorney General's Consumer Protection Division before paying an upfront fee.

            To stay current on scams, consumers should visit the Attorney General's consumer alert page at www.michigan.gov/ag.  Residents with questions or concerns can also contact the Attorney General's Consumer Protection Division toll-free by calling 877-765-8388.

Top 10 Consumer Complaint Categories of 2009: 

1.   Credit and Financial Concerns:  Complaints in this category range from credit and collection companies, mortgage bankers, brokers and predatory lending matters.

2.   Telecommunications and Cable or Satellite TV:  Moving up from the number three position last year, this category includes cable and satellite TV services, telemarketing, do-not-call violations, cell phone issues and unauthorized charges or switch of a service provider.

3.   Internet:  Moving up from the number five position last year, this category includes Internet purchases and auctions, failure to deliver or refund, fraudulent e-mail solicitations and Internet service provider complaints. 

4.   Retail:  Extended warranties, the quality of merchandise, rebates, and scanner or pricing errors are included in this category.

5.   Gasoline/Fuel/Energy:  This category dropped two spots because gasoline prices stabilized more in 2009; however, late in 2009, propane prices became an increasing concern. The office continues to monitor prices in the gasoline and propane markets.

6. Motor Vehicle or Automobile:  This category includes complaints about lemon law violations, advertising, warranty, quality, and misrepresentation.  Complaints against used-car dealers lead this category.

7.   Mail Order:  Failure to deliver merchandise, unsolicited merchandise, contest deceptions make up this category.  Lottery and fraudulent check scams are also included in this category and continue to target seniors.

8.  Personal Service Providers:  Failure to refund, cancel a contract or deliver services are included in this category.

9.   Unauthorized Services to Small Businesses: This category includes unauthorized advertising and           directory publications, unsolicited faxes and leases for business equipment that cannot be cancelled.

10. Contractors and Home Improvement:  This category includes satisfaction with contractors, failure to deliver and problems with warranty issues.

Cox said consumers must be cautious when making financial arrangements.  "I urge consumers to take great care when entering into financial transactions.  Do your homework, ask questions and feel free to call our office when you are unsure.  If someone offers you a deal that sounds too good to be true, it probably is."

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