A year after accounting for the largest increase in complaints to state and local consumer affairs agencies, gripes concerning home improvements now occupy the top spot in the annual tabulation conducted by the National Association of Consumer Agency Administrators and the Consumer Federation of America.

Many of the worst scams involved predatory home improvement deals, the two organizations said at a press conference last week. And the target is often elderly home owners, a segment of society which is perhaps the most susceptible to rip-offs.

"Elderly consumers are targeted by scams and crooks," said Jean Ann Fix, CFA's director of consumer protection. "Frauds cheat these vulnerable consumers out of their home equity and life savings through home improvements, sweepstakes and telemarketing schemes."

Predatory lenders, sometimes working in cahoots with contractors, strip senior owners of their equity through a series of high-cost loans that they often are unable to repay. And contractors sometimes disappear with their funds without making the repairs they agreed to make.

Home improvement swindles weren't the only housing-related complaint to make the nefarious Top Ten list, however. Complaints involving household goods were third, the highest that category has ever been. Auto repair issues dropped to fourth.

Household goods include major appliances, electronic equipment, furniture and other big- ticket items. Disputes involved defective products, failure to honor warranties, refund issues and deceptive advertising.

Credit and lending was fifth on the list, mail order was seventh and landlord-tenant issues tied with collections for eighth.

A total of 49 state and local agencies participated in the annual survey, which also found that complaints involving the Internet are growing faster than any other subject.

Another problem area seems to be beefs with utility companies. Gripes against telephone companies and gas and electric providers vaulted into sixth place, the highest ranking ever and three spots higher than a year ago.

Overall, the agencies said their caseloads increased 2 percent last year while their budgets rose only 1 percent. Over the last four years, though, the cumulative growth in their workloads has risen 52 percent but the resources given them by state legislatures and county councils has gone up only 3 percent.

For more articles by Lew Sichelman, please press here.

Published: November 21, 2001

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