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ID theft, debt collection top list of consumer complaints

Credit card-related problems prominent in FTC's annual list

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Identity theft remained the leading source of consumer complaints in 2008, according to the Federal Trade Commission annual compilation of gripes, released today.

The FTC's report says ID theft has remained the top complaint for nine years running, with credit card fraud the most frequent type of consumer gripe within that category for 2008. The total number of ID theft complaints rose year over year -- topping 313,000 in 2008 -- as did the total number of consumer complaints. That grand total has risen every year, says Claudia Bourne Farrell, acting director of the office of public affairs at the FTC, and went over 1.2 million in 2008.

That ID theft occupies the top spot doesn't surprise some experts. "ID theft will always be a problem because the FTC doesn't hold [credit] bureaus accountable, and the bank regulators don't hold banks accountable," says Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group, a consumer advocacy organization. "Until they are held responsible for sloppy credit-granting, consumers will pay the ID theft price," he says.

The top 10 categories were largely unchanged from 2007's list, with foreign money offers and counterfeit check scams making the largest move -- from seventh place to fifth place. Banks and lenders moved from 12th to ninth place in 2008, a move that appears related to the ongoing economic woes and credit crunch.

Meanwhile, credit card complaints, which didn't make the top 20 in 2007,  leaped to 18th place.

"Credit complaints will increase as banks tighten screws, debt collectors make more calls and as scams related to credit increase, " Mierzwinski says.

The FTC generates its list from the records in its Consumer Sentinel Network, a database of consumer complaints that the agency shares with law enforcement. Consumers can file complaints into the database using the FTC's online complaint form.

FTC's 2008 list of top consumer complaints

Rank

Category

Complaints

Percentage of
total complaints
filed

2007 rank

1 Identity theft 313,982 26 1
2 Third party and creditor debt collection 104,642 9 2
3 Shop-at-home and catalog sales 52,615 4 3
4 Internet services 52,102 4 4
5 Foreign money offers and counterfeit check scams 38,505 3 7
6 Credit bureaus, information furnishers and report users 34,940 3 5
7 Prizes, sweepstakes and lotteries 33,340 3 8
8 Television and electronic media 25,930 2 9
9 Banks and lenders 22,890 2 12
10 Telecom equipment and mobile services 22,387 2 6
11 Computer equipment and software 21,442 2 10
12 Business opportunities, employment agencies and work-at-home 20,286 2 13
13 Internet auction 17,294 1 11
14 Advance-fee loans and credit protection/repair 17,263 1 15
15 Health care 16,275 1 14
16 Auto-related complaints 14,278 1 --
17 Travel, vacations and time share plans 13,200 1 16
18 Credit cards 13,196 1 --
19 Magazines and buyers clubs 10,188 1 18
20 Telephone services 9,300 1 --

See related: FTC urges changes to the Fair Debt Collection Practices Act

Published: February 26, 2009


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