ID theft, debt collection top list of consumer complaints
Credit card-related problems prominent in FTC's annual list
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
|2||Third party and creditor debt collection||104,642||9||2|
|3||Shop-at-home and catalog sales||52,615||4||3|
|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|
|14||Advance-fee loans and credit protection/repair||17,263||1||15|
|17||Travel, vacations and time share plans||13,200||1||16|
|19||Magazines and buyers clubs||10,188||1||18|
Published: February 26, 2009
- Survey: Debt collection problems widespread – For the one-third of Americans who face collection attempts, threats, falsehoods and other abuses not unusual, survey finds ...
- Poll: Americans more optimistic about getting out of debt – Americans are gaining confidence about becoming debt-free during their lifetimes, according to a new CreditCards.com national poll ...
- Fed: Card balances surged by $11 billion in November – Credit card balances continued to inch toward $1 trillion in November, according to the Federal Reserve's G.19 consumer credit report ...