State, Federal Authorities Discuss Consumer Protection Priorities
For Information, Contact:
Terence McElroy
(850) 488-3022
Sandi Copes
(850) 245-0150
Sandi.Copes@myfloridalegal.com
March 10, 2009
TALLAHASSEE - Attorney General Bill McCollum today joined Charles H. Bronson, Commissioner of the Florida Department of Agriculture and Consumer Services and Cindy Liebes, Assistant Regional Director of the Federal Trade Commission (FTC) to discuss consumer protection issues facing Floridians. All three agencies have seen an increase in the number of complaints reported to each agency and among the more frequent topics of complaints are scams related to financial issues and the current state of the economy.
“The time is ripe for disreputable companies and individuals to capitalize on the economic climate and consumers’ financial concerns,” said Attorney General McCollum. “It is important that we cooperatively address these issues with federal and state resources so Florida consumers have the best protection our collective resources we can muster.”
The Attorney General’s Office has received hundreds of complaints about foreclosure rescue and loan modification services in just the first months of this year, and the Attorney General’s Mortgage Fraud Task Force continues to contact companies to ensure they are aware of and are compliant with the new foreclosure rescue fraud prevention law.
In addition to complaints about mortgage fraud, complaints about credit repair and debt relief services reported to the Attorney General’s Office topped 5,300 last year. Last October, the Attorney General’s Office joined the FTC, the Department of Agriculture and Consumer Services, and 22 states and collectively took actions against 36 companies engaged in potentially deceptive or misleading conduct. Allegations included making false and misleading statements to consumers, charging advance fees for credit repair services, violating federal and state laws governing credit repair organizations and deceptive and unfair practices.
Commissioner Bronson also reported that his Consumer Services Division received 204,000 calls from consumers in 2008, handled about 38,000 written complaints and returned nearly $25 million to consumers in refunds.
“We’re coming off a record year of activity, and the economic turmoil facing Floridians this year virtually assures that we’ll be assisting even more consumers in 2009,” said Commissioner Bronson.
Bronson noted that he has launched an investigation of credit card companies that have increased interest rates on card holders and changed the due date for payments, resulting in numerous consumers unwittingly incurring late fees on their credit cards. He has also increased compliance sweeps of businesses he regulates, including telemarketers and pawn shops, and has brought in his Office of Agricultural Law Enforcement to begin criminal investigations of a number of ongoing financial scams.
The FTC’s focus in the coming months will be on issues related to the economy and financial matters, including mortgage foreclosure rescue fraud, credit repair, debt negotiation and debt collection efforts.
“Scam artists and fraudsters follow the headlines and are using the economic downturn to take advantage of consumers who are underwater financially,” said Cindy Liebes, Assistant Regional Director for the FTC. “With so many Floridians struggling financially, the FTS has increased its focus to preventing harm to those in debt and confronting companies and individuals who are victimizing those consumers.”
Of special note are the current education efforts on the only true source of free annual credit reports at https://www.annualcreditreport.com/cra/index.jsp, despite advertisements on other supposedly free services. The federal agency has already taken several actions in these areas but reiterated its commitment to continue working cooperatively with its state partners on behalf of Florida’s consumers.
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