Scam reports spike during recession
PORTLAND, Ore. (AP) - Consumer complaints to the Oregon attorney general's office jumped 13 percent last year, with phone companies leading the list for the fourth straight year, Attorney General John Kroger said Tuesday. There was a new category in this year's top 10 list of consumer complaints - the home ownership lending industry, including mortgage brokers and loan modifiers who attempt to take advantage of financially vulnerable Oregonians. "In this recession, scam artists and crooked companies are targeting seniors and people who have lost their jobs and their homes," Kroger said at a news conference to announce the list. Even though it is no surprise the number of scams increase with a recession, Kroger called the rising number of complaints "a particularly disturbing development." To help avoid scams or bad business practices, his office has set up a new search engine to help Oregonians check on complaints and companies at www.oregonattorneygeneral.gov/beinformed. Kroger said the Web site will allow consumers to see what kinds of complaints have been filed, how many and whether they have been resolved. Telecommunications companies topped the list in 2009 with 1,506 complaints, most related to service or marketing practices, such as cancellation policies. The group was led by satellite TV providers with 398 complaints, followed by cellular telephone companies with 291 At No. 2 with 1,021 complaints it was international money transfer schemes, a list of well-known scams that include the infamous Nigerian transfer scheme that typically promises a victim a huge payoff to help recover an unclaimed fortune by sending a little money. Many people don't take the Nigerian e-mails and other international scams seriously, but they cost Oregonians more than $700,000 in losses last year, Kroger said. Rounding out the top five were motor vehicle sales at No. 3, financial institutions at No. 4 and collection agencies at No. 5. But Kroger said the category that ranked No. 6 on the list, health-related complaints, was of special concern because it had more than doubled since 2008, increasing to 893 last year. The category includes weight-loss programs, pharmacies, medical discount cards, doctors, hospitals and dentists. Telemarketing calls were No. 7, home ownership lending ranked No. 8 in its first appearance on the list, followed by Internet retailers and construction contractors at Nos. 9 and 10, respectively. Kroger said his office would aggressively pursue scam artists while encouraging consumers to protect themselves by doing research before committing to any service or payments. He noted the 2008 Oregon Mortgage Rescue Fraud Protection Act prohibits loan modification companies from collecting advance fees or using confusing contract language so Oregonians do not have to pay upfront fees - typical of foreclosure rescue scams. The Oregon Department of Justice received a total of 14,021 written complaints in 2009. (Copyright 2010 by The Associated Press. All Rights Reserved.)