Illustration by Istvan Banyai
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Extra Help for Consumers
By Ron Burley, March & April 2007
You can usually get the quickest results on your own, but once in a while it’s good to have a little backup. These are some organizations that can help you handle the bad guys
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Consumers Union
914-378-2000; www.consumersunion.org and www.consumerreports.org
Cost Limited free information; subscription fee for monthly magazine
Type Prevention
Consumers Union is the patriarch of consumer groups. For more than 70 years it
has tested and reported on consumer products and services. It has one of the
best proactive consumer websites.
Local District Attorney
Cost None
Type Complaint and resolution
Your DA's office can help you deal with local companies, though it has
little clout against out-of-state or overseas corporations. Be prepared with
solid documentation, including contact information for everyone involved and a
record of your efforts to date.
Better Business Bureau (BBB)
703-276-0100; www.bbb.org
Cost Free online information; $24 annual subscription to electronic
consumer newsletter
Type Prevention
The BBB maintains a scorecard of how companies treat their customers. Before
you sign a contract or spend more than $500 with any company, check it out with
the BBB. Be a good citizen and report your negative business experiences to the
BBB. That will help prevent others from stepping into the same consumer trap
that caught you.
Federal Trade Commission (FTC)
877-382-4357; www.ftc.gov
Cost Free
Type Complaint and resolution
The FTC is one of the best examples of your tax dollars at work. Like the BBB,
it is a great resource for checking out companies, and the FTC website contains
information on everything from identity theft to antitrust violations. Unlike
the BBB, the FTC will investigate consumer complaints, but be warned: it is so
understaffed that it could take years to get even a hearing.
State Corporation Commission (SCC)
Cost None
Type Resolution
Many states have their own corporation commissions, which regulate businesses
from banks to utility companies. These agencies can be powerhouses for
complaint resolution. In some cases they'll even contact businesses for
you. Policies vary from state to state—call your SCC to learn what it can
do.
Some Interesting Numbers
30
The percentage of fraud complaints filed with the Federal Trade Commission
(FTC) by 50-plus consumers in 2005.
240
The number of minutes an average consumer spends resolving a complaint,
according to the Arizona State University (ASU) National Customer Rage Study.
Just 5 percent of complaints are resolved immediately.
152
The dollar amount (in millions) of fraud losses people 50-plus reported to the
FTC in 2004.
40
The percentage of people who reported that a company did absolutely nothing in
response to their 2005 consumer complaint, as was noted in the ASU National
Customer Rage Study.
31,671
The number of complaints the Better Business Bureau got about cell phone
companies in 2005, making the industry the number one business bad guy. Number
two? Auto dealers.
70
Per the ASU study, the percentage of people who had a negative service
experience in 2005.
15
In 2005 the percentage of consumers who wanted to seek revenge on a company
that had wronged them.
3
The percentage of consumers who felt that customer service had gotten
"considerably better" in the past year.
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