Consumer protection agencies say mortgage complaints hardest to handle

Auto and home-improvement issues most common

By Diane C. Lade

South Florida Sun-Sentinel

11:20 AM EDT, July 31, 2009

And some officials polled by a coalition of three consumer organizations said if things continue the way they have been this year, foreclosure rescue and mortgage schemes could be number one on next year's list.

"There's a definite spike in the number of foreclosure cases we're seeing. The scammers are out there and people are desperate to save their homes," said Pastor Herrera, director of the Los Angeles County Department of Consumer Affairs. His agency was one of 34 surveyed by the Consumer Federation of America, a nonprofit advocacy organization that put out the report in conjunction with the National Association of Consumer Agency Administrators and the North American Consumer Protection Investigators.

Susan Grant, the federation's director of consumer protection, said the complexity of foreclosure rescue cases, and the vulnerability of the victims, made them the most difficult to handle. They often involved businesses that took up to several thousand dollars up front, claiming they could negotiate a lower rate for clients, but then did nothing.

"These were among the most outrageous complaints we saw. About the worst thing that could happen to someone is to lose their home," Grant said.

When it came to the most common complaints, however, little changed despite the bad economy. The top three remained the same as the previous year: auto sales, repairs and towing disputes; followed by home improvement and construction; and credit and debt collection. Mortgage-related fraud was rolled into the debt collection category.

Utility issues, such as billing and service problems, and retail sales ranked fourth and firth, switching places from the previous year. Anna Huddlestone-Aycock, president of protection investigators association, suggested rankings for the top five changed so little "because these are real bread and butter issues for consumers."

Rounding out the top ten complaints were: failure to perform services or licensing issues; household goods; landlord/tenant issues; a tie between Internet sales and home solicitations; and problems with health products and services, the one category that did not make the list last year.

To read the full report, click here.

Diane Lade can be reached at dlade@SunSentinel.com or 954-356-4295 or 561-243-6618.

Comments

[Website Design and Development]

Thanks, this was a really interesting market analysis and update.

[Betonherstel uitvoering]

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me.

[investment property rental mortgage advice]

I agree that mortgage complaints are really difficult to handle. These complaints must undergo long due process.

-James

[Debt Rescue Relief]

The mortgage complaints cannot be handled with the growing losses as increased losses prevent over investment in property real estate .