TALLAHASSEE, Fla. – March 4, 2009 – Complaints from Floridians about questionable foreclosure-rescue services and fraudulent mortgage schemes were the most common concerns reported to state regulators in 2008, according to a report released Monday by Florida Attorney General Bill McCollum.
Consumers filed 7,305 complaints related to foreclosure and mortgage schemes followed by 5,103 complaints about debt-collection services, collection agencies and credit-reporting companies.
The Attorney General’s Mortgage Fraud Task Force now has more than 35 active investigations and has filed several lawsuits that originated from the complaints.
State officials said the complaints indicate the troubled financial times are boom times for con artists who take advantage of Florida residents.
“When economic times are tough, we often see a correlating increase in scams and in the number of people who are trying to take advantage of our citizens,” McCollum said. The office has seen a “significant increase” in complaints filed already in 2009, with 14,230 reports and requests for information filed last month – a 29 percent increase over February 2008.
McCollum’s report comes after the Federal Trade Commission last week released its 2008 tally of consumer complaints, showing Florida ranked third in the country for identity theft.
Monday marked the start of National Consumer Protection Week, a joint education effort run annually by consumer advocacy nonprofits, industry associations, federal agencies and attorneys general nationwide. Many experts say they are seeing real examples of what the numbers suggest: Desperate people struggling with debt, tightening credit and job losses are falling prey to unscrupulous schemes.
“These economic times are making the bad guys work harder, too. The message we are sending is shred your personal documents and guard your mail like you would any valuable piece of property,” said U.S. Postal Inspector Blad Rojo, who is based in Miramar. The Postal Service is running public awareness events at South Florida post offices this week to help consumers protect themselves. To read the entire article click here