Personal Finance: What Troubles Us the Most?
A recent study by a consortium of advocacy groups reveals interesting data on what aspects of personal finance cause American consumers the most frustration. According to reports, a large number of consumer complaints were related to problems with car sales, credit issues, and debt, reports the Wall Street Journal.
To tap into the mind of the average consumer, the study polled a variety of state consumer agencies, which are facing record-breaking numbers of complaints while struggling under the weight of lowered budgets. A majority of the agencies polled reported a higher volume of complaints in 2009 than they received in 2008.
The list of the five areas that received the most consumer complaints reads like a “Who’s Who” of American economic ills. They are listed below:
1. Car Sales: Auto dealers earned the dubious distinction of being the focus of the most consumer complaints in 2009. Car buyers complained about misleading advertising tactics, poor repairs, towing disputes, and used cars that turn out to be lemons.
2. Credit and Debt: A large number of consumers experienced problems with predatory lending, harsh debt-collection practices, billing and fee disputes, and fraud related to home mortgages.
3. Home Construction: This represented the second largest source of consumer complaints in 2008, but fell to third last year as the overall amount of home sales plummeted. With so little construction, there was less to complain about, though contractors would likely welcome more complaints if it meant more business was on the horizon.
4. Utilities: The country’s utility services likely rank so high due to their necessity in most American homes. Still, consumers alleged service problems in a wide range of utilities, from phone and cable services to electric and gas.
5. Retail sales: Here, consumers typically complained about deceptive practices in the retail industry, like misleading newspaper advertisements, problems with coupons and gift card, and complications with the delivery of products.
Rounding out the top ten of most frequently cited areas of consumer complaints were general services, Internet sales, common household goods, disputes with landlords, and problems with health-related goods and services.
The Hottest Topic
The fastest growing complaint in 2009 centered on the increasingly popular scams offering to save homeowners from foreclosures. Susan Grant, a leading advocate with the Consumer Federation of America, observes that most consumers “are desperately trying to fend off foreclosure and in many of these offers to help them, [scammers] take their money, and in some cases, their homes, and run.”
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