Madigan's Consumer Protection Division received 26,316 complaints in 2012.
Consumer debt was the top concern among Illinoisans for the fifth consecutive
year, reinforcing the financial challenges that continue to plague Illinois
residents amid economic uncertainty. "Every year we hear from thousands of
people who've found themselves on the wrong end of a deal," Madigan said. "It's
now more evident than ever that even the most commonplace financial transactions
have become complex and fraught with risks, putting the burden on consumers to
arm themselves with as much information as they can before they sign on any
dotted lines."
The consumer debt category, including complaints about residential mortgage
lending, debt collections and credit cards, grew by more than 29 percent over
the previous year and comprised nearly a third of all consumer complaints
reported to Madigan's office in 2012.
The year-to-year increase can partly be attributed to a marked rise in
residential lending complaints. Many of these complaints were filed in
conjunction with the $25 billion national mortgage foreclosure settlement with
the nation's five largest bank servicers over allegations of widespread "robo-signing"
and other fraudulent mortgage servicing practices. More than 20,000 Illinois
borrowers have received approximately $1.44 billion in relief since the
settlement's February 2012 announcement.
For-profit college complaints sign of growing debt trend
The 2012 list also included the first-ever complaint category against
schools, including for-profit colleges. Madigan's office recorded more than
1,300 complaints about schools operating in Illinois. Nearly 95 percent of those
complaints regarded unfair and misleading practices employed by for-profit
colleges, including deceptive lending practices that have made for-profit
college students in Illinois part of a growing generation of Americans trapped
in a lifetime of financial insecurity. Americans now owe more than $1 trillion
in student loans, while student loan debt has surpassed credit cards as the
largest source of unsecured consumer debt, according to the U.S. Consumer
Financial Protection Bureau.
In 2012, Madigan filed a lawsuit against the national for-profit school
Westwood College, alleging Westwood left many students with anywhere from
$50,000 to $70,000 in debt for degrees that failed to qualify them for careers
in criminal justice. The lawsuit alleges that Westwood downplayed the ultimate
cost of attending the college and failed to provide students with sufficient
information about their loans.
"This year marks the first time that student loan issues and for-profit
colleges are among the top concerns for Illinois residents, and it's no wonder,
given the lengths we've seen some for-profit operators go to boost their bottom
line, even when it has meant destroying their students' financial future,"
Madigan said.
In an effort to raise awareness about the for-profit schools industry,
Madigan released on Tuesday "A Primer on For-Profit Colleges," a resource to
educate students on issues of accreditation, financial aid, job placement rates
and important questions to ask before enrolling in a college.
Madigan has been an outspoken critic of the for-profit schools industry. Last
year, she testified before Congress and wrote a letter to congressional leaders
on the mounting concerns in the for-profit schools industry. Also in 2012,
Madigan settled a national lawsuit with the company behind www.GIbill.com for
deceptively steering U.S. service members and veterans to use their federal
education benefits with the company's preferred clients in the for-profit
schools industry.
[to top of second column] |
Top 10 breakdown
The attorney general recognized National Consumer Protection Week
with Steven Baker, Midwest director for the Federal Trade
Commission; Steve Bernas, president and CEO of the Chicago-area
Better Business Bureau; and Tom Brady, inspector in charge of the
U.S. Postal Inspection Service's Chicago Division.
In addition to consumer debt and school-related complaints,
Madigan noted that other categories high on the list of complaints
involved identity theft, telecommunications and home repair:
Category
|
Number of
complaints |
1. Consumer
debt (mortgage lending, debt collections, credit cards) |
7,631 |
2. Identity
theft (fraudulent credit cards and utility accounts, bank
fraud) |
2,544 |
3.
Telecommunications (wireless service, local phone service,
cable and satellite) |
2,240 |
4.
Construction, home improvement (remodeling, roofs and
gutters) |
1,926 |
5. Schools
(for-profit, trade, universities, higher education) |
1,347 |
6. Motor
vehicles -- used auto sales (as-is sales, financing,
warranties) |
1,173 |
7. Promotions
and schemes (sweepstakes, pyramid, work-at-home scams) |
1,113 |
8. Fraud
against business (consulting, directories and publications) |
900 |
9. Mail order
(Internet purchases, catalog ordering, television and radio) |
864 |
10. Motor vehicle -- non-warranty
repair (collision and body, engines) |
607 |
For more information, visit
www.illinoisattorneygeneral.gov, or contact the attorney
general's hotlines for issues ranging from home foreclosure to
identity theft:
-
Consumer Fraud
Hotline:
Chicago, 1-800-386-5438
Springfield, 1-800-243-0618
Carbondale, 1-800-243-0607
-
Spanish Language
Hotline: 1-866-310-8398
-
Identity Theft
Hotline: 1-866-999-5630
-
Homeowner Helpline: 1-866-544-7151
[Text from file received from the office
of
Illinois Attorney General Lisa
Madigan]
|