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The Federal Deposit Insurance Corporation (FDIC) is alerting the public to questionable solicitations directed at homeowners. Consumers have contacted the FDIC with questions and complaints after receiving solicitations suggesting there is a “Community Reinvestment Act (CRA) Program” that entitles certain homeowners to cash grants or equity disbursements. Some of these solicitations may imply that the FDIC endorses or supports the offers they contain.

These solicitations appear to be a deceptive effort to encourage consumers to apply for a mortgage loan secured by the consumer’s home. The FDIC does not endorse or sponsor mortgage loan programs. In addition, the federal law known as the Community Reinvestment Act, or CRA, does not require programs as described in the solicitations, nor do such programs exist. The FDIC cautions the public about loan solicitations or other offers from lenders or mortgage brokers that offer consumers cash as part of a “Community Reinvestment Act (CRA) Program.”

The Community Reinvestment Act is a federal law that was enacted in 1977. It encourages depository institutions to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, in ways that are consistent with safe and sound banking operations. The CRA does not entitle individuals to any grants or loans.

Consumers should be very suspicious of conducting business with lenders or mortgage brokers that make deceptive claims. Individuals who are considering taking out a loan using their house as security are urged to compare various programs. Comparing loan programs offered by a variety of different lenders can help consumers make a well-informed decision and

secure the best program to meet their needs. Useful information on shopping for home loans can be found on the FDIC’s Web site at http://www.fdic.gov/consumers/looking/index.html.

Questions about these solicitations may be directed to the FDIC’s toll-free Central Call Center at 1-877-275-3342 or 1-877-ASK-FDIC (1-800-925-4618 or 202-942-3147 for the hearing impaired). Questions may also be submitted to the FDIC’s Web site using the Online Customer Assistance Form found at http://www2.fdic.gov/starsmail/index.html.

Posted under Finance, Privacy

Washington consumers filed 18,354 complaints with the Attorney General’s Office in 2006. Consumers reported fewer complaints about online auctions while communications companies and retailers, which have held the No. 1 and No. 2 spots for at least the last six years, continued to top the list.

The Attorney General’s Consumer Protection Division released its annual Top 20 list of consumer complaint categories this month. At the same time, Attorney General Rob McKenna acknowledged the division’s work in recovering $12.5 million for consumers through litigation, complaint mediation, and the Lemon Law program during the 2005-2006 fiscal year.

Online auctions slipped in the rankings from No. 6 to No. 19. Consumers reported 319 complaints about online auctions last year, compared to 774 in 2005 – the first year in which data was available.

Conversely, consumer complaints concerning electronic shopping shot up from No. 9 in 2005, when 532 complaints were reported, to No. 5 last year, when 819 were reported. The category held the No. 3 spot in 2004 and 2003.

Consumer Protection Division staff said the data seems to suggest that more people are shopping online, but the online auction frenzy is waning. A longer period of time is needed to positively identify trends, however; and some of the difference can be attributed to how complaints were categorized. The Attorney General’s Office also noted that complaints about online auction fraud outnumber all other issues reported by Washington state consumers last year to the FBI’s Internet Crime Complaint Center.

“Complaints received by our office suggest that consumers are becoming more careful about bidding for merchandise in online auctions,” McKenna said, “but risk is still there. The Internet is ripe for fraud and some consumers are blindly shopping on sites they are not familiar with. Shoppers should only visit reputable sites in order to ensure trouble-free transactions and reduce the likelihood of becoming victims of identity theft.”

“Last year, the Attorney General’s Office ramped up our enforcement efforts in a number of important areas including fighting high-tech fraud,” McKenna added. “We started the year by filing our first case under Washington’s Computer Spyware Act and ended the year by settling for $1 million. We’ve since filed four other cases under the anti-spyware statute.”

Also in 2006, the Consumer Protection Division:

* Settled its first federal anti-spam law with two companies accused of blanketing the Seattle School District and nonprofit organizations with junk e-mails.
* Reached a $325 million multi-state settlement with Ameriquest Mortgage Company concerning predatory lending allegations.
* Settled an important case in the area of consumer health and fitness with the operators of LA Weight Loss diet centers. The substantial increase in consumer complaints about health and diet clubs can be attributed to this settlement, as consumers were encouraged to file complaints with the Attorney General’s Office in order to be eligible for refunds.

The office also expanded its outreach efforts:

* Consumer protection staff made 195 presentations to consumer groups in 2006, reaching more than 13,375 attendees. Identity theft was the most frequently requested topic.
* McKenna created LEGIT, Washington’s Law Enforcement Group against Identity Theft, last year. The group is working on several initiatives to reduce identity theft.
* McKenna also convened two statewide Latino Consumer Education Conferences, bringing together expert consumer advocates and a diverse group of participants with a shared goal of helping protect Washington’s Latino consumers from fraud. Following that success, Norma Chavez, of the Consumer Protection Division, recently conducted two workshops in Spanish in South Seattle in conjunction with National Consumer Protection Week.
* The Attorney General’s Office, AARP, Microsoft and the Federal Trade Commission teamed up in 2006 to present a Cyber Safety Campaign to educate the public about online hazards such as phishing scams, viruses and spyware.

The Consumer Protection Division is focusing its enforcement efforts on ten key areas considered the most critical to consumers: Internet commerce; privacy and identity theft; senior fraud; automobile sales and the Lemon Law; credit and financial industries; health and drugs; telecommunications issues; charitable solicitations; emergency home repair contractors and emerging marketplace issues.

Top 20 Complaint Categories for 2006

Rank	Industry	Total Complaints	Percent of Total Complaints	2005 Rank	2005 Total Complaints
1	Communications	1,468	8.00%	1	1,680
2	Retail Sales	1,398	7.62%	2	1,318
3	Collections	1,307	7.12%	3	1,270
4	Auto Sales	934	5.09%	4	1,017
5	Electronic Shopping	819	4.46%	9	532
6	Contractors	818	4.46%	5	844
7	Health & Diet Clubs	785	4.28%	20	199
8	Books/Magazines & Directory Publishers	653	3.56%	8	596
9	Credit Card Issuers	584	3.18%	7	664
10	Auto Repair	486	2.65%	10	522
11	Health Care	454	2.47%	12	399
12	Internet Service Providers	443	2.41%	11	409
13	Consumer Lending & Transfer Agents	420	2.29%	14	317
14	Commercial Banking	398	2.17%	11	409
15	Telemarketing	392	2.14%	15	288
16	Cable Networks & Program Distribution	376	2.05%	18	246
17	Insurance	339	1.85%	16	287
18	Mortgage Lending	324	1.77%	19	229
19	Online Auctions	319	1.74%	6	774
20	Travel	318	1.73%	13	320

Posted under Privacy

In a game of basketball, baseball, or hockey, you
can’t win without a strong defense. In the game against cyber
crooks, a strong defense is just as important. Learn some
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package of publications (including an informative DVD) from
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Almost 10 million people are victims of identity theft
every year. But there are steps you can take to keep your
identity safe, whether you’re surfing the Net or shopping
online. Don’t use personal information to create your
passwords, and guard them as you would your house keys. To
keep thieves from stealing your personal information, shred
documents like bank statements, receipts, or credit card
bills that you might otherwise throw in the trash. Or
consider enrolling in online banking to receive account
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unauthorized accounts in your name.

Don’t forget, crooks love to use email. The messages
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responding to such messages can set you back thousands of
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to always investigate the company and offer before you hand
over any cash. Be sure to read “Internet Fraud: How to
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Posted under Privacy