Ranking puzzles FTC, too

By Alex Paul

Albany Democrat-Herald

The Albany and Lebanon area again this year tops the annual list of consumer fraud complaints compiled by the Federal Trade Commission - but that doesn't necessarily mean there is more crime here, according to Charles Harwood, the FTC's regional director based in Seattle, Wash.

It may be simply that mid-valley residents are more aware of consumer fraud and vigilant about reporting it, he says.

According to the FTC, Albany/Lebanon area residents made 642 complaints about consumer issues in 2007. That's 575.8 per 100,000 population. Greeley, Colo., was second with 1,359 complaints, or 573.8 per 100,000.

Also this year, according to the FTC, the Albany/Lebanon area ranked 19th in the country in terms of identity theft with 183 complaints, 164.1 per 100,000.

In 2006, the Albany/Lebanon area was ranked No. 2, with 442 consumer complaints, or 411.5 per 100,000. The area ranked eighth in identity theft with 230 complaints, or 214 per 100,000 population.

Roseburg is the only other Oregon city to be listed in the top 50 nationwide. It ranks sixth with 481 complaints, or 457.6 per 100,000.

Statewide, there were 7,700 total complaints filed in 2007, Harwood said.

"Why the Albany and Lebanon area statistics seem so high we don't really know," he said. "Just because the complaints are from that area doesn't mean there are more criminals or scam artists there. The companies can be located anywhere in the country, or around the world."

Further, those who report scams may not have taken the bait. "They may just be concerned and informed and make the call," Harwood said.

The statistics do point out that "a higher percentage of people have taken the time to file complaints compared to consumers in other parts of the country, say Appleton, Wisc., for example," Harwood said. That town is ranked 50th nationwide, with 707 complaints, or 325.3 per 100,000.

The data reflect complaints to the FTC by phone or through its website, www.ftc.gov; to the Oregon Better Business Bureau; and to the Federal Bureau of Investigation. The FTC looks at complaints made to the Oregon Attorney General's office but does not include them in the report.

"It's not necessarily good or bad to be ranked first on the list," Harwood said. "It's good because you have consumers who know their rights and are exercising them and are vocal about it when they believe there has been a fraud or deception problem."

Harwood's FTC region includes Washington, Oregon, Idaho, Alaska, Montana and Wyoming. He has held the position since 1989 and said he has been perplexed by the Albany/Lebanon ranking for several years.

"We've never been able to figure out exactly why," Harwood said. "We can't see one large company that is generating complaints."

The data are used by the FTC to pursue legal actions and to target areas for additional consumer fraud education programs.

top five complaints

The five most common consumer complaints in Oregon:

n Catalog sales and shop-at-home offers, items that don't show up or are not as represented.

n Problems with Internet service providers nn such as incorrect billings or related services.

n Foreign money offers nn variations of the Nigerian scam.

n Computer equipment and software issues.

n Internet auction sites.