Consumer complaints return to pre-pandemic levels in 2021

Home improvement complaints rise; Miller proposes contractor bond bill

DES MOINES - Following a record year of complaints in 2020 tied to the COVID-19 pandemic and derecho, the number of complaints received by the Iowa Attorney General's Consumer Protection Division returned to near pre-pandemic levels in 2021.

Overall complaints totaled 3,536, a 12.6% decrease from the 4,011 received in 2020. However, the number of complaints received last year is still an increase of 9.6% from the 3,225 complaints filed prior to the pandemic in 2019.

"Iowans continue to face a myriad of issues in the consumer world, from imposter scams to contractors trying to take advantage of homeowners. Our Consumer Protection Division works tirelessly to address these complaints and help make consumers' lives better," Attorney General Tom Miller said.

Pandemic, home repairs continue to be focus

Home Improvement complaints increased 4.5% percent in 2021, even though disaster repair complaints declined sharply a year after the derecho. Complaints related to roofing, windows, siding and other services made up the majority of the 363 complaints the category received last year.

Miller has proposed a bill with the Legislature to strengthen the law involving home improvement contracts. Under the bill, a contractor must file with the state a $75,000 surety bond before starting a home improvement project. Consumers could file a claim against the bond.

Contractors who violate the requirement to obtain a bond would be guilty of a simple misdemeanor and in violation of Iowa's Consumer Fraud Act. In addition, the Iowa Division of Labor would cancel their contractor registration.

"We've sued many contractors who have cheated dozens of customers, and in some cases have gotten them banned from doing business in Iowa," Miller said. "Unfortunately, many of the defendants in these lawsuits are unwilling or unable to pay and have no assets that can be seized to pay a judgment, so the consumers are still out of their money."

Homeowners facing repairs can avoid problems by following the office's contractor checklist.

As Iowans and the world settled into a new normal amid the second year of the pandemic, healthcare complaints, which ranked as the second most complained about category in 2020, fell to the seventh-most complained about category.

Previous healthcare complaints largely centered on products and supplies, which would have included issues like price gouging of health care products such as toilet paper, disinfectant, and masks, and personal goods, including food. While that subcategory continued to be the highest for healthcare complaints, it received 243 fewer complaints in 2021.

Still, most complaints received by the office remained typical of previous years. For the fourth year in a row, auto-related issues reigned supreme, ranking as the top category of complaints reported to the office, while imposter complaints also remained high on the list.

A focus on outreach, education

Miller acknowledged the dedication of the attorneys, investigators, and other staffers of the Consumer Protection Division to address and, in many cases, resolve these consumer complaints and inquiries with swift action, at times before a formal written complaint is made.

In fact, official complaint numbers do not include the more than 19,000 calls and more than 14,000 e-mails to the Consumer Protection Division's operators, who provide tips and information on many consumer issues.

A continued focus on educating Iowans on consumer issues and how to report those to the AG's office led to the division's ability to quickly identify new twists on old imposter scams, as well as shutting down a door-to-door solicitors falsely claiming to raise funds for charity.

"While our CPD staff are skilled at addressing Iowans' consumer-related issues, we also rely on the assistance of the public, including the five Consumer Protection Heroes we honored in November 202 1," Miller said. "These individuals went above and beyond to protect their fellow citizens, just as our staff does each day."

Most common Consumer Protection Division complaints in 2021

Here are the top 15 categories, with the most common subcategories under each:

Category	Total complaints	Top subcategories	Subcategory complaints
Auto	516
		Parts & Repairs	142
		Warranty Plans & Services	91
		Financing	64
Home Improvement	363
		Other Services	152
		Roofing/Windows/Siding	107
		Disaster Repair	39
Imposter	334
		Business	156
		Government	51
		Contests & Prizes	26
		Romance/Sweetheart Scams	26
Home Goods & Services	270
		Appliances	96
		Furnishings	55
		Electronics	37
Personal Services	268
		Travel/Vacation	165
		Legal Services	20
		Tax Preparers	18
Miscellaneous	186
Healthcare	182
		Other Products/Supplies	64
		Provider/Insurance Billing	49
		Other Medical Treatments	45
Media	162
		Bundled Media Services	59
		Magazines	27
		Satellite Television	15
Housing & Realty	147
		Timeshare Sales	47
		Rental Housing	33
		Real Estate Sales	25
Internet	144
		Access Services	51
		Social Networking Service	30
		Tech Support Scams	26
Insurance	138
		General	134
		Water/Sewer Line	2
		Medicare Part D	2
Telecom	125
		Mobile Carrier Rates/Plans	45
		Mobile (Other)	39
		Landline	20
Personal Goods	121
		Clothing & Accessories	47
		Food	35
		Gift Cards	16
Debt	105
		Collections	86
		Management/Settlement	16
		Credit Counseling Services	3
Lending (non-mortgage)	92
		Credit Cards	33
		Other Institutions	14
		Student Loans	11

To file a complaint

Consumers with questions or complaints can contact the Consumer Protection Division through the Attorney General's website, by email or by phone:

Website: www.IowaAttorneyGeneral.gov

Email: [email protected]

Phone: 515-281-5926 (outside the Des Moines area, call toll-free: 888-777-4590)

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