October 7, 2014
SOUTH BEND – Indiana Attorney General Greg Zoeller visited South Bend Monday to announce a series of legislative proposals that would strengthen consumer protection laws in Indiana. The proposals aim to address some of the most common consumer complaints being reported by the public to the Attorney General’s Office.
“Bad actors are finding new ways to defraud, scam and victimize consumers every day,” Zoeller said. “The Consumer Protection Division in my office works tirelessly to shut these criminals down and educate the public about how to avoid scams. We have been able to identify common fraud patterns and areas in which consumers are particularly vulnerable, and this year’s legislative package hopes to address these top concerns.”
Zoeller is recommending the Indiana General Assembly consider the following proposals to enhance the state’s Deceptive Consumer Sales Act in a few key areas during the 2015 legislative session.
Home Repair and Construction
One of the top issues identified by the Attorney General’s Consumer Protection Division based on number of complaints includes home repair and construction scams. In 2013, the AG’s Office received 923 complaints on this topic, making it the third-largest consumer complaint category.
Zoeller said scam contractors often prey on a homeowner’s misfortune such as the need for timely home improvements due to a natural disaster or seasonal storm damage, charging inflated prices and delivering poor or incomplete workmanship.
Zoeller is proposing the creation of a voluntary registration system for home improvement contractors administered by the Attorney General’s Office and available to the public online. To be listed on the registry, a contractor would be required to post a performance bond to cover customers should the contractor violate Indiana’s Home Improvement Contract laws or the Indiana Deceptive Consumer Sales Act.
“The registry would offer Hoosiers a free resource to access and determine whether a contractor with whom they plan to do business has opted into a voluntary registry and purchased insurance which serves to protect consumers from contractual violations or deceptive acts,” Zoeller said.
Debt Collection
Consumer complaints against debt-collection practices rank among the top five consumer complaint categories. The Attorney General’s Office received 787 debt collection-related complaints in 2013.
His proposal would provide greater state protections beyond the FDCPA, including requiring debt collectors to disclose the details of the debt upon initial communication with a consumer. Under the FDCPA, a debt collector has the option to provide the details of the debt in a written notice within five days after the initial communication with a consumer.
Additionally, Zoeller is proposing new state-specific protections not covered under the FDCPA, including requiring debt collectors during the initial communication with a consumer to:
• Immediately identify themselves as a debt collector and to
• Immediately disclose from whom the debt was purchased, if applicable.
Zoeller said these suggested changes will reduce confusion in the debt-collection process and allow members of the public to understand why it is they are receiving the contact that they are.
Enhanced Consumer Protections for Veterans, Disabled
In 2013, Zoeller supported the Senior Consumer Protection Act to provide additional consumer protections for senior citizens, who are often targeted by and tend to be more vulnerable to scammers.
Under the Act, the Attorney General’s Office is able to seek stiffer penalties for those who prey on these individuals.
This year, Zoeller hopes to expand these extra protections to veterans, spouses of deceased veterans, and the disabled.
To become law, the proposals announced by Zoeller Monday must be approved by the Indiana General Assembly. The next legislative session convenes in January.