Return to the Assembly Committee on Consumer Protection, Government Efficiency and Economic Development
Fraud costs consumers $40 billion annually in this country. The scamsters lure their victims with
promises of high rate-of-return investments and luxury cars; and they attack with repeated
telephone sales calls and government look-alike mail. They sting homeowners with trick
contracts and shoddy construction work. They prey upon car owners by performing unneeded
repairs. Finally, in acts of outright thievery, they go on shopping sprees with personal checks and
credit cards stolen from unsuspecting consumers.
Consumers are also hurt by unfair business practices which range from attracting shoppers with
promotions of low-priced items that are always sold out to failing to update scanner pricing tapes
at registers so that the price charged matches the price advertised on the shelf.
The price tag on fraud and unfair business practices can be cut significantly in California by
consumers who arm themselves with the wealth of consumer protection information in this
report. Read it. Use it. Pass this report on to a friend.
This report is not the final word on every imaginable consumer problem; rather, it is a focused
look at the most common problems, causes and prevention. The advice presented in this report
serves as a basic foundation for consumers who want to be smart, not outsmarted, regardless of
the consumer issue at hand.
The report's objective is to provide the type of advice which will help a consumer avoid the
situations which ultimately require the consumer to make a small claims court filing, or to retain
an attorney.
Specifically, staff of the Assembly Committee on Consumer Protection, Governmental
Efficiency and Economic Development interviewed personnel from the offices of the Attorney
General, California district attorneys, the Department of Consumer Affairs, and consumer
advocacy groups to identify the most frequent types of complaints filed by California consumers
in 1995. Next, the committee held a hearing at the State Capitol (11/21/95) where the front-line
fraud fighters from these offices presented their views on how consumers can avoid
victimization.
The following pages contain the self-help suggestions of prosecutors, regulators and consumer
advocates who handle these complaints on a daily basis.
I want to personally thank them for sharing their expertise with all California consumers (see
final page of report for a listing of contributors).
ASSEMBLYWOMAN JACKIE SPEIER
ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL
EFFICIENCY AND ECONOMIC DEVELOPMENT
JANUARY 3, 1996
1) THE PROBLEM IDENTITY THEFT
Identity thieves illegally access personal information maintained by a public agency or a private
business, such as a bank, or they simply steal a person's wallet or purse to reconstruct an identity
which is then used to obtain bank checks, credit cards or other methods of financing purchases.
Consumers are vulnerable to the ploys of identity thieves because of the skyrocketing number of
access points to personal information.
Examples of identity theft:
a) Mary applies for a car loan from an auto dealership where an employee uses Mary's credit
information to open up credit card accounts and to lease an apartment in Mary's name. The
employee phones Mary's house to listen to her answering machine so she can perfect Mary's speech
patterns.
b) Malonie has her purse stolen. The thieves have look-alike bank checks printed with
Malonie's personal information. One of the thieves resembles Malonie. The impostor begins
purchasing goods with the look-alike checks and Malonie's driver's license. The DMV is slow in
issuing Malonie a new license. A year passes and the fake checks are still being accepted by
retailers.
c) Arnold throws his canceled checks in the garbage. He does not have his driver's license number
printed on the checks. A thief combs through Arnold's garbage and finds the checks. He locates
one check where the retailer has written Arnold's driver's license number on the check, as allowed by
state law. The thief now has Arnold's name, address, phone number, driver's license number and
bank account number. With these personal numbers, the thief proceeds to order credit cards in
Arnold's name.
PREVENTION
Minimize the effect of a wallet or purse snatching.
a) Do not carry key personal information documents such as a passport, Social Security card,
or a birth certificate in your wallet unless absolutely necessary.
b) Do not carry all your credit cards with you. Keep a list of credit cards so that you know which
ones are missing if a wallet or purse is stolen. Be sure to have the credit card company phone
number readily available should you need to cancel a credit card due to theft.
c) Follow the same procedures in (b) for bank accounts should you have personal checks stolen.
d) Order your credit report once per year to check for errors or misuse involving your personal
finances.
e) Memorize all passwords--do not carry them in written form.
f) Protect your Social Security number. If asked by a business for your number, determine if
another form of ID is acceptable. If not, ask for the manager to explain why the SSN is needed.
Order your Social Security Earnings and Benefits Statement annually to check for fraud. See d) below.
g) Shred preapproved credit card offers and personal checks before putting them in the garbage.
Store personal checks in a safe place prior to throwing them out.
h) Have your name removed from the marketing lists of the three major credit reporting bureaus
(see below for the procedure for market list removal).
i) It is against state law for a business to write your credit card number on your personal
check--don't allow this to happen.
HOW TO FIGHT BACK
a) In cases of theft, report the crime to the police and then obtain a copy of the report for
distribution to your bank, credit card company, insurance company, etc., if necessary. Keep a
record of whom you talk to at the police station. Be persistent as the police may be reluctant to
honor your request at first.
b) Contact affected credit grantors when credit cards are stolen. Get new cards with new
account numbers. Ask that old accounts be closed at "customer's request" rather than as a result
of theft. Credit bureaus may interpret "lost or stolen" as being the customer's fault.
c) If you suspect misuse of your personal financial documents, contact the three credit reporting
bureaus. Ask that your accounts be flagged and that a "victim's statement" be added to your file
as follows: "My ID has been used to apply for credit fraudulently, contact me at (phone number) to
verify all applications.
Equifax: To order your credit report: (800) 0685-1111 ($8)
To opt out of marketing list: (800) 219-1251
To report fraud: (800) 525-6285
Trans Union: To order your credit report: (800) 851-2674 ($8)
To opt out of marketing list: (800) 241-2858
To report fraud: (800) 680-7289
TRW: To order your credit report: (800) 682-7654 (1 free/year)
To opt out of marketing list: (800) 353-0809
To report fraud: (800) 301-7195
d) To order your Earnings and Benefits Statement from the Social Security
Administration or to report fraud: (800) 772-1213.
e) To report fraudulent use of your checks:
Telecheck: (800) 366-2425
National Processing Company: (800) 526-5380
f) The leading consumer group on identity theft problems is the Privacy Rights Clearinghouse: (800)
773-7748, Beth Givens, director. Call the toll-free number to obtain a copy of "Coping With Identity Theft:
What To Do When An Impostor Strikes." The Clearinghouse provides free information.
g) If you are billed by your credit card company for an item you did not order, you have a right under state
and federal law to dispute the charge and to have the cost of the item charged back to the credit card
company. Contact your credit card company immediately.
The State Attorney General publishes a "letter" explaining a consumer's
"chargeback rights." This letter is helpful in understanding any dispute you might have regarding the
purchase of an item or service by credit card. Additionally, the Attorney General recommends that a copy of
the letter be sent to the credit card company along with the consumer's letter stating reason(s) why he or she
should be granted a chargeback. To obtain a copy of the
"chargeback letter," write to:
Office of the Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550
h) The California Public Interest Research Group (CALPIRG) has published a report on credit reporting
errors, including inappropriate use of credit records. To get a copy of "Credit Bureaus: Public Enemy #1 at
the FTC," call (800) 533-4449, Monday through Friday, 2 p.m. to 4 p.m.
2) THE PROBLEM INVESTMENT SCHEMES AND SCAMS
Most commonly, consumers who are victims of investment scams are sold products which do not suit their
needs. For example, a 9- year-old person will be sold a 30-year annuity plan. While licensed security
brokers are legally obligated to sell investments which are appropriate to their clients' needs, insurance
brokers are not. Most investments can be sold as insurance products thus avoiding the more restrictive
standards established for the sales of securities. Many investment scam artists get to know their victims and
their assets through seminars on living trusts. Since establishing a living trust requires the cataloging of all
assets, scam artists can familiarize themselves with an individua'ls assets which can be reinvested and/or
misappropriated.
Other problems related to life insurance and annuities may occur when consumers are encouraged to do any
of the following without paying extra premiums: apply for a loan on an old policy to support a new policy;
use dividends from an existing policy to pay for a new policy; or replace old policy with new ones that have
higher interest rates; or consolidate old policies to lower premiums.
Some stockbrokers have been found guilty of various trading violations, as follows: trading stocks without
the authorization of the client in order to earn commissions; charging clients excessive commissions; and
engaging in excessive trading to increase commissions earnings.
PREVENTION (INSURANCE TRANSACTIONS)
a) When additional life insurance is being offered, consumers should always question why more life
insurance is needed, and obtain a written explanation of the suitability and the effect on the existing policy.
A replacement disclosure form should be obtained, but a blank form providing for policy changes or
acceptances of revised policy obligations should never be signed.
b) Interest billed on life insurance loaned should always be questioned to ensure that cumulative interest is
not eroding eventual pay-out from the policy.
c) Premiums should never be paid in cash. Payments should be carefully documented in consumers'
records with receipts. Checks of premiums should never be made out to individual agents, but rather to the
licensed insurer. Consumers should ask for an accounting of administrative costs and commissions related
to their transactions.
d) If a policy is not received within 60 days of purchase, contact the insurer to determine the status of the
new policy.
PREVENTION (TRUST TRANSACTIONS)
Be cautious of trust seminars and other devices which require disclosure of personal financial information.
Although there are definite tax advantages to the use of a trust, when assets are substantial, the potential for abuse and misappropriation of assets by an
unscrupulous trust seminar scam artist is formidable.
A recent case which occurred in Northern California illustrates a common pattern of the pitfalls
consumers encounter in attempting to invest.
John C. worked as a broker and investment advisor for a number of years in a Marin County community.
He taught classes in investing at the local Community college, offered weekend seminars on investing, and was a
regular speaker on the topic at the local Rotary and Lions Clubs. When members of the community
approached him for advice, he suggested several "special" investment opportunities offering 10-20% returns.
These investments included gold mines, offshore funds and cosmetics companies. Beyond his personal
guarantee, John produced impressive documents from his personal computer that substantiated the
impressive returns on investments.
This scheme continued for years until the investors ultimately attempted to draw on their investments, at
which point, John fled to Costa Rica where he later died of cancer.
The importance of dealing with reputable investment advisors cannot be overstressed. Individuals can
protect themselves from bad investments by maintaining a diverse investment portfolio, thus avoiding
depletion of assets from any one source. And finally, if the investment sounds too good to be true, it
probably is.
PREVENTION (STOCKS AND BONDS TRANSACTIONS)
Sellers of securities must be licensed. State law requires that a stockbroker supply a new client with
information on how to contact the state Department of Corporations and the National Association of
Securities Dealers (NASD) regarding the disciplinary record of any broker licensed to do business in
California. The department receives over 1,100 requests for broker disciplinary information each month.
The Department will mail consumers a printed transcript of a dealer's disciplinary record. You may wish to
check the violation history of brokers in that brokers who are high producers for firms, hence, valued
employees, sometimes cross the line in terms of compliance with trading rules. Here are the contact
numbers:
Department of Corporations:
(916) 327-0308 (Sacramento)
(415) 557-8568 (San Francisco)
(213) 736-2495 (Los Angeles)
National Association of Securities Dealers (800) 289-9999
HOW TO FIGHT BACK
If you are a victim of an investment scam, or unfair business practice, there are several agencies you can
contact for assistance:
--Northern California--
Department of Corporations
1115 11th St.
Sacramento, CA 95814-5791
(916) 445-7205
(800) 347-6995
Information regarding Investment Advisors and Brokers:
(916) 445-8027
--Southern California--
Department of Corporations
3700 Wilshire Blvd., Suite 600
Los Angeles, CA 90010
(213) 736-2731
Information regarding investment advisors and brokers: (213) 736-2481
Department of Insurance
700 L St.
Sacramento, CA 95814
(916) 322-3555
(800) 927-4357
Department of Real Estate
Investigative Services
P. O. Box 187000
Sacramento, CA 95818
(916) 227-0864
Commodity Futures Trading Commission
Murdock Plaza
10900 Wilshire Blvd., Suite 400
Los Angeles, CA 90024
(310) 575-6783
Mortgage Bankers Association of America
1125 15th St., N.W., 7th Floor
Washington, DC 20005
(202) 861-6565
National Association of Securities Dealers (800) 289-9999
National Future Association
200 West Madison St.
Chicago, IL 60606
(800) 621-3570
3) THE PROBLEM PHONY PRIZES AND MISLEADING OFFERS
In recent years, telemarketing fraud has become a major national problem. Telemarketing fraud is the
deceptive and illegal marketing of goods or services over the phone. In December 1991, a two-year study of
telemarketing fraud by the U.S. House Committee on Government Operations concluded that telemarketing
swindlers cheat Americans out of $15 billion or more annually.
Telemarketers will contact consumers and inform them that they have won a free car, prize or vacation.
However, in most instances to collect the prize consumers are informed they must first forward money to
pay for a shipping charge or some other 'surcharge' or purchase some other service or product before they
can officially receive their free gift. Often consumers are encouraged to call a "900" number to find out if
they have won a special grand prize. The cost of the "900" number is usually $20 and results in the caller
receiving a discount coupon for overpriced merchandise, not the promoted grand prize. Consumers are also
frequently solicited to participate in investment schemes, credit card promotions, coupon sales, and to
contribute to various charities.
Examples of phony prizes and misleading offers:
a) Free prize and free vacation scams: A consumer is told "you've already won" a valuable prize. The
unlucky winner dials a "900" line to claim it. The result: a $1 prize and a $25 to $50 phone charge. If you
have to pay for a prize, it's probably a scam.
b)Investment frauds: Investment schemes promise great rewards to people willing to make "guaranteed
return" investments. Unfortunately, many who fall for such pitches often lose their life savings. Typical
frauds involve investments in gold, silver and other metals.
c) Credit card schemes: It is not uncommon for con artists to obtain your credit card number and use it to
charge items you did not order. They will often call with a pitch about a special deal as a valued
credit card holder. If you simply allow the caller to "verify" your credit card number, they will send you a
"free" gift. After giving out the credit card number con artists use it to process an order for whatever they
are selling.
d) Coupon sales: Consumers are often solicited to purchase coupons or coupon books good for free or
reduced merchandise. Often such coupons are not honored by the companies supposedly issuing them.
e) Fake or misleading charity benefits: Many scam artists approach consumers claiming to sell tickets for
a charity event, benefit or auction on behalf of a philanthropic group. Though many charities are legitimate,
many only turn over a small percentage of money or goods collected to an actual charity.
f) "900" and "976" scams: There are numerous cases of fraud involving "pay-per-call" lines. In these cases
the consumer pays for the opportunity to be deceived, because the call to the "900" or "976" number can cost the
consumer a significant amount of money.
PREVENTION
a) Do not rush to buy a product or pay a special fee to receive your "free" prize. Con artists drive home
the notion that you "must act immediately." Take time to reflect on the offer.
b) Do not give your credit card number, checking account number or Social Security Number out to anyone over
the phone unless you know the company and really want to purchase something.
c) Always look for warning signs of fraud. Beware of these statements: you have "won" a prize; you
have "been selected to receive a special offer;" you must "act immediately;" and any requirement that you
spend an amount of money to "reserve your free prize."
d) Ask for brochures or other printed information prior to making any purchase. Be sure to get all details
about the purchase, including total price, all fees, cost of delivery, sales tax, and minimum purchase price.
e) If you are solicited by a "charity," ask what percentage of the money goes to the charity and not the
fund raising effort. Inquire whether the caller is a volunteer or paid fund raiser. If you have not heard of the
charity, request a brochure. There are also several agencies that can provide you with information about
charities.
HOW TO FIGHT BACK
a) Under California law, every telemarketer or door-to-door salesperson must disclose their identity, the
name of the company they represent and the item or service offered for sale.
b) Telemarketing Fraud
To receive a free detailed explanation of telemarketing fraud contact:
Alliance Against Fraud in Telemarketing
815 15th Street, N.W., Suite 928
Washington, DC 20005
(202) 639-8140
National Consumers League
(800) 876-7960
For a copy of "Fraud by Phone," a part of a series of "FACTS for Older Consumers" published by
the Federal Trade Commission write to:
Public Reference
Federal Trade Commission
Washington, DC 20580
For a free publication of "Tips for Telephone Shopping" contact:
Direct Marketing Association
11 West 42nd Street
P.O. Box 3861
New York, NY 10163
To request your name not be provided for sales calls contact:
Telephone Preference Service
Direct Marketing Association
11 West 42nd Street
P.O. Box 3861
New York, NY 10163
c) Mail:
To limit some of the mail you do not want, you can sign up with the free Mail Preference Service operated
by the Direct Marketing Association, a private trade group. It will instruct its mail marketing members to
take you off their lists. To join, write to:
Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735-9008
To report a problem with mail order contact:
U.S. Postal Inspection Service or
Postal Crime Hotline
(800) 654-8896
d) 900 and 976 Numbers:
To avoid problems with 900 numbers, you can request "blocking" from your local phone company.
e) Investment Fraud:
To complain about an investment company contact:
California Department of Corporations
1390 Market Street, Room 810
San Francisco, CA 94102
(800) 347-6995
(415) 557-3787
3700 Wilshire Blvd., Suite 600
Los Angeles, CA 90010
(213) 736-2751
U.S. Securities and Exchange Commission
901 Market Street, Suite 470
San Francisco, CA 94103
(415) 744-3140
5757 Wilshire Blvd., Suite 500 East
Los Angeles, CA 90036-3648
(213) 965-3988
f) Computer-Generated Calls:
To complain about an intrastate computer-generated sales call that does not follow state regulations
contact:
California Public Utilities Commission
505 Van Ness Avenue, Room 4300
San Francisco, CA 94102
(415) 703-1170
(800) 649-7570
107 South Broadway, Room 5109
Los Angeles, CA 90012
(213) 897-2975
Federal Communications Commission
2025 M Street, N.W.
Washington, DC 20554
(202) 632-7553
g) Charitable Organizations:
All charitable groups soliciting in California must be registered with the
State Registry of Charitable Trusts.
To check to see if a charitable group is registered contact:
State Registry of Charitable Trusts
(916) 445-2021
The Better Business Bureau has a division designed to monitor charitable groups. Its Philanthropic Advisory
Service tracks national charities and reports on those that do not meet its standards for charitable
solicitations. Check in your local white pages for an office in your area or call (703) 276-0100.
To receive a copy of "Wise Giving Guide" write to:
National Charities Information Bureau
Department 163
19 Union Square West
New York, NY 10003
The American Cancer Society publishes a brochure identifying organizations whose names are similar to the
American Cancer Society but who have nothing to do with the group. To obtain a copy of the brochure
contact:
American Cancer Society
235 Montgomery Street, Suite 320
San Francisco, CA 94104
(415) 394-7100
h) Other complaint sources: local district attorney's office
California Attorney General's Office
Public Inquiry Unit
P.O. Box 94425
Sacramento, CA 94244-2550
(800) 952-5225
(916) 322-3360
The California Department of Consumer Affairs mediates complaints at:
400 R Street, Suite 1040
Sacramento, CA 95814
(916) 445-1254
Consumer Action gives advice and referrals at:
116 New Montgomery Street, Suite 233
San Francisco, CA 94105
(415) 777-9635
4) THE PROBLEM DECEPTIVE ADVERTISING
Deceptive advertising takes on a variety of forms, such as a business not accurately disclosing the size or
price of a product; or a business advertising a certain product on sale, but failing intentionally to have an
adequate supply in stock to meet demand -- the consumer is urged to buy a "substitute, just as good"
product. Additionally, consumers have complained that retailers frequently advertise merchandise at a sales
price, but fail to update check out scanners to reflect the lower sales prices.
Examples of deceptive advertising:
a) "Bait and switch" practices. Advertisers will offer unrealistically low prices to lure consumers in their
stores, only to use product disparagement and claims of unavailability as the tools to switch consumers to
higher profit items. Among the many businesses employing this classic scheme are auto dealers and stereo and
appliance stores.
b) Stores which offer perpetual sales. These aren't true sales promotions at all, but they appear daily in
newspapers, radio and TV. Phony price comparisons and "too good to be true" discounts are employed to
create the false impression of a special sale with a limited duration. The banner headline on the ad may
read: "Was $99.99 -- on sale this weekend only for $79.99!" but in fact the product can be bought at that
store for $79.99 all year long. Some of the most frequent violators include carpet merchants, window blind
stores, and home furnishing businesses.
c) Phony "going out of business" advertising. This is a commonplace tactic, especially during leaner
economic times. Ads may claim "court ordered liquidation sale" or "Lost our lease -- going out of business"
when the store or chain of stores may have no intention of permanent closure. In another variation,
legitimate store bankruptcies are taken over by out-of-state liquidator companies who bring in new
merchandise and use phony markdowns to mislead customers as to the extent of the sales savings. Rug
merchants, furniture and jewelry stores are known for the use of this tactic.
d) False information about the features of a product for sale. In these situations, consumers trust what the
manufacturers or businesses tell them about a product, without measuring or weighing the product
themselves. Six counties in California recently settled a lawsuit filed against 17 computer monitor
manufacturers for misrepresenting the size of their monitor screens which were as much as 30% smaller
than the size advertised.
e) Department store price scanners which are not updated to reflect the
advertised sale or discounted price. Oftentimes, particularly in large department stores, customers will
select a sale item and then be charged the full price at the register because the sales price had not been
entered into the scanner.
f) Prize and premium promotions are the false advertising tactic of the Nineties. The essence of these
schemes is the misrepresentation of the value and /or the availability of the "fabulous" prize. In the typical scheme, the "48-piece set of gold dinnerware"
actually consists of cheap metal flatware sprayed with gold-colored paint. Other schemes are outright fraud
operations where up-front purchases of payments are required, but nothing of value is ever delivered.
g) Bogus government notices or bills. Phony mail solicitations are usually the most popular format.
These mailings frequently involve documents that mimic government forms (and misrepresent services
offered) or that imitate bills for products or services which the consumer or business has never ordered.
PREVENTION
1) Do your homework -- Don't be an impulse buyer. Read consumer journals and shop around for the
best quality and price.
2) Nothing is free. Ad claims which seem too good to be true, probably are. Businesses do much that is
good in our economic system, but no business is run as a charity. There is always a profit to be made. Don't
expect the fabled "free lunch."
3) Always check your receipt after purchasing goods to ensure that the computer scanner at the register
indicates the same amount as the advertised price.
4) If you've been victimized, complain effectively. If the sales clerk is not helpful, seek his or her
superior. Talk with a supervisor; then, put it in writing to the business owner or manager, stressing that you
will pursue your legal rights if you aren't satisfied. Last, if necessary, take action: report the problem to
consumer protection officials and consider small claims court or other legal action.
HOW TO FIGHT BACK
State law clearly states that a business can be held civilly liable for false or misleading advertising or for
unfair competition. It is not necessary for prosecutors to prove that the business intended to falsely
advertise, prosecutors need only prove that the business advertised its product in a fraudulent manner.
a) The Federal Trade Commission (FTC) regulates misleading, deceptive and unfair business practices. It
administers federal laws concerning antitrust practices, as well as consumer protection laws. While the
Commission does not remedy individual cases, it determines whether a particular practice injures the public
in general. Your complaint may help convince the commission to investigate a company or business
practice, particularly if it involves false advertising by a regional or national company, misleading
purchasing information or the deceptive labeling of products.
Location in Northern California:
901 Market St., #570
San Francisco, CA 94103
(415) 356-5270
Location in Southern California:
11000 Wilshire Blvd.
Los Angeles, CA 90024
(310) 235-7575
b) A number of consumer groups provide free advice to consumers about deceptive advertising -- chief
among them is Consumer Action with two offices in California.
Northern California Office
116 New Montgomery Street, Suite 233
San Francisco, CA 94105
Main Office: (415) 777-9648
Consumer Action
Southern California Office
525 West Sixth Street, Suite 1105
Los Angeles, CA 90014
Main Office: (213) 624-4631
c) Seek legal representation, a county small claims advisor or contact your local district attorney's office.
False advertising is prosecuted daily by California's district attorneys and other prosecutors.
d) Direct Marketing Association accepts complaints against its members or any company who markets
goods and services directly to consumers using direct mail, catalogs, telemarketing, magazine and
newspaper ads, and broadcast advertising.
For problems with a mail order company, write:
Mail Order Action Line
1101 17th St. N.W., Suite 705
Washington, DC 20036
To remove your name from a nationally based advertising list write: (consumers only, not businesses)
Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735-9008
To remove your name from a nationally based telephone solicitation list write:
Telephone Preference Service
P.O. Box 9015
Farmingdale, NY 11735-9008
e) County Weights and Measures Offices. Each county in California has an Office of Weights and Measures
that has jurisdiction over any commodity that is weighed, measured, or counted, including gasoline and
goods. The offices are also responsible for assuring the accuracy of weights and measures.
County Weights and Measures Offices
Please see the Government Pages of the Phone Book under
County of ........
f) The U.S. Postal Inspectors investigate any complaints involving the mail, including possible mail
fraud.
U.S. Postal Inspection Service
Manager, Fraud and Prohibited Mailings Group
475 L' Enfant Plaza West, S.W.
Washington, DC 20260-2166
U.S. Postal Inspection Service
Postal Inspector in Charge
P.O. Box 2000
Pasadena, CA 91102-2000
(818) 405-1200
U.S. Postal Inspection Service
Postal Inspector in Charge
San Diego, CA 92112-2110
(619) 233-0610
U.S. Postal Inspection Service
Postal Inspector in Charge
P.O. Box 882000
San Francisco, CA 94188-2000
(415) 550-5602
5) THE PROBLEM TRAVEL FAILURES & SCAMS
Vacation tours are generally paid for in advance. Consumers complain that some of the travel services
purchased for a tour were not delivered as promised and that, in some cases, the seller of travel went
bankrupt, or absconded with the consumer's moneys.
One of the most common scams involves a promoter who entices a consumer with "free" hotel rooms if
airline tickets are purchased directly from him or her; in these cases the air fare paid by the consumer is the rate
paid if a ticket is purchased the day of the flight, a rate that is much higher than the economy ticket rate
which the promoter pays to secure the ticket for resale to the consumer. The "free" rooms are often
inadequate, forcing the consumer to pay for an upgrade. In brief, the cost of the free room for the promoter
is more than covered by the profit he makes by selling the consumer the higher priced air tickets which he
bought at the economy rate.
PREVENTION
a) A new California law, effective 1/1/96, protects California travelers from travel business failures,
under certain circumstances. The "Sellers of Travel Law" requires anyone who sells tours with air or sea
transportation to register with the State Attorney General. Even agencies located in other states must
register with the Attorney General if they do business in California - that is, sell travel to Californians. The
seller's registration number is to be displayed in advertising and on contracts. It is illegal to sell tour services
and not be registered. Therefore, only do business with registered sellers of travel when air or sea travel is
involved. The Office of the State Attorney General can verify if an agent's registration is valid. Send the
seller's name and registration number to the following address to verify that it is current and in good
standing:
Office of the Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550
b) Pay by credit card, do not allow the travel seller to debit your checking account. See "Identity
Theft/How To Fight Back (g)" for process of obtaining a credit on your credit account for undelivered
services. In September 1995, a major cruise line shut down. Consumers who paid by credit card for
canceled cruises had the charges erased from their account within 24 hours while those Californians who
paid by check had to go through a cumbersome reimbursement process which lasted over one month.
c) The rule that "if it sounds to good to be true, then it isn't true," should be considered when examining
travel promotions with "free" hotel rooms or cruises. Also, promotions may be offered at times when the
weather in exotic locales is not suitable for vacationing. Practice comparison shopping and consult with
weather experts.
d) Ask the travel agent to write out as much detail on your travel as possible. If you require special diet
food, then have that condition specified where necessary. If a trip to a foreign country involves ground
"transfers," have the agent specify the type of transportation and length of the trip. For example, one couple
purchased a tour to Cost Rica which included a transfer from the airport to a luxury hotel. Unfortunately,
the transfer was by way of an old car which took five hours to reach the hotel. The consumers in this case
expected a short ride from airport to hotel.
e) Don't leave home without your airline tickets. Be skeptical of tours where air transportation tickets
will be waiting for you.
HOW TO FIGHT BACK
a) If you buy air or sea travel from a California travel agent or tour operator, your travel is protected from
losses due to business failures and fraud, provided the seller is a legally registered seller of travel.
Depending on the cause of the loss of service, the consumer may be eligible for up to $15,000 in coverage of
losses. Your travel agent may be able to facilitate claims, unless, of course, the agent is the problem. In
either case, claims must be filed with the Travel Consumer Restitution Corporation (TCRC) within 60 days
of the date which the traveler knew of the loss(es). File claims with the TCRC by writing, as follows:
Travel Consumer Restitution Corporation***
P.O. Box 6001
Larkspur, CA 94977-6001
*** Warning...this is a new state program without a proven track record for making timely payments to
consumers.
b) If you deal directly with a sea cruise line, your are protected from losses by federal law which requires
that cruise lines be bonded.
c) Exercise your credit card chargeback rights.
6) THE PROBLEM CONSTRUCTION & REPAIR CONTRACTORS
Consumer complaints in the construction industry include failure to complete the work, shoddy work, and
failure to pay materials suppliers or subcontractors. Seniors and victims of natural disasters are often targets
of disreputable contractors who sell services doo- to-door and then fail to complete the work for which the
consumer has paid. In some cases, the contractor then has a security interest in the home. These
complaints are compounded when consumers report that enforcement actions against contractors is slow and
when bond companies refuse to pay consumers.
Examples of construction and repair contractor problems:
a) Mr. & Mrs. Smith hire a contractor to build an addition to their house. They pay two-thirds of the total
cost of the work up front. The contractors and subcontractors work for two weeks, then disappear. The
contractor never paid the subcontractors or the lumber yard. So the subs and the lumber yard lien Mr. &
Mrs. Smith's property. The lien can only be removed if Mr. & Mrs. Smith pay the subcontractors and the
lumber yard the amount that the prime contractor owed for the work done on the property.
b) Helen hires a contractor to repair a leaky roof. The roof is repaired and Helen is very happy with the
work for seven years. Then she discovers that the contractor failed to install flashing which has resulted in
rain being blown under overhangs and into walls. This has caused significant dry rot. Helen files a
complaint with the Contractors' State License Board (CSLB) but finds that the statute of limitations has run
out and she has no recourse. She finds a similar problem when she files a claim against the license bond.
c) An earthquake causes substantial damage to the home of Mr. & Mrs. Lawrence. The next day, a
salesperson knocks on the door and convinces the Lawrences to hire a contractor to do the repairs. The cost
is incredibly low. Three weeks into the repairs, the contractor notifies the Lawrences that he has found that
to do the repairs correctly, the contractor will have to do substantially more work on the house which will
cost a lot more than originally anticipated. The Lawrences have no way of paying this additional money and
after lengthy court battles lose their home to the contractor.
d) After checking references and the status of the contractor's license, the Snyders hire a licensed and
bonded contractor to do some home repairs. The contractor finishes the work, but the work is not
satisfactory to the Snyders. The Snyders ask the contractor to fix the work, but the contractor refuses. The
Snyders then file a complaint with the CSLB, and file a civil suit in court. The CSLB revokes the license of
the contractor, and the court awards in favor of the Snyders for the full amount of the suit plus court costs
and attorneys fees. The contractor refuses to pay, and the Snyders then decide to file a complaint against the
contractors' license bond. The bonding company refuses to pay and the Snyders never receive compensation
for their damages.
PREVENTION
a) Check with the CSLB to determine if the contractor is licensed and how long the contractor has been in
business. The CSLB will also provide you with the contractor's record of citations, suspensions,
revocations, or judgments against the contractor. You may also want to check with the city and county to
determine if the contractor is licensed and to determine if there are any unpaid judgments or civil suits
pending.
b) Make sure that the license number appears on all contracts, change orders, and other documents signed
by the contractor. This will prevent the contractor from using an incorrect license number.
c) Check references. Contractors may give you bogus references, so you may want to verify that the
reference is real. One consumer called a supposed reference and asked to speak to the contractor. The
person answering the phone said "Just a minute", and then put the contractor on the line. It seems the phone
was set up by the contractor in his office to provide references.
d) Require that the contractor get a performance and payment bond. Do not rely on the contractor's
license bond for protection. It is difficult at best to protect from and oftentimes the bond does not provide
the dollar amount of protection needed. Payment and performance bonds guarantee performance of the
work and payment to subcontractors and materials providers. These bonds are easier to collect from and
protect homeowners against liens. These bonds will increase the cost of the contract, but the protection is
worth it in the long run.
e) Make progress payments. Do not pay lump sums! If you pay for services not yet performed, you have
decreased your chances of ever seeing the work actually completed.
f) Educate yourself. Read a few home repair books and research the work being done. Ask the contractor
questions. Be sure that you have a clear understanding of the work to be done. At least daily you may want
to check on the progress of the work to be sure that the work is progressing and that the work is being done
as you requested.
HOW TO FIGHT BACK
a) If you have a problem with a contractor, try to get the contractor to correct the problem and file a
complaint with the CSLB. If you do not file a complaint, the statute of limitations may run out leaving you
no recourse against the contractor's license.
Contractors' State License Board
P. O. Box 26000
Sacramento, CA 95826
(916) 255-3985 or (916) 255-3900
(800) 321-CSLB To verify the status of a license.
For CSLB offices throughout California, please check the Government pages of the phone book
under State of California.
b) If you cannot resolve a dispute, you may want to pursue an action in court or arbitration. In either case,
be sure you file a concurrent action against the license bond company. If you do not, the bond company
many not be required to pay should the contractor fail to pay you.
c) For advice on how to proceed, you may want to contact your local district attorney or the California
Public Interest Research Group
11965 Venice Blvd., Suite 408
Los Angeles, CA 90035
(800) 533-4449
7) THE PROBLEM AUTO PURCHASING, LEASING & RENTING
California consumers have complained about leasing vehicles when the consumer believed it was a
purchase, failure to disclose in lease contracts the value of the vehicle, failure to credit for trade-ins on
leases, failure to disclose the total cost of the auto lease, provisions in a lease severely limiting mileage and
charging substantial fees at lease end to fix "damage" to vehicle, the aggressive sales of collision damage
waivers even though the consumer has auto insurance, refusal to rent cars to consumers under 25 years of
age, and add-on charges.
Examples of Auto Purchasing, Leasing & Renting Problems:
a) Mary goes to a dealer to buy a car. She realizes that prices have skyrocketed and she cannot afford to
purchase a new vehicle. The salesperson convinces her to lease a car instead. The monthly lease payments
are less than the monthly financing payments required in purchasing the car. The salesperson gives her a
"great deal" on a trade-in if she decides to lease, which she does. When Mary gets home with her new car,
she reads the fine print on the contract which shows the dealer increased the base price of the leased vehicle
by several thousand dollars thereby eliminating any trade-in value of her vehicle. Mary also learns that the
leased car can only be driven 10,000 miles a year without incurring extra mileage charges; and that there
will be extra charges for minor body damage, should there be any, when the car is returned at the end of the
lease.
b) Bob rents a car at the airport. He is told at the counter that to protect himself from liability in an
accident, Bob can purchase a collision damage waiver (CDW) for only $12 per day. Bob buys the CDW and
continues to purchase the CDW every time he rents a car. Bob's business takes him out of town a lot, and he
has rented a car in 68 days in the last year. When Bob's auto insurance is renewed, Bob finds that his auto
insurance covers damage to rented vehicles. Bob realizes that he has spent $816 in the last year on CDWs
that he did not need.
c) Mary Ann is an 18-year-old recent high school honors graduate. She is enrolled at California's finest
university. She has a major credit card and a perfect driving record. She has been employed for the last two
years, and holds California's top score on the SATs. She flies to the university to look for living
accommodations. Mary Ann has reserved a rental car at the airport. When she attempts to rent the car she is
refused because she is less than 25 years of age. All other rental car companies at the airport have the same
policy, and Mary Ann is unable to rent a vehicle solely because she is less than 25 years of age.
d) Jacob buys a used car from a lot. The next day, the transmission falls out and the radiator springs a
leak which sprays water and antifreeze on the wiring. The cost of repairing the vehicle is estimated at
several hundred dollars. Jacob decides to return the vehicle to the used car lot and exchange it for a vehicle
that runs. The dealer refuses to take the car back because it was purchased "AS IS."
e) Bob buys a low mileage car from a dealer who said it was previously owned by an elderly gentleman.
A few months later the car begins to have serious operational problems. Bob later discovers the car had
been owned and used as a daily rental vehicle.
PREVENTION
a) Read lease contracts carefully and ask these questions: What is the base value of the leased vehicle?
How much will the entire lease cost, including all add-on charges? How will the value of the trade-in be
applied to the total cost of the lease? How many miles may the vehicle be driven without a mileage charge?
If the vehicle has to be returned in a specified condition to avoid damage charges, how is this condition
determined? Should there be a need to break the lease, what are the penalties? Do not sign a lease if these
questions are not answered to your satisfaction.
b) Before renting a vehicle, check with your credit card company (or bank) and with your auto insurance
company to determine if either will cover damage to a leased vehicle. Most auto insurance policies cover
rented vehicles. Many credit card companies will cover damage to rented vehicles if paid for by credit card.
In either case, a collision damage waiver is typically not needed and is a waste of money.
c) Read used car purchase contracts carefully. The law requires such contracts to include a warning to
consumers that there is no three-day right to cancel the contract. If you are not sure if you want the car, or
have reservations about the price and value of the vehicle, WALK AWAY! You do not have three days in
which to change your mind. In most cases, used car purchases are "AS IS."
d) When you find a used car which you might want to buy, call your local DMV office to find out the
vehicle registration history of the vehicle. This information is free and is helpful in determining if back fees
are owed on the vehicle and if the vehicle has ever been declared salvage, used as a taxi, or declared a
"lemon" in legal proceedings. Also, you may ask if the vehicle was ever owned by a rental company. DMV
charges $5 should you want a printed copy of the information.
e) Pay by credit card if you can. (Don't run up a debt that you cannot pay.) Many credit card companies
will work on your behalf to resolve disputes related to payments by credit card.
HOW TO FIGHT BACK
a) If you feel that you are being ripped off in buying, leasing, or renting a vehicle, contact your local
district attorney. The following organizations and agencies may be of assistance to you depending on the
specifics of your case.
New Motor Vehicle Board
1507 21st St., Suite 330
Sacramento, CA 95814
(916) 445-1888
Department of Motor Vehicles
Division of Investigations
Consumer Assistance Unit
2570 24th St.
Sacramento, CA 95818
(916) 657-6579
Arbitration Review Program
400 R St.
Sacramento, CA 95814
(916) 323-3406
Consumers for Auto Reliability and Safety
1500 W. El Camino Ave., Suite 419
Sacramento, CA 95833-1945
(916) 920-5464
California Public Interest Research Group
11965 Venice Bl., Suite 408
Los Angeles, CA 90035
(800) 533-4449
National Highway Traffic Safety Administration
201 Mission St., Suite 2230
San Francisco, CA 94105
(415) 744-3089
(800) 424-9393
Consumer Action
Northern California Office
116 New Montgomery Street, Suite 233
San Francisco, CA 94105
Main Office: (415) 777-9648
Hotline: 10 a.m. to 2 p.m., Monday thru Friday
(415) 777-9635
Consumer Action
Southern California Office
525 West Sixth Street, Suite 1105
Los Angeles, CA 90014
Main Office: (213) 624-4631
Hotline: 10 a.m. to 3 p.m., Monday thru Friday
(213) 624-8237
8) THE PROBLEM AUTO REPAIRS
Consumer complaints include mechanics recommending unneeded repairs, failure to complete work on
time, poor repair work and charges above the estimate. An additional complaint of consumers is related to
towing services. Some tow truck companies will "intercept" calls to other tow truck companies and will tow
to less than reputable auto repair facilities.
Note: There are some 40,000 businesses licensed to operate a vehicle repair facility; however, the state does
not license the estimated 250,000 people who work in the vehicle repair industry.
Examples of problems with auto repair:
a) Phil drops off his car for an oil change and tire rotation. The mechanic later leaves a message on Phil's
answering machine stating that the car also needs a new muffler. Phil calls the mechanic back and states
that he does not want the muffler replaced because the muffler is under warranty. The mechanic explains
that its too late. The muffler was already replaced and Phil has to pay the cost.
b) Arnold has his car "tuned up." After a few days, Arnold finds that the car really isn't running any
better. Arnold takes the car into a different mechanic who informs Arnold that the first mechanic didn't do
anything. All parts that should have been replaced in the tune-up are still in the car.
c) On the way into work, Sharon drops off her car for a wheel alignment and tire rotation. Sharon is told
that the car will by done by 3:00 P.M. Sharon returned at 4:45 P.M. and finds that the car is not ready and
there is no lender car or round table.
d) Teresa takes her car in for major repairs and is very pleased with the work of the mechanic. Four
weeks later Teresa experiences new mechanical problems. She goes to a different mechanic and finds that
the other mechanic did a good job, and the new problems are not related to the previous work. The new
mechanic also tells Teresa that the other mechanic installed rebuilt parts instead of new parts as paid for by
Teresa.
e) Joe goes to an auto repair facility to get a new battery. While installing the battery, the mechanic claims
to have discovered that the vehicle also needs a number of other repairs. Joe authorizes the repairs and then
later finds out that the repairs were actually never needed.
PREVENTION
a) Make sure the business is licensed by the Bureau of Automotive Repair--the license should be
displayed. Check to see if the shop is affiliated with any trade associations.
b) A good and honest mechanic will save you a lot of grief. Ask friends for references. And choose
someone who has experience working on your make of vehicle.
c) Never leave your vehicle at a repair shop without getting a written estimate of work to be done; and
ask to be called if the estimate will be changed. (Leave a number where you can be reached.)
d) Review the repair contract carefully to determine if you are getting new or rebuilt parts.
e) Ask for the old parts to be returned to you.
f) Before authorizing additional repairs beyond the purpose of the original to the mechanic, you may want
to get a second opinion from a reliable mechanic.
g) If you have trouble explaining the car's problem, ask the mechanic to test drive the car with you in it so
that you can point out the problem if it is one that occurs during operation.
HOW TO FIGHT BACK
a) If a mechanic does unauthorized repairs, fails to complete repairs when promised, uses unauthorized
parts, or engages in other less-than-ethical behavior, you may not be required to pay for those repairs.
However, the mechanic may practically hold your vehicle hostage until you pay. Therefore, you may wish
to pay for the repairs by credit card and then ask your credit card company or bank to assist you in resolving
the dispute.
b) In these and similar cases, you should also file a complaint with:
Bureau of Automotive Repair
10240 Systems Parkway
Sacramento, CA 95827
(800) 952-5210
c) Other organizations available to assist you with auto repair problems include the following:
Consumers for Auto Reliability and Safety
1500 W. El Camino Ave. Suite 419
Sacramento, CA 95833-1945
(916) 920-5464
National Highway Traffic Safety Administration
Automotive Safety Hotline
400 7th Street SW
Washington, DC 20590
San Francisco Regional Office (415) 744-3089
Toll free (800) 424-9393
9) THE PROBLEM FUNERAL & CEMETERY SERVICES
The state assumed financial control of eight private cemeteries in 1994 and 1995. Consumers have been
traumatized by the fact that the remains of loved ones are missing and that money paid for perpetual care of
gravesites has been lost. There is a growing statewide fear about the financial soundness of cemeteries.
There are no special circumstances which have triggered an outbreak of complaints against funeral services,
however, "funeral" matters are included in this section since there is often a business connection between
funeral and cemetery matters.
Note: As of 1/1/96 the two state consumer boards which regulated funeral homes and cemeteries have been
disbanded. Their duties are now the responsibility of the State Department of Consumer Affairs. Also, the
state does not license any religiously affiliated cemeteries.
PREVENTION
a) Most cemeteries which have been taken over by the state were delinquent in filing annual financial
statements with the Cemetery Board (the Department of Consumer Affairs is now responsible for receiving
these reports). If you are considering buying space at a licensed cemetery, call the Department at
916-263-2660 to determine if the cemetery has filed its annual financial report on time.
b) In 1991 the state published two excellent booklets which covered the most frequently asked
questions regarding funeral arrangements and cemetery/cremation services. These booklets have been out of
print, but it is expected that they will be available in early 1996. Call 916-263-2660, or 916-263-3180 to
request a free booklet. Since this information may not be available from the state, the following is a
summary of the key "points of confusion" involving funeral, burial and cremation transactions.
1) FUNERAL FACTS:
a) There is no minimum or maximum control on prices of caskets and services, but consumers must be
given a price list and the cost of goods and services must be itemized.
b) The law does not require that a body be embalmed (extra charge for embalming); however, if the body
is to be stored by the funeral director for more than 24 hours, it must be refrigerated (extra charge for
refrigerated storage).
c) Prepayment may or may not freeze the cost of funeral goods and services. Read the pre-payment
contract carefully. Get it in writing that prepayment freezes all goods and services. Some groups
recommend that consumers preplan, but not prepay.
2) CREMATION FACTS:
a) State law does not require that remains be cremated in a casket. Therefore, you need not buy a casket if
the body is to be cremated--a simple container (cardboard or a plastic-type pouch) will be used. A casket
may be rented if you wish to have a viewing prior to cremation; however, not all funeral homes or
crematories have caskets for rent. In a rental situation, the body is placed in a disposable liner which is
placed in the rental casket.
b) Cremated remains cannot be scattered on public or private property in California. Remains may be
scattered at sea by a licensed cremated remains disposer; or placed in a cemetery, or in a church, or religious
shrine, or retained in the residence of the next of kin.
3) BURIAL FACTS:
a) Although a plot may be purchased 10 or 20 years in advance, the cemetery may require that a grave
liner--usually concrete--be purchased at time of use. Consumers, handling the prepaid burial arrangements
of a loved one, are often surprised by the liner charge. Again, many groups favor preplanning over
prepaying, but if burial services are purchased in advance, make sure liner costs are covered.
b) Graves may be purchased in multiple depths--two or more caskets buried in the same vertical space.
Multiple depth graves are usually less expensive than purchasing two separate grave sites.
4) Organizations which provide information on how to save money on funeral, burial and cremation
services are as follows:
a) California--Hawaii Federation of Funeral and Memorial Societies, Karen Leonard, Consumer
Representative, (707) 795-7104.
b) American Association of Retired People, Lee Norguard, expert in funeral and cemetery matters, (202)
434-2277.
c) The Federation of Memorial Societies, 6900 Lost Lake Road, Egg Harbor, Wisconsin, 54209; send
self-addressed stamped envelope when requesting information on how to save money on final disposition
arrangements.
HOW TO FIGHT BACK
a) Complaints against licensed cemeteries, crematories and funeral directors may be filed with the
Department of Consumer Affairs. Call (800) 952-5210.
b) The Federal Trade Commission (FTC) enforces federal regulations covering the sale of funeral goods
and services. The FTC is not geared for providing individual investigative assistance to consumers,
however, it does have written information on funeral law. Specifically, the FTC is concerned with patterns
of abuses by a funeral director. In 1992 the FTC fined a northern California funeral director for price fixing
violations. The FTC has two California offices: Los Angeles (310) 575-7575; and San Francisco (415)
744-7920.
10) PROBLEM HEALTH CLUBS
Consumers have experienced problems in this industry, including clubs taking deposit monies prior to
opening and then never opening, leaving the consumer without the services for which he or she has paid.
Some health clubs have also begun using automatic renewal clauses in consumer contracts to avoid a
provision of law prohibiting these contracts for periods beyond one year. Additionally, consumers have
complained of continued charges from health clubs long after contracts have expired.
Examples of problems with health clubs:
a) Dennis joins a health club and signs a one-year contract. At the end of one year, Dennis realizes that
he has not used the club enough to justify the expense and decides not to renew the membership. The next
month to Dennis's surprise, he gets a bill from the health club. Dennis's inquiry to the health club finds that
the health club automatically renews memberships unless the customer asks for it to be canceled.
b) Jan puts a deposit on membership in a health club that is under construction and is intended to be open
to the public in six months. The club never opens, and Jan loses every penny of her deposit.
c) Andrea joins a health club and takes advantage of the reduced rate for paying monthly dues by
electronic funds transfer from her checking account. Two years later, Andrea decides to cancel her
membership. She notifies the health club of this, but the health club continues to take monthly dues from
her checking account for the next four months.
d) Frank realizes that he could lose a few pounds and makes a new year's resolution to join a health club.
That Saturday morning he gets up bright and early, eats a healthy breakfast, and joins a health club offering a
great new year's package. For the next several weeks, Frank goes to the club after work only to find that the
club is so busy that he can't get a locker. He has to wait for 15 minutes to use any of the weight machines,
and every aerobics class is full. Frank tries to quit but can't because he has signed a one-year contract.
e) Shelly joins a health club with tremendous services. The club offers weight training, aerobics, step
classes, massages, fitness instruction, and more. In her first week's use of the club, Shelly learns that these
services are all for an extra fee and are not included in the monthly dues.
PREVENTION
a) Read the contract carefully. The law prohibits health club contracts of more than one year.
Nonetheless, many health club contracts include questionable provisions allowing automatic renewal.
b) Give plenty of notice to the health club should you change banks or wish to cancel payment by credit
card or other electronic means.
c) When you tour the club, ask questions about services, frequency of services, and the cost associated
with each service.
d) Tour the club between 5 p.m. and 8 p.m. on a weekday evening. This will give you an idea of how busy
the club may be when you want to use it.
e) Don't make a deposit on a soon-to-be-opened club unless the club puts the money into a trust account.
Verify the existence of the trust account.
HOW TO FIGHT BACK
If you have a complaint against a health club, the best recourse is your local district attorney's office and to
file a claim in court. You may also wish to file a complaint at:
Department of Consumer Affairs
400 R Street
Sacramento, CA 95814
(916) 445-1254
(800) 952-5210
Offices throughout California: Please check the Government pages of the book under State of California.
REPORT ACKNOWLEDGMENTS
This report was prepared under the direction and guidance of
Chris Carpenter, Assistant District Attorney, Alameda County
Betsy Cotton, Consumer Program Director, CALPIRG
Craig Dixon, Senior Insurance Officer, Dept. of Insurance
Herschel Elkins, Senior Deputy Attorney General, Dept. of Justice
Daniel Garrett, Legislative Liaison, Dept. of Real Estate
Beth Givens, Project Director, Privacy Rights Clearinghouse
Gail Jesswein, Registrar, Contractors' State License Board
Karen Leonard, Consumer Representative, California-Hawaii
Federation of Funeral and Memorial Societies
Bill McDonald, Assistant Commissioner, Dept. of Insurance
Larry Morse, Deputy District Attorney, Merced County
William Newsome III, Deputy District Attorney, City of San Diego
Robert Nichols, Deputy District Attorney, Marin County
Jim Provenza, Special Asst. District Attorney, Los Angeles County
Dennis Rice, Chair, Fraud & Security Task Force, National Association of Credit Bureaus
Ray Saatjian, Deputy Director, Dept. of Consumer Affairs
Alan Yengoyan, Senior Deputy District Attorney, Fresno County
Special thanks to John Wilson, a San Mateo County Deputy District Attorney and Chair of the Consumer
Protection Committee of the California Association of District Attorneys.
Assembly staff contributors: Richard Steffen, report editor; Stacy Dwelley; Deborah Lott; Michael Miller;
Elise Thurau and Barbara Zanger.
Comments and requests for reports should be sent to the Assembly Committee on Consumer Protection,
Governmental Efficiency and Economic Development, P.O. Box 942849, Sacramento, CA 94249-0001.
Return to the Assembly Committee on Consumer Protection, Government Efficiency and Economic Development