Complaints to Better Business Bureau up 7%

According to an annual report released today by Better Business Bureau, consumers filed 891,540 complaints against North American businesses in 2008, reflecting a seven percent increase over the previous year.

“While BBB saw a seven percent increase in complaints, we also experienced a 15 percent increase in requests from consumers for pre-purchase information on the reliability of businesses,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Given the current economic recession, consumers are being more cautious on where and how they spend their money and are looking for objective information that helps them easily and quickly make informed decisions on the reliability of businesses.”

The cell phone industry received the largest number of complaints with 36,710, a nine percent increase over last year. New car dealers ranked second with 27,555 complaints and also saw a nine percent increase. Rounding out the top three, banks received 21,021 complaints, an increase of 15 percent.

While the cell phone industry, new car dealers and banks received a high volume of complaints, the BBB report shows that they also have a higher rate of resolution with consumers than the average rate (73 percent) across all industries in 2008. Cell phone companies resolved 92 percent of complaints, new car dealers resolved 82 percent, and banks resolved 96 percent.

“Industries that do a large volume of business are naturally going to have a larger number of complaints. This is why it’s important to look at how a company responded when BBB approached them with consumer complaints, and not just the sheer number of complaints,” added Graham.

Out of the top ten industries by volume of complaints, used car dealers and banks experienced the most significant increase in complaints over last year. Complaints about used car dealers increased 18 percent and complaints against banks increased by 15 percent. The increase in complaints corresponds with a decline in the amount of trust consumers have in these industries as determined by the BBB/Gallup Trust in Business Index. Released in 2008, the Index survey found that consumer trust in auto dealers and banks had declined considerably from late 2007 into the second quarter of 2008. To find out how other industries fared in the BBB/Gallup Trust in Business Index go to www.bbb.org/trustindex.

Of the top 10 industries for complaints, only two saw a decrease in complaints. Complaints against Internet services decreased by 16 percent and complaints against furniture stores decreased by 3 percent.

For a complete industry breakdown of all complaints filed with the BBB in 2008 go to www.us.bbb.org/statistics. To learn more about BBB dispute resolution services and BBB Reliability ReportsTM, contact Kathy Graham at (843) 488-0238.