by Richard Prior
Staff Writer
For all the awareness and law enforcement programs, there is only one person who can help keep the consumer from getting fleeced by con artists.
The consumer.
“We believe very strongly in consumer education,” said James “J.R.” Kelly, director of the State Division of Consumer Services. “We do a lot of consumer education through our hotline, and we get out as much as possible and do what I’m doing here, talking to a lot of different groups.”
There were 55 people in attendance for Kelly’s talk this week to the Northeast Florida Consumer Council about the DCS, “the complaint clearing house for the state.”
The agency averages about 1,000 calls a day, he said. There were 764 calls on Monday and only four hang-ups.
There are three reasons why people would call the hotline (800-HELP-FLA), said Kelly: they have no idea which agency they want and know DCA will point them in the right direction, to check out a business or to file a complaint against a regulated business.
Most businesses are not regulated, and those are the ones that get the most complaints.
In those cases, Kelly said, “We’ll try to mediate. And about 60 percent of them we’re able to resolve satisfactorily.”
Some of DCA’s biggest programs are devoted to regulating and investigating motor vehicle repair businesses.
“Overall, I think that is a very good industry,” said Kelly. “We feel that, overwhelmingly, that industry has folks who want to do a good job for the consumer. And we get a lot of cooperation from the industry.
“Is there fraud out there? Absolutely. Is there ignorance out there? Yes, there is. And it’ll always be on the radar screen simply because it’s such a large transactional base across the state.”
Other regulated industries and enterprises include business opportunities (such as vending machines and pay telephones), charities, dance studios (some of which concocted scams against seniors in the mid-1990s), game promotions, health clubs, the Lemon Law, pawn shops, the Florida Do Not Call list and telemarketing.
One of DCA’s newest programs, which started up two years ago, involves intrastate moving companies.
“They must be registered with us, and they must give you a written estimate of your cost,” said Kelly. “As long as you tender payment in that amount, they must deliver your goods in your house — not out in the yard.”
The number of complaints about moving companies has dropped since the program began, he said.
“I think one reason is because our office doesn’t try to do everything alone,” said Kelly. “We work with the Better Business Bureau, groups like Jacksonville Consumer Affairs, sharing information. Collaboratively, we get the word out.
“And they know somebody’s watching them. By and large, most of the movers know they cannot defraud consumers like they could a little over two years ago.”
Charities make up one of the fastest-growing areas that DCA oversees, “especially since 9/11,” said Kelly. “So many charities forming for the almighty donated dollar.”
More than 10,000 charities are registered with the DCA, which compiles essential information in a fat book that’s available to the public.
“When a charity registers with us, they must give us copies of their federal tax returns,” Kelly said. “We publish that information.
“Before you donate anther dollar to a charity, call us. We’ll tell you how the charity spends its money.”
Information about charities is updated monthly on the DCA website. It’s updated immediately for consumers who call the office.
Leafing through the book, Kelly stopped on a page that included Paralyzed Veterans of America, out of Washington, D.C.
The 2003 numbers from the IRS show the group took in total revenue of $80 million and spent $82.5 million (“That’s not unusual because they sometimes have surpluses.”)
The PVA spent $44.3 million for program services, the reason why the charity was formed. Administrative costs came to $7.2 million. And the fund-raising cost — the money paid to professional solicitors — totaled $31 million.
“Is that good?” Kelly asked. “I don’t know. We don’t endorse or criticize any charity. That’s not our job.
“The U.S. Supreme Court has ruled that, as long as you don’t misrepresent something, if you spend one dime out of all the money you raise for that charitable purpose, you are a legitimate charity. Government may not regulate how a charity spends its money.
“We give you the information. You decide if it’s good or bad.”
The Northeast Florida Consumer Council meets the third Tuesday of every month. For more information, call 630-2075. Additional information about the Division of Consumer Services may be found on its website www.800helpfla.com.