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Consumer Abuse in Low-income Areas

NCJ Number
74903
Date Published
1977
Length
104 pages
Annotation
Transcripts of a State public hearing on consumer abuse in low-income areas of Los Angeles are presented. Fraudulent practices, such as inadequate automobile repairs, are mentioned, and strategies undertaken to combat comsumer abuse are put forth.
Abstract
The Director Of Consumer Affairs of Los Angeles County testified that most consumer complaints from low-income areas relate to automobile purchases and repairs. Misrepresentation, hidden costs, failure to repair vehicles even though the customer was charged, and poor autombile performance were just some of the consumer complaints regarding automobile sales and repairs. Not receiving goods paid for in a mail order purchase was the second most frequent consumer complaint, followed by tenant-landlord complaints. The Director of Consumer Affairs recommended that the use and effectiveness of existing consumer laws be monitored to determine if they are being applied and, if so, to what effect. The Los Angeles City Attorney testified that a major problem in low-income Spanish-speaking areas is the fraud perpetrated by so-called immigration consultants, who promise to obtain citizenship for clients at a fee of $200; nothing is done for the client after the fee is received. The licensing of such consultants was a recommendation. Consumer problems mentioned by other witnesses include the higher cost of food in low-income areas, shoddy construction in Federal housing for low-income persons, and fraudulent door-to-door sales. Various legislative and programmatic recommendations are offered for remedying the problems identified.