Legislature dissolved agency but call load remains

By Cy Ryan

Tuesday, Aug. 18, 2009 | 4:29 p.m.

CARSON CITY – The 2009 Legislature, at the recommendation of Gov. Jim Gibbons, closed the state Consumer Affairs Division that fielded more than 18,000 calls a year and dealt with up to 5,500 complaints from people seeking help.

The move saved the cash-starved state $2.5 million over this two-year period and threw the 16 workers in the agency out of a job July 1.

But they landed at other jobs. And calls are still rolling into the consumer agency.

Dianne Cornwell, director of the state Department of Business and Industry, said all but two of the workers were placed in jobs in other state agencies. And the state bought out the other two workers – one near retirement and the other in ailing health.

The Legislature did allocate enough to hire two persons to staff the telephone calls and direct the person complaining to other agencies or to some unit that may provide help.

Despite the demise of the office, there were still 934 calls in July. The callers were "directed to the best avenue to get assistance," says Sharon Jackson, the former commissioner of the Consumer Affairs Division and now deputy director in business and industry.

The Consumer Affairs Division investigated deceptive trade practices. And it held 30-50 administrative hearings against businesses, she said.

In the past, the majority of the complaints were about retail sales, such as furniture, jewelry or clothing, Jackson said. And second highest was auto repairs.

But now with the ailing economy, a good chunk of the complaints deal with loan modification. The Legislature decided those should be handled by the state Mortgage Division. And the State Department of Motor Vehicles was assigned the task of dealing with complaints about auto purchases and repairs, Jackson said.

Those who call in now are directed to contact a state agency that may deal with those programs or call the Better Business Bureau, or even hire an attorney if fraud is believed to be involved.

The Consumer Affairs Division was designated to pursue deceptive trade cases with administrative enforcement authority. It could try to work out a solution between business and consumer. There could be mediation or disciplinary action taken.

The state Attorney General’s Office says it doesn’t have the time and staff to handle the individual complaints, but instead focuses on cases where there is a pattern of deceptive trade or fraudulent activity. And it cannot mediate individual consumer complaints or give legal advice.

A consumer can seek legal assistance from the Nevada Lawyer Referral and Information Service at 702-382-0504.

While the office of consumer affairs was abolished, the ombudsman for consumer affairs for minorities was kept alive. Leticia Bravo runs a one-person shop in Las Vegas and said she handles several hundred telephone calls a month.

And Bravo says it is getting tougher now that she has to take a one-day furlough each month.

Cy Ryan may be reached at (775) 687 5032 or [email protected].