SEATTLE -- For the first time in years, collection agencies are drawing more consumer complaints than retailers.

The State Attorney General just released the top complaint categories for 2007.  Local consumers filed 19,686 complaints last year compared to 18,354 complaints in 2006.

When you have a question or a complaint, your call ends up at the Attorney General's Consumer Resource Center in downtown Seattle.

Consumer Protection Division Chief Doug Walsh says the staff and volunteers handle 150,000 consumer calls a year.  Many just want information, while others want to file a complaint about a company they feel has engaged in unfair or deceptive practices.

The top 10 complaint categories of complaints in 2007:

•  Communications (telephone and cell phone companies)
•  Collection agencies
•  Retail sales
•  Online shopping
•  Automobile sales
•  Contractors  
•  Landlord-tenant disputes
•  Magazine and directories
•  Credit card companies
•  Cable networks and program distribution

But the AG's office doesn't automatically investigate every company you complain about.  Walsh explains how it works:

"The business is invited to adjust or respond. We get the response back.  We'll do some back and forth and then we'll tell the consumer it's either adjusted, or here's what you need to do to move forward with your dispute in another direction."

Once the AG gets involved, Walsh says 6 out of 10 businesses make an adjustment in the consumer's favor.

"Sixty percent is pretty consistent", said Walsh.  "The rest of them, we have to refer people either to a private attorney or small claims court."

Regardless of the outcome, the attorney general's office reviews all the complaints every week to target the worst offenders.

"And we pick up our cases from that information," Walsh said. "So it's really important that consumers send us their serious concerns because it's the way we determine where the appropriate targets are."

With tens of thousands of complaints, investigators cannot go after every company. Some of the offenders are out-and-out scammers hiding behind bogus names. So with a limited number of investigators, the state goes after the cases with the best chance of stopping deceptive activity, shutting down fraudulent businesses and, if possible, getting money back for consumers.    Last year they recovered $13 million.

Keep in mind, just because a company gets a complaint does not mean the company is wrong.  

Sometimes the problem is the consumer's unreasonable expectation, or failure to fully read and understand a contract before they sign.  Walsh says in many cases you can settle the dispute on your own by following a few simple guidelines:

• Approach the business directly as soon as a problem arises.
• Be clear, calm and reasonable
• Go higher up if  necessary,  ask to speak to a manager, a supervisor -- even the head of the company if you must.
• If you still can't get anywhere, file a complaint with the Attorney General's office
• Be sure to include copies of all receipts and documents

While state investigators are successful in recovering millions of dollars for consumers every year, once you've given your money to an actual scammer, you'll almost never see your money again.  That's why I'm always urging you to investigate first.

Whether it's buying a car, consolidating your debt or finding college placement assistance for your college-age child, never sign a contract or give money without spending time doing your homework. 

The Washington State Attorney General , the Federal Trade Commission and dozens of reputable community organizations have all sorts of good information to help you solve problems before they happen.

Here are just a few examples:

http://www.atg.wa.gov/LandlordTenant/default.aspx

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm

http://www.ftc.gov/bcp/conline/pubs/alerts/ouchalrt.shtm

http://www.dfi.wa.gov/consumers/alerts/wafinancial.htm

http://www.scambusters.org/cell-phone-scams.html