realestate

Colorado Consumer Complaints: Real Estate Issues Rise to Third Spot

Imposter scams contributed to increase, says Colorado AG Phil Weiser's annual update.

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olorado Attorney General Phil Weiser's office saw a 20% surge in consumer complaints and inquiries last year, with housing-related and imposter scams driving the increase. The office received 24,473 complaints, surpassing the previous record of 20,390 set in 2022. Retail sales complaints remained steady at around 1,670, while professional services complaints rose by nearly 30% to become the second-largest category.

    Real estate sales and services complaints skyrocketed from 520 to 1,272, a 145% increase, making it the third most common complaint. Consumer advocates have highlighted questionable practices such as algorithms that reduce rent competition and undisclosed charges or junk fees that target renters after the fact.

    Weiser has taken action against real estate companies like RealPage and GreyStar for allegedly harming consumers through their practices. The increase in complaints may reflect greater awareness of these issues, as well as firms pushing the limits of acceptable behavior.

    Imposter scams and business impersonations also saw a significant spike, with complaints rising from 808 to 1,205, or more than 50%. Weiser notes that social media accounts combined with AI technology allow scammers to create highly customized and believable messages using voice recordings or photos.

    To avoid falling victim to these scams, Weiser advises consumers to assume that any contact is not real and to verify information directly with the supposed source. He also recommends storing sensitive financial documents in the cloud and freezing credit reports with all three national bureaus to block attempts by scammers to set up new credit lines or loans.

    Under Colorado's Privacy Act, consumers have the right to install a browser tool that blocks the sale of personal data by websites visited. Weiser's office has secured $500 million in refunds, restitution, credits, and debt relief for Colorado consumers since he took office.

Colorado residents file complaints about real estate issues, rising to third spot nationwide.