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Work With Skilled Consumer Fraud Lawyers
A person can be harmed by consumer fraud in many different ways. Consumer fraud lawsuits are typically filed over alleged unfair and deceptive tactics used for financial gain. Consumer fraud occurs at the expense of consumers and includes bait-and-switch schemes, false disclosure of corrupt bookkeeping, charging for services that were not provided, false or misleading advertising, and unfair pricing. If you have been a victim of practices like these, you may be able to get compensation through a consumer fraud lawsuit. Call 1-800-YOUR-LAWYER today to speak with an experienced consumer fraud attorney at Parker Waichman LLP about your legal rights.
What Is Consumer Fraud?
In the context of a business transaction, consumer fraud occurs when false statements of fact are made, the person or entity making these statements was aware that they were false at the time, and the other party involved in the transaction relied on the deceitful statements and was harmed as a result.
If you buy something that doesn’t work as advertised or you are intentionally overcharged for an item, this may constitute consumer fraud. Schemes like those perpetrated on the Internet that ask you to pay a fee up front in exchange for sweepstakes winnings that never arrive are also consumer fraud, as is identity theft.
Consumer fraud not only harms individuals, but it also harms the marketplace by allowing fraudulent businesses to gain an unfair advantage over ethical competitors. Thankfully, victims of consumer fraud do have recourse in the form of skilled fraud lawyers. Through a consumer fraud lawsuit, companies that perpetrate fraud can be brought to justice and victims can get compensation.
Who Is at Risk of Consumer Fraud?
Scammers often target specific demographics, including senior citizens, individuals carrying large amounts of debt, and novice entrepreneurs; however, anyone may become the victim of a scam. While telemarketing and mail have often been used in consumer fraud, the Internet now enables an array of fraudulent business practices and schemes to scam consumers.
It’s not uncommon for banks, insurance companies, other financial institutions, drug makers, medical device makers, consumer product manufacturers, and other companies to violate the law. These laws may concern lending, sales, manufacturing or other business practices. Companies may sell a poorly manufactured or defective product that leads to consumer injuries or death, or businesses may engage in deceptive advertising or fail to reveal certain fees, to name just a few examples.
Every state in the country has one or more laws that prohibit businesses from engaging in unfair or deceptive acts and practices, and an experienced consumer fraud lawyer can help you understand your rights under these laws. If you have been the victim of bank fraud, a faulty product or false advertising, you may be able to seek compensation in court by filing a consumer fraud claim. Parker Waichman has decades of experience successfully helping consumers who have been the victims of consumer fraud, and when you call us for a free case evaluation, we can help you determine whether you should pursue a legal claim with the aid of a consumer fraud attorney.
Common Types of Consumer Fraud
According to the Federal Trade Commission (FTC), an estimated 25 million people in America are victims of some form of consumer fraud annually. The most common types of consumer fraud include:
- Advanced-Fee Loans: This is the most common type of consumer fraud and occurs when a consumer is asked to pay money in advance to secure a loan or a credit card.
- Automobile Fraud: When an automobile dealership misrepresents or fails to reveal the true condition of a used vehicle, falsifies mileage by tampering with the automobile’s odometer or falsely promises financing options while also declining down payment and trade-in options, this constitutes fraud.
- Breach of Contract: These cases often involve the purchase of a home or vehicle or a construction contract.
- Buyers’ Club Membership Fraud: This occurs when a consumer has not agreed to join but is asked to pay for a buyers’ club membership or a buyers’ publication.
- Construction Disputes
- Credit Card Insurance Fraud: When a company asks for money in exchange for preventing the misuse of a credit card, this is fraud. Consumers are already protected from this potential misuse by federal laws.
- Credit Repair Fraud: It is important that consumers be critical and diligent about where and how they address issues with their credit report. Thoroughly investigate any credit repair websites and companies before giving out any personal information to minimize the risk of credit repair fraud.
- Deceptive and Unfair Trade Practices Act Violations
- Defective Product Fraud: When consumers buy products that do not work or that do not perform as advertised, this can constitute fraud.
- Illegal Bank Fees
- Insurance Fraud: Insurance companies are expected to provide for their policyholders who have become injured, suffered a property loss or experienced another injury or disaster, but they may indicate that the claims are unwarranted or not covered and refuse to pay the policyholders.
- Investor Fraud: This may include misrepresentations and omissions, unauthorized trading or recommending unsuitable investments.
- Multi-Level Marketing: This is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits’ sales. Recruits are known as a distributor’s “downline.”
- Prize Promotion Fraud: When consumers are scammed into paying money to become eligible for a prize, they may be victims of fraud.
- Pyramid Schemes: When consumers are asked to pay a fee in advance and must then recruit others to pay a similar fee with no products or services involved, that’s a pyramid scheme, a form of consumer fraud.
- Truth in Lending Act Violations
- Unauthorized Contract Auto Renewals and Cancellation Fees
- Unauthorized Purchases on Credit and Debit Cards
- Unfair Repair Practices
What Is a Consumer Fraud Lawyer?
A consumer fraud attorney fights for the victims of unfair and deceptive business practices. Companies that use illegal practices to profit at the expense of the consumer must be held accountable and removed from competition with businesses that use fair and legal methods. Victims deserve compensation for any losses at the hands of these businesses, and it’s the job of a consumer fraud lawyer to secure justice for these victims.
Can You Sue Someone for Scamming?
All victims of fraud have the right to press charges, including victims of scams. Some of the most common types of scams include robocalls, lottery and sweepstakes scams, “free trial” offers, overpayment scams, phishing scams, and job scams. All of these practices are illegal, and if you’ve been a victim of fraud, a consumer fraud lawyer can help you stand up for your legal rights.
Why File a Consumer Fraud Lawsuit?
Many individuals who have been the victim of a consumer fraud scheme are ashamed to admit having been taken advantage of or having lost money to a scam. But when victims of consumer fraud don’t speak out about being scammed, their losses become permanent, and the company or individual behind the scam can continue defrauding other consumers.
Talking to a consumer fraud attorney at Parker Waichman can help you understand your options for recovering your losses and stopping the business that allegedly committed the fraud. Our team of fraud lawyers will work with you every step of the way to protect your rights and prevent future abuses by fraudulent entities.
What Should You Do if You Are a Victim of Fraud?
If you’re a victim of fraud, contact Parker Waichman for a free consultation. You can also contact the consumer protection office in your local area. State and federal consumer protection agencies also may be able to help you. If you are a victim of fraud, you should take action, file a complaint or seek help, whether that’s from a lawyer or a government agency. A consumer fraud attorney can assist you with the steps you need to take to seek justice.
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