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Consumer Fraud Practice Group
In virtually every type of purchase or financial transaction you make, there is always the chance that you may be doing business with someone who will not provide the product or service you expect for your money. From the purchase of a home to buying a car – even something as routine as filing out a credit card application – can be fraught with danger. And with the explosion of the Internet and telemarketing industry, there are even more opportunities for a consumer to be a victim of fraud. If you feel you be a victim of consumer fraud, you need to contact an attorney right away to preserve your legal rights and stop any additional damages. You do not need to feel embarrassed or think that you are alone. Sadly, as the Federal Trade Commission reported, consumer fraud is widespread.
More Than One-In-10 Americans Are Victims of Consumer Fraud
The Federal Trade Commission recently released a survey of fraud in the United States that shows that nearly 25 million adults – 11.2 percent of the adult population – were victims of fraud during the year studied.
The survey of 2,500 randomly chosen consumers shows that consumers with high levels of debt were more likely to be victims of fraud. Three of the top four categories of fraud related to credit, including credit-repair scams often targeted at those carrying high debt loads or having bad credit.
The most frequently reported type of consumer fraud was advance-fee loan scams, in which consumers pay a fee for a “guaranteed” loan or credit card. Four and a half million consumers – 2.1 percent of the U.S. adult population – paid advance fees but did not receive the promised loan or card. In fact, some consumers reported that more than once during the last year they paid fees to get loans or credit cards they did not get.
Buyers’ club memberships or bills for unordered publications was the second most commonly reported fraud category in the survey. Some four million consumers – 1.9 percent of the U.S. adult population – were unwittingly billed for memberships they did not authorize or publications they did not order.
Credit card insurance scams and credit repair were the third and fourth most common frauds identified in the survey. While federal law limits consumers’ credit card fraud liability to $50, fraudsters sell credit card insurance by falsely claiming that cardholders face significant financial risk if their credit cards are misused. An estimated 3.3 million consumers bought unnecessary insurance against the unauthorized use of their credit cards.
Some fraudsters convince consumers that they can help them remove truthful, negative information from their credit report, or establish a new credit record. They can’t, and credit repair schemes are illegal, but two million consumers paid for “credit repair” services the year prior to the survey.
The top 10 frauds listed in the report include:
- Advance-fee loan scams – 4.55 million victims;
- Buyers clubs – 4.05 million victims;
- Credit card insurance – 3.35 million victims;
- Credit repair – 2 million victims;
- Prize promotions – 1.8 million victims;
- Internet services – 1.75 million victims;
- Pyramid schemes – 1.55 million victims;
- Information services – .8 million victims;
- Government job offers – .65 million victims; and
- Business opportunities – .45 million victims.
In addition to the fraud categories, the survey found that an estimated 13.9 million consumers were victims of telephone “slamming” – unauthorized and illegal changes in long distance telephone service.
What is Consumer Fraud?
Consumer fraud includes any unfair or deceptive methods used by a business to illegally lure consumers into buying something. Consumer fraud exists when a consumer has purchased merchandise, services, or property that is not operating how it was advertised. There are federal and state laws to protect consumers from false advertisements, unfair methods of competition, and unfair or deceptive acts or practices.
What types of consumer fraud cases does the Kiernan Law Firm handle?
The Kiernan Law Firm handles any type of consumer fraud. If you feel you’ve been the victim of a consumer fraud, please fill out our Free Case Evaluator to see if we can help. We pay particularly close attention to a couple of areas of consumer fraud. These areas are:
- Automobile Fraud and Lemon Law Litigation
- Stockbroker and Investor Fraud
How will the Kiernan Law Firm work for you?
The Kiernan Law Firm will evaluate your situation and determine whether you have a claim for consumer fraud. If you would like more information about the Kiernan Law Firm, we are happy to provide it. There is never a charge for an initial consultation and you will pay no legal fees unless you receive a settlement or judgment.
Contact us today at 1-314-775-2525 or toll free at 1-866-KIERNAN (1-866-543-7626) for a free, no obligation consultation. Telephone calls are accepted 7 days a week, 24 hours a day. You can also submit your situation for an online consultation using our Free Case Evaluator.
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