Consumer Fraud Types And Class Action Claims

Types of Consumer Fraud

Consumer fraud can be accomplished in a number of ways. Auto fraud, insurance fraud, false and misleading advertising, undue debt collection, deceiving internet practices, and defective products sales are just a few examples of various types of consumer fraud that exist.

It is a broad term accustomed to describe any purposely deceptive act or practice that harms consumers. Sufferers of consumer fraud may chase both criminal and civil penalties against the person responsible for. A complaint may be made at the local, state or federal level depends on the severity of the offense.

There is no industry is protected from such fraud and in many cases, businesses are began with the specific intention to defraud unsuspecting consumers out of their funds. However, many legal businesses are accused of consumer protection contravention every day. These complaints are often made with respect to the following sectors or businesses:

  • Credit Counseling – The majority of credit counseling complaints affect the credit counseling company’s exploitation of consumer’s accounts. According to the Federal Trade Commission, consumers also often include accusation that providers deceive consumers about what they do? And how much they charge for their services?
  • Banking -Consumer who take services from bank complaints usually involve obligation of NSF (Non Sufficient funds) and other fees. Bank consumer protests also perhaps made concerning how banks handle debits and credits to checking accounts and in relation to misleading marketing practices.
  • Insurance -Consumer complaints in insurance sector usually involve illegitimate practices such as red-lining, use of deceiving marketing, and negations by insurance companies at the time of paying claims. Insurance customer complaints may also be made in consequence of incomprehensible increases in premiums and unfair policy cancellations.
  • Internet – Internet scam or any crimes such as identity theft is rising up to hundreds of thousands of Internet consumer protection protest. Such cyber-scams are so common that the Federal Trade Commission and many state governments have produced task forces whose only purpose is to inspect these crimes and impose Internet consumer protection laws.

Legal assistance:

The best way to defend your interests is to seek advice of a qualified consumer fraud lawyer. If you think that you have been deceived, it is likely that others have been correspondingly aggrieved. By discussing with an attorney, you can have answers to your questions and make your mind up the best way to exercise your legal rights.


Consumer Fraud Class Action Claims


Class action lawsuits are a unique type of lawsuit. In a class action suit, multiple litigants harmed in similar ways by the same defendant join together in a single lawsuit. This is an especially useful tool when a large number of people have suffered relatively minor damages as a result of the same act.

Why class action suits?

Large corporations in particular are often able to deceptively ‘nickel and dime’ their customers, so that no individual consumer has much incentive to seek recourse. If each individual party is only overcharged a small amount, it is often not worthwhile for any individual to seek compensation on his or her own. In such cases, a consumer attorney will often request a case be certified as a class action case, so that all affected consumers can join the suit without having to take on the responsibility for the suit themselves.

Types of consumer fraud class action suits

In the case of consumer fraud cases, this might include cases involving:

– Manufacturing defects

– Design defects

– Price-fixing

– Fraudulent overcharging

– False advertising

– Warranty frauds

– Illegally imposed fees

– Discriminatory business practices

– Insurance fraud

If you or a loved one suffered damages as the result of an improper business practice, others may have been similarly damaged by the same practice. If a class action lawsuit has been certified, then you may be able to establish yourself as a member of the class. If no class action lawsuit has been certified, contact an experienced class action attorney as soon as possible.

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