Protections against Consumer Fraud
Not all businesses play by the rules. Some companies knowingly violate the law. For example, a company may sell a defective or poorly manufactured product that leads to consumer injury. Some people engage in deceptive advertising or fail to reveal that they're charging certain fees. In its most extreme form, consumer fraud can result in serious financial loss, bankruptcy, injury, or even death.
If you've been the victim of a faulty product, false and misleading advertising, or other types of consumer fraud, you may have legal remedies in court . State and federal consumer protection laws were created specifically to protect consumers from unscrupulous business practices.
What Is Consumer Fraud?
Fraud is intentional deception in order to gain something from the person being deceived. It may occur in a business transaction when misrepresentations or false statements of fact are made. The person who made those false statements knew, or should have known , that they were false. The other party in the transaction relies on the false statements to their detriment. Examples of consumer fraud include the following:
- Automobile fraud
- Hidden or undisclosed fees
- Investment scams
- Insurance fraud
- Marketing consumer products without sufficient safety testing
- Placing products on the market without sufficient safety warnings
- Defective products
- Real estate scams
- Fake charities
- Breach of contract
- Construction disputes
- Truth-In-Lending Act violations
The laws, the rules that our society live by are followed by most people and most businesses. However all consumers, in Iowa, Illinois and across the country are legally entitled to have truthful information presented to them about products and services they wish to purchase. Furthermore, when a bank, credit card company, or other type of company enters into business with you, they are obligated to treat you fairly. If a company acts in their own best interest instead of yours or they act negligently, the law is on your side.