Different 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 harims consumers. Sufferers of consumer fraud may chase both criminal and civil penalties against the person liable 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 made concern regarding how banks handle debts 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 unavailability policy cancellations.
  • Internet – Internet scam or any crimes such as identity theft is increasing 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 which only purpose is to inspect these crimes and imposes 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.

Source by Jorjina Davis

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