Consumer Rights
There are numerous statutory and common law causes of action available to consumers for the harm caused by unfair, deceptive, or abusive business practices. Some statutes even provide for set monetary awards on a per-violation basis (for example, a minimum of $500 for every illegal robocall to a consumer's cell phone), or the payment of a successful consumer's court costs and attorney's fees.
Consumer claims are also frequently appropriate for class action treatment, as well. Through a class action, one or more individuals are able to fight for the interests of themselves and the other people who were similarly harmed. Successful class representatives are also generally able to request an additional award from the court for their work in protecting the rights of the other class members.
Some common consumer problems include:
Consumer claims are also frequently appropriate for class action treatment, as well. Through a class action, one or more individuals are able to fight for the interests of themselves and the other people who were similarly harmed. Successful class representatives are also generally able to request an additional award from the court for their work in protecting the rights of the other class members.
Some common consumer problems include:
+Robocalls and Other Telemarketing Violations
Unsolicited telephone calls are an invasion of privacy, and unfortunately, many telemarketers and debt collectors continue calling even after being told to stop. The Telephone Consumer Protection Act ("TCPA"), 47 U.S.C. § 227, provides for injunctive relief and statutory damages of up to $500 per violation, which can be increased to up to $1,500 per violation if the defendant willfully or knowingly violated the statute. Violations of the TCPA generally include:
- Making an autodialed call to a cell phone, or a call to a cell phone using an artificial or prerecorded voice;
- Making an artificial or prerecorded voice calls to a residential phone line;
- Sending an unsolicited fax advertisement without proper notice or prior express invitation or permission;
- Initiating telephone solicitations to a phone number on the National Do Not Call List (https://donotcall.gov); and
- Failing to implement procedures for maintaining a list of persons who request not to receive telemarketing calls made by or on behalf of the particular company.
+Unauthorized Phone Charges
"Cramming" refers to the practice of placing unauthorized, misleading, or deceptive charges on a consumer's telephone bill. These charges are largely the result of how telephone services are billed, especially the fact that telephone carriers generally do not require their customers' consent before billing them for third-party services they may or may not have authorized.
For example, a mobile content provider might tell the consumer's cell phone carrier that the consumer signed up for a monthly subscription for ringtones, weather notices, daily horoscopes, or some other "service" the consumer never actually ordered. The carrier will then add the supposed subscription charges to the consumer's next phone bill, based on the assumption that the consumer actually signed up for the service. Unfortunately, because the amount taken each month is often relatively small, consumers frequently incur unauthorized charges for several months before noticing the increase in their phone bill.
Both the FTC and FCC offer additional information on cramming and unauthorized phone charges.
+Unfair, Deceptive, or Abusive Debt Collection Practices
The Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. §§ 1692 et seq., protects consumers from unfair, deceptive, or abusive debt collector conduct, and affords successful consumers up to $1,000 in statutory damages, as well as payment of court costs and attorney's fees. Violations of the FDCPA include, among other things:
- Contacting the consumer after being told in writing to stop or that the consumer refuses to pay the debt;
- Calling the consumer before 8:00 a.m. or after 9:00 p.m., or at any other inconvenient time or place;
- Informing a third party about a consumer's debt, or improperly contacting a third party in an attempt to obtain the consumer's contact information;
- Using abusive language or making threats or false representations;
- Demanding that a consumer pay a debt not actually owed, or more than actually owed;
- Failing to disclose that it is attempting to collect a debt and that any information provided will be used for that purpose;
- Failing to provide written verification of the debt after receiving notice that the consumer disputes it; and
- Other abusive, deceptive, or unfair conduct.
Beyond the use of third-party collection agencies, other collection methods may be used by creditors, as well, such as wage assignment. Violations of the Illinois Wage Assignment Act, 740 ILCS 170/1 et seq., entitle the employee and employer to statutory damages of $500 and actual damages, including reasonable attorney's fees.
+Debt Collection Lawsuits
Collection suits are frequently filed by third-party debt buyers who lack adequate paperwork and other evidence that the consumer actually owes the alleged debt. Unfortunately, many consumers are unaware of defenses that may be available to them, and these cases frequently result in a default judgment or forced settlement with pro se, unrepresented consumer, without the debt buyer ever having to actually prove its case.
+Credit Reporting Problems
The Fair Credit Reporting Act ("FCRA"), 15 U.S.C. §§ 1681 et seq., governs the reporting and furnishing of consumer information to consumer reporting agencies. The FCRA also outlines the permissible purposes for which consumer reports can be used, and entitles consumers to obtain and dispute information contained in their reports. The FCRA entitles consumers to actual damages, costs, and attorney's fees for negligent noncompliance, and the greater of actual damages or up to $1,000 in statutory damages, costs, and attorney's fees for willful noncompliance with the statute.
+Credit Repair
The Credit Repair Organizations Act ("CROA"), 15 U.S.C. §§ 1679 et seq., ensures that consumers who hire a credit repair company are (1) adequately informed about its services, and (2) protected from unfair or deceptive advertising or other practices by that company.
A credit repair organization is prohibited from making any untrue or misleading representations regarding its services, committing a fraud or deception on any person in connection with the offer or sale of its services, and charging for services not yet performed. Certain written disclosures are also required to be provided to the consumer, among other requirements.
Apart from voiding any contract not complying with CROA's provisions, the statute also entitles a consumer harmed by a credit repair organization to (1) the greater or any actual damages incurred or amounts paid to the credit repair organization, (2) punitive damages at the court's discretion, and (3) costs of the action and payment of the consumer's attorney's fees.
+Consumer Fraud
Apart from any common law causes of action that may be available, many states have enacted statutes to ensure that consumers have an adequate means of obtaining redress for harm caused by unlawful business practices.
For example, in Illinois, the Consumer Fraud and Deceptive Business Practices Act ("CFA"), 815 ILCS 505/1 et seq., prohibits "[u]nfair methods of competition and unfair or deceptive acts or practices," and entitles successful consumers to any actual economic damages and other relief at the court's discretion, including injunctive relief, attorney's fees, court costs, and even punitive damages, where applicable. Other laws provide additional rights and protections, as well, such with respect to auto purchases under the New Vehicle Buyer Protection Act or federal Magnuson-Moss Warranty Act, or auto repair under the Automotive Repair Act.
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