Knowledgeable Consumer Protection Lawyers Represent Victims of Consumer Fraud in Pennington & Trenton, NJ
In order to combat the increasing use of deceptive products and services by businesses, New Jersey, Pennsylvania, and the federal government have all enacted tough consumer fraud protection legislation that allows victims of consumer fraud to seek compensation for their losses. Moreover, the laws provide for damages in excess of the victim’s loss in order to punish the perpetrators of fraud. However, the statutory protections and remedies provided by consumer fraud laws can be difficult to understand and even more difficult to utilize. You need an experienced commercial law attorney with a deep understanding of the nuances of consumer fraud protections at both the state and federal levels.
The experienced commercial law lawyers at Cohen & Riechelson have successfully represented numerous businesses and individuals in consumer fraud cases. We have a history of aggressively protecting the interests of our clients in consumer fraud matters throughout New Jersey and Pennsylvania. Contact us today at (609) 528-2596 for a free consultation.
What Are the Main Types of Consumer Fraud?
Consumers are often targeted for fraud and scams by unscrupulous businesses, both large and small. Scammers in New Jersey and Pennsylvania have gotten particularly bold in recent years, engaging in a variety of scams and targeting a wide range of victims. News reports about scams and consumer fraud seem to appear daily. Technology development and use of websites for everything from shopping to loan applications leave consumers exposed to fraudulent practices in many areas.
New Jersey residents lose millions of dollars of their hard-earned money or sign up for scam credit deals that can devastate their credit scores and affect their assets. Fraud and schemes know no age, although frequently the elderly are often targeted. Fortunately, New Jersey has laws that protect consumers. Scheduling a consultation with our experienced legal team is an excellent way to find out how we can help you if you have been the victim of fraud. A few examples of consumer fraud include:
Real Estate Fraud:
Unfortunately, we see or have experienced many examples of fraud daily. Deceptive seller practices can make real estate deals problematic. An inspector who is a close friend of the seller may not be entirely forthcoming about needed repairs, or the contract may not be right at the closing. Some sellers don’t provide details about the strictness of the neighborhood HOA. Buying or selling a home requires careful research and legal advice. Sellers can misrepresent the condition, sizing, zoning restrictions, or history of repairs and renovations.
They can conceal defects such as structural problems, insect or snake infestations, and toxic mold. Transferring ownership without the consent of the owner is title fraud. Prospective buyers can provide false information such as inflated income or other fake financial documents. Lease agreements can hide or exclude details, such as renewal possibilities, required deposits, rent increases during the lease, and additional fees.
Investment Scams
Investment fraud can take many forms. The most common is a Ponzi scheme, in which investors are promised unusually high investment returns. Payments to the first investors come from the invested money of new investors, but eventually, the money runs out, and everyone is left holding the bag.
Multi-Level Marketing (MLM) Schemes:
MLMs or Multi-level-marketing companies seduce recruits with extravagant promises of incredible bonuses, cars, vacations, and more. Participants are encouraged to recruit others and purchase products using an automated system that will make monthly purchases to keep their membership in the company active. What most people do not know about these pyramid schemes is that less than 1% of members earn more than a few thousand dollars per month, if that.
Cryptocurrency Scams
Cryptocurrency is another area rife with fraud. So-called “miners” claim they can find cryptocurrency for you, and all you have to do is pay a fee for their equipment and setup and then pay a percentage of the earnings they get for you. Because this currency is unregulated and completely intangible, there are many opportunities for fraud.
Online Dating Fraud
Millions of people use online dating apps or social networking sites in search of a romantic encounter. Sometimes, the subject of their affection may trick them into sending money after building a relationship full of promises and love bombing. They never see the person in a video chat or in person because they supposedly live far away or are in the military. Sometimes, they say the money is needed for surgery or something urgent, such as the passing of a relative. They string the person along until the money runs out or the victim catches on.
Fake Job Listings Scams
Finding a job online is also popular. Networking is much easier with platforms designed to share opportunities and resumes, but there are red flags to look for. It is probably a scam if you are required to pay an application fee or background check fee. Also, anyone asking for your bank account details to supposedly set up a direct deposit system for your pay is looking to take money out of your account, not put it in. Additionally, any offers to pay outrageous amounts for little effort clearly indicate a scam. Vetting a potential employer by looking for reviews or other information online is a good idea.
Predatory Towing Scams
In busier areas, predator towing is a problem. Tow service providers sometimes use illegal or unethical methods to line their pockets. Some towing companies will troll the streets looking for illegally parked vehicles. Usually, businesses hire a towing company to remove vehicles illegally parked in their spaces, and they have a contract with them. Trolling consists of driving up and down streets and in parking lots to find vehicles to tow without proper signage or affiliation to the business. Some towing companies hire spotters who will notify them of potential towing opportunities. Typically, the towing companies charge hefty fees for the tow and storage of the vehicle in their lot. Regulations limit how much a towing company can charge, so don’t fall for this fraud.
Car Dealership Fraud
Buying a car can be wrought with fraud. Car dealerships may misrepresent the price or features of a car to have you paying through the nose for “extras” you weren’t aware of. Items such as extended warranties or nitrogen-filled tires are ways to get more money. Request an itemized list for the costs when comparing the price you were originally given and the price you are expected to pay to avoid fraud.
Used Car Scams
Used cars (“pre-owned”) present other opportunities for fraud. Rolled-back odometers, cars that have been flooded or have been in an accident, stolen vehicles, or vehicles with multiple problems (lemons) can have you paying much more for something you do not want. There are online services that can give you more information about the car’s history, and it is better to hire a mechanic to check everything out. If the seller balks at this, it is better to walk away.
Halal Food Scams
Recently, Halal scams have been in the news. Halal-certified foods are those prepared to adhere to the laws of Islam and are unadulterated. It is more than how an animal is processed. Genetically modified food, thickeners, gelatine, collagen, enzymes, flavor enhancers, certain preservatives, and stabilizers cannot be used in halal foods. The Islamic Food and Nutrition Council of America (IFANCA), the Islamic Society of North America (ISNA), and the Islamic Services of America (ISA) recognize approximately 600 companies that produce food according to halal standards, and all of their products are marked with a special seal. Unfortunately, unscrupulous vendors and restaurants will claim to serve halal food but mix ingredients (such as ground beef with ground lamb) to lower food costs.
Meat Mislabeling
Another common food scam concerns mislabeled meats. Claiming a steak is grass-fed beef or Wagyu when it is neither is a misrepresentation. Meat prices are already high and some restaurants see this as a way to cut their overhead.
Credit Card and Loan Scams
Credit card and loan scams are common as well. Bank fraud is serious business. It can ruin your credit and cost you thousands in lost payments. Many credit card companies offer a 0% interest rate if you move the balance of your other cards to theirs, but the zero interest rate only applies for some time (12-24 months) and when the interest is added, it could be higher than that of your original debt. Student loan issues are a problem as well. Fraudulent companies will call the debtor, offering to refinance their loan at a much lower rate, reducing their payments by as much as half. As payments are sent in, the fakers pocket the payments while the actual loan defaults.
Charity Scams
Charities can be another money grab. It is essential to research any charity thoroughly before offering large or monthly donations. Legitimate charities will not pressure you or ask that you pay in cryptocurrency or gift cards. Not all charity payments are tax deductible, so careful vetting is best.
Moving Company Scams
You have just bought a new house and hired movers to carry your entire life from one place to the other. You wait and wait, and then get a call from the moving company saying their truck has been stolen and the thieves want a lot of money to get your belongings back. This kind of fraud occurs frequently, especially with companies that offer bargain-basement prices and charge a deposit to get you coming and going. Some companies will flat out hold your belongings hostage until you pay them an inflated fee. The Better Business Bureau can provide information regarding companies that have cheated customers.
Health Club Membership Fraud
We all want to be healthy and fit, but health club memberships can be a disaster for those gym enthusiasts who sign first and read later. Many gyms have a no-cancelation policy and will charge you for the full year. Asking about their policy and getting it in writing is important. Some gyms offer a free trial, and when the trial is over, they begin to charge you a membership fee for your credit or debit card without notifying you.
Lastly, a few other notable examples of fraudulent practices that harm consumers include landlord-tenant scams, Ponzi schemes, home repair fraud, bad faith insurance, and false advertising. Whether you’ve been defrauded by a business or are defending yourself against claims of consumer fraud, it is imperative that you seek the advice of an experienced consumer fraud protection attorney who knows how to utilize existing statutory protections.
What Are the Statutory Protections Against Consumer Fraud in New Jersey and Pennsylvania?
Several state and federal statutory protections are available to consumers in New Jersey who believe they have been victims of fraud. The laws that protect consumers against fraud include the New Jersey Consumer Fraud Act, the Pennsylvania Unfair Trade Practices and Consumer Protection Law, and the federal Consumer Protection Act. All of these laws offer potentially powerful protections against consumer fraud – but they are often only as powerful as the attorney who is seeking to utilize them.
The New Jersey Consumer Fraud Act (NJCSFA), created in 1960 and amended in 1971, is one of the broadest consumer protection laws in the country. It applies to businesses large and small, including self-employed individuals. This law also covers businesses that have experienced fraud. Under the act, there are three bases for fault.
Three Categories of Fault in New Jersey Consumer Fraud Claims
The first is an affirmative act to deceive, defraud, provide false pretenses or promises, misrepresent, or use other deceptive means. The plaintiff is not required to prove that the defendant intended to deceive them. When acting in the affirmative, the defendant’s act must have had the potential to defraud or deceive, and their intent is irrelevant. The second basis is that the plaintiff alleges the defendant knowingly withheld information purposefully to conceal or suppress facts that could potentially affect the plaintiff’s decision. The deception does not have to be successful for the claim, only that the defendant intended to mislead the consumer. Once either or both actions have been proven, the plaintiff must demonstrate a direct correlation between the action committed and the damages requested.
Essential Components of a Valid Consumer Fraud Claim
The key elements of a Consumer Fraud Act claim are that the offending party’s actions fit the requirements of acting deceptively or purposefully omitting vital information to the buyer, that the victim experienced some manner of loss, and that the offending party was responsible for that loss.
If you have been the victim of fraud, you should act quickly. Fraudulent businesses rarely stay in business very long. They will change their name, website, phone number, etc. to go undetected. You must immediately contact the authorities and a professional consumer fraud lawyer to begin the process and recover triple the damages you lost.
How to Spot Common Tactics Used in Consumer Fraud Cases in Princeton NJ
As long as you have money, frauds, and schemes will be waiting to take it. But you can protect yourself by looking for red flags such as unsolicited calls, callers demanding money for immediate payment to a government entity and threatening you with incarceration, anyone claiming to be a friend or relative in need of financial help, and anything that sounds too good to be true or does not make sense. Callers who will only accept payment using gift cards or cryptocurrency are a red flag, and anyone who wants to clean your computer because it has a virus is looking to steal your confidential information such as banking and bill-paying data.
Although it seems like there are frauds and bad deals of every shape, size, and degree, you can take some practical steps to protect yourself. The most important thing is to do your homework. Read every line of fine print before signing a contract. A reputable business will be happy to take the time to explain your concerns in clear language. Research the business before giving them your money. The Better Business Bureau is a good start. Other government agencies can provide specific tips on what to look for.
Asking friends or relatives for recommendations is a good choice. When it comes to scams where a relative says they are in trouble and need money, ask them for the safe word you and your family have previously chosen or a question only that person would know the answer to. The most important step you can take is to trust your gut. If something gives you an uneasy feeling, there is a reason. However, if you have followed this advice and still fall prey to fraud, contact our legal team immediately for the next actions to take.
CR Stands Up for Victims of Fraud; Call to Schedule a Free Consultation with an Experienced NJ & PA Consumer Fraud Protection Attorney
The knowledgeable consumer fraud protection attorneys at Cohen & Riechelson provide exceptional representation to victims of consumer fraud. Our consumer protection lawyers will investigate and find the party that wronged you, building your case against the fraudulent activity that swindled you out of your hard-earned cash. We will expose the offending party’s dishonest tactics and deception and hold them accountable.
Call us today at (609) 528-2596, or fill out our online contact form to schedule a free consultation. One of our experienced consumer fraud protection attorneys will be happy to look over the details of your case, help you understand your legal rights and options, and determine if you have a viable claim under the Consumer Fraud Act.
