Understanding Consumer Fraud

Common Consumer Fraud Terms:

Annual Percentage Rate (APR)- This term refers to the relationship of the total finance charges associated with a loan and must be disclosed to borrowers by lenders under the Truth in Lending Act.

Penalty APR- A higher interest rate that credit card companies may apply to the cardholders when they have exceeded their credit limit. A penalty APR is often significantly higher than regular APRs, on average about 52% higher.

Credit Limit- Credit limit is the maximum amount of money that a consumer can borrow from the credit card company and is based on credit history.

Grace Period- The grace period is the time when a transaction does not accumulate interest and can range from no grace period days up to as many as 30 days. The average grace period is 23 days.

Transaction Fee- There are additional fees for transactions other than an actual purchase that normally costs a percentage of the transaction.

Pre-Approved- This term is often used by credit card companies but is misleading. Pre-approved does not mean that the consumer is guaranteed to receive the card if they apply, rather it simply means they were chosen to receive the offer because they met a particular criteria.

Cash Advance- Cash advances are immediate cash loans that are given from an individual’s credit card account. They normally have a higher APR than regular purchases and grace periods may not apply.

Balance Transfer- A cardholder can request that the credit card company pay the balance that the cardholder has with another company and that balance will be added to the company with which the request was placed. People sometimes use balance transfers when applying for a new card so that they can make use of a low introductory APR.

Schumer Box, or the Disclosure Chart- The disclosure chart has the most important information but does not usually contain all the important information. There are certain things that the disclosure chart must contain, including:

CONTACT A FRAUD LAWYER IN YOUR STATE

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WHAT IS CONSUMER FRAUD?
Consumer Fraud is inclusive of a large range of improper practices including any part of the advertising, the marketing, the selling, and the provision of services and/or goods. Contact us to speak with a consumer fraud lawyer if you think that you have been the victim of fraudulent activity.

Speak With a Fraud Lawyer
We have provided contact information for those wishing to speak with a fraud lawyer. Our fraud lawyers have been very successful in representing and handling clients who have been the victims of consumer fraud.

What is a Consumer Fraud Class Action?
A class action lawsuit occurs when one or more parties file a complaint on behalf of themselves and all other people who are similarly situated, or suffering from the same problem. This can include situations such as consumer fraud, including:

• credit card fraud
• insurance fraud
• credit fraud
• healthcare fraud
• health insurance fraud
• business fraud

Class actions are prosecuted on a contingent fee basis. Your consumer fraud attorneys advance all costs of the action, and attorney fees are paid from the recovery, or by the defendants.