Archive for the ‘Consumer Fraud’ Category

Iowa’s Attorney General is taking action against Smart Automotive Group of Louisiana for “false-premise” used car sales promotions in Iowa. Most consumers will recognize such promotions as “emergency liquidation.” The suit claims that often these tactics are fictional, merely gimmicks to get customers onto the lot.

The suit claims that sale ads used by Smart Automotive trick customers into thinking that vehicles are being offered at special prices, when they are, in fact, part of the dealer’s used vehicle inventory. Terms like “Seized and Repossessed Vehicles,” “Emergency Disposal,” are used falsely and deceptively to mislead consumers. (more…)

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Escalating complaints from consumers are leading states to crack down on abusive practices by debt settlement firms. Such companies promise help to desperate people, but too often charge large initial fees only to do little to nothing to actually help.

Leading the charge in the crackdown is Illinois, which recent passed a bill prohibiting debt settlement firms from using unfair and abusive practices. The lawmakers behind the bill state that many of the debt settlement claims play on the fear and desperation of consumers in deep debt, but many are nothing more than scams. The new Illinois law allows collection agencies to collect a fee only when the debt is settled.

In addition to this legislation, the Illinois Attorney General (more…)

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A lawsuit has been filed against Yahoo by shareholders who say Yahoo’s board of directors have put shareholders’ finances at risk. They are angry that Yahoo turned down Microsoft’s offer to purchase the company for $33 a share; Yahoo representatives had said it was worth $37. But before talks of a sale began, Yahoo shares were trading for just $19, so to shareholders, the buyout would have been a huge gain.
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In an age where identity theft and other scams are prolific, seniors are targeted much more frequently than most other groups. Whether these scams claim to provide medicare discount cards, donations to charities, prizes, or cheap drugs, they all are directed at seniors who have a lifetime of savings to lose. One Western Illinois group is trying to help.
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The IRS is warning consumers of emails and phone calls claiming to be from their agency. The first round of scam warnings went out in the time right before most people were expecting their income tax returns. Now, the Economic Stimulus Payments are the source of the fraud warning.
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Canadian telemarketers are being fined $4,997,695.60 by the U.S. Federal Trade Commission for practicing telemarketing fraud on United States Consumers. The FTC says that three men and a handful of companies were involved in scams that required consumers to pay advance fees (up to $316) to receive credit cards, cell phones and computers– none of which were ever delivered to the American consumers.
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