You buy a new bike for your daughter as a birthday present. When she tries it in the park three weeks later, both of you will notice that the front wheel is bent. What are you doing? Should I fix it myself and avoid the hassle of returning to the store? Return time expired? Is the bike still under warranty? What do you do if you have not purchased additional coverage? Is a recheck applied if the price suddenly changes if you need to buy a new item?
The blue sweater you bought gave you a rash. When you look at the label you notice that it is not 100% cotton as advertised. Instead, it is made from a mixture of unpronounceable materials. Do you have a legal dispute with the seller?
Here are some of the scenarios that clients go through on a daily basis. Consumer protection legislation, the services of a lawyer are designed to protect us from such problems. That's why it's important to familiarize yourself with the more common consumer protection laws.
Consumer warranties and service contracts
Whenever you buy an item, it comes with a warranty. This is a guarantee that it will serve the purpose for which it was purchased - in other words; it will function.
The two main types of warranty are express and implied. An explicit warranty is a promise from the seller, either written, verbal, or expressed in an ad, promising that the item will perform its function for a specified period of time. Whether the item is purchased new or used, an explicit warranty is a guarantee of its performance. However, not all items come with an explicit warranty.
The law automatically provides for a second type of warranty, an implied warranty. Implied warranties are part of all retail sales of new and used consumer goods. The retailer of the item implies that the item will work properly and be of average quality and quality if used for the purpose for which it was sold. For example, a refrigerator will keep things cold until you're trying to cool an entire room, and a blender will keep mixing until you're mixing stones.
Whenever you buy something, it's important to get the warranty details in writing. Find out what the warranty covers. Does this include a service charge if the item needs to be repaired? How long is the warranty? According to the Federal Trade Commission (FTC), the implied warranty can last up to four years, but the actual time period may vary by state.
Operation under warranty
If the warranty is violated, have the product replaced or repaired by the seller. If that doesn't work, try mediation to resolve the dispute. If this does not help, you have the right to sue the manufacturer or seller.
Service contracts cannot be terminated once you have signed them, but according to the FTC, there is a cooling off period in which, under certain circumstances, you can terminate the contract. Contact the Federal Trade Commission at FTC.gov for information on the correct approach for your specific situation.
To file a complaint about a seller or manufacturer, you can contact the Federal Trade Commission, the Consumer Product Safety Commission, or call your local attorney and ask for the Fraud Office. If you've scammed a telephone lawyer or fallen into the trap of TV advertisers, the FCC is the place to go for help.
How to avoid scams
According to Steve Weisman's book The Truth About Avoiding Scams, scammers always take advantage of what's going on in a particular place in time. In the wake of the housing bust in 2008, for example, there were many fake rescue ransoms that caused people to lose equity in their home to so-called rescuers. There are also numerous scams involving popular social sites such as Facebook.
It also helps to use credit cards rather than debit cards for online purchases. Debit cards offer less protection. A debit card can also give you access to your entire checking or savings account.
Watch out for scams
Take a close look at each element of your monthly bills. If there is a transaction that you do not recognize, ask the lender in writing. If you believe a charge is fraudulent, please also notify the issuing company in writing no later than 60 days after it occurs. Customers must use a separate email account for their online purchases. This method helps to avoid spam. Also, never reply to emails asking you to "confirm" recent transactions after making purchases, as they can be phishing.
Getting your facts
Under the Fair and Accurate Credit Transactions Act (FACTA), you are entitled to a free copy of your credit report upon your request once every 12 months. Financial institutions use the information contained in this report to determine risk when lending. Consumers usually only become aware of this report after negative information has been received (incorrectly handled accounts, erroneous data, etc.).
Annual report can be obtained free of charge from credit agencies. It contains open accounts and ordered checks in your name. However, this is not the same as a free full consumer credit report. This report is a completely separate report that most consumers only become aware of after being denied a checking or savings account by a financial institution. Most banks and credit unions use the information contained in the report to approve, reject, or determine the type of account, if any, that can be opened with their financial institution. Consumers with a negative report may not be able to open a checking or savings account for five years.
