Question 1

How am I protected from identity theft?

Accepted Answer

Identity theft occurs when a criminal uses personal information to steal someone's identity. Identity theft can occur in a variety of different ways, including misuse of a Social Security number, counterfeit credit cards in your name, and mail fraud. Until relatively recently, identity theft fell under the umbrella of the charges of theft, larceny, or conversion. Identify theft, however, is one area of the law where legislatures are rapidly catching up with the technology. The Internet has made identity theft an increasing problem as wireless Internet connections can provide sophisticated "hackers" with access to your computer and phone, both of which may contain personal and financial information. States and the federal government are making huge strides in combating the problem by enacting and amending various stat­utes, including: Fair Credit Reporting Act The Fair Credit Reporting Act establishes procedures for correcting mistakes on your credit record and requires that your record only be provided for legitimate business needs. Fair Credit Billing Act The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit card accounts. It also limits a consumer's liability for fraudulent credit card charges. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection. Electronic Fund Transfer Act The Electronic Fund Transfer Act provides consumer protection for all transactions using a debit card or electronic means to debit or credit an account. It also limits a consumer's liability for unauthorized electronic fund transfers. Identity Theft and Assumption Deterrence Act Enacted by Congress in October 1998 (and codified, in part, at 18 U.S.C. §1028), the Identify Theft and Assumption Deterrence Act makes identity theft a federal crime. Under federal criminal law, identity theft takes place when someone "knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, or in connection with, any unlawful activity that constitutes a violation of federal law or that constitutes a felony under any applicable state or local law." Under this definition, a name, Social Security number, or credit card are all considered a "means of identification." Violations of the ITADA are investigated by federal law enforcement agencies, including the U.S. Secret Service, the FBI, the U.S. Postal Inspection Service, and the Social Security Administration's Office of the Inspector General. Federal identity theft cases are prosecuted by the U.S. Department of Justice. In 2004, Congress passed the Identity Theft Penalty Enhancement Act. This act established a mandatory two-year minimum sen­tence to be served in addition to the sentence that a person may have been already sentenced to for aggravated identity theft. Many states have also enacted statutes which not only require credit agencies to block inaccurate information resulting from identity theft, but specifically create a separate crime for iden­tity theft and require government agencies to assist the victim with repairing his/her credit report. Many states also permit individuals to place a credit freeze or fraud alert on their credit report while the identity theft is being resolved.

Question 2

What can I do if I think I was the victim of a scam by a business?

Accepted Answer

Federal and state laws prohibit "unfair or deceptive trade acts or practices." If you think you've been cheated, there are a number of things you can do: Let the appropriate government offices know. Government investigation will take some time, but they may eventually go after unscrupulous merchants. Unfortunately, government agencies are rarely able to get you your money back. If you would like your money back, your best bet is work with an attorney. If the seller or manufacturer won't make good, you must sue within one to four years of when you discovered the scam, depending on your state's laws.

Question 3

When you buy something, is it covered by a warranty in case it breaks?

Accepted Answer

Generally, yes. A warranty (also called a guarantee) is an assurance about the quality of goods or services you buy and is intended to protect you if something you purchase fails to live up to what you were promised. An express warranty is one that is actually stated, usually in writing. Most express warranties state something such as "this product is warranted against defects in materials or workmanship" for a specified time. Most either come directly from the manufacturer or are included in the sales contract you sign with the seller. But an express warranty may also be in an advertisement or on a sign in a store ("all dresses 100% silk"), or in a salespersons oral description of a product's features. An implied warranty is not spoken or written but is based on reasonable consumer expectations. There are two implied warranties-one for "merchantability" and one for "fitness." The implied warranty of merchantability is an assurance that a new item will work if you use it for a reasonably expected purpose (for example, that a toaster will toast bread or a power drill will drill holes). This warranty applies only to the product's ability to perform its basic purpose, not to everything that could possibly go wrong with the product. For used items, the warranty of merchantability is a promise that the product will work as expected, given its age and condition. The implied warranty of fitness applies when you buy an item with a specific (even unusual) purpose in mind. If you communicated your specific needs to the seller, the implied warranty of fitness assures you that the item will meet these needs. An express warranty lasts for the term stated in the language of the warranty-for example, "three years after the date of purchase." The lifespan of an implied warranty depends on state law. Some states limit an implied warranty to a period of time-one or two years, for example. Others say that an implied warranty lasts only as long as any express warranty made about a product. If there is no express warranty, sellers can sometimes avoid an implied warranty by selling the item "as is." Some states prohibit all "as is" sales. And in all states, the buyer must know that the item is sold "as is" in order for the seller to avoid an implied warranty. Most of the time, a defect in an item will show up immediately or soon after you purchase the product. If the seller or manufacturer refuse to fix the or replace the product, you may be able to sue. If the seller or manufacturer won't make good under a warranty, you must sue within one to four years of when you discovered the defect, depending on your state's laws.

Consumer Protection

Permalink

From the OpenJurist Bookshop

Sub-practice areas

Primary law

Key definitions

Frequently asked questions

Consumer Protection by state

Further reading