Consumer Protection

Most consumers have learned to be suspicious or skeptical of deals that sound too good to be true or over-the-top advertisements from businesses. When consumers still get taken advantage of by various scams, false advertisements, or unfair sales tactics, these are known as “unfair or deceptive acts or practices.” Not only are they prohibited under state law, but there are also various federal protections offering relief.

Consumers in West Virginia and throughout the country have the right to get the quality products and services they pay their hard-earned money. If a person is misled or deceived during a consumer transaction, bought a defective product, wasn’t told critical information about a product, or paid for services that they didn’t receive, the consumer protection laws give them the right to recover damages.

Powell & Majestro P.L.L.C. is a distinguished law firm committed to protecting consumers from unfair, deceptive, and fraudulent business practices. Over the years, the firm has successfully litigated numerous consumer protection cases, helping individuals recover losses and hold corporations accountable for their unethical behavior. Below are the key areas in which Powell & Majestro P.L.L.C. provides legal assistance:

Credit Fraud

Credit fraud is a serious issue that affects thousands of consumers annually. Powell & Majestro P.L.L.C. has a proven track record in handling cases related to credit fraud, ensuring that victims receive the justice they deserve. Common forms of credit fraud include:

• Identity Theft: Fraudsters use stolen personal information to open credit accounts, make unauthorized purchases, or obtain loans.
• Unauthorized Charges: Credit card companies and businesses may process transactions that consumers did not approve.
• Credit Report Errors: Incorrect information on a credit report can lower credit scores and impact financial opportunities.
• Deceptive Credit Card Offers: Some lenders mislead consumers with hidden fees, changing interest rates, or false reward programs.

Deal and Loan Packing

Deal and loan packing are unethical practices where lenders or dealerships add unwanted products or services to a consumer’s loan agreement without clear disclosure. This practice results in higher costs and financial burdens. Powell & Majestro P.L.L.C. fights against:

• Undisclosed Add-ons: Including extended warranties, insurance, or service contracts in a loan without explicit consent.
• Inflated Costs: Overpricing vehicle accessories or services to increase the loan amount.
• Misrepresentation of Terms: Presenting misleading financing terms that differ from the final agreement.

Predatory Lending

Predatory lending occurs when financial institutions exploit borrowers by offering loans with excessive fees, high-interest rates, or deceptive terms. This practice disproportionately affects low-income individuals and those with poor credit histories. Examples include:

• Payday Loans: High-interest short-term loans with hidden fees.
• Mortgage Fraud: Charging excessive fees or misleading borrowers about loan terms.
• Auto Loans with Unfair Terms: Financing agreements that trap consumers in unfavorable debt.

Unfair Bank & Lender Practices

Banks and lenders often engage in unfair practices to maximize their profits at the expense of consumers. Powell & Majestro P.L.L.C. holds these financial institutions accountable for:

• Changing Fees Without Notification: Unexpected changes in maintenance, overdraft, or transaction fees.
• Delaying Deposits to Accounts: Holding funds longer than necessary to generate additional revenue.
• Manipulating Processes to Maximize Income: Reordering transactions to trigger overdraft fees.
• Opening New Accounts Without Consent: Creating unauthorized accounts in consumers’ names.
• Transferring Funds Between Accounts Without Permission: Moving money without authorization, causing overdrafts or financial hardship.

Unfair Debt Collection Practices

Debt collectors must abide by the Fair Debt Collection Practices Act (FDCPA), yet many use unlawful tactics. Powell & Majestro P.L.L.C. fights against:

• Misrepresenting the Name of the Company: Collectors posing as government agencies or law firms.
• Making False Statements: Exaggerating the amount owed or threatening legal action they cannot take.
• Harassing Phone Calls or Contacts: Repeated, aggressive communication meant to intimidate consumers.
• Contacting an Employer or Relative Without Permission: Attempting to embarrass or pressure the debtor through their personal connections.

Lemon Law Violations

Lemon laws protect consumers who purchase defective vehicles. Powell & Majestro P.L.L.C. assists clients dealing with:

• Vehicle Safety and Manufacturing Defects: Cars with recurring safety issues or mechanical problems.
• Failure to Repair Issues: Manufacturers refusing to fix known defects within a reasonable number of attempts.

Auto Sales Fraud

Auto dealerships sometimes engage in deceptive practices to sell vehicles. Powell & Majestro P.L.L.C. helps consumers who have been misled by:

• Knowingly Selling Cars That Have Been Repurchased Under the State’s Lemon Law: Dealers reselling defective vehicles without proper disclosure.
• Selling Wrecked Vehicles Without Disclosure: Failing to inform buyers about past accidents or structural damage.
• False Mileage Reporting: Tampering with odometers to show lower mileage.

Manufactured Home Defects

Many consumers purchase prefabricated or manufactured homes, expecting high-quality construction and fair warranty policies. Unfortunately, defects and manufacturer negligence can cause major issues. Powell & Majestro P.L.L.C. represents clients dealing with:

• Structural Defects: Issues with foundations, walls, or roofing that compromise safety.
• Electrical and Plumbing Failures: Faulty wiring or plumbing that leads to costly repairs.
• Failure to Honor Warranties: Manufacturers refusing to cover repairs as promised.

False Advertising

Consumers rely on truthful advertisements to make informed purchasing decisions. However, companies frequently engage in deceptive marketing tactics. Powell & Majestro P.L.L.C. prosecutes businesses that:

• Sell Products or Services Without Full Disclosure: Failing to mention key limitations or risks.
• Omit Important Information: Withholding material facts that would influence a consumer’s decision.
• Make Outright False Statements: Providing misleading claims about a product’s effectiveness or benefits.
• Use Bait-and-Switch Tactics: Advertising one product at a low price, then pressuring customers to buy a more expensive option.

Higher Education Fraud

The rising cost of education has led to increased instances of financial fraud targeting students. Powell & Majestro P.L.L.C. advocates for those affected by:

• Financial Aid Fraud: Schools or lenders misrepresenting financial aid eligibility or terms.
• Student Loan Fraud: Predatory lenders charging excessive interest rates or misleading students about repayment terms.
• Misrepresentation of Job Placement Rates: Schools inflating employment statistics to attract students.
• Diploma Mills: Institutions selling worthless degrees with no accreditation.

Protecting Consumer Rights

Navigating consumer rights in West Virginia can be daunting, especially when faced with the deceptive practices of corporations, financial institutions, and businesses. When you, as a consumer, are wronged, it’s essential to understand that legal avenues exist to protect your interests and secure justice. 

Powell & Majestro P.L.L.C. can help you navigate this area of law. We can act as a bulwark against those who exploit consumers for profit. Their dedication lies in holding these entities accountable, ensuring that victims of unfair practices receive the compensation and protection they rightfully deserve.

The Foundation of Consumer Protection: Why It Matters

Consumer protection isn’t merely a legal concept; it’s a fundamental principle that underpins fair market practices and safeguards the economic well-being of individuals. In an increasingly complex marketplace, consumers are often at a disadvantage when dealing with large, well-resourced corporations. 

Without robust legal frameworks and dedicated legal representation, the potential for exploitation, fraud, and deceptive tactics would be rampant. The very essence of consumer protection laws is to level the playing field, ensuring that businesses operate with transparency, honesty, and integrity. When these principles are violated, consumers can suffer significant financial injuries, emotional distress, and a loss of trust in the marketplace.

The importance of consumer protection extends beyond individual cases. It fosters a healthier economic environment by promoting fair competition and discouraging predatory behavior. 

When businesses know they will be held accountable for their actions, they are more likely to adhere to ethical standards, ultimately benefiting all consumers. This creates a virtuous cycle where trust is built, and legitimate businesses can thrive without being undermined by unscrupulous competitors.

Common Manifestations of Consumer Fraud

Consumer fraud can take many forms, each designed to trick individuals into making decisions that benefit the perpetrator at the consumer’s expense. Understanding these common schemes is the first step in identifying when you might be a victim.

False Statements: This is perhaps one of the most straightforward forms of deception. It involves businesses making untrue claims about their products or services. This could be anything from a car dealership claiming a vehicle has never been in an accident when it has, to a supplement company promising unrealistic health benefits. These statements are often designed to create a false impression of value or quality, enticing consumers to purchase something they otherwise wouldn’t.

Undisclosed Costs: Imagine signing up for a service or purchasing a product, only to find hidden fees or charges tacked on later that were never mentioned upfront. This is a classic example of undisclosed costs. These can include administrative fees, processing fees, or mandatory “add-ons” that significantly inflate the final price. Businesses employ this tactic to make their initial offerings appear more attractive and competitive than they truly are.

Bait-and-Switch Scams: This deceptive practice involves advertising a product or service at a very low price (the “bait”) to lure customers in, only to then try and sell them a more expensive or different product once they arrive (the “switch”). The original advertised item might be unavailable, defective, or simply used as a ploy to get customers through the door. This tactic is particularly frustrating for consumers who have invested time and effort based on a misleading advertisement.

Deceptive Guarantees or Warranties: A guarantee or warranty is meant to provide consumers with assurance about a product’s quality and longevity. However, some businesses offer “guarantees” that are intentionally vague, full of loopholes, or virtually impossible to claim. Similarly, warranties might have fine print that renders them ineffective or covers only a tiny fraction of potential issues, misleading consumers into believing they have more protection than they actually do.

Misleading Labels: Product labels are essential for informed consumer choices, providing information on ingredients, origin, safety, and nutritional content. Misleading labels can involve false claims about a product’s organic status, its health benefits, or its environmental impact. This can lead consumers to pay a premium for something that doesn’t live up to its labeling, or worse, to unknowingly consume something harmful.

Confusing Ads: While not always outright false, confusing advertisements are designed to obscure important details, use overly technical jargon, or present information in a way that makes it difficult for the average consumer to understand. This can lead to misinterpretations about pricing, terms and conditions, or the true nature of a product or service, ultimately causing consumers to make uninformed decisions.

The Legal Framework: State and Federal Protections

Fortunately, consumers are not without recourse. A robust framework of state and federal laws exists to combat these unfair and deceptive practices, providing avenues for consumers to seek justice and compensation for the damages they have suffered.

State-Level Consumer Protection Laws: While specific statutes may vary from state to state, the general principle remains consistent: prohibiting businesses from intentionally misleading consumers. Many states have adopted comprehensive consumer protection acts that provide broad protections and allow individuals to bring private causes of action against businesses engaging in unfair or deceptive practices.

For instance, the West Virginia Consumer Credit and Protection Act (W. Va. Code § 46A-6-101 et seq.) serves as an excellent example. This act offers a variety of general consumer protections and, crucially, provides remedies for unfair methods of competition and unfair or deceptive acts or practices. 

This means that if a business in West Virginia engages in such conduct, consumers have the right to sue for financial injuries and other damages incurred. These state laws are often vital because they can be tailored to address specific consumer issues prevalent within a particular state, providing a more localized and responsive approach to consumer protection.

Federal Consumer Protection Laws: Beyond state-specific legislation, a significant body of federal laws provides a nationwide safety net for consumers. These laws often address broader areas of commerce and consumer interaction, ensuring a baseline level of protection across all states.

• Fair Credit Reporting Act (FCRA): This act regulates the collection, dissemination, and use of consumer credit information. It aims to ensure the accuracy, fairness, and privacy of consumer credit reporting, protecting individuals from errors or misuse of their financial data. If a credit report contains inaccuracies that harm a consumer’s ability to obtain credit or employment, the FCRA provides mechanisms for correction and, in some cases, compensation.
• Equal Credit Opportunity Act (ECOA): The ECOA prohibits creditors from discriminating against applicants based on race, color, religion, national origin, sex, marital status, or age. It ensures that all consumers have an equal opportunity to obtain credit, preventing unfair biases from influencing lending decisions.
• Fair Debt Collection Practices Act (FDCPA): This act protects consumers from abusive, deceptive, and unfair debt collection practices by third-party debt collectors. It outlines what debt collectors can and cannot do when attempting to collect a debt, such as prohibiting harassment, false statements, or unfair practices like collecting more than what is owed.
• Consumer Product Safety Act (CPSA): The CPSA empowers the Consumer Product Safety Commission (CPSC) to protect the public from unreasonable risks of injury or death associated with consumer products. It allows the CPSC to set safety standards, ban hazardous products, and issue recalls, ensuring that products sold to consumers are safe for use.
• Consumer Protection Act (Dodd-Frank Act): Formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, this comprehensive legislation enacted in response to the 2008 financial crisis established the Consumer Financial Protection Bureau (CFPB). The CFPB is a dedicated agency focused on protecting consumers in the financial marketplace, regulating financial products and services, and enforcing consumer financial protection laws.
• Truth in Lending Act (TILA): TILA aims to promote the informed use of consumer credit by requiring disclosures about its terms and costs. It mandates that lenders clearly disclose important credit terms, such as the annual percentage rate (APR), finance charges, and the total amount to be repaid, enabling consumers to compare credit offers more effectively.
• Magnuson-Moss Warranty Act: This federal law governs consumer product warranties. It requires manufacturers and sellers of consumer products to provide clear and detailed information about warranty terms and conditions, making it easier for consumers to understand their rights and remedies if a product is defective. It also sets minimum standards for written warranties.

Seeking Justice 

When faced with consumer fraud or unfair business practices, the prospect of taking on a large corporation or financial institution can seem overwhelming. This is where we at Powell & Majestro P.L.C. can help. We can offer strong legal guidance and aggressive representation, ensuring that consumers receive the compensation and protection they deserve.

Attorneys that focus on consumer protection understand the intricacies of both state and federal laws. They can effectively investigate claims, gather evidence, negotiate with businesses, and, if necessary, litigate cases in court. 

Our role is not just about seeking monetary compensation for financial injuries; it’s also about holding accountable those who engage in dishonest practices, thereby deterring future misconduct.

The legal process for addressing consumer fraud can be complex, involving:

• Initial Consultation and Case Evaluation: Understanding the specifics of your situation and determining the viability of a claim.
• Investigation and Evidence Gathering: Collecting documents, communications, and other proof of deceptive practices.
• Demand Letters and Negotiations: Attempting to reach a settlement with the offending party outside of court.
• Litigation: If a settlement cannot be reached, filing a lawsuit and pursuing the case through the court system, which may involve discovery, motions, and potentially a trial.

Having legal counsel ensures that your rights are fully protected at every stage of this process. They can navigate the legal complexities, interpret intricate laws, and present a compelling case on your behalf, maximizing your chances of a favorable outcome.

Experienced and Skilled West Virginia Deceptive Practices Law Firm

At Powell & Majestro P.L.L.C., we believe strongly in protecting the rights of consumers against deceptive practices. No person or small business should suffer financially or emotionally because of the actions of a few bad apples.

Our attorneys have more than 100 years of combined experience protecting consumer rights. We understand consumer protection law and fight hard to get our clients the results they need and deserve.

Drawing on our deep knowledge of state and federal laws and strong track record of results, we frequently work with other attorneys and experts to help clients get the best possible results, as evidenced in the following cases:

• Hurley v. Messer, Wayne Co BOE (2020) – As Co-Lead Counsel, Mr. Majestro successfully negotiated a $300,000 county-wide settlement with defendants alleging that they had violated the Telephone Consumer Protection Act. Messer made prerecorded calls using an automated telephone dialing system without permission to residents of Wayne County regarding an upcoming BOE election in which Messer was seeking re-election.
• Womack v. Virginia Meadows LLC, et al. (2020) – As Plaintiffs’ Co-Lead Counsel, Mr. Majestro successfully negotiated a settlement with defendant contractors regarding defective construction and workmanship on houses located in a Putnam County, WV subdivision, as well as the subdivision developer and real estate companies and agents.
• Hertz Corporation (2017) – As Lead Counsel, Mr. Majestro successfully negotiated a $2 million nationwide settlement with Hertz as a result charging improper administrative fees to rental customers.
• Enterprise Holdings, Inc. (2010) – As Lead Counsel, Mr. Majestro successfully negotiated a nationwide settlement with Enterprise. Enterprise sold certain cars that had been manufactured without OnStar Automatic Crash Notification systems, and front and rear side curtain airbags which were standard on retail models, without notice to purchasers.
• Ysbrand v. DaimerChrysler Corp., 81 P.3d 618, (Okla. 2003) – Mr. Majestro was appointed class co-counsel in this national class action against the manufacturer of minivans containing defective airbags. Mr. Majestro’s work on the case included supervising class discovery, and taking the lead role in briefing the jurisdictional, class, and dispositive motions in the case. Mr. Majestro successfully defended the order certifying the national class in the case in the Oklahoma Supreme Court and against a petition for certiorari to the United States Supreme Court. In convincing the Oklahoma Supreme Court to approve the certification of a national class, Mr. Majestro successfully distinguished a number of contrary opinions declining national class certifications in state-law warranty cases.
• State ex rel. Bell Atlantic-West Virginia, Inc. v. Ranson, 497 S.E.2d 755 (W. Va. 1997) – Mr. Majestro was appointed class co-counsel in this state-wide consumer fraud class action involving inside wire maintenance charges. Mr. Majestro’s work on this case included managing the deposition and document discovery and briefing and arguing the class and dispositive issues. Mr. Majestro successfully briefed and argued the appeal to the West Virginia Supreme Court which resulted in a published opinion setting forth new state law in the areas of primary jurisdiction and personal jurisdiction.
• Ysbrand v. DaimerChrysler Corp., 81 P.3d 618, (Okla. 2003) – Mr. Majestro was appointed class co-counsel in this national class action against the manufacturer of minivans containing defective airbags. Mr. Majestro’s work on the case included supervising class discovery, and taking the lead role in briefing the jurisdictional, class, and dispositive motions in the case. Mr. Majestro successfully defended the order certifying the national class in the case in the Oklahoma Supreme Court and against a petition for certiorari to the United States Supreme Court. In convincing the Oklahoma Supreme Court to approve the certification of a national class, Mr. Majestro successfully distinguished a number of contrary opinions declining national class certifications in state-law warranty cases.
• Community Health Assn. v. Lucent Tech., Inc. (Kanawha County, W.Va.) – Mr. Majestro was appointed class counsel in this national class action against the manufacturers and distributors of approximately 100,000 business telephone systems that were not Y2K compliant. Mr. Majestro’s role in the case included successfully briefing and arguing class, jurisdictional, and dispositive motions including related attempted appeals to the United States Court of Appeals for the Fourth Circuit and the West Virginia Supreme Court. Mr. Majestro participated in the conduct of fact discovery and in the preparation and retention of experts. Mr. Majestro designed the case theory that allowed successful certification of the state-law claims on a national basis while complying with requirements of the then newly-enacted federal Y2K Act.

Referring Your Class Action Clients to Powell & Majestro P.L.L.C.

Every law firm has its specialties, and it doesn’t make sense to try to be all things to all people. But a conscientious law firm also won’t want to pass by the opportunity to help a current or potential client who has a strong case. When a case is beyond the scope of your firm’s services or too complex, the experienced consumer protection attorneys at Powell & Majestro P.L.L.C. can help.

Our firm has been serving the needs of clients for over two decades as lead counsel or co-counsel on multi-firm litigation cases. Many of our clients reach us by way of referrals from law firms that take advantage of our generous referral agreements.

Whether you are an individual who believes you have a consumer protection case or a business partner wishing to make a referral, contact our offices to discuss your situation. Please call (800) 650-2889 or contact us online to schedule a free initial consultation. Video consultations are available for individuals who reside outside of Charleston.