Financial law encompasses a wide variety of topics, including consumer fraud, violations of consumer protection laws and stock fraud. Banks and other financial institutions are governed by federal and state laws and regulations to ensure consumers and investors are protected from violations of financial law. Although there are many laws designed to protect consumers and investors, including the Consumer Credit Protection Act and ERISA, consumers may still find themselves unknowingly affected by investment scams, financial fraud, non-disclosure of financial solvency, or illegal lending practices.
Consumer Banking & Lending Violations & Deceptive Practices
 Issues with financial institutions—including banks, credit card issuers and mortgage lenders—occur when consumers are not properly informed about the fees and other risks associated with their accounts or when the financial institution fails to uphold its end of a contract. Examples of consumer banking or lending violations can include issues with HELOC (Home Equity Line of Credit) contracts, mortgage fraud, abusive overdraft policies, and excessive fees for various banking transactions.
In addition, consumer banking violations can occur when a particular class or group of individuals is excluded from certain banking services or not made aware that such services are available.
Consumer Fraud
 Consumer fraud occurs when money is illegally taken from consumers. This can occur through a variety of scams, hoaxes, schemes or abuse. In some cases, such as identity theft, the victim may not know her money has been taken until well after the fact. Examples of consumer fraud include mortgage lending scams, financial elder abuse, business opportunities fraud, Internet or email fraud and unfair business practices.
With the increase in the use of technology comes an increase in scams perpetrated online. Such scams include lottery/sweepstakes scams (in which the victim sends in money to claim a false prize), false Internet purchases, loan scams (in which the victim is required to send money for loan fees), e-mail scans (in which the victim is prompted to click a link to his banking institution and input his password, giving the fraudsters access to his banking information) or e-mail scams (in which the victim is asked to wire someone money so they can get back into the US).
Securities
Even the most seasoned investor can fall prey to unethical stockbrokers or financial advisers. A group of shareholders can also find themselves the victims of securities fraud by company officers and directors who misrepresent a company's financial position to shareholders. Issues such as securities and stock fraud, stockbroker fraud or problems with company issued stock options and Employee Retirement Income Security Act (ERISA) violations can cause serious financial hardship for investors and plan participants.
In some cases, violations of securities laws are dealt with in the courtroom. However, in other cases, victims must go through FINRA (Financial Industry Regulatory Authority) arbitration.
|
FINANCIAL ARTICLES AND INTERVIEWS
-
New Exchange Traded Funds Lawsuit Filed
New York, NY: A lawsuit related to Exchange Traded Funds (ETFs) has been filed against ProShares Trust. The lawsuit alleges that the investment company, which offered shares in the Ultra Basic Materials fund (UYM fund), gave false and misleading information in the Registration Statement, Prospectuses and Statements of Additional Information. ..
-
ERISA Lawsuits Protect Employee Rights
Milwaukee, WI: Violations of the Employee Retirement Income Security Act (ERISA) can result in lawsuits against a company and its trustees, as plan participants fight to recover money lost due to improper handling of Employee Stock Ownership Plans (ESOPs) and other benefits plans. The US Department of Labor recently filed a lawsuit against Steven D. Westra, a former trustee of the Westra Construction Inc. ESOP, for allegedly mismanaging his company's employee stock plan..
-
New Government Crackdown on Credit Cards Won't Help Debit Card Fees
New York, NY: In May Congress passed new legislation that comes into effect this weekend, aimed at ending unfair rate increases and hidden fees associated with prepaid debit cards. "It's still going to be important to watch your statement as closely as possible," says Joe Ridout, spokesman for Consumer Action, an advocacy group, in comments published in the 2/14/10 edition of the Oregonian. But "there will be changes...
FINANCIAL LAW SUITS FILED
Exchange Traded Funds (ETF) alleging companies issuing ETFs violated securities laws. KB Home Faces Price Fixing Class Action American Express allegedly failed to properly inform customers of Blue Cash credit card offer components.
FINANCIAL SETTLEMENTS
Ameriquest Agrees to Settle 29 Class Actions for a Proposed $22 Million H&R Block Reaches Multi-Million Dollar Settlement Over Fraudulent IRAs Condo Lawsuit Gets $1 Million Award
|
