Practice Areas
Deceptive Trade Practices | Insurance Fraud
Insurance Fraud
Consumers often pay thousands
of dollars for coverage only to later find out that they are not getting
what they bargained for or what the law requires. Because the insurance
market is so highly regulated, complex and competitive, insurance companies
are frequently guilty of errors and irregularities, and in some cases
outright fraud, in their dealings with consumers.
Reasons for Fraud:
Almost every individual and company must deal with insurance matters on a regular basis. Unlike a tangible product that the consumer can feel and touch and readily recognize as defective, insurance policies are complex documents written by lawyers and regulated by various governmental authorities. The average consumer is ill-equipped to understand all of the intricacies of insurance policies, and in rare instances the insurance companies will prey on this ignorance to the consumer's detriment. Many times, consumers do not realize there is a problem with their insurance until it is too late and the catastrophe has already occurred.
Helpful hints:
- Retain all written documentation that you receive from your insurance company or agent
- Carefully document all verbal communications that you have with your insurance company or agent
Doing just those two simple
things can prove extremely valuable should a dispute ever erupt.
You should seek advice if:
- You believe a claim is not paid properly
- You have received brochures that vary from your understanding of the policy
- Your premiums are increased on a questionable basis
- You fail to receive your policy or other promised documents
- You have any question or doubt concerning your insurance coverage, and especially if you are unable to get these questions answered or problems resolved directly with the insurance company
Why to choose
legal advice over other options
While the agent who sold you the policy can often answer any questions or correct any irregularities in the transaction, sometimes the agent is at odds with the insurance company, or is the one responsible for the problem, and therefore will be unable to effectively resolve the question or dispute. Remember, the agent is only a representative of the company. You could resort to the state's Department of Insurance for dispute resolution, but our experience has proven that this avenue is relatively unsuccessful. The lawyers at Malesovas & Martin have years of experience in handling all types of insurance disputes. We have represented numerous insurance companies and therefore know how they work and think. We have also represented many individuals and thousands of class members in class action litigation against insurance companies across the United States. Oftentimes what may seem like a small claim to an individual may actually represent a common deceptive practice affecting thousands of similarly situated individuals, and a class action may be an appropriate remedy to prevent an insurance company from cheating thousands of individuals out of millions of dollars.
If you have been the victim of insurance fraud or believe an insurance company is defrauding its customers, let us know by clicking here.
Deceptive Trade Practices
There is nothing more frustrating
than paying your hard earned dollars for a product which does not work
like it is supposed to or a service that is not delivered as represented,
yet this is more common than you might think. Unfortunately, until about
50 years ago, the legal system's response to consumer complaints was
caveat emptor: "let the buyer beware." Many consumer complaints
regarding faulty or misrepresented products and services went largely
uncompensated. In response, many states including Texas enacted pro-consumer
statutes such as the Texas Deceptive Trade Practices - Consumer Protection
Act (the "DTPA"). The Texas DTPA is one of the strongest
consumer protection statutes in the United States.
The DTPA allows for:
The recovery of all actual
damages and attorney's fees to a successful consumer against a party
who commits a false, misleading or deceptive act or practice, breaches
an express or implied warranty, or engages in unconscionable conduct,
and the recovery of treble damages if the party's conduct is done knowingly.
Deceptive trade practices
which have been specifically outlawed by the DTPA include:
- Representing that goods or services have characteristics, uses or benefits that they do not have
- Representing that goods or services will be of a particular standard, quality or grade, or that goods are of a particular style or model, if they are of another
- Representing that an agreement confers or involves rights, remedies or obligations which it does not have or involve, or which are prohibited by law
- Failing to disclose information about goods or services that was known at the time of the transaction with the intent to induce the consumer into a transaction that he/she otherwise would not have entered into if the information had been disclosed
- Failing to comply with an express or implied warranty
- Taking advantage of the lack of knowledge, ability, experience or capacity of a person to a grossly unfair degree.
If you have been the victim of deceptive trade practices or believe a company is defrauding its customers, let us know by clicking here.