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  • Consumer Fraud and Credit Repair Scams

    When it comes to deceptive business practices, credit card repair is one of the latest examples. In March 2022, the Federal Trade Commission took action against a Texas credit “repair” company called Turbo Solutions Inc. (aka Alex Miller Credit Repair). 

    The FTC accused the company of bilking consumers for millions of dollars by falsely claiming they could remove negative information from credit reports. Consumers alleged that company representatives told them their credit score could be boosted by 50 to 200 points using their two-step process. They charged consumers a $1,500 upfront fee. 

    These claims were a violation of the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule (TSR). 

    Regulators accused the company of filing false identity theft reports through a government website as a way to claim that the consumer’s credit report results were invalid because a crime had been committed. The crime was the false identity theft report, which many customers did not know was happening. 

    Credit companies can decline to remove negative comments on a credit report if they think identity theft has been fraudulently reported. Some consumers complained that their credit score actually went down after working with the credit repair company. 

    Regulators alleged that the credit repair company also failed to give customers a copy of their contract and failed to disclose cancellation policies. 

    Texas has laws against deceptive trade practices. It protects consumers from “false, misleading or deceptive acts or practices.” Promising services that cannot be provided, refusing or failing to provide consumers with a business contract … these actions could result in a court case for fraud or misrepresentation. 

    Under the Texas Deceptive Trade Practices Act, if a consumer prevails in a deceptive trade practices case, they will be compensated for their actual damages and may be awarded twice that amount. If the offending company knowingly deceived the consumer, the award could be three times the actual damages (in excess of $1,000). This is in addition to court costs and attorney’s fees. The Fell Law Firm represents consumers and businesses who have fallen victim to deceptive trade practices in the Dallas-Richardson-Plano area. Ask Mr. Fell can review your situation to see if the actions of the company were fraudulent. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • “Can I Sue for Interference With a Business Contract?”

    A business owner whose business has suffered a current of future financial loss because of the actions of a competitor may be able to pursue commercial litigation against a competitor due to:

    1. Tortious interference with a contract 
    2. Tortious interference with prospective economic advantage

    A “tort” is an act or omission by another party that causes harm. It’s not the same as a breach of contract. It may even apply before a contract is signed. What needs to be proved is that one party (person or business) did something that intentionally undermined another party’s business contract, transaction, or relationship. 

    Commercial Litigation for Tortious Interference With a Contract

    In order to successfully litigate a case of interference with a contract, the injured business will need to prove that:

    1. A valid contract exists between you, party A, and another business, party B,
    2. A third party knew there was a valid contract
    3. That third party took some action to intentionally disrupt or interfere with your contract
    4. That interference was unjustified or improper (it could be that party B was threatened or bribed in some way)
    5. And it caused party B to breach their business contract with you, which
    6. Caused harm to your business

    Business Litigation for Tortious Interference with Prospective Economic Advantage

    A lawsuit for interference with prospective economic advantage differs from interference with a contract in that a valid contract does not yet exist. There was a reasonable expectation of a business transaction or the start of a business relationship. That’s what was damaged because of the actions of another. 

    Let’s say you tell a colleague that you are going to be buying a product from a company for $X and it’s a great deal because you expected to pay $Y. That colleague tells the company you would have paid more … and then they increase the price. Now your business suffers real economic harm.

    Or you tell someone you are going to be signing a rental agreement for a building and the person you spoke to then rented the building before you could do so.

    These cases can be harder to prove in commercial litigation. You need to show that:

    • A business relationship existed or was soon going to exist (you weren’t just thinking about it)
    • It would have been a benefit to you in a realistic way (you can prove the benefit)
    • The person you are suing knew of that relationship 
    • And intentionally interfered
    • In a way that caused damage to your business relationship and
    • Financial loss to you

    In order to prevail in court, you will have to prove that the person/company that interfered could have foreseen the negative consequences. It wasn’t accidental that they mentioned something in passing and the wrong person overheard it. The offending party had a motive or vested interest in seeing that the contract or business relationship was breached. And they had the ability to influence that action that occurred.  

    Damages for Interference with a Business Contract

    If your business suffered harm because of the actions of a competitor business, you could seek financial compensation to offset your business losses. You could also seek an injunction, asking the offending business to stop a certain behavior. Or you could as for restitution: for example, that a contract that had been canceled be reinstated. 

    The court could also award punitive damages if they felt that the offending business’ behavior was particularly egregious. 

    Talk to a Commercial Litigation Attorney

    The Fell Law Firm represents businesses and business owners in contract disputes and commercial litigation in the Dallas-Richardson-Plano area. Mr. Fell can review the facts of your case and advise on the best option to move forward. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Consumer Protection and the Texas Deceptive Trade Practices Act

    Enacted in 1973, the Deceptive Trade Practices-Consumer Protection Act (DTPA) is intended to protect consumers from:

    • False, deceptive and misleading acts of practices in the conduct of trade or commerce, and this also covers insurance practices
    • Unconscionable actions, which the DTPA defines as “an act that takes advantage of a person’s lack of knowledge, ability, experience or capacity of a person to a grossly unfair degree”
    • Breach of the warranty 

    With the help of a consumer protection lawyer, a consumer – an individual or a business with assets of less than $25 million – can file a lawsuit against a manufacturer or provider of goods and services. Intent or knowledge of a violation is not required when proving a case of deceptive trade practices. But if there was intent, the consumer could be awarded additional damages. 

    Illegal Acts and Practices Under DTPA

    The Deceptive Trade Practices Act lists 27 specific prohibited advertising or trade practices. Some of these violations are too complex to explain fully in a short list. See section 17.41 of the Texas Business and Commerce Code for more complete information or talk to a consumer protection attorney who can explain the Act in greater detail. 

    1. Advertising or representing goods or services under another name than that of the manufacturer/provider
    2. Advertising that causes confusion or misunderstanding about the source of goods or services, the sponsorship or approval of goods or services, or the certification of goods. 
    3. Advertising that causes confusion or misunderstandings about the affiliation or connection of goods or services with another organization or person. For example, some businesses advertise in a manner very similar to another business and have a similar name, causing consumers to connect the two. Some companies have a name that suggests they are an arm of government when they are not. 
    4. Advertising that misrepresents the geographic origin of a product
    5. Advertising with false claims regarding sponsorship, approval, status, affiliation, characteristics, ingredients, uses, benefits or quantities
    6. Advertising or representing that a product is new when it is used or reconditioned
    7. Advertising that a product or service is of a particular quality or standard when it is not
    8. Making false or misleading representations about the goods, services or business of another
    9. Advertising goods or services to get someone in the door but then providing a different product or at a different price. This is also called Bait and Switch. 
    10. Advertising a low-priced product of which the seller has only a few and then offering people a more expensive one that is in stock. If the seller says the product is limited, then it is not a violation.
    11. Misleadingly stating the reason for a price reduction, such as, for example, the store that is always going out of business. 
    12. Making false or misleading statements about a written contract. 
    13. Making false or misleading statements about that work or parts are needed for repairs when they are not
    14. A salesperson misrepresenting the extent of their authority to negotiate the terms of a transaction
    15. Basing the charge for a repair on something other than the value of the actual work done, without breaking out that charge on the bill
    16. Disconnecting or resetting the odometer on a vehicle
    17. Falsely claiming to be going out of business
    18. Falsely, misleadingly or deceptively advertising or selling or distributing a prescription drug ID card which offers a discount from a 3rd party provider but which is not evidence of insurance coverage except under certain conditions.
    19. Employing a chain referral sales plan in which a prospective buyer will receive a benefit if they refer other people and those people later take an action
    20. Representing that a purchase comes with certain warranties or rights when it does not
    21. Promoting a pyramid scheme
    22. Representing that parts have been replaced or repairs made that were not
    23.  Creating an obligation to pay money from a consumer transaction in a county other than were the buyer resides or where they signed the contract
    24. Withholding information in order to induce a consumer into a transaction they would not have entered into if they had had accurate information
    25. Using the term corporation or incorporated for a company that is neither
    26. Taking financial advantage of a government-declared disaster
    27. Selling, trying to sell or promoting an annuity contract with the intent that it will be subject to a salary reduction agreement or is not an eligible qualified investment

    Compensation for Victims of Deceptive Trade Practices

    Consumers who are successful in bringing a lawsuit for deceptive trade practices can recover financial damages of varying amounts, depending upon the type of practice and whether it was intentional. They can also be compensated for mental anguish and may be awarded court costs and reasonable and necessary attorney’s fees. 

    The Fell Law Firm represents consumers and businesses who have fallen victim to deceptive trade practices in the Dallas-Richardson-Plano area. Mr. Fell can review the facts of your case and advise on the best option to move forward. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Car Dealer Fraud: I Got Scammed!

    Most people don’t read every single word of the contract they sign when they purchase a car or truck. They don’t have a law degree or an accounting background so they trust the explanation they receive from the salesperson or financing manager. Unfortunately, sometimes that trust is misplaced and the buyer becomes a victim of car dealer fraud.

    How Car Financing Fraud Happens

    There are a few examples of financing fraud:

    • “Bad” Credit: The salesperson said you were approved for financing at a low interest rate, then came back and told you your credit rating was bad, forcing you into a higher interest rate contract. They may have lied about your credit score.  
    • Misrepresenting the Price: The salesman told you the price of the car but when the paperwork was put in front of you for you to sign, the Total Cash Price was higher. In car financing fraud cases, sometimes the buyer is told the destination and dealer prep costs “weren’t included” … but those fees are part of the featured sales price. Adding them in a second time is fraud. 
    • Blank Documents: Another trick is getting you to sign a document that’s blank or not fully filled out. The salesperson then inflates the numbers or misapplies financing charges and you’re on the hook for a bigger monthly payment.
    • Forcing Options: Some dealers say that you can’t get a reduced price or special financing if you don’t buy a variety of “options.” If it’s an option, it’s optional. If you were forced to buy things you didn’t want, that could be auto dealer fraud. 
    • Charging a Higher Price for a Cash Sale: Believe it or not, some car dealers try to charge buyers MORE money if they want to pay cash for their car. Cash price violations are illegal. The price of a car is the price of a car. It’s not more or less because you pay cash, finance it in-house, or get your own financing. 

    Proving Car Dealer Fraud

    Auto dealer fraud cases can be brought under the Texas Deceptive Trade Practices Act if you suffered financial losses. Talk to a consumer protection lawyer if you think the dealer:

    • Lied to you about your credit rating or the value of your trade-in vehicle. 
    • Misrepresented the conditions of your loan or your purchase agreement.

    If you have a valid case, you can be compensated for financial losses, plus attorney fees, so you lose nothing out of pocket by bringing a case. If your lawyer can prove willful or intentional deception, a judge could order punitive damages up to three times the amount of your financial loss. Talk to a Dallas auto dealer fraud attorney to see if you have a case. 

  • Insurance Bad Faith: Biased Experts and a Failure to Investigate

    Insurance companies have a duty to act in good faith when they offer insurance, when they work with insureds, and when they investigate and pay on claims. 

    In other words, operating in good faith means more than just honoring the terms of the insurance contract. It’s integral to the operation of an insurance business. 

    Numerous court cases have found that insurance companies have a duty to act in good faith even if the insureds claim is ultimately and rightly denied. When insurance companies fail to act in good faith in the processing of a claim and a lot of money is involved, insureds have every right to bring a lawsuit for insurance bad faith.

    Responsible Use of Experts

    Insurance companies often work with experts to determine the cause of damage and the extent of a loss.

    • An expert may investigate the cause of a home or business fire, storm damage or flood. 
    • An expert may investigate a property where an accident or injuries occurred. 
    • An expert may review medical records and provide an opinion about a disability claim. 

    The insurance company will then use this information to support or deny a claim. 

    It’s reasonable to rely on the opinion of experts when making a claim determination and that has often been used as a defense against insurance bad faith claims in court. But in the 2020 case of Fadeeff v. State Farm General Ins. Co., (50 Cal. App. 5th 94), a California appellate court said that an insurance company’s reliance on an outside expert didn’t insulate it from a legal claim of bad faith. 

    The court said that an independent expert’s opinion is only one factor in an investigation. In the case in question, State Farm Insurance paid for cleaning, repairs and some living expenses for homeowners whose home was damaged by a wildfire. It denied payment for other repairs and for content replacement. 

    The Fadeeff’s claimed State Farm Insurance had acted in bad faith by relying upon an outside expert whose credentials were questionable and who did an inadequate job of investigating the extent of damages to their home. Additionally, their attorney said:

    • Some of the damage to the home resulted from power washing that State Farm had recommended to the homeowner
    • State Farm’s position had been inconsistent

    The homeowners hired their own certified expert who documented significantly more damage. 

    The Fadeeff’s went to court seeking punitive damages. Their claim was rejected by a lower court (the company had relied on an expert), but it was reversed on appeal and they were awarded punitive damages and costs. The court cited the case of (Wilson, supra, 42 Cal.4th at pp. 720-721) which said:

    “While an insurance company has no obligation under the implied covenant of good faith and fair dealing to pay every claim its insured makes, the insurer cannot deny the claim `without fully investigating the grounds for its denial.’

    The Fadeeff’s could now move forward with their initial bad faith insurance claim. 

    Bad faith insurance claims are complex but when the stakes are high – in the case of the Fadeeff’s the value of their denied claim was $75,000 – it may well be worth talking to a consumer insurance attorney. 

    Don’t Assume Nothing Can Be Done. Talk to a Lawyer

    The Fell Law Firm has experience representing homeowners and business owners in insurance bad faith cases in Dallas-Richardson-Plano area. Mr. Fell can review the facts of your case and advise on the best option to move forward. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Common HOA Disputes Can Result in Lawsuits

    There are a number of ways that a homeowner or a condo owner could find themselves in need of a lawyer to resolve a dispute with their homeowner’s association or condo association. These are some of the most common problems. 

    Denial of Plans for Home Modifications

    Since the start of the COVID pandemic, HOAs have seen an increase in requests to build an addition onto an existing home. It’s not surprising given the increase in people working or attending school from home. Some HOAs deny plans for home modifications because the home would look different from others in the development or they worry the addition will fail to meet the aesthetic guidelines of the HOA.

    Another reason homeowners request home modifications is to accommodate a disability. The homeowner may be asking for a ramp or to move walls to make rooms more accessible. Some HOAs have denied requests for modifications (particularly those outside) as unsightly or as failing to comply with HOA codes. 

    Denial of architectural plans or denial of accessibility modifications by a HOA can be fought in court. 

    Election Disputes

    The decisions of an HOA board can have a significant financial impact on homeowners. It’s important that everyone have a voice through the election of board members and approval of amendments. 

    The Texas legislature has protected homeowners by granting them certain rights, including:

    • The right to vote in elections, even if the homeowner is delinquent on HOA payments or is in violation of covenants. (A homeowner’s right to vote is protected by state law even if the HOA founding document says they cannot vote under these conditions.)
    • The write to cast a vote by electronic ballot, or by absentee ballot, by email, or fax, or submitted online on a website. 
    • The right to receive notice of an election or vote at least 10 days prior to the vote. 
    • The right to request a recount of election votes by an authorized or agreed-upon party. The request must be made within 15 days of the election and the recount must be performed within 30 days of receipt of the request. 

    If you have a concern about the integrity of your HOA election, talk to a lawyer with experience handling HOA disputes. 

    Disputes Over or Failure to Enforce Restrictive Covenants in CC&Rs

    A Declaration of Covenants, Conditions and Restrictions is the document that sets forth the rules that govern all of the homeowners within an HOA. Homeowners’ associations can find themselves in hot water over CC&Rs for:

    • Failing to enforce a restrictive covenant
    • Allowing so many waivers to the enforcement of a covenant that the covenant has been abandoned
    • Unreasonably delaying enforcement of the rules to the detriment of the violating homeowner (for example, failing to tell a homeowner that they can’t make a certain home modification until it is complete and will be costly to undo)
    • Attempting to enforce a correction to a violation after the statute of limitations has run out

    Homeowners can sue the homeowners’ association for failing to enforce the provisions of the CC&R, including unrecorded restrictions. But talk to an attorney before taking action. HOA boards are allowed to act with some discretion so it’s not always a clear-cut matter.  

    Pet Disputes

    There are several ways HOAs can end up in hot water over pets, including:

    • Switching from a pet ban to permitting pets
    • Switching from permitting pets to banning them
    • Failing to resolve problems of unruly and destructive pets
    • Accommodation of (or failure to accommodate) emotional support animals

    Don’t Assume Nothing Can Be Done. Talk to a Lawyer

    The Fell Law Firm has experience representing homeowners in Dallas-Richardson-Plano HOA and condo association cases. Mr. Fell can review the facts of your case and advise on the best option to move forward. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Underpaid for Your Property Insurance Claim?

    After a fire or a natural disaster, people turn to their insurance company to be reimbursed for damaged homes, businesses and possessions. But you may lose out on money you could receive if you aren’t prepared prove the extent of your losses. 

    Steps To Take Before Disaster Strikes Can Help Your Financial Recovery Afterward

    This post provides tips on what to do before disaster strikes to smooth the insurance settlement process. You want to be fully reimbursed for the true value of your loss from your homeowner’s insurance, renter’s insurance, or specialty insurance policy (like flood insurance or riders for high-value items or business property located in the home).

    If you’ve wrongly received an insurance claim denial, or the insurance adjustor is undervaluing your property, you may need to get a consumer protection attorney involved. 

    What Will Your Property Insurance Policy Pay?

    Pull out your insurance policy and take a look at your property insurance coverage. There is an overview sheet that will show you the value of your home for insurance purposes, as well as the value of personal property. If your home is lost to a fire, tornado, storm (or flood, if you have flood insurance), you need to know what the insurer will pay. 

    Your policy may insure your home to a specific dollar value. Regardless of what your home is worth right now, that is the value you will be paid. That may be the value of the home when you first took out your policy. If you have a good agent, that value is updated regularly.  

    You may have a policy that pays an Extended Value or Guaranteed Replacement Cost. In this case, the insurance company has agreed to rebuild your house to the state it was prior to being destroyed. If it now costs more to rebuild your exact house, the insurer will pay more (usually up to a certain limit). 

    Your insurance policy will state a dollar amount for Contents/Personal Property. Usually this is a percentage of the value of your home coverage (about 70%). That may or may not cover it. 

    Are you being reimbursed for actual cash value or replacement cost of your personal property losses? 

    • Most policies pay for replacement cost, which is the actual cost of replacing the items.  The insurance company will send you an initial check. You purchase new items. Then send the receipts to the insurer with a request for any additional unpaid amount. 
    • Some policies pay for the actual cash value of the items lost. The adjustor depreciates the items for age and condition. Sometimes the adjustor depreciates too much. Depreciation is negotiable. Ask to see a copy of the insurers’ depreciation schedule. 

    Proving Value for a Property Insurance Claim

    Creating a household inventory is the best way to prove the existence, and value, of personal property. Some insurance companies provide customers with an electronic inventory program they can use to gather and store information. You can find a list of home inventory apps at Forbes Advisor. But you can also do this just with a paper, pen and a camera. Learn more at the Insurance Information Institute.

    Before Disaster Strikes

    Document Your Possessions: Go room by room and make a list of everything you own. Describe the items to the extent you can, including date of purchase, model or serial number, brand, purchase price, and any other pertinent information. Unsure of the value? You can use the internet to look up the price of items. 

    You may wish to do this once a year to ensure you haven’t forgotten to include new property. 

    Adjustors often ask for receipts for higher-value items. Policyholders often don’t have them. Do you need to provide a receipt? Yes and no. 

    As a policyholder, you have an obligation to cooperate with the insurance company’s investigation. While an insurance company can’t deny your claim because you can’t produce a receipt, they could investigate further and this could cause delays. If you have receipts, you should provide them. 

    When a home or business is a total loss, receipts are usually lost, too. With some advance planning you can protect this information. Take a photo of the sales receipt or purchasing contract or written appraisal for any item of significant value. Store this information in the Cloud or put it on a thumb drive in a safety deposit box (or another place away from home). 

    Take Photographs: Take pictures of your home and personal property in natural light and from multiple angles. You could also videotape your property as you tour it, narrating information about the possessions on the video. Photos and video can be used to demonstrate ownership and condition. They will help jog your memory when you need to provide the insurance company with an inventory. Again, store those photos in the Cloud, or in a safety deposit box. 

    After Disaster Strikes

    Store Items: Do not throw away damaged items until you have been fully compensated. The insurance company may need to inspect them. Store them in a basement or garage, or even a rented storage unit. If possible, secure them so they can’t become more damaged while in storage.

    Document Living Costs While Away from Home: If you can’t live in your home while repairs or rebuilding is taking place, your insurance policy may entitle you to be reimbursed for temporary living expenses. Document your expenses for hotels or home rental, meals, car rental, etc. Photograph those receipts as well.  

    Working With A Property Insurance Company

    Report your loss as soon as possible to your insurance agent or insurance company. Keep track of every interaction you have with the insurance company in a notebook or file. If there is a problem with your insurance claim later, your notes may be valuable to proving your case. 

    • When did you notify your agent of a claim? When did you receive confirmation that your claim had been received (put the letter in your notebook)?
    • When did you send proof? What did you send?
    • Did you have phone conversations? What was said?
    • Copy emails and put them into the notebook. 
    • When did you have visits from an adjustor, a contractor, etc.? 
    • What did the adjustor say and what did they agree to? 

    You may be asked to give a recorded or sworn statement in an Examination Under Oath. You may wish to talk to an attorney before you do so. Either way, make a recording for yourself and keep it. (You can do so with your cell phone). 

    In some instances, you may be asked to provide tax returns to prove you had the ability to purchase a high-value item. You are not legally required to give your insurer your tax returns. 

    Now begin working on your inventory. Remember, the goal of the insurance adjustor is to control the amount of money that gets paid on a claim. You want to maximize your claim in all ways that are legal. Documentation and organization will help you do so. 

    If You Need Help, Contact an Insureds Lawyer

    If you believe you are being underpaid or unreasonably delayed by your insurance company, talk to a consumer protection attorney. The Fell Law Firm can help. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Insurance Claim Check Delayed? See the Texas Prompt Payment of Claims Act

    The Texas Insurance Code protects consumers from unfair insurance practices. One of the ways it does so is by allowing consumers to bring lawsuits against insurance companies when they act in bad faith. 

    Insurance claim check delays are an example of insurance company bad faith. Sec. 542.001 of the Insurance Code is called the Unfair Claim Settlement Practices Act. It applies (with some exceptions) to insurance companies and mutual aid and mutual insurance companies that provide:

    • Life, health and accident insurance
    • Property damage from fire, hail or storms
    • Casualty insurance
    • Burial associations, fraternal benefit organizations
    • And a few other types of policies

    The Act states that insurers cannot engage in the following unfair insurance claim settlement practices:

    • Knowingly misrepresenting pertinent facts about the policy coverage
    • Failing to promptly acknowledge receipt of a claim and acceptance or rejection
    • Failing to adopt reasonable standards for the prompt investigation of claims
    • Failing to make a good faith effort to arrive at a prompt, fair and equitable settlement when liability is reasonably clear
    • Compelling policyholder to bring a lawsuit to recover the moneyed to them because the insurance company has offered substantially less than the amount the policyholder finally recovers as a result of a lawsuit

    What is the Definition of “Prompt?”

    Section 542.055 defines promptness for standard insurance companies in this way:

    • Receipt of Claim: An insurer should acknowledge receipt of the claim, begin investigating the claim, and request all needed information from the insured not later than 15 days after receipt of the claim. The insurance company can request additional information at a later time if needed to complete its investigation of the claim. 
    • Acceptance or Rejection of Claim: The insurance company shall notify the insured in writing if they are accepting or rejecting the claim not later than 15 days after receipt of all information from the insured. If a claim is rejected, the company must give a reason. 
    • If Arson is Suspected: If the insurance company suspects arson is involved, they shall notify the insured not later than 30 days after receiving all information. 
    • Payment: The insurance company must pay the claim no later than the 5th business day after it informs the insured it will pay on the claim. If the insured has to do something in order to receive payment, then the insurance company has 5 days from that date to make payment.  

    Exceptions

    • If the insurance company can’t decide within the timeline above, it must communicate with the insured why it needs additional time. The insurance company then has another 45 days to arrive at a decision. 
    • In the case of natural disasters, the deadlines are extended an additional 15 days. 
    • Surplus line insurance companies – those that protect against risks a regular insurance company won’t take on – have an extended timeline.

    Penalties for Insurance Company Violations

    If an insurance company delays payment for valid claims for more than 60 days (90 days for life insurance), they may be required to pay the policy holder or beneficiary the amount of the claim plus 18% yearly interest from the date the claim was supposed to be paid. They also must pay reasonable and necessary attorney’s fees if the insured had to hire a lawyer.

    If you’ve been the victim of insurance bad faith and a delayed insurance settlement, talk to a lawyer about your rights. Dallas consumer protection attorneys at the Fell Law Firm can help you. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • Foreclosure Threats an HOA Violation of Fair Debt Collection Practices Act

    Foreclosure Threats an HOA Violation of Fair Debt Collection Practices Act

    A Florida homeowners’ association is on the hook for $33,000 in damages after homeowners hired a lawyer to protect themselves from abusive debt collection practices. 

    According to WFTV, the Florida couple were late in paying their annual dues. Their property owner’s association added late fees onto their bill, which is typical of homeowner’s associations. 

    The homeowners made good on their debt, delivering a check for payment in full to the HOA’s attorneys. That should have ended the HOAs claim for payment. But a month later, the HOA filed a lien against the family’s home for unpaid dues and additional fees. 

    Homeowner Cindy Decker told the news crew that the HOA repeatedly threatened her, saying that she had 30 days to pay or they would foreclose on her home. She showed them the receipt for payment, but the HOA insisted that she now owed $1,300, more than the $892 she had owed and paid on the prior bill. 

    (The HOA had changed attorneys after her payment was received. The HOAs new law firm was party to the demand for payment.)

    Ms. Decker took her evidence to an HOA meeting, believing that the board would agree with her that she had paid. Instead, the HOA refused to let the family off the hook. They continued to threaten foreclosure. 

    That’s when Ms. Decker hired a lawyer to fight the HOA. 

    Ms. Decker’s consumer protection attorney filed a lawsuit against the HOA claiming that the HOA had violated the federal Fair Debt Collection Practices Act. This statute protects consumers from harassment from debt collectors, as well as unfair debt collection on a debt that has already been paid. 

    With the law now on her side, Ms. Decker’s attorney got the HOA and its law firm to the negotiating table. A settlement was negotiated before trial. Ms. Decker and her family no are no longer threatened with foreclosure.

    In conflicts between residents and HOAs, it can feel like HOAs have all the power. But depending on the facts of the situation, the law may actually be on the side of the resident. 

    If you have been unjustly fined by your HOA, or wrongly assessed fees, or had a lien placed on your property, get legal help. Talk with Dallas-Ft. Worth consumer protection attorneys at the Fell Law Firm. Call 972-450-1418 or complete our online contact form to schedule a consultation.

  • 3 Things That Can Hurt Your Chances of Fighting a Disability Insurance Claim

    Fighting a disability insurance claim denial is hard. The system is set up to favor the insurance company, not the injured person. It takes a skilled, knowledgeable, and experienced ERISA lawyer to guide injured workers through the administrative appeal process and a judicial appeal so they can get the disability insurance they are owed. 

    But a lawyer can only do so much. You need to work with your lawyer to build and protect your case. Mistakes you make along the way can harm your chances in the ERISA appeals process. Make note of these three common mistakes and give yourself the best chance at success. 

    Facebook is NOT Your Friend

    A lot of us spend time every day sharing the minutia of our daily lives with family and friends on Facebook, Instagram, and Twitter. Usually, we don’t spend all of our time complaining about our aches, pains, and disability. 

    If we went to the grocery store, we don’t say talk about how hard it is to walk from the parking lot. If we took the kids to the beach, we don’t talk about the struggle of getting the kids in and out of the car seat because we can’t lift them. 

    We put on our best face for family and friends, and that’s what the insurance company investigators find when they go online to look for discrepancies in your story. They want to prove that you aren’t really disabled. Don’t give them evidence to prove their case. 

    Your credibility could suffer, and when it comes to disability claims, your credibility is everything. Consider NOT USING social media while you are in the appeals process. 

    Even if you have your privacy settings at Friends Only, or Family Only, there may be a time when a post reaches further than you intend. It’s safest to think of your social media as insecure. 

    Not Ready for Prime Time: Smile for the Surveillance Camera

    Insurance companies have a legal right to conduct surveillance on people they suspect of trying to defraud them of money. It’s uncomfortable, upsetting, and invasive, but they can and will pay someone to follow you, taking pictures and videotaping you while you go about your daily business. 

    Every injured or ill person knows that they have good days and they have bad days. On good days, you want to do things! You want to go for a walk without the walker. You want to go to a restaurant or shopping. You might lift a bag out of the back seat. It’s exactly these times when you may find yourself being filmed. 

    Now is not the time to push yourself to do more than you should be doing. 

    Out of Touch with the Truth

    Many of us have a way of speaking that tends toward exaggeration. In our everyday lives we don’t usually suffer too many consequences from “You always” and “I never.” But when it comes to insurance companies, or the court, exaggerating your symptoms or overstating your disability can backfire. 

    If you “never” leave home without your walker because you are “always” in tremendous pain, what happens when the insurance investigator sees you hanging laundry on the line or leaving a restaurant without a walker? 

    Think realistically about your abilities and consider that the words “sometimes,” “often,” and “rarely” may be a better descriptor. Yes, it’s a picky detail but it’s these little details that add up to or detract from your credibility. If you’ve been unfairly denied long-term disability, fight that claim denial with the help of ERISA attorneys at The Fell Law Firm in Richardson and McKinney, TX. Call 972-450-1418, or contact us online.