NCJ Number
74929
Date Published
Unknown
Length
6 pages
Annotation
The white collar crimes described in this speech are consumer fraud schemes for which protective legislation is pending in California; this cautionary advice is addressed to private citizens as well as to businessmen.
Abstract
Current fraudulent selling practices victimize chiefly retired and low-income people who, lured by get-rich-quick schemes, lose their life savings or borrow from finance companies in a desperate bid to take advantage of unbelievable opportunities. Homeowners who are behind in their payments and threatened with foreclosure are often victimized by phony offers of help. Moreover, finance companies or even banks sometimes buy contracts for merchandise sold to buyers who have signed away their home as collateral. Automobile dealers often resort to misrepresentation and fraud to sell their product, especially used cars. Automobile repairs and home improvements offer a variety of opportunities for defrauding unwary customers, who not only do not recognize fraud when they encounter it but are also unaware of available legal remedies. Although bait-and-switch practices are especially rampant in furniture and appliance stores, out-of-State companies operating by mail or through hit-and-run procedures present greater problems for consumers. While consumer protection statutes offer at least some redress to private citizens, small businessmen and salesmen are practically unprotected against fraud and losses incurred through fraud. Even legitimate practices, such as selling meat by the quarter or by the bundle, can victimize consumers. Legislation outlawing some allegedly legitimate bait-and-switch operations is also needed.