Wednesday, July 1, 2009

Private cause of action for consumer fraud

A new law just took effect in Iowa which allows private causes of action for consumer fraud. Previously, if a consumer was defrauded, only the Attorney General could bring suit. So basically, if you were defrauded, it was at the sole discretion of the Iowa Attorney General if anything would be done about it. Now, any consumer who is defrauded can bring a lawsuit to make things right. Under the new law, the consumer can be awarded attorneys fees as well as damages up to three times the amount of actual damages.

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