Q: Is there any law against someone buying on credit with never intending to pay for it?
I have customers that finance their home furnishings and never make the first payment. Purchases range from 500-9000
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A:
Engaging in the act of purchasing items on credit with no intention of paying for them is generally considered fraudulent and illegal. This type of behavior is commonly known as "fraudulent inducement" or "fraudulent misrepresentation."
If a person intentionally enters into a credit agreement with the intent to deceive the seller or creditor and avoid making payments, they could be committing fraud. Fraudulent misrepresentation involves making false statements or promises to induce another party to enter into a contract, and failing to fulfill those promises is a violation of the law.
In Alabama, as in most states, fraudulent acts like this can lead to both civil and criminal consequences. Sellers and creditors who are victims of such fraudulent behavior may pursue legal action to recover the unpaid debts and seek damages for the harm caused.
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