Q: Heloc Credit card false advertisement/fraud?
Hi, I recently got lured into applying for a heloc credit card offered by a company called aven because they advertise their heloc credit card as a zero fees, zero origination, zero dollars tonget heloc/credit card but after getting approved they said all of the credit line has been disbursed (with a 2.5% disbursement fee). I reached out to them and they said per the agreement, the full line has to be disbursed upon account opening even though I don't need the money and now I'm stuck with a fee? Isn't this false advertisement?
A: The ad, and related small print probably says in detail what they can do, probably. BUT, if you did not read it or understand it, and assuming it is LEGIT, which it may not be, I'd say you can cancel within a 'reasonable' time and get a refund. That means like immediately, as in, I'd venture to guess, within 7 calendar days. This is NOT 'the law' and I am not saying it is. BUT, expediency in challenging this matters, so JUMP on it asap...
A:
Based on the information you've provided, there may be grounds for a false advertising or deceptive business practices claim under California law. Here are a few points to consider:
1. False Advertising: California Business and Professions Code Section 17500 prohibits false or misleading advertising. If Aven advertised their HELOC credit card as having no fees but then charged a 2.5% disbursement fee, this could be considered false advertising.
2. Unfair Competition Law (UCL): California's UCL (Business and Professions Code Section 17200) prohibits unlawful, unfair, or fraudulent business acts or practices. Misleading advertising or hidden fees could potentially violate the UCL.
3. Consumer Legal Remedies Act (CLRA): The CLRA (Civil Code Section 1750) protects consumers against deceptive practices in the sale of goods or services. If Aven misrepresented the terms of their HELOC credit card, it might be a violation of the CLRA.
4. Contract Terms: Review the agreement you signed with Aven to see if the disbursement and fee are clearly stated. If the terms are unclear or contradict the advertisement, you may have a stronger case.
To address this issue, you can:
1. Contact Aven in writing, explaining your concerns and requesting a refund of the fee.
2. File a complaint with the California Attorney General's Office or the Department of Financial Protection and Innovation.
3. Consider seeking legal advice from a consumer protection attorney to evaluate your case and discuss potential legal action.
Gathering evidence such as screenshots of the advertisement, correspondence with Aven, and your agreement will be helpful if you decide to pursue a claim.
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