Consumer Fraud Act Does Not Apply
Page 1 of 1

Author:  admin [ Thu Jul 20, 2006 4:08 am ]
Post subject:  Consumer Fraud Act Does Not Apply

Son of debtor had no right to recovery under Arizona's Consumer Fraud Act against creditor's attorney based on attorney's filing of legal action against son which sought to repossess debtor's mobile home after debtor had defaulted on financing contract but had alleged that son, who was not party to contract, had failed to make payment under contract; attorney's alleged misrepresentation was not in connection with sale or advertisement of any merchandise as prohibited under Act. A.R.S. § 44-1521 et seq.

Walker v. Gallegos
167 F.Supp.2d 1105
Sep 28, 2001

Author:  admin [ Thu Jul 20, 2006 4:09 am ]
Post subject: 

The Court can conclude, however, that the Arizona Consumer Fraud Act claim fails to state a claim upon which relief can be granted and that it cannot be amended to state such a claim. A.R.S. § 44-1522(a) requires that the deception or misrepresentation at issue be in "connection with the sale or advertisement of any merchandise" in order to be actionable as consumer fraud. The allegations of the complaint, even taken as true and construed in Walker's favor, do not as a matter of law involve the sale or advertisement of merchandise as those terms are defined in the Consumer Fraud Act. While the underlying consumer loan transaction between Walker's mother and the defendant's client's assignor fell within the purview *1108 of the Consumer Fraud Act, see Villegas v. Transamerica Financial Services, Inc., 147 Ariz. 100, 708 P.2d 781 (App.1985) (Court concluded that the lending of money is subject to the provisions of the Arizona Consumer Fraud Act), allegations made in a complaint to repossess collateral are too attenuated from the underlying loan sale/advertisement to come within the statute's purview.

Page 1 of 1 All times are UTC
Powered by phpBB® Forum Software © phpBB Group