A company offering cash for old iPhones is accused of running a bait-and-switch scam by a Philadelphia law firm. The class action lawsuit was filed in a California federal court by the Golomb & Honik law firm on behalf of plaintiff Helaina Washington. The lawsuit alleges CashforiPhones.com targets iPhone owners through Internet ads, ultimately offering these consumers much less than the original quote. Despite the fact the site guarantees "top dollar" for the iPhones-no matter the condition-the lawsuit alleges the site is nothing more than a fraudulent scam.

How Does Cashforiphones.com Work?

After identifying iPhone owners through the Internet who express an interest in the service, the company sends an initial quote along with a shipping label and box to mail the iPhone in. Once CashforiPhones.com receives the phone, a revised offer-sometimes as little as 10% the initial quote-is made. The consumer is allowed only three days to contact the purchasing department to reject the lower offer; however, that turns out to be impossible as phone calls go unanswered. E-mails sent to CashforiPhones.com receive no reply, leaving the consumer little recourse other than accepting the pitifully low offer for their iPhone.

Scams on the Internet Abound

Similar scams have come and gone throughout the years, defrauding consumers time after time, and, in fact, CashforiPhones.com is not the only online company offering cash for iPhones, smartphones, Android devices and mobile computers. The advertisements claim consumers can receive $300 or more for their device, yet when they send the device in, that number drops down into the low double digits. CashforiPhones.com does tell consumers the estimate may change when the device is received. The company gets around consumers changing their mind by making it impossible to contact the company within the allowed three days, meaning the consumer has no choice but to accept the offer. Consumers have been shocked to receive a check for $20 in the mail or through Paypal after sending in an iPhone in excellent condition.

How to Avoid Being a Victim of Internet Fraud

While the Internet offers consumers a global marketplace, criminals also recognize the many cyberspace opportunities. Consumer fraud is rampant on the internet, and bait-and-switch scams like this one abound. The only recourse most consumers have is to join together and seek legal recourse through a class action lawsuit. It is important that consumers learn to recognize Internet fraud before they end up losing hard-earned money. Contacting the Better Business Bureau is a good first step, as well as your state or local consumer protection agency.

Many web sites now have feedback forums which can provide crucial information regarding the experiences others have had with a particular website. That being said, even if there are no complaints posted, this is no guarantee of a legitimate business. Many fraudulent operators open and close so quickly there is not enough time for consumers to file complaints. Before you enter into a business agreement with any online company, check to see if the company has a physical address and make sure the phone number is legitimate.

If you do enter into an agreement with an Internet company, make sure you fully understand the agreement before you sign any paperwork. Legitimate sellers always offer details regarding the products, services, price, delivery time, refund and cancellation policies and warranty terms. If a company is pressuring you to make a decision, it is likely a scam, so learn to resist the high-pressure sales pitch. Unsolicited e-mails are quite often fraudulent, so it is best to avoid responding to any e-mail in which the business is unfamiliar to you. Guard your personal information at all costs; don't provide credit card numbers or bank account numbers unless you are actually purchasing something. Your social security number should never be asked for unless you are applying for credit. If you feel that you have been scammed by a cash-for-electronics company, consider speaking to an attorney about your options.

Contact Our National Consumer Class Action Lawyers

The national consumer class action lawyers at Golomb & Honik are actively seeking individuals who have been financially harmed by CashforiPhones.com to serve as representatives in the class action lawsuit against the company. Class action lawsuits enable groups of individuals that have been harmed by a corporation or company to band together to seek justice. We believe that iPhone owners that traded their devices with CashforiPhones.com were the victims of consumer fraud and we believe in holding the company responsible for their actions.

To learn more about this class action lawsuit or to discuss your case with one of our national consumer protection lawyers, contact us at 1-800-355-3300 or 1-215-985-9177 or fill out our confidential contact form.

The national consumer class action lawyers at Golomb & Honik have successfully represented consumers in Philadelphia, Pennsylvania, New Jersey & throughout the United States.