Can I Sue a Company in Texas for Falsely Promising Stimulus Money and Signing Me Up for Insurance Instead?
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Reviewed & verified by A. Jason Velez, Esq.*
Managing Attorney, 1LAW · Last reviewed January 1, 2026
Legal Inquiry
Consumer Legal Issue
I talked to a representative from a company that signed me up for a stimulus package offered to the public during the current economic hardship many of us are experiencing. I am struggling harder today than ever in my life, and given everything happening, it made sense to me that the government might be offering stimulus money. My family and I were so happy, we felt saved. I knew better, but I was panicked and hoping against hope that it was real help. I half expected it to be nothing, and I would have felt better with no further contact, but instead they signed me up for a health insurance plan that I cannot afford. I can barely pay my bills to support my family, let alone pay for insurance. This feels like an appalling and deceptive practice that took away a glimmer of hope from my family. I want to sue this company and get compensation for the harm this has caused, including the emotional distress it has caused me and anyone else affected. I do not believe this can be legal, and I will not accept this happening to my family.
Is anyone here?
Attorney Answer
What you describe, being led to believe you were receiving stimulus assistance and instead being enrolled in an insurance plan you never asked for, may be a deceptive trade practice under Texas law, and you have real options even if you never knowingly signed anything.
The Texas Deceptive Trade Practices Act, Tex. Bus. & Com. Code § 17.46, prohibits false, misleading, or deceptive acts in trade or commerce, including misrepresenting the source, sponsorship, or approval of goods or services. If a representative told you or implied you were signing up for a government stimulus program, and you were instead enrolled in an insurance plan, that kind of misrepresentation is the type of conduct this law is designed to address.
For any insurance enrollment to be valid, you generally need to have knowingly and voluntarily agreed to it. If you did not understand or intend to enroll in a paid insurance plan, and were misled about what you were agreeing to, you may have grounds to have the enrollment cancelled and to dispute any charges tied to it.
Steps that can help you right now:
1. Gather everything you have. Any texts, emails, call recordings, confirmation numbers, or paperwork from the representative or the insurance company, even if it is incomplete. 2. Contact the insurance company directly and tell them, in writing if possible, that you did not knowingly authorize this enrollment and want it cancelled and any charges reversed. 3. File a complaint with the Texas Department of Insurance, which handles complaints about how policies are sold and can investigate agents or companies for improper enrollment practices. 4. File a complaint with the Texas Attorney General's Consumer Protection Division, which handles this type of deceptive sales complaint. 5. Keep records of any financial harm, such as bank statements showing attempted charges, since this supports both undoing the enrollment and any claim for damages.
The DTPA allows consumers harmed by these kinds of practices to potentially recover damages, and in some cases attorney's fees and court costs, though that depends on the specific facts and evidence in your case. Texas generally requires DTPA claims to be filed within two years of when the deceptive act occurred or reasonably should have been discovered (Tex. Bus. & Com. Code § 17.565), so acting sooner rather than later helps preserve your options.
This is general legal information, not legal advice. A Texas consumer protection attorney, or your local legal aid office, can review what happened and advise you on your specific options.
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Courts & Legal Aid in Texas
- File or look up a case through the Texas Judicial Branch, which serves the state.
- Get free civil legal help from TexasLawHelp.
- Use the LSC — Find Legal Aid to find a local legal-aid office by ZIP code.
- Use the LawHelp.org to browse free legal information and self-help resources.
- Use the ABA Lawyer Referral Directory to get matched with a local attorney through your state bar.
- Visit FTC — Report Fraud to report scams and deceptive business practices.
Frequently Asked Questions
What is the Texas Deceptive Trade Practices Act?
It is a state law that prohibits false, misleading, or deceptive business practices, including misrepresenting what a product or service actually is. Consumers harmed by these practices can file a complaint or pursue a claim for damages.
How do I cancel an insurance policy I was signed up for without my knowledge?
Contact the insurance company directly, ideally in writing, and state clearly that you did not knowingly authorize the enrollment and want it cancelled. You can also file a complaint with the Texas Department of Insurance if the company does not resolve it.
Where can I report a company for a stimulus-related scam?
You can file a complaint with the Texas Attorney General's Consumer Protection Division and with the Federal Trade Commission, which both track deceptive sales and scam practices. Reporting helps build a record even if your individual complaint does not resolve immediately.
