Understanding Consumer Law

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We hope the articles below help you understand your rights as a consumer. You can scroll through the titles, or sort by Practice Area or Topic. You can also use the search feature to locate information by keyword.

Flitter Milz represents people with a variety of problems involving consumer credit and collections. If you have a particular question or believe your consumer rights have been violated, Contact Us for a no cost consultation.

Author: Consumers Law

Steps to Take After a Data Breach

Anyone can be the victim of a data breach or identity theft. If you find yourself in this situation, remember that there are ways to protect your information from being compromised further. Be on the lookout for changes to listings on your credit reports, charges to your credit cards, “Welcome” letters sent by creditors, and any changes to your credit profile. Take these steps to protect yourself after a data breach to avoid the costly effects that a hack can cause.

1. Freeze Your Credit

You can “freeze”  or restrict access to your credit file which makes it harder for identity thieves to open new accounts in your name.  Notify the three main credit bureaus, Equifax, Experian, and TransUnion, that you request a credit freeze.  There is no cost to place a credit freeze on your file.

Often, identity thieves try to get approval for a new line of credit or loan.  If there is a freeze on your credit report, the bank or lender will not be able to access your credit file, keeping the thief from receiving approval for the credit request.

A credit freeze may also block you from access to your credit file. Follow specific steps required by each credit bureau to unfreeze your credit file by contacting:
Equifax:  800-349-9960        Experian:  888-397-3742       Transunion:  888-909-8872

2. Set Up Fraud Alerts

Fraud alerts provide less protection than a freeze but are still a valuable option. Rather than completely blocking companies from seeing your credit report, fraud alerts require identity verification before any further action can occur. Alerts typically expire after 90 days but are free and can be renewed. To request a fraud alert, write to the credit bureau(s) stating the reason for your request.

3. Monitor Your Statements

It’s also a good idea to monitor your account statements for any suspicious charges. Make it a habit to check your monthly statements and that you recognize each transaction and amount.  If you notice an error, send a written dispute immediately. Most credit card companies require written disputes within 60 days of an item listed on your statement.

4. Review Credit Reports & Dispute Errors

You’re entitled to one free credit report from each of the three credit bureaus every 12 months. We recommend that you write a letter to request your reports. Just as you would monitor your monthly statements, look over your credit report carefully and dispute any findings that are incorrect with the credit bureaus.

5. Beware of Scams

Identity thieves can be tricky, so learn how to recognize scams. Scammers often use tax season to target victims. If your information has been compromised, identity thieves could file taxes under your name and claim your refund.

Also, be aware of phishing attempts. Thieves can take advantage of security breaches by pretending to be members of the compromised organization. Be cautious who you give your information to following a data breach, even if the person claims to be trustworthy or knows your personal information.  Request that they provide you with written documentation showing who they are, the company they work for, and details that support their request.

6. Sign Up for Account Notifications

As a preventative measure, you can set up text and/or email notifications so that you’re aware when purchases are made on your account. Use these alerts to ensure that you’ve authorized all charges. If a suspicious charge arises, contact your bank or credit card company in writing to report the disputed charge.

7. Change Passwords

Make sure to change your login information on the breached account and any sites using the same information. Using different passwords for your accounts may help prevent other accounts from being hacked.

8. Address the Situation

Sometimes, it’s hard to tell the difference between a scam and a legitimate debt collector. When your identity is stolen, take steps to to secure your personal information and your accounts from further abuse.

9. Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of identity theft suffering from credit reporting errors and contact from abusive debt collectors.  Contact us for a free legal evaluation to determine whether the credit bureaus or debt collectors have violated your consumer rights.

How Much Should I Spend on my Credit Card?

Credit cards can give you a lot of flexibility when it comes to your finances. When you get a credit card, you have the freedom to make purchases even when you don’t have any cash on hand. As long as you always spend within your means and make payments on time, your credit accounts can help build a well rounded credit history and reflect positively on your overall financial health.

Most consumers know that every credit account has a spending limit. If you exceed this limit, purchases may be declined. This doesn’t mean that you want to spend just up to your limit every month. If you consistently max out your credit cards, or come close to doing so, it will negatively affect your credit and lenders will see you as a high risk borrower. As well, if balances are not paid off at the end of the month, interest is charged on the remaining balance, plus all new charges.

How much credit do I have?

The easiest way to see your credit limit is to log in to your online account or check the monthly statements that you receive in the mail. You should see the available credit on the account clearly listed.

How much credit should I use?

Keep your credit utilization ratio low to continue making the most of your credit accounts. Ideally, you don’t want to spend more than 30% of your available credit. This means that if your account has a $1,000 credit limit, you should avoid spending more than $300 each month.

If your available credit is fairly low and you’re having a difficult time keeping your spending below 30%, consider making multiple payments per month to keep your balance down. Credit companies typically report balances to the bureaus at the end of the month. When it’s reported, you want your usage to be above 0%, but below 30%. This shows that you’re a responsible borrower.

Can I increase the amount of credit that I have?

If you regularly use more than 30% of your available credit, it might be a good idea to see if the creditor is willing to increase your limit. The creditor will probably need to perform a hard inquiry to assess your creditworthiness. Hard inquiries temporarily have a negative effect on your credit.

Creditors are often willing to increase your limit if you make payments on time and in full each month, or if you’ve had an increase in income.

You could also consider opening another credit card. Each individual account has its own set limit, so opening a new account will give you an additional 30% of the new account’s limit. Keep in mind that opening another account also requires a hard inquiry on behalf of the creditor. For this reason, it’s best to choose between opening a new account or requesting that an existing creditor increase your limit. This way, you avoid two hard inquiries.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact Us for a free evaluation of contact that collectors have made with you.

How to Monitor Your Credit

Your credit history plays an important role in your ability to get approved for new lines of credit, whether it’s a new credit card, a personal loan, or another type of borrowing agreement. It also affects your ability to rent an apartment, or possibly be hired or promoted in your job.

Review Credit Reports & Dispute Errors

Do not wait until you’re ready to apply for a loan to check your credit. Monitor your credit reports regularly to see that your information is accurately reported.  If there is an error, send written disputes to the credit bureau.  You do not want to be denied for a loan because of someone else’s error. Credit applications are considered hard inquiries on your credit file, and denials could result in lowering your credit score.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims with credit reporting privacy and accuracy problems. Contact Us for a free consultation to discuss errors on your credit reports.

Tips on Purchasing a Car

The decision to purchase a new vehicle is exciting. Whether it’s your first car purchase or not, the freedom of mobility and independence is invaluable. You can go anywhere, whenever you like.

But cars are expensive. Buying a vehicle that suits your needs and your budget can be a challenge. Often, the vehicle that you would like to drive may not be the one that you can afford. Become an educated buyer.

Buying a car is a two step process

Continue reading Tips on Purchasing a Car →

Credit Report Listings with Negative Impact

Your credit report plays a critical role in your overall financial health. The information that it contains will affect your ability to get new lines of credit for auto or personal loans, rent an apartment, and sometimes even get a job or promotion. It’s important to understand all of the information on your report and what types of negative listings may appear.

Every person’s credit report has the following:

  • Personal information.  Your name, current and previous addresses, social security number, date of birth, and possibly current and previous employers.
  • Credit accounts.  Current and previous credit accounts including details such as payment history, credit limit, monthly payment amount, and current balance. Auto loans, student loans, credit cards, and any other type of credit accounts in your name will be listed.
  • Inquiries. Hard inquiries are listed on your report when there is an application for new credit, and may remain on your report for up to two years. Several hard inquiries, which may be viewed by a lender as high risk, may lower your credit score and impact your ability to be approved for credit.  Soft inquiries are listed by companies offering to promote a special product or service and do not hold negative weight on your report.
  • Negative listings and public records. Late payments, debt, accounts in collection, repossessions, accounts in default, bankruptcies, foreclosures, and judgments are all listed on your credit report. Negative information can stay on your report for up to seven years and will lower your credit score. It may make it more difficult to get approved for new credit, or could result in higher interest rates on any loans or credit.

What you can do about negative listings

Negative listings on your credit report are frustrating, especially if you’re making an effort to improve your financial situation.  Take steps to pay down debt over time.

-Monitor your credit reports
-Dispute errors with the credit bureau and credit furnisher
-Pay your bills in full and on time
-Make a budget and stick to it

These positive actions will help improve your credit and show that you’re on the right track, even while the negative listings remain.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of car repossession, credit reporting errors and unfair debt collection practices.  Contact Us for a free consultation to determine whether your consumer rights were violated.

How to Get a Job When You Have Poor Credit

Finding a new job can feel like a full time job in itself. First identifying companies and positions, then prepare your resume and cover letters.

The next most important step is to check your credit reports.

Employers usually check credit reports during the hiring process as a means to gauge the applicant’s responsibility with finances. Not all employers check credit reports during the employment screening process. But those that do, often check for positions that involve a security clearance, access to money, sensitive customer data or confidential company information.

An employment screening report only includes your account payment record, how much you owe, and your available credit. Potential employers can’t see your credit score. Follow these steps to prepare your credit before applying for a new job.

1. Obtain current credit reports

When you start looking for a new job, get a copy of your credit report. You should know appears on your report before a prospective employer obtains a copy. You can get a free report every 12 months from each of the three credit bureaus – Transunion, Experian and Equifax.

Review your reports for accuracy. If you see errors, dispute them directly with the reporting bureau. If you have negative listings like a car repossession or defaulted account, these should only stay on your report for 7 1/2 years.

2. Ask employer about credit checks

If you have negative credit listings and you’re concerned about the role they’ll play in your job search, contact your target companies anonymously and ask if they check credit as part of their candidate screening process. If you think it will be an issue, you might choose not to spend time on applications for a company that asks for your credit history.

3. Know your rights

Potential employers can ask for a copy of your credit file. However, there are guidelines that must be followed.
1) You must provide written permission for a company to request your report.
2) The company must notify you of the company that provide the employment screening report.
3) You may write to the screening report company to request a copy of the report that was used in the employment hiring process.

4. Take steps to improve your credit

Your job search will be easier in the future if you don’t have to worry about how your credit might affect your eligibility. Be proactive and evaluate your credit before applying for that new job.

-Review your credit file in advance.
-Make bill payments in full and on time.
-Use less than thirty percent of the credit that’s available to you.
-Maintain a healthy debt-to-income ratio.
-Dispute errors on your credit reports.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims with credit reporting accuracy problems.  Contact Us for a free legal review of your credit reports and an evaluation of whether your consumer rights were violated.

 

Do You Actually Owe a Debt?

When a debt collector contacts you to collect payment on an account, it can be scary and overwhelming, especially if the debt in question is unfamiliar to you. Collectors may contact you from an agency you’ve never heard of, and some may even threaten legal action against you.

It’s possible that you don’t recognize the debt because the original creditor assigned it to a collection agency or sold it to a debt buyer. Collection lawyers may also try to collect on debts in certain situations. However, it’s also possible that you don’t recognize the debt because you don’t owe it.

What to do when you’re contacted by a debt collector

Whenever you receive any debt collection contact, the collector is required to mail a letter within five days that tells you the amount of the debt and the original creditor. This letter should also explain your rights under the Fair Debt Collection Practices Act (FDCPA). If you don’t receive this letter, it could be a sign that the collector may not be legitimate.

If you receive this letter and still don’t recognize the debt, write to the collector and request proof of the debt and how they’ve calculated the amount claimed. If you have proof the debt was paid, include these documents with your dispute letter.  Always keep a copy of any correspondence with the collector.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection contact.  Contact Us for a free legal evaluation of collection calls or letters that have been sent to you.

Debt Collection Against Military Personnel

When an account goes into collection, it’s stressful and overwhelming for anyone. But debt collection can be especially troublesome for military service members. Financial trouble could result in negative consequences like loss or denial of security clearance.

Frequent moves and relocations can make it difficult for service members to keep up with bills and collection notices. Set up automatic payments when you can and always make sure to update your address to avoid missing bill payments.

If an account does go into collection, debt collectors often use shady tactics to try and collect payments. However, the Fair Debt Collection Practices Act prohibits collectors from threatening to reduce a service member’s rank or security clearance. They are also not allowed to threaten to contact chain of command. Learn more about what debt collectors can’t do under the FDCPA.

Military personnel are also protected by the Servicemembers Civil Relief Act. This legislation provides some protections against car repossession for those in the military.

Make sure to educate yourself on how to manage your finances and learn about the laws that exist to protect you. Learn how to get a free copy of your credit report, and how to dispute errors in your credit history.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive debt collection tactics, credit reporting privacy and accuracy issues and wrongful vehicle repossessions.  Contact Us for a free legal consultation to determine whether your consumer rights have been violated.

Pictured above:  Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Check Your Credit Score Before Submitting New Applications

Before you applying for new credit or a job, or submitting a lease application for a new home or apartment, check your credit reports and score. You can obtain a free copy of your credit report every twelve months by writing to the credit bureaus – Transunion, Experian and Equifax.

How to Obtain your Credit Score

Your credit score, which is a number that tells a lender how likely you are to pay credit back on time and is based on your credit history, can be obtained in various ways.

  1. Purchase your score from the credit reporting companies, like FICO.
  2. Many credit cards companies have started to include an offer to obtain credit scores in monthly statements. Check with your credit card issuer to see if your score is available.
  3. A credit counselor may also be able to give you your score.
  4. There are a number of websites that offer free credit scores, but be sure to read the fine print before you sign up. The Consumer Financial Protection Bureau says: 
    “Many services and websites advertise a “free credit score.” Some sites may be funded through advertising and not charge a fee. Other sites may require that you sign up for a credit monitoring service with a monthly subscription fee in order to get your “free” score. These services are often advertised as “free” trials, but if you don’t cancel within the specified period (often as short as one week), you could be on the hook for a monthly fee. Before you sign up to try one of these services, be sure you know what you are signing up for and how much it really costs.”

Get Legal Help

Flitter Milz is a consumer protection law firm that represents victims of credit reporting problems. Whether you are facing loan denials, lowered credit limits, increased interest rates, the consumer protection laws may provide protections. Contact Us today to discuss your credit report problems and find out how we can help.  There is no cost for the legal evaluation.

What to Do if You’re Denied a Loan

Loans are commonly used for expenses like car purchases, home improvements, medical bills, and weddings. They can also be used to consolidate debt or pay off credit card bills at a lower interest rate. Loans with reasonable interest rates can provide a means to purchase an item and pay for it over time.

But what happens if you’re denied for that car loan, or a bank loan that was to help with an unexpected expense? Review the following steps which may help provide a solution.

  1. Figure out why you were denied

A loan application could be denied for a number of reasons. It’s important to understand the bank’s reason for not approving your application. It’s possible that your income doesn’t meet the required amount or your employment history is inconsistent.

Loan applications may also be denied due to incorrect information on the application itself, or errors on the applicant’s credit report. You should verify that your identifying information like social security number and birth date are correct on the application. Check your credit report to make sure all information is accurate and dispute anything that is incorrect.

Banks also look at your debt to income ratio when you apply for a loan. If you already have significant debt, it will be more difficult to secure a loan. Your overall credit is also an important factor. If you have a history of late payments or negative listings on your credit report, the bank may deny your application.

 2. Submit an application with a different bank

If one bank denies your application, you can try applying with another. It’s generally best to apply with your own bank before trying a different one, but banks have different criteria and guidelines for loan approval. You may be able to secure a loan with another institution.

3. Consider getting a guarantor or co-signer

If you’re not able to secure a loan on your own, whether due to poor credit or insufficient income, a co-signer might be a good option. When a guarantor signs onto a loan, he or she agrees to take on financial responsibility if the borrower is unable to make payments. This helps the bank ensure that the loan will be paid back.

4. Pay down debt

If your debt to income ratio is the issue, take some time to create some attainable goals to pay down your debt. Banks typically want your debt to income ratio below 35% to approve another loan.

5. Review your budget and credit profile

Sometimes a loan denial is a sign that you need to reassess your finances and make some changes. Each time you apply for a loan, the lender performs a hard inquiry to pull your credit information. Hard inquiries can temporarily hurt your credit. Take a break from loan applications for now and work on improving your credit, paying down debt, and tracking your expenses.

6. Seek legal advice

Flitter Milz is a consumer protection law firm representing people with credit reporting errors, wrongful car repossessions, contact from debt collectors and unwanted “robo” calls.  Whether payments were missed, or a debt is owed or not, the consumer has rights against the credit bureaus, lenders or collectors.  Contact us for a free consult to determine whether your consumer rights were violated.