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

7 New Year’s Resolutions to Improve Your Finances

Many people view a new year as a chance for a fresh start. It’s a great time to evaluate your financial health and set some goals for improvement. When you make resolutions, it’s important to set realistic, achievable goals so that you don’t get discouraged. Here are some ideas to get you started.

Create a budget and stick to it

Budgeting, or analyzing spending habits, is the best thing you can do for your finances. When you see how much money is spent on mandatory expenses, such as mortgage or rent, utilities, groceries, or loans, versus non-essential expenses, such as dining out, parties, gifts or vacations, you may find a way to reorganize expenses to make spending cuts, begin saving and start to pay off debt.

Once you’ve determined how much you spend on the necessities, compare what’s left over to your monthly income. Avoid setting budgets that are unrealistic.  You want to establish a budget that you will stick to and be able to feel success.

Grow your savings account

The amount of savings you have ultimately depends on your financial situation, but most experts say you should have enough to cover six to nine months of living expenses. Unless you already have a substantial amount saved, it isn’t realistic to make this your goal for the year. Instead, work on small progress over time. Refer back to your budget and determine how much you can save each month. Ideally, you should save at least 10% every month. By the end of the year, you’ll be well on your way to a healthy savings account.

Pay down your debt

You already know that the sooner you can pay off your debt, the better. You’ll end up paying less overall by avoiding extra interest accrual.

If you’re able to, set a goal to aggressively pay down your debt this year. Pay more than the minimum amount due to see progress more quickly. Try to trim extra expenses from other budget categories so you can prioritize your debt.

Pay on time

If you’ve struggled with timely bill payments in the past, make it your goal this year to always pay on time. Set up automatic payments if you can, or create recurring reminders on your calendar or in your phone. You’ll save money because you won’t be hit with late payment fees, and your credit will improve.

Check your credit regularly

The best way to know where you stand financially is to regularly check your credit report. You’re entitled to one free credit report from each of the three credit reporting bureaus every 12 months. Your report has information about your current credit account standing and payment history. It also includes any negative occurrences, like car repossessions or accounts in default. Check your report regularly to make sure the information is accurate and up to date.

Improve your credit score

If your credit score is on the lower end, set a goal to improve it this year. Pay any overdue bill payments, and make sure you make all payments on time moving forward. Keep credit usage below 30% of your available credit. This means you shouldn’t spend more than $300 on a card with a limit of $1,000.

Keep in mind that if you apply for new credit this year, whether it’s an auto loan or a credit card, the lender will most likely perform a hard inquiry, which could lower your score.

Become more financially literate

Are there certain aspects of your finances that you struggle to understand? Take the time this year to learn more. Whether you want to do research into different ways to invest your money, or you want to have a better understanding of how interest accrues on your loans, having a solid understanding paves the way for healthier financial well being.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents victims with credit reporting problems, those that have received contact from abusive debt collectors, and have had vehicles wrongfully repossessed.  Contact us for a free consultation to determine whether your consumer rights have been violated.

What Debt Collectors Don’t Want You Know

It can be scary and overwhelming when a debt collector starts contacting you about unpaid bills. With household debt at $12.7 trillion in the United States, this is a reality that many Americans have to face every day. However, there are certain things that debt collectors don’t want you to know about their collection tactics. Learn more about what they can and can’t do so you’re better prepared when they contact you.

Collectors must follow the law

The Fair Debt Collection Practices Act (FDCPA) protects you from unfair debt collection practices. The Federal Trade Commission (FTC) enforces the act, which prohibits collectors from using abusive or deceptive tactics to get you to pay. They can’t threaten you, make false statements, or misrepresent how much you owe.

Request the collector stop contacting you

If a collector is relentlessly contacting you, you can ask them to stop. Send a Certified letter to the collector and request they cease and desist contact with you.  The collector must stop contacting you. However, this doesn’t make the debt go away. The debt will most likely be reassigned to a new agency or law firm to attempt collection.

If calls are disruptive, you can also ask that the collector only contact you during certain hours of the day.

Collectors may not contact anyone but you

In some cases, debt collectors will contact family members, neighbors or friends to get your contact information. While this is acceptable, the collector is not allowed to share details about your debt. If they do so, it could be a violation of your consumer rights.

If a family member, neighbor or friend has been contacted about your debt, ask that person to write a statement with details about the contact. They should include the date, time of day, name of the collector, and details about any phone conversation or messages left. Have this statement reviewed by a qualified consumer protection attorney.

You’re entitled to a debt validation

Under the FDCPA, you should receive a letter in the mail within five days after a collector contacts you. The letter should state the amount of the debt and the name of the original creditor. If you don’t dispute the debt within 30 days of receiving this letter, the collector can assume the debt is valid.

If you dispute the debt, you can write the collector and request validation of the debt and an itemization that shows how the balance was calculated.

Seek 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 call and letters that you’ve received from collection agencies or law firm collectors.

8 Things To Do When Buying a Car

Before any major purchase, it’s important to do some research to make sure you stay within your budget and get the most for your money… and cars are no exception. A new vehicle is a large expense and requires some planning. This is especially true if you choose to secure an auto loan to make it more affordable. Here are some steps you should take before you finance an auto loan.

1) Request your credit reports and score

Continue reading 8 Things To Do When Buying a Car →

6 Common Questions About Debt

Many people find themselves in debt at some point in their lives, whether it’s from student loans, credit cards, medical expenses, divorce, personal loans, or other types of accounts. Here are some common questions you may have about debt.

Will my debt ever go away?

An unpaid debt never truly goes away. After seven years, it will no longer appear on your credit report, meaning you may see an improvement in your overall credit standing. Negative marks are removed from your report after seven years while accounts that are in good standing remain forever.

Collectors can continue to collect on debts even after the listing has been removed from the credit report. Some states have a statute of limitations on debt collection. If the statute of limitation has passed, the creditor can no longer get a judgment against you. However, an unpaid debt is always owed until it’s paid in full.

What if I can’t afford the minimum payments?

Many people have difficulty making bill payments at some point or another. If you can’t afford the minimum payment on your account, don’t just skip the payment that month. Skipping a payment will make it even more difficult to catch up the following month. Creditors can also report late or missing payments to the credit bureaus, meaning your credit will take a hit.

If you can’t afford to pay your bill, contact your creditor to see what your options are. Some creditors may extend the due date or waive the late fee. If you can’t work something out with the creditor, do your best to make up the missed payment as soon as possible, including any late fees.

Can the creditor repossess my belongings if I’m in debt?

There are limits as to what a creditor can and can’t repossess when you’re behind on your payments. In some loan agreements, property or possessions are listed as collateral in the terms of the loan. This means that the creditor can repossess the property or possession if you don’t meet the loan agreement’s requirements. The most common types of collateral are vehicles in auto loan agreements or homes in mortgage agreements.

If you have credit card debt, the creditor can’t repossess the items that you purchased with credit. However, a creditor can sue you to recover money if there is no collateral listed in the agreement.

Am I responsible for my partner’s debt after we get married?

Whether or not you’re responsible for your spouse’s debt depends on the state you live in. In community property states, both spouses are responsible if the debt occurs during the marriage. In common law states, each individual spouse is generally responsible for his or her own debt.

What happens to debt when someone passes away?

Everything a person owns at the time of his or her death is referred to as their estate. The assets of the estate are used to pay off any debts. If the assets of the estate aren’t enough to cover the debts, a family member may become financially responsible depending on the type of debt.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact us for a free legal evaluation to determine whether your consumer rights have been violated.

How to Prepare Your Credit Accounts During the Holidays

It’s the season for gift giving, and that means extra spending. Credit cards can be a convenient way to purchase gifts for family and friends, but it’s important to stay organized and make sure you have a plan to pay them off. Take these steps before you do your shopping to ensure that you’re prepared.

Check Your Credit Report

Your credit report provides the best summary of your overall financial standing. Your report will list all of your credit accounts, loans, and credit inquiries and will also list any delinquencies. To get a copy of your credit report, write to the credit bureaus – TransUnion, Experian, or Equifax – and include two forms of identification such as a current driver’s license and utility bill. You can get a free copy of your report from each of the bureaus every 12 months.

You may also want to check your credit score. This information will give you an idea of your overall financial standing and will alert you to any areas that could be improved. If your score is lower due to late payments or a lot of spending on credit accounts, you may choose to adjust your spending to fit your budget.

Keep an Eye on Credit Utilization

Now that you know the credit limits on each of your accounts, try to avoid spending more than 30% of your available credit on each of them. For example, if you have a credit card with a limit of $1,000, you should do your best to avoid spending more than $300. Your credit utilization factors into your credit score, so spending more than 30% of your available credit could lower your score.

Set a budget for each of your cards to avoid overspending. This will also make it easier and more manageable when it comes time to pay them off.

Pay Your Balances in Full and On Time

Set reminders to pay off credit accounts in full and on time. Carrying a balance in to the next month will mean paying more in interest fees. Your budgets will help you stay on track and help ensure that you’re always able to make your bill payments.

Taking the time to prepare your credit accounts for holiday spending will allow you to enjoy the season without extra financial stress and will set you up for success in the new year.

Seek the Help from a Consumer Protection Lawyer

Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have been contacted by debt collectors, or that have issues with listings that appear on credit reports.  Contact Us for a free evaluation of whether your consumer rights have been violated.

6 Tips for Holiday Shopping

The holidays are a busy time of year. Many people have difficulty staying on track with spending or forget that scammers may take advantage of the busy season. Follow these tips to stay financially responsible and to avoid common shopping scams that occur this time of year.

Create a Budget for Holiday Gifts

It can be easy to overspend when you’re buying gifts for others during the holiday season. Before you make your shopping list, create a budget for how much you can afford to spend this year and do your best to stick to it. If your budget is tight, consider gifts like baked goods or homemade items.

Pay off Credit Cards in Full and on Time

If you plan to use a credit card for your holiday spending, make sure to pay off your balance in full and on time. Carrying a balance over from month to month means that you’ll end up paying more for all of your gifts because of the interest that accrues on your account.

Use Secure Passwords when Shopping Online

If you shop online, use different passwords for each of your accounts and make sure they’re strong and secure. Use a password storing tool so that you don’t have to worry about remembering them all. These accounts include your credit card information and billing information, so it’s important to keep them safe.

Watch for Scams Online

Unfortunately, the holidays are a popular time for new scams to pop up. Scammers take advantage of the busy season and use the opportunity to create fake products or to steal identities. If the price of an online item seems too good to be true, it probably is. You should always verify that you’re purchasing from a valid website and that the payment portal is secure before you buy anything.

Don’t Leave Personal Information in Plain Sight

It’s important to remember not to leave personal documents or identifying information in easily accessible places or in plain sight in your vehicle, especially when parked in a busy shopping lot. Criminals could use this opportunity to steal your information. You also shouldn’t carry personal information, like your social security card, in your wallet or purse.

Keep an Eye on Your Belongings

Always keep your belongings, like shopping bags, purse, or wallet, on your person when you’re holiday shopping. Busy stores or restaurants can provide an opportunity for someone to take your things unnoticed. Keep shopping bags in the trunk of your vehicle so they’re hidden from view.

Seek Legal Help

Identity theft victims may need help from a consumer lawyer when collectors begin to call, or there are listings on credit reports that are a result of the theft.  Flitter Milz is a nationally recognized consumer protection law firm that represents consumers against debt collectors and the credit bureaus.  Contact Us for a free evaluation of whether your consumer rights were violated.

Do I Still Owe Money After My Car was Repossessed?

If you’re going through financial hardship or a difficult life event, it can be challenging to keep up with your car loan payments. Your vehicle is collateral, or your pledge to a lender that you’ll repay the loan. If you default on the terms of your loan agreement, the lender may choose to repossess your vehicle. They’re not required to contact you before the repossession.

If your car was recently repossessed, you may be wondering what happens next. Do you still owe the payments that you missed on your loan? Do you still owe the full balance after your car is sold?

Continue reading Do I Still Owe Money After My Car was Repossessed? →

What To Do If Your Identity is Stolen

Identity theft happens when someone uses your personal or financial information without your permission.  It can damage your credit status and ability to utilize credit. If you suspect someone has stolen your identity, it’s important to take action immediately. The consequences can be disastrous, but following these steps will help secure your information and prevent your credit from getting tarnished by someone else’s actions.

Most Common forms of Identity Theft 
– Account Takeover Fraud
– Debit Card Fraud or Credit Card Fraud
– Driver’s License Identity Theft
– Mail Identity Theft
– Online Shopping Fraud
– Social Security Number Identity Theft
– Senior Citizen Identity Theft and Scams
– Child Identity Theft

8 Self-Help Steps for Identity Theft Victims 

1) File a Police Report

File a Police Report with the local police department and request a copy of the report for your files. A copy of the police report must accompany all disputes to the bank and or creditor.

2) Contact the Bank or Creditor

When you discover suspicious charges or withdrawals on an account, immediately contact the bank or creditor and inform them that the charges were not made by you. Follow up the call with a letter confirming specific details of the issue. Keep a copy of all correspondence for your files.

3) File ID Theft Affidavit with the FTC

Identity Theft must be reported to the Federal Trade Commission through submission of an Identity Theft Affidavit.  This form must be completed and signed in the presence of a law enforcement officer, then submitted to the Federal Trade Commission.
For an Identity Theft Affidavit:
CALL:      FTC Identity Theft Hotline
                 877-ID-THEFT  or  (877-438-4338)
ONLINE:  identitytheft.gov
Retain a copy of your submitted affidavit.

4) File a Fraud Alert with each credit bureau

After discovering suspicious activity on a credit card or bank account statement, contact the three main credit bureaus – Transunion, Experian and Equifax –  to place a fraud alert on your credit file.

A fraud alert letter, accompanied by the police report, notifies the credit bureaus that you’re a victim of identity theft. Afterwards, the bureaus must confirm with you any new applications for accounts before authorizing approval.  Fraud alerts remain on credit files for 90
days and are free to the consumer.

5) Request Your Credit Report

Credit Report RequestRequest a copy of your credit report directly from each of the three main bureaus — Transunion, Experian and Equifax.  Review each report for listings of accounts or entries that do not belong to you or that you don’t recognize.

6) Send a Blocking Letter to the Credit Bureau

After review of your credit reports and identification of accounts that do not belong to you, a Blocking Letter should be sent to the credit bureau. The Blocking Letter confirms:
– You are an identity theft victim
– Suspicious or unrecognizable accounts.
– Accounts blocked from all future transactions or charges.

A Blocking Letter must include a copy of the police report filed, a current copy of your credit report with unrecognizable items circled, and a copy of your Fraud Alert Letter sent to the credit bureau.

7) Keep a Good Paper Trail of all Documents & Correspondence

Organize your files with all information related to the identity theft.  As each case of identity theft is unique, it can take months, or even years to untangle the fraud and restore your credit.

Documents must be readily accessible    Maintain files that are categorized by police records, credit bureaus, banks, and creditors. Assemble all correspondence, statements, phone logs, photographs, and notes for easy access and reference for future correspondence.

8) Protect Your Personal Information

Minimize the risk of identity theft for the future.

  • Keep your social security card in a safe space, not on your person.
  • Shred documents that have personal information like your social security number, bank account number or PIN, and credit card number.
  • Never provide personal information over the phone or online unless you have verified that the requesting party is legitimate.
  • Use secure, complex passwords. Don’t repeat passwords across websites. Keep your passwords in a safe place.  You may want to consider using a password storing tool to list your accounts and passwords.

Experienced Consumer Lawyers to Help

Flitter Milz is a consumer protection law firm representing victims of credit reporting errors and privacy violations and contact from abusive collection tactics which stem from identity theft.

If you have become a victim of identity theft and notice errors on your credit report, or have received calls or letters from debt collectors, Contact Us for a free consultation.  Our attorneys will evaluate whether your consumer rights have been violated.  Pictured above:
Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)

Are You Credit Invisible?

If you hear the term “credit invisible” it means that you may not have credit files  with the nationwide credit reporting agencies — Transunion, Experian and Equifax — or that the information that exists on your credit reports is very limited.

Credit invisibility doesn’t only apply to young individuals who haven’t built up their history yet. It can also apply to older individuals who have stopped using credit, or to Americans who live abroad and don’t keep their U.S. credit accounts active.

Lacking Credit History

Credit invisibility can be detrimental for a number of reasons. Lacking credit history can make it difficult or impossible to secure new lines of credit. This means you may not be able to get a loan for the house or car you want, or open a new credit card account. It could also make it more difficult for you to rent an apartment or get hired for a job.

Keep your credit files up-to-date

Stay up to date with your credit standing by checking your report regularly. Consumers may obtain credit reports from Transunion, Experian, and Equifax every twelve months for free. We recommend that you request your reports from the credit bureaus in writing and have them mailed to you. You should enclose two forms of identification, such as a current driver’s license and utility bill, with your request. Once you have your reports, review your information to make sure that all of your information is accurate.

Seek Legal Help

Flitter Milz is a nationally-recognized consumer protection law firm that represents victims of inaccurate credit report listings. Contact us for a free legal evaluation of errors that appear on your report.

Don’t Get Burned on Bad Credit

Checking your report regularly is the best way to ensure that your finances are healthy and that your overall credit remains in good standing. Poor credit can negatively affect your life in many ways. You can request your credit report by mail or online at annualcreditreport.com.

Consequences of Poor Credit

1. Higher Interest Rates

Individuals with lower credit scores and negative listings on their credit report will incur higher interest rates on new lines of credit.

2. Credit Application Denial

Poor credit can also result in loan application denial. Lenders will view you as a high risk borrower and are less likely to approve your application. This could mean you’ll have more difficulty purchasing a home or vehicle.

3. Difficulty Finding a Job

It’s becoming more common for potential employers to check an applicant’s credit before making a final hiring decision. This is especially common for jobs within banking and financial services, government, or jobs that require security clearance. Employment screening reports are also often used for trucking, nursing, food, and retail positions. Employers are required to provide you with report details if you’re denied a position as a result of the report.

4. Rental Application Denial

A lower credit score is likely to make it more difficult to rent an apartment. Landlords want to see that you can make payments on time. Poor credit can be a red flag that makes them less likely to rent to you.

5. Higher Utility Bills

A person with lower credit may experience higher utility bills than someone whose credit is in good standing. It can also make it more difficult to negotiate a cell phone contract, or result in a more expensive contract.

6. Debt Collection Contact

Negative credit listings are typically the result of late payments or accounts in default. When someone doesn’t make payments for 60 to 90 days, the account may be sent to a debt collector. Debt collection contact can be overwhelming and intimidating and can add stress to your financial situation.

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 legal evaluation of credit report errors.