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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

How do I Get a Better Auto Loan?

Shopping for a new vehicle can be overwhelming on its own without even considering the auto loan application process. But if you don’t take the time to research and compare auto loans, you may end up with a bad deal.

Review your Credit Reports

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Before you begin to shop around for the best deal, check your credit report. Your overall credit will give you a general idea of what interest rates to expect. You should also consider your budget and how much you can afford to spend each month on vehicle loan payments. It’s important to make a purchase that you can afford. If you fall behind on loan payments, your vehicle may be at risk for repossession. A vehicle repossession negatively affects your credit for up to seven years. You should also keep in mind that shorter term loans will mean that you pay higher monthly payments, but less over the course of the loan.

Evaluate your credit score

When you apply for an auto loan, your credit score will take a slight hit. The credit bureaus will treat several loan applications made within a short time frame as a single application. If you were to receive credit denials from several potential lenders, your credit report could be impacted negatively and your credit score may drop.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that represents victims of vehicle repossession.  If a borrower defaults on a bad auto loan and the vehicle is repossessed, Flitter Milz will evaluate whether the lender violated the borrower’s consumer rights.  If your vehicle has been repossessed in the past six years, Contact Us for a free evaluation.

What College Students Need to Know about Credit

As a college student, your credit is probably one of the last things on your mind. It can be a challenge to balance your classes and coursework while responsibly managing your finances, especially if this is the first time you have had to manage and budget your money.

Many students don’t realize that they start to build their credit right away once they take out student loans, or have expenses like utilities and rent.

If you continue to regularly monitor your credit report, pay bills on time, and keep your credit utilization low, your overall credit will remain in great standing. Good credit after college will make it easier for you to purchase a car, rent without a cosigner, and may even help you secure a job.

Tips for Building Credit

As a young person, you may not have a very extensive credit history. Unless a parent listed you as an authorized user on a credit card, your history is probably minimal. Sparse information may make it more difficult for you to secure new lines of credit or loans without a cosigner because lenders can’t be certain of your likeliness to make timely payments.

If you have student loans, these accounts will appear on your credit report and reflect positively as long as you make payments on time and in full. If you’re struggling with payments, look into income-based repayment options to avoid going into default.

You may also want to consider opening a credit card if you don’t already have one. Different types of accounts add diversity to your credit portfolio and will reflect positively on your score. Shop around for a card with little to no annual fees. Older accounts are more beneficial to your history, so the account will continue to positively affect your credit over time as long as you make payments in full and on time.

Tips for Monitoring Credit

Request your Credit Report
Every twelve months you are entitled to obtain a free credit report from each Transunion, Experian and Equifax. It’s important to regularly monitor your reports, even as a student, because there could be errors that negatively affect it. Write for a copy of your report and have it mailed to you.

Dispute Errors on your Credit Report
Although the credit bureaus have similar listings, the information that appears on one report may differ from another.  Be sure to obtain copies of all three reports and review them carefully.  If you find an error on your credit report, be sure to send a written dispute to those credit bureaus. You may also want to dispute the error with the creditor. Be sure to include any documents and relevant information that supports your claim.

Keep Your Credit Utilization Low
Your credit utilization also plays an important role in your overall credit health. If you regularly use more than 30% of your available credit, this may have a negative impact on your score. For example, if you have a credit card with a $1000 credit limit, you should avoid spending more than $300. This shows that you’re not only using a small amount of the credit that’s being loaned to you, but that you are using the credit responsibly and paying the amount borrowed.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents victims with problems involving credit reporting issues, debt collection harassment and vehicle repossessions. Contact Us for a free consultation to discuss your consumer credit issues.  If your rights have been violated, our firm will sue the credit bureau, debt collector or lender at no cost to you.

 

Credit Lessons for College Students

As a college student, this is likely the first time you’re responsible for your own finances. The way you manage your money in college can have a longstanding effect on your overall credit. Here are some important things to know about credit and what financial actions can help and hurt you.

Know the difference between your credit score and credit report

You’ve probably heard both of these terms used before, but what’s the difference between the two? Think of your credit score as an overall summary of your creditworthiness. Scores fall between 300 and 850, and the higher the number, the better the score. The average credit score is between 670 and 700, and a score above 720 is considered to be excellent. Lenders use credit scores to determine who qualifies for a loan as well as the terms of the loan agreement.

Credit reports contain more detailed information about your credit history than your score alone. They include payment history records as well as employment, legal, and bankruptcy information. Negative listings on your credit report, such as late payments, loan defaults, or a vehicle repossession, will lower your credit score.

Paying bills late will hurt your credit score

Timely payments are extremely important to your overall credit health. Late payments will appear on your credit report and have a negative effect on your credit score. Create reminders for all of your monthly bill payments like utilities, rent, student loans, and credit cards so that you don’t miss a payment and risk hurting your credit.

Checking your credit doesn’t hurt your score

There’s a common myth that checking your own credit will lower your score, but this isn’t true. Consumers are entitled to one free credit report from each of the three credit bureaus – Experian, TransUnion, and Equifax – every 12 months. You can request one from a single bureau every four months to ensure that you’re always monitoring your credit for accuracy. Credit report errors are relatively common, so it’s important to monitor your information and make sure that everything is accurate.

A potential employer can perform credit checks on you

Employment screening reports have become more and more common, especially for individuals seeking employment in banking and financial services, government, or jobs that require security clearance. They may also be used in various other industries such as trucking, nursing, food, and retail.

There are, however, certain limitations when a potential employer seeks your credit information. They must request your permission by having you sign an authorization before they can access your credit or perform a background check. You’re also entitled to a copy of the report if they choose not to hire you as a result.

Diverse account types will help you

When you start out building your credit, it’s beneficial to have a variety of accounts in good standing. This could include credit cards, federal and private student loans, and other regular bill payments like utilities. This shows lenders that you can responsibly manage different types of financial accounts. The length of time the accounts have been open also affects your score. Older accounts have a more positive impact on your credit.

Secured credit cards can help you initially build credit

If you don’t have credit history, lenders may reject your application for a new line of credit because they can’t ascertain whether or not you’re a risk. Secured credit cards are a good option for those who need to build credit, or for those who have poor credit.

A secured credit card requires an initial deposit which is then used as the credit limit on your card. You’ll get this deposit back if the card graduates to a normal credit card.

You shouldn’t max out your credit cards

Many people don’t know that the amount they spend on their credit cards in relation to their available credit plays an important role in their overall credit health. If you have a credit card, avoid spending more than 30% of your available credit. Spending more can lower your credit score.

Pay close attention to your credit health

Your credit is important for your future, so it’s important to monitor it regularly and stay on top of monthly payments. Healthy credit ensures that you won’t have an issue securing new lines of credit down the road and also sets you up for financial success.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors and those with credit reporting accuracy and privacy issues.  Contact us for a free evaluation of your consumer credit concern.

How Your Credit Affects Vehicle Financing

Before applying for any new line of credit, it’s good practice to check your credit report and credit score. Auto loans are no exception. A credit check will give you a good idea of where you stand and what type of interest rates you can expect. It’s also important that you verify that all of your information is correct and dispute any inaccuracies that may be bringing down your score.

However, credit scores that fall in the non-prime (620-679) and subprime (550-619) ranges may not necessarily indicate that you aren’t eligible for a reasonable interest rate. Lenders often use different tiers according to their own business needs to assess creditworthiness.

Lenders also frequently place more weight on credit history that is specific to auto loans. Timely auto loan payments in your credit history are more important than whether or not you make credit card payments on time. Always shop around to compare rates before signing an auto loan agreement.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus.  If a lender wrongfully repossesses a vehicle, a debt collector is abusive or the credit bureaus report information inaccurately, the consumer may have a lawsuit to pursue. For a no cost legal evaluation, Contact Us .

5 Money Mistakes for Students to Avoid

College is stressful enough without having to worry about financial issues. Avoid these five common money mistakes to stay on track with your spending.

1. Not Setting a Budget

There are a lot of expenses when you’re a student. Tuition and textbooks aside, you also need money for things like rent, utilities, and going out with friends. It’s easy to quickly burn through your money without realizing how much you’re spending. This is why it’s so important to set well defined budgets.

Budgets for different spending categories will keep you on track and will help prevent you from spending above your means. Look at your recent transaction history to gauge how much you typically spend on expenses like utilities, groceries, and entertainment. Set a modest and reasonable goal for each category and work on not exceeding your budget.

2. Paying Bills Late

Many students don’t realize that late bill payments can negatively affect their credit. You start to develop credit history right away, so financial irresponsibility during school could have an impact later in life. Credit history is a factor when you’re seeking new lines of credit, applying to rent an apartment, and sometimes even in a potential employment opportunity.

Always pay your bills on time. Include all bill payments in your budget and set reminders so that you don’t lose track during a busy semester.

3. Spending Too Much on Credit Cards

Credit cards are convenient. It’s easy to spend hundreds of dollars without thinking about when you have to pay it back. But overspending on your credit card means you risk spending more than you can afford.

If you only pay the minimum balance each month, you could end up paying excessive interest fees. Spending more than 30% of your available credit can also have a negative effect on your credit overall. For example, your credit score may take a hit if you spend more than $300 on a card that has a credit limit of $1,000.

Keep your credit usage below 30% and always pay off your balance in full and on time every month.

4. Not Paying Off Student Loan Interest During School

If you have student loans, you may be wondering why you should bother making payments while you’re still in school – you aren’t required to, and there’s even a grace period after you graduate for most loans.

Unsubsidized loans start to accrue interest as soon as they’re disbursed. This means that your loan amounts are slowly creeping up even when you’re still in school. Eventually, you’ll have to pay interest on top of this interest.

Depending on your interest rates, it may be entirely manageable to keep up with these payments during school. Small payments each month now could mean thousands of dollars in savings later on.

5. Spending Money on Things You Don’t Need

It’s easy to spend money on items you don’t really need – new clothes for a party, brand new furniture, new cookware. You should have some room in your budget for unexpected expenses and fun purchases, but don’t go overboard.

Before you buy something new, decide if you really need it or if you can find it cheaper elsewhere. Not only will this help you stick to your budget, it will also mean you have fewer things to pack up and move when it comes time to graduate.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors, and those with credit reporting privacy and accuracy issues.  Contact us to discuss your consumer credit concern.

How to Finance a Vehicle with Bad Credit

Purchasing a new vehicle is a major decision, especially when you need to secure a loan in order to do so. Not only are you shopping for a car, you’re also shopping for the best interest rate and loan agreement terms. This process can be even more difficult if you have poor credit.

Check your credit before the purchase

A negative credit history can make it more difficult to find an agreement with reasonable interest rates and can also make it more challenging to get your application approved. It’s important to prepare and research ahead of time before you make a decision to ensure that you choose the best option for your situation. You may run the risk of a vehicle repossession when the loan agreement terms present challenges to your finances.

The vehicle is collateral to the lender

The vehicle is considered collateral in a loan agreement. As the borrower pledges repayment of the loan, collateral is a form of security for the lender. If a borrower fails to make payments under the loan agreement, the lender has the right to repossess the vehicle. A repossession will further harm your credit and negatively impact your history for up to seven and a half years.

Shop for the loan that is right for you.

When you need to secure a loan for the purchase of your new vehicle, take steps to make sure you get the loan that is right for you.  If you  enter a loan agreement with unfavorable terms, you may not be able to make loan payments in full and on time.  When the terms of the loan have been broken, the lender may take steps to repossess your vehicle.

Seek Legal Advice

Flitter Milz is knowledgeable about the laws governing repossession of cars, trucks, motorcycles, boats and RVs.  If your vehicle has been repossessed, Contact Us.  We will review the details of your case at no cost, and evaluate whether your consumer rights were violated.

Personal Finance Basics for College Students

The start of a new college semester is a busy and exciting time. As you prepare to begin new classes, it’s important to consider how you’ll manage your finances while you’re in school. Follow these tips to keep your finances in order and avoid any unnecessary additional stress.

Set a Budget

Whether you receive a stipend from financial aid, are working part-time, or get financial help from your parents, it’s important to set a monthly budget to stay on track with your finances. You should budget for mandatory expenses like room and board or rent, utilities, and groceries, but you should also consider how much you can afford to spend on dining out and entertainment. Sticking to a budget will help you stay organized and help ensure that you don’t spend above your means.

Start a Savings Account

If you work during school, make it a goal to save ten percent or more of your income and put it into a savings account. Even if it seems like a small amount, savings will help when it comes time to graduate and find an apartment or begin to pay off student loans. It’s also helpful to have some money saved up in case of an emergency.

Pay Off Loan Interest During School

Many students take out both federal and private loans in order to fund their education. If you have student loans, you likely already know that you’re not required to pay them off until after you graduate, and there is typically a six month grace period following your graduation as well.

However, it’s a good idea to pay off the interest that accrues on your loans while you’re still in school if you have the means to do so. Some of your loans may be subsidized, meaning they won’t accrue interest while you’re still in school, but unsubsidized loans begin to accrue interest from the date that they are issued. Not paying this interest means you’ll eventually have to pay interest on the interest that you didn’t pay previously.

Build Your Credit

It’s important to keep in mind that your credit history will begin to develop right away. Certain bills are included on your credit report, so it’s critical to pay them in full and on time to avoid negative marks on your credit. Student loans will also appear on your credit report and will help you establish positive history as you make payments on time.

In order to secure new lines of credit in the future, a lender will pull your report to determine your creditworthiness. It is possible to get denied for credit if you lack sufficient credit history, so it’s helpful to try to build credit while you’re still in school.

The Credit Card Act of 2009 placed restrictions on individuals under the age of 21 getting a credit card without a cosigner, but secure credit cards are still a good option. A secure credit card requires an initial deposit. This deposit then acts as your available amount of credit. You can also build credit as an authorized user on a parent’s credit card.

Check Your Credit Report Regularly

You can get a free credit report from each of the three credit bureaus – TransUnion, Experian, and Equifax – every twelve months. Checking your own credit report does not reflect negatively on your credit. You may choose to request a copy from one bureau at a time so that you can check your report several times throughout the year.

Always review your report for errors and inaccurate information. Incorrect listings can have a negative impact on your credit if they aren’t addressed. Dispute any incorrect information with the bureau and with the creditor and provide any documentation that supports your claim.

Successfully managing your finances and building healthy credit requires consistency and time. With these tips you’ll be well on your way to good credit.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors, and those with credit reporting accuracy and privacy issues.  Contact us to discuss your consumer credit concern.  There is no cost for the consultation.

Tips for Older Americans in Debt

After retirement, increasing amounts of debt can make it more difficult for older Americans to make payments on time. When a lapse in payment occurs, these accounts are often sent to collections and the borrower starts to receive contact from debt collectors.

If you or someone you know is receiving contact from a debt collector, take the following steps.

Ask the Collector to Validate the Debt

If you don’t recognize the debt or it seems inaccurate, ask the collector to provide you with a validation of the debt. Past due accounts are often sold to debt buyers making it difficult to determine the original creditor. By writing to the collector, you can request the name of the original creditor and an itemized calculation of the balance claimed, including principal, interest, late fees, etc.

Dispute Inaccurate Information

If you want to dispute the debt, you have 30 days after the debt collector’s initial contact to do so. Write to the collector and provide any documentation that supports your dispute. Request that the collector respond to your dispute in writing.

Stop Harassing Calls

Under the Fair Debt Collection Practices Act (FDCPA), debt collectors can’t threaten, harass, or abuse you in the process of collecting a debt. They can’t give you false or misleading information about the debt or place personal information on, or visible through, an envelope.

If you feel that you’re being harasses, you can write to the collector and request they stop contacting you.  The collector must stop contact with you. However, it does not make the debt go away. The collection will likely be assigned to a new agency or law firm collector.

Be sure to keep a log of collection calls noting the date, time of day, name of collector & agency, Caller ID and details of the conversation or phone message.

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 legal consultation to determine whether your consumer rights have been violated.

 

Credit Scores and Credit Repair…not a Quick Fix

A high credit score makes many aspects of our lives more simple. It may be easier to purchase a home or car, secure a new line of credit, rent an apartment, or possibly be hired for a job or awarded a promotion.

What is a good credit score?

A credit score of 800 and above is considered excellent and indicates that the consumer not only uses credit, but pays bills in full and on time. A  score in the 700s is considered good, however there may be some negative listing on the credit report such as late payments. Scores falling in the 600s are considered fair and may represent denial of a loan, or possibly approval but with lower credit limits or higher interest rates . Lower scores indicate to lenders that the consumer is a high credit risk and either, the consumer may be denied, or credit would be offered with unfavorable terms.

Credit score ranges

Image via Experian.com

Consumers with poor credit may seek ways to repair and improve their credit scores quickly. However, it’s a process that takes time and responsible financial management.  Paying bills in full and on time, maintaining a low credit utilization, and paying off debt are critical steps.  Also, a regular review of your credit report for accuracy is important.  Every twelve months consumers are entitled to a free report from each, Transunion, Experian and Equifax.  If there are errors listed on the credit report, the consumer should promptly dispute the errors.

Send a dispute letter to the bureau by US Mail with an explanation of the error and documents that support your claim.  Be sure to keep a complete copy of your dispute.  The credit bureaus have 30 days to respond to disputes.  The bureau does not correct the error, you may need to re-dispute until your report has been corrected.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit reporting errors by credit data furnishers and the credit bureaus.  Contact us  for a free evaluation of your credit report errors for a potential violation of the Fair Credit Reporting Act.

My Car Was Repossessed. Where Do I Go From Here?

Repossessing a Vehicle

Unexpected life events, such as a job loos, divorce, illness, or death in the family, may have sever impact on meeting financial obligations. When a vehicle is financed through a bank or credit union, the lender has the right to repossess the car if the borrower has defaulted on the terms of the loan agreement. For example, if you don’t make timely payments or if insurance lapses, the lender can repossess the car. The lender is not required to notify the borrower in advance of the repossession.

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Usually, the lender will arrange for a repossession agent to locate the car and seize it. The repossession truck could come to your home, place of employment, or even a shopping center or restaurant where the car is parked. When seizing a vehicle, the repo agent may not “breach the peace”.  This means they can not use physical force, threaten force, or remove your car from a secured area without your permission.

How can I get my car back?

Letters related to repossessionThe lender will send a written Notice of Repossession, to the consumer AFTER the vehicle has been taken. This letter, sometimes called a Notice of Intent to Sell Property, will indicate terms to retrieve the vehicle within a specific period of time. If the borrower is not able to meet those terms, the lender will arrange to sell the vehicle at an auction or private sale. Once the car is sold, the lender will send a second letter, called a Deficiency Notice, to the consumer. This letter will detail the selling price of the car, any repossession and storage fees, and the total balance owed to satisfy the loan.

Do I have rights even though I defaulted on my loan?

If your car, truck, motorcycle, boat, or RV has been repossessed, a qualified consumer protection attorney can evaluate whether your rights have been violated. It will be important for you to provide a copy of your signed Retail Installment Sales Contract or loan agreement, along with any repossession correspondence from the lender to the attorney.

My loan agreement is in my car? How can I get a copy?   

Consumers will often keep their loan agreement in their car, which presents a problem if the vehicle is repossessed. In that situation, there are three ways to obtain a copy of the loan agreement.

1. Contact the lender: Write, call, email, or visit a local branch.

For example: If you had a loan with Peoples Security Bank & Trust and lived near their Scranton, PA branch, you could contact the bank office directly to request a complete copy of your loan agreement. You may need to get the bank’s contact information from a car loan statement, phone book listing, or by searching online. You will find their address, branch phone number, and email address.

Once you reach a bank representative in the repossession department, request they provide you with a complete copy of your loan agreement..

2. Visit the repo lot and obtain all of your personal belongings.

3. Contact the car dealership where the vehicle was purchased. The dealership often keeps copies of all loan agreements. You could visit the dealership to obtain a copy, or the dealership may be able to send a copy by fax, email, or through the US Mail.

Remember, when requesting a copy of your loan agreement, be sure to obtain a complete copy, front and back, and make certain that the copy is legible.

Seek Legal Help

Whether you fell behind on payments or not, borrowers have legal rights when the lender or repo agent has wrongfully repossessed the vehicle.  Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have had a vehicle wrongfully repossessed.  Contact Us for a no cost legal review.