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

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.

 

Servicemembers Civil Relief Act (SCRA)

Protection from Repossession

The Servicemembers Civil Relief Act (SCRA) provides special protections for active service members that have defaulted on car loan payments.  To qualify, servicemembers must have signed the loan agreement, and paid at least the deposit or first installment payment, before entering military service. To repossess a vehicle, the lender must obtain a court order.

Reasons for Repossession

Vehicle repossessions occur for a number of reasons. Most often, a vehicle is repossessed due to missed payments or the lapse of insurance. When a car is repossessed, lenders need to follow the law, whether payments were missed or not. If the lender overlooks the law, the servicemember may bring a lawsuit against the lender.

Requirements AFTER Repossession

After a vehicle has been repossessed, the lender is required to send proper notices to the borrower. Shortly after the repossession, the lender will send a letter called a Notice of Intent to Sell Property, which confirms the repossession occurred and details terms for to retrieve the vehicle. If the borrower is not able to meet the terms, the lender may choose to sell the vehicle at an auction or private sale. Once the sale has taken place, the lender will send a second letter called a Deficiency Notice, which informs the borrower of the sale price of the vehicle and any remaining balance due.  If the borrower is not notified properly, there may be grounds to file a lawsuit against the lender.

Credit Reporting and Car Repossession

If a servicemember’s vehicle has been repossessed, he or she may face loss or denial of a security clearance, or other types of punishment based on mismanagement of their finances.  In addition, credit reports may list delinquencies or the repossession and lower credit scores, which make it difficult to obtain a new loan.

All consumers are entitled to receive one free credit report every twelve months directly from Transunion, Experian and Equifax.  Check your credit reports , and make sure the information is accurate.

Seek Legal Assistance

Servicemembers that have fallen behind on payments for auto loans and are facing repossession should seek the advice from a qualified consumer protection attorney to advise on their consumer rights.

Flitter Milz is a nationally recognized consumer protection law firm who knows the laws to protect borrowers from wrongful repossession and inaccurate credit reporting. Contact us for a no cost consultation.

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

What are Creditors Able to Repossess?

When Can a Lender Repossess?

It may seem as if a creditor has all the power in a loan agreement, but there are limitations as to what a creditor can and can’t take from you if you fall behind on loan payments. In some loan agreements, a possession or property is listed as collateral. Collateral means that the borrower has pledged something to serve as protection for the lender in the event that there is a default.  For example, in a case where the borrower fails to make payments in full and on time under the agreement’s terms, the collateral can be repossesed.

Vehicles – Cars, Trucks, Motorcycles, RVs

Vehicles are considered collateral in auto loan agreements. If the borrower falls behind on payments, the lender maintains the right to repossess the vehicle, usually without any prior notice. If the vehicle is sold for less than the remaining loan balance, the borrower may still be responsible for paying the outstanding amount.

Homes

The same is true for homes. If a borrower doesn’t make timely mortgage payments, the lender can repossess the home. This is known as foreclosure. The home is then typically sold as a means of recovering as much of the remaining loan balance as possible.

Rent-to-Own Items

Rent-to-own items can also be repossessed. This could include items like furniture or appliances that were rented with the option of buying.

What Can’t Lenders Repossess?

Lenders can’t repossess property that isn’t specifically listed as collateral in the terms of the loan agreement. Credit card purchases also cannot be repossessed if you fall behind on payments. And even if some property is listed as collateral in the agreement, a contract can be void if it doesn’t comply with state legal requirements. It’s also important to keep in mind that a creditor can sue you in court to recover money that you owe if the loan agreement doesn’t list collateral.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of improper vehicle repossessions. If you think your consumer rights may have been violated by the lender or repo agent, contact us for a no cost consultation — whether or not you fell behind on your auto loan payments.

 

What You Should Know About Employment Background Checks

Be sure to request your credit report and verify that your credit history is up to date and accurate before seeking a new job. Prospective employers often run credit checks on potential employees prior to making hiring decisions, and negative listings could hurt your chances for employment or a promotion. The Fair Credit Reporting Act (FCRA) is the law that requires employers to obtain a prospective hire’s consent prior to pulling a credit file.

Employers Must Obtain Permission

Employers must obtain your written permission before they can access your credit file. During the application process, the employer should provide you with background check disclosure and authorization forms that require your signature.

Easy to Understand Forms

The Federal Trade Commission (FTC) states that these authorization forms should be free of “complicated legal jargon” or “extra acknowledgement or waivers.” You should never feel confused or misled when it comes to authorization forms that an employer or prospective employer provides in order to get your consent to view your credit.

Your Right to View the Report

You also have the right to see the report that the employer used as a means to determine your employment. You should inform the prospective employer that you want to have a copy whether you are hired or not.

Seek Legal Advice

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of inaccurate credit reporting. Contact us for a free evaluation of your reports.

How a Judgment Affects Your Credit

Many people know that unfortunate circumstances in life, such as divorce, health issues, job loss or death, can result in financial hardship.  All of a sudden, accounts go unpaid, collectors call, negative listings appear on credit reports, and sometimes, lawsuits are filed.

You are a defendant in a lawsuit
Whether the default was for a credit card, auto loan, a medical bill or another personal obligation, if you were sued DO NOT IGNORE THE LAWSUIT.  After receiving a summons, as the defendant, you must inform the court of your intent to defend.  Whether you seek legal representation from an attorney or intend to represent yourself  “pro se“, you must attend the court hearing.

Default Judgment
When you fail to appear in court on the hearing date to defend the lawsuit, a default judgment will be entered against you.  This means that the judge ruled against you in non-criminal court.  You will be required to pay the damages or judgment amount.

Judgments are public court records, which means anyone has access to view the court filings.  Credit bureaus commonly obtain these records from the courthouse and list judgments on the consumer’s credit file.  Although judgments can only be listed on credit reports for 7 1/2 years from the filing date, after that time period, judgments could be re-filed, or revived, before it expires, causing a re-reporting by the bureaus for another 7 1/2 years. This varies from state to state.

Do not Ignore a Judgment
If there’s a judgment entered against you, you must address it. Even if it’s a mistake and the debt doesn’t belong to you, you will need to take action to get it resolved to avoid negative consequences on your credit report.  Judgments allow for the plaintiff to take steps, such as garnish bank accounts, place liens on property,  and in some states, garnish wages.

You have rights against the debt collector
When a creditor assigns the collection of a debt to a third party collector, the Fair Debt Collection Practices Act (FDCPA) , offers protections from a collector’s abusive collection tactics.  Whether the consumer owes the debt or not, the collector must follow the law.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents consumers against debt collectors.   Contact Us if you have received collection calls or letters.  You have rights against the collector and may be able to bring a lawsuit against the collection agency or collection law firm for violation of your consumer rights. There is no cost to you for the legal review.

How a Move Can Affect Your Credit

Your credit follows you wherever you go, and that includes whether you purchase a new home or move to a new apartment. But how does the process of moving affect your credit?

Credit Inquiries

When you apply for a mortgage or fill out an application for an apartment rental, the bank or landlord will most likely perform a credit check.

There are two types of credit inquiries: hard and soft. Most financial inquiries are considered hard and have the potential to negatively affect your credit, especially if you are declined. As well, lenders may see you as a higher risk if you have several hard inquiries.

If you’re concerned about the effect of a credit inquiry on your credit score, check to see if the prospective lender or landlord would accept a copy of a credit report that you pulled yourself. You’re entitled to one free credit report from each Transunion, Experian and Equifax every twelve months. Requesting the reports yourself will not affect your credit in any way.

Avoid Breaking a Lease

The terms detailed in the lease agreement will state your options if you need to terminate a lease early.  You may have to pay extra fees or surrender your security deposit for an early termination. Make sure you pay any agreed amount on time. If you don’t, the landlord may have the right to take you to court or send the account to a debt collector. This type of activity will appear on your credit report and will damage your credit score.

Missed or Late Payments

With the stress of moving, often it is more difficult to keep track of your finances and make timely payments. Missed or late payments can be very harmful to your credit. Depending on how late the payment is, it could appear as a negative mark on your credit report and also lower your credit score significantly.

Mail Forwarding

Prior to your move, ensure that you will receive mail from your old address by taking the following steps:
-Notify the United States Postal Service to forward all mail to your new address
-Notify your creditors in writing of your address change
-Inform your landlord of your new address and contact information.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, credit reporting privacy and accuracy violations and vehicle repossessions.  Contact Us for a free consultation.

6 Credit Definitions You Must Know

Poor credit and unsteady financial standing can make many aspects of your life much more difficult than they need to be. Your credit follows you wherever you go, and it can affect your ability to get a job, rent an apartment, or secure new lines of credit. For this reason, it’s important to prioritize your credit health and always make sure your finances are in the best order that they can be.

As a consumer, it’s important to educate yourself on all of the financial aspects that affect your credit. Make sure that you’re aware of how your open accounts will increase or decrease your credit score and how certain financial mishaps are reflected on your credit report. Certain occurrences like a vehicle repossession, late payments, or a defaulted account will result in negative marks on your credit report. These types of negative marks can remain on your report for many years. Take the following steps:

Learn these 6 Important Credit Definitions.

1. Credit Report:  A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.

2: Credit Bureau: The three main credit bureaus are Transunion, Experian and Equifax. Credit bureaus collect data from lenders and creditors and provide reports to the consumer, and to prospective lenders.  The reports show a consumer’s payment history and amounts owed on credit cards, mortgages, auto loans, etc.

3. Credit Score: A credit score is based on credit history – the number of open accounts, total levels of debt, and repayment history, and other factors.  Lenders used credit scores to evaluate the probability that an individual will repay loans in a timely manner.

4. Hard Inquiry: A hard inquiry, or “hard pull”, occurs when you apply for a new line of credit, such as a credit card or loan.  It means that a creditor has requested to look at your credit report to determine how much risk you pose as a borrower. Hard inquiries show up on your credit report and can affect your credit score.

5. Soft Inquiry: A soft inquiry occurs in cases where you check your own credit or when a lender or credit card company checks your credit to pre-approve you for an offer.  Soft inquiries do not impact your credit scores.

6. Debt-to-Income Ratio: A Debt-to-Income Ratio is all your monthly debt payments divided by your gross monthly income.  This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

Check your credit reports regularly.

Ensure that all information on your credit reports is accurate and up to date by checking your reports regularly. All consumers are entitled to one free credit report each year from each three of the credit reporting bureaus.

Set Goals to Improve your Credit.

Determining benchmarks to improve your credit standing over time.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, wrongful vehicle repossessions and credit reporting privacy and accuracy issues.  Contact Us to discuss your consumer credit concern.

 

How a Voluntary Surrender Impacts your Credit

If you’re behind on your car loan payments, it’s possible that your vehicle will be repossessed by the lender. Your vehicle is considered collateral under the terms of the loan agreement, so the lender has the right to take back the car or truck if there is a lapse in payments or terms of the agreement are broken.

If you’re suffering a financial hardship, often borrowers that have fallen behind on payments may consider whether to voluntarily surrender their vehicle instead of the embarrassment of a repo-man coming to their door.  Either way, the repossession of a vehicle may impact your credit report negatively and make it difficult to get credit approval on an auto loan in the future.

What to Do Before Repossession

First and foremost, if there’s a chance that your vehicle will be repossessed, you should take the following actions in preparation:

  • Remove all purchase and loan documents from the vehicle.
  • Remove all personal belongings from the vehicle.
  • Note the current odometer mileage.
  • Take photographs of the vehicle’s interior and exterior.
  • Request that the lender provide you with a written loan payment history.
  • Request that the lender provide you with a payoff figure.
  • Do not hide or conceal the vehicle to avoid a repossession.

This will ensure that you have all the information you need along with your personal belongings should a repossession take place.

How a Voluntary Surrender and Repossession Affect Your Credit

Many consumers who anticipate a repossession wonder if the consequences will be less negative if they voluntarily surrender the vehicle to the lender. The only significant difference between the two is the way they appear on your credit report; a voluntary surrender will be listed as such, but the negative effect will be about the same as a repossession. It’s possible, however, that the lender will be more willing to enter a loan agreement with you in the future if you voluntarily surrender the vehicle.

A repossession can stay on your credit report for up to seven and a half years. It’s a negative listing that lowers your credit score and it can make it more difficult to secure a new auto loan or line of credit.

Discuss Your Options with Your Lender

If you are having difficulty making payments, contact your lender as soon as possible. You may be able to avoid repossession by deferring payments to the end of the loan and prevent your credit from taking a further hit.

Seek Legal Help

Whether you have fallen behind on your car payments or not, there are legal protections for borrowers from lenders and repo agents that wrongfully repossess vehicles.  Learn more about your rights and contact Flitter Milz, a nationally recognized consumer protection law firm.