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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 Increased Interest Rates Will Affect You

What does it mean when the Federal Reserve increases interest rates and how will it affect your overall financial well-being?

Rate increases by the Federal Reserve may impact auto loans, mortgages, savings accounts, credit cards and refinanced loans. Unfortunately, if you carry a balance on that credit, you’ll most likely see your monthly payments increase. Paying off your credit balance with each statement will not only help you avoid an increase in monthly payment amounts, it will also help to improve your overall credit score.

If you can’t afford your monthly payments and your account goes into default, it may be sent to a third party debt collector. Debt collectors must follow specific guidelines when they contact you about your debt. The Fair Debt Collection Practices Act  is the federal law that outlines violations to a consumer’s rights by abusive debt collectors. You may request the collector provide validation of the debt and a detailed itemization of the amount claimed.

Negotiate a Payment Plan

You may also be able to negotiate a payment plan with the collector. Charges like interest and late fees could be removed from the balance when negotiated. If the collector is willing to agree to a payment plan, be sure to get the agreement in writing.  This letter should detail payment terms including the monthly payment amount, payment due date, total of payments and total balance owed.  Be sure to make your payments as agreed.

Settled Debt and Tax Implications

If you settle a debt consisting of $600 or more in principal — the actual loan amount, not interest or fees — for less than the full balance owed, there could be income tax consequences.  If you have questions concerning tax on a settled debt, be sure to seek advice of an accountant or tax advisor.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive debt collection tactics.  Contact Us for a free evaluation of collection letters and phone calls that you have received.  Whether or not you owe the debt, the collector must follow the law.

Avoid These Credit Card Problems

Credit cards are useful for a number of reasons. They’re convenient when you don’t have cash on hand, and some cards carry perks like cash back or travel savings. However, you should avoid using credit for emergencies, and you should always be sure to make payments in full and on time. Carrying a balance from month to month can result in unruly interest charges that are more difficult to pay off, especially when trying to stick to a budget.

Credit Score Drop

Failing to make a payment on time just once could cause your credit score to fall as much as 110 points. Once lost, these points can be difficult to build back up and can make other aspects of your life more challenging. Your overall credit can affect your ability to secure new lines of credit, affect your interest rates, and even hurt your chances of renting an apartment or securing a new job.

Check your Credit Reports

Always be sure to stay on top of payments and check your credit report regularly. It’s not uncommon for credit reports to contain errors or inaccurate information, which could further harm your overall credit. You can request one FREE credit report every year from the three credit bureaus – TransUnion, Experian, and Equifax. Check for duplicate negative listings, someone else’s information, and any unfamiliar activity. Dispute any credit report errors immediately.

Seek Free Legal Help 


Flitter Milz is a consumer protection law firm that represents people in matters concerning credit reporting issues, contact from abusive debt collectors, or have had a vehicle repossession.  Contact us for a free evaluation of your consumer law concern —  whether you had fallen behind on payments or not.

Everyday Impact of Credit Scores

Many Americans have never checked their credit report or are aware of all the ways in which credit affects their lives. Poor credit can affect things like utility deposits, car insurance, and cell phone service options. Your credit can also affect your ability to get a job or rent an apartment.

NerdWallet Infographic

Check Your Credit

Every consumer is entitled to a free credit report from all three credit bureaus – TransUnion, Experian, and Equifax – every twelve months. Always check your credit report regularly and make sure all information is accurate and up to date. If you find any inaccuracies, dispute directly with the reporting bureau.

Improve Poor Credit

The best way to improve your credit is to make all of your payments in full and on time. Rather than carrying a small balance, it’s best to just pay it off completely. Keeping your credit utilization low will also help your score improve over time.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit reporting errors.  Contact Us for a free evaluation of your credit reports and determination of whether your consumer rights have been violated.

Cary Flitter — Next Lawyer Up

Listen to the podcast here.

Cary Flitter was interviewed on Next Lawyer Up, a podcast that features discussions with consumer lawyers across the country. Led by Ron Sykstus, partner with the prominent Alabama bankruptcy firm Bond & Botes, P.C., Cary was asked to discuss his background as a born and bred Philadelphian and graduate of Central High School (231), what drove him to become an attorney, and how he chose to develop a practice in consumer protection law.

Ron met Cary several years ago at a national consumer law conference where Cary spoke on consumer law issues. Ron found him to be a very engaging speaker. He liked Cary’s straightforward speaking style and ability to explain complex legal issues in a simple and understandable fashion.

Cary is regarded as a well-respected consumer law attorney whose advice and counsel is sought nationwide. He has been advocating for consumer rights for over 30 years. Building a practice around litigating cases on behalf of consumers against debt collectors, banks and finance companies, insurance companies, car dealers and credit reporting agencies, Cary has been recognized for litigating cases that have broken new ground, helped to shape the law itself and set precedent for future legal decisions.

Cary’s firm, Flitter Milz, P.C., is based in the suburban Philadelphia town of Narberth, with offices in Northeastern Pennsylvania and New Jersey. He represents clients as individuals and class actions in consumer lending, unfair debt collection, vehicle financing and leasing overcharges, wrongful car repossessions, credit reporting, credit privacy, unwanted “robo” calls and other consumer cases.

Cary currently serves on the adjunct faculty at Temple University’s James E. Beasley School of Law and Delaware Law School of Widener University where he teaches Consumer Law & Litigation. He has accepted invitations to guest lecture on consumer law topics at Harvard Law School, University of Pennsylvania School of Law, and many other venues.

Cary is a member of the National Association of Consumer Advocates and regularly presents at seminars around the country to train fellow lawyers and law students on developments and strategies in consumer law. As an author, Cary has contributed to Pennsylvania Consumer Law, the leading legal treatise in Pennsylvania on consumer law issues, and Consumer Class Actions published by the National Consumer Law Center in Boston.

 

How to Build an Emergency Savings Fund

Unfortunately, emergencies happen to all of us. Maybe your pet is suddenly sick and you have to pay an expensive vet bill. Or, you get into a fender bender and need to pay to get your car fixed. Emergencies are serious, unexpected situations that require immediate action. Many Americans don’t have enough money in savings to cover the cost of these unexpected expenses.   More often than not, they turn to credit cards to pay for emergencies.

While using credit is fine from time to time, it can be detrimental to rely on it, especially if you can’t keep up with the minimum payments. If you fall behind on payments, your account could go into default and negatively affect your credit report and credit score.

To set up an emergency fund that can help to avoid using credit cards in the future, follow these steps.

1. Establish a Specific Savings Goal

Start with a savings goal of $1000 and set aggressive benchmarks to reach your goal. Create a budget for your expenses and determine where you can cut costs for a few months. Food, entertainment, and transportation expenses are a good place to start.

2. Deduct a Set Amount from Your Paycheck

Deduct a set amount of money from every paycheck and put this into a savings account. Many online banking accounts allow you to set this up automatically so that it’s easier to stay on track.

$1000 is enough to cover many emergencies. Once you reach this goal, you can set more modest goals and work on building a more substantial savings account over time.

3. Consider Other Sources of Income

If you can’t find areas to cut expenses and are having difficulty saving a portion of each paycheck, consider potential sources for additional income. Babysitting, dog sitting, and house cleaning, or seasonal work such as cutting grass, raking leaves or shoveling snow, are all good part time options that are always in demand.

4. Take Charge of Your Finances

Assess your overall financial well-being. Request your current credit report and address any issues or inaccurate information.

If you’ve relied on credit for emergencies in the past and find yourself in debt as a result, take steps to pay off credit card debt over time. If you begin to receive contact from debt collectors, make sure you’re familiar with the Fair Debt Collection Practices Act. Under this law, debt collectors are not allowed to threaten or harass you, provide false information about your debt, or contact friends, neighbors or family about your debt.

Get Legal Help from Abusive Debt Collectors

Flitter Milz is a consumer protection law firm that represents people that have become victim to debt collector’s abusive practices.  If you have been contacted by a collection agency or law firm collector, we will evaluate whether your consumer rights have been violated – whether you fell behind on payments or not.  Contact us for a free legal evaluation.

Why You Shouldn’t Co-sign a Loan

When friends or relatives can’t secure a loan on their own, they may ask you to help by co-signing. A co-signer is often required for someone to secure a loan if they have poor credit history, or a lack of credit history.

Deciding whether or not to co-sign on someone else’s loan is a personal decision. However, there are some red flags to be aware of, and it’s important to understand that co-signing carries significant risk without much reward. Here are five signs to look for if someone asks you to co-sign a loan.

1) The person in need of a co-signer has a history of late payments

Individuals often need a co-signer when their own credit has too many negative marks to secure the credit on their own. Generally, this means that they have had difficulty making payments on time in the past and their credit has taken a hit as a result.

If you know that the person making the request has recently struggled with timely bill payments, it may not be a good idea to co-sign. If payments are missed, you’ll be liable to repay missed payments immediately and risk having to pay the full loan balance if the co-borrower defaults.

2) You anticipate needing a loan of your own in the upcoming months

Co-signing also affects your debt-to-income ratio. Even though you’re not the primary borrower, the loan will appear on your credit report. You’re liable for the payment of this loan, so it could affect your ability to secure a loan of your own. Before you co-sign, consider your current financial situation and whether or not you’ll need your credit for your own purposes.

3) You don’t have backup savings in case anything goes wrong

If the primary borrower misses any payments, you’re liable for those payments as the co-signer. Co-signers need to monitor the status of the loan and make sure all payments are made on time. They should also have backup funds in case the primary borrower lapses in payments.

4) You’re worried about your own credit

If you have concerns about how co-signing will affect your own credit, it’s probably not a good idea. If the primary borrower defaults, this could harm your credit, and it can be difficult to rebuild.

5) Your instincts are telling you not to do it

Plain and simple: if you have a bad feeling about it, don’t co-sign. It’s likely not worth the worry and risk, especially if the primary borrower has a troubled credit history.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus.  If you have co-signed a loan and the primary borrower has defaulted, it’s possible that a repossession has occurred, collectors are contacting you, or your credit has been affected.  Contact Us for a no cost consultation to discuss whether your consumer rights have been violated.

Financial Tips for New College Graduates

Graduating from college is a huge achievement. It means you’re done with studying, exams, and essays. But it also means you have to be more responsible with your finances and make sure to maintain healthy credit.

Your credit will affect many aspects of your future, like your ability to rent an apartment, secure a new loan, and even get hired for a new job. If you haven’t already, check your credit report. See what information is currently listed and make sure it’s all accurate. Dispute credit report errors with the reporting bureau to ensure that your credit history is reflected correctly.

If your credit history is relatively short, consider how you can continue to build your credit. If you have student loans, making your payments on time and in full each month will reflect positively on your credit. Obtaining a credit card and paying it off in full each month will also contribute to a higher credit score.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit reporting privacy and accuracy issues, abusive debt collectors and lenders that have wrongfully repossessed vehicles.  Contact Us for a free legal evaluation of your consumer credit problem.

Are You Haunted by a Repossession on Your Credit Report?

Just when you think you’re getting your finances in order and want to apply for a new line of credit, a vehicle repossession from long ago can come back to bite you. What happens after your vehicle is repossessed, and how does it affect your credit report and credit score moving forward?

What happens after the sale of your car?

1) Collection

Once the lender sells a repossessed vehicle, you’ll receive a letter that includes the vehicle’s sale price and any remaining balance owed on the loan. This letter is called a deficiency notice.

The lender may proceed with collection of the deficient balance through their collection department. However, the lender will often assign the collection of any deficient balance to a debt collector, and the borrower will begin to receive calls and/or letters from them.

Whether you owe the deficient balance or not, collectors must follow the Fair Debt Collection Practices Act when they contact you about debt. Borrowers have rights, whether the balance is owed or not.

2) Lawsuit

After a period of time, the lender may choose to file a lawsuit against the borrower for the deficient balance. If the lawsuit is ignored by the consumer, a default judgment will be entered against the consumer.

Judgments can be dangerous! Bank accounts can be attached. Wages can be garnished. Property can be seized. Judgments can be listed on the consumer’s credit reports and impact the ability to be approved for new credit.

If you have been sued, contact a qualified consumer protection attorney to discuss your rights.

3) Credit Reporting

Vehicle repossessions negatively affect your credit report and lower your credit score. They can remain on your report for seven and a half years after the original delinquency date. The negative reporting could impact existing accounts by increasing interest rates or decreasing credit limits. The repossession could also affect your ability to be approved for new credit, whether you’re applying for a new credit card, car loan, or mortgage.

Negative credit information may also impact your ability to be promoted or hired for a new job or get approved as a tenant for an apartment. The Fair Credit Reporting Act offers consumer protection for the accuracy, fairness, and privacy of reported information. You can get a FREE credit report every twelve months from Transunion, Experian, and Equifax.

Steps to take

If you are haunted by negative reporting from a vehicle repossession, take the following steps:

  • Gather your car loan and repossession documents
  • Gather all correspondence that the lender sent AFTER the repossession
  • Gather all collection letters received for collection of a deficient balance
  • Obtain current credit reports from Transunion, Experian, and Equifax
  • Gather supporting documents such as:
  • Loan Denial Letters
  • Account statements showing interest rate increases
  • Account correspondence stating credit limit reduction

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against the credit bureaus for inaccurately reporting information.  Contact Us for a FREE case review.  We will evaluate whether your rights have been violated by the lender, debt collector or credit bureau.

How to Pay off Credit Card Debt

Believe it or not, the average household debt is approximately $134,643 — an amount which can include mortgages, auto loans, credit cards and personal loan balances. Debt has continued to increase as cost of living increases. And as a result, many Americans rely on credit cards to pay for expenses they can’t necessarily afford.

If you’re in debt, the idea of paying it off probably feels overwhelming and unrealistic. It can be difficult to keep up with minimum payments while managing other everyday expenses. But if you make a long-term plan to pay off your debt, and stick with your plan, you’ll make significant progress toward your goal.

Five Steps to Address Debt

  1. Make more than minimum payments on credit card and loan balances

2. Prioritize your debts and pay off those with the highest interest rate first

3. Contact the creditor to see if you can make adjustments to your account.  You may be able to change a payment due date or lower an interest rate, to accommodate your budget and income.

4. Evaluate personal items to liquidate. Use the funds to pay off or lower your debt

5. Create a budget and track your spending.  Evaluate where you may be able to cut expenses.  The money you save can be used to lower your debt.

Protection from Abusive Collectors

Contact from debt collectors can cause additional stress. You have rights under the Fair Debt Collection Practices Act (FDCPA).  This federal law prohibits collectors from using deceptive, misleading abusive tactics to collect consumer debt. Under the FDCPA, debt collectors are not permitted to:

  • Threaten or harass you
  • Tell you false information about your debt
  • Contact family and friends and disclose information about your debt
  • Continue trying to collect from you if you requested they stop

But debt collectors may not always provide accurate information about your debt resort to unlawful tactics to get you to pay. If any information seems inaccurate, ask that the collector provide Validation or Itemization of the debt.

Seek Free Legal Help

Flitter Milz is a consumer protection law firm that represents consumers that have become victim of unfair collection practices by debt collectors and collection law firms.  Whether you owe the debt of not, the collector must follow the law.  Contact us to discuss your consumer rights.

How to Protect Yourself from Identity Theft

Who knows my social security number?

Identity theft is more common than you may think. Sometimes the criminal is someone you know. It could be a family member, co-worker, or friend. But other times, it’s someone you’ve never met.

Before a criminal takes the opportunity to impersonate you and use your information, take steps to protect your identity. Extensive damage to your finances occurs when new accounts are opened without your knowledge, or when existing accounts are used without your permission.

Be cautious with your personal information. Keep your passwords for bank accounts, credit cards, loans and financial accounts in a safe place.  As well, be sure to shred statements and account records after use.

Who can I share personal information with?

Certain entities, such as financial institutions, employers, the Internal Revenue Service, government programs (i.e. workers compensation and welfare), medical providers, and insurance companies, require your Social Security Number (SSN). They often access information on credit reports to determine an applicant’s credit worthiness before approving a loan, a job or promotion, a new insurance policy, or medical coverage.

Do I have to provide personal information on request?

Legitimate businesses have privacy policies that explain why they collect personal information and the affiliates they share it with. Request a copy of this policy and review it for their list of affiliates. Consumers have the right to inquire why certain information, such as name, address, phone number, date of birth, and social security number, is requested on applications and forms.

Important Questions to Ask

You may not need to provide all information that is requested on a form. You may ask:
-How the information will be used
-Where and how long it will be stored
-Whether the location is secure
-How long the information will be kept on file
-Who will have access to the information
-When the information will be deleted

If your SSN is required, you may ask if  another form of identification would be acceptable.  You may be able to give a copy of your current driver’s license, a passport, or birth certificate instead.

Can I get a new social security number?

It’s not easy to get a new social security number. You can submit an application for a new SSN with the Social Security Administration under certain circumstances. For example:

  • Identity theft victims that continue to be disadvantaged by use his or her original number
  • A social security number assigned to more than one person.
  • Sequential numbers assigned to family members causing mis-merged credit reporting files.

When a new SSN is assigned, the new number is cross-referenced with the original number so that the person receives credit for all earnings under both numbers.

To request a new SSN, contact a Social Security office near you. You will need to complete an application, show documents that establish U.S. citizenship, age, identity, and evidence of any legal name change, if appropriate. The application must explain the reasons for needing a new number and provide credible evidence and documents that detail the reasons for needing a new number.

Get Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit report accuracy and privacy issues, and those who have experienced abusive collection tactics.  Contact us today for a free legal consultation to discuss how the consumer laws may help you.