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

When is a repossession wrongful?

Once a borrower defaults on terms of his or her auto loan agreement, the lender may repossess the vehicle. The agreement details events that lead to a default. For example, failure to make monthly payments on time, or in full, are common defaults. Lenders are not generally required to notify the borrower in advance of a repossession.

Repo Agents are hired by the lender

Lenders usually contract with a third-party, such as a towing company or forwarding service, to handle the repossession. The repo agent is provided with home and work addresses, and any other useful information to help locate you and your vehicle.

Without warning, vehicles can be repossessed

Without warning, the repo agent comes to take the vehicle from your home, place of employment, a location in your neighborhood, or even the store where you shop. Some vehicles, often those bought from a used car lot that also accepts payment (called a buy-here, pay-here lot), may have a location device or a kill-switch installed.

Lenders and their hired repossession agents must follow the law when taking a vehicle. If a car or truck has been wrongfully repossessed, the borrower may have the right to sue the lender and repo agent, even if the borrower missed payments or defaulted in some way.

Was your vehicle repossessed by mistake?

If the lender did not have the right to repossess your vehicle but did so anyway, a wrongful repossession may have occurred.

First, gather your loan agreement and review the terms for default. Second, review your payment records for amounts paid, payment date, form of payment, (such as check or money order), and the date the payment was applied to your account.

Did the repossession agent follow the law?

If the repossession agent didn’t follow the law when they took your vehicle, it may be considered unlawful vehicle repossession.

  • Repossession agents must inform the local police of their intent to repossess a vehicle. If you find that your vehicle is missing, contact the local police or the lender to confirm whether your vehicle was repossessed or stolen.
  • Repossession agents may not “breach the peace” in taking a vehicle. This means that they can’t use physical force or threaten physical force. They also can’t access a fenced or locked area on your property to retrieve the vehicle, unless permission was given. The repo agent is required to leave your property if asked.
  • Repossession agents are not allowed to damage personal property. If damage occurs, be sure to take photographs or get statements from witnesses.
  • Did the lender send you full and proper notice immediately after the repossession, and again after any auction or sale of the vehicle? If not, your consumer rights may have been violated.

Did the police “Breach the Peace?”

Vehicle repossession often takes the consumer by surprise. Confrontations may develop, and either the borrower or repo agent calls the police for assistance. The police are to aid in keeping the peace. They may assist in diffusing an altercation between the repo agent and the borrower.

The police are not supposed to enable a repossession, or order the borrower to “step aside” or “turn over keys”. They may not threaten arrest or command the borrower to turn over the vehicle. At this point, the police may have crossed the line from keeping the peace to breaching the peace. This could be a violation of your constitutional rights, enabling you to bring a lawsuit against the police department, the repossession company, and the lender for a wrongful repossession.

Steps to take

During the repossession, take written notes of the events that occur. Be sure to include:

  • Date and time of day
  • Name of repossession company, agent name, and license plate of tow truck
  • Police officer name, department, and badge number
  • Police report and number
  • Witness names and contact information
  • Photographs of damage to the vehicle or property
  • A statement detailing events, or take a video on your cell phone

Gather and remove all personal property and car loan documents from the vehicle, including:

  • Car purchase and finance documents: Retail Installment Sales Contract, buyer’s agreement, insurance and registration
  • Family items: pay checks, medication, school books, clothing, etc.
  • Work items: computers, briefcases, equipment, etc.

After the repossession, the lender is required to provide certain notices to the consumer. First, a Notice of Intent to Sell Property is to be sent and received in advance of the vehicle’s sale or auction. It states terms to get your vehicle back, along with date and time of sale or auction. As well, this notice will state the location of your vehicle so that you can retrieve personal property.

Second, a Deficiency Notice is sent after the vehicle’s sale. This notice presents the sale amount of the vehicle, subtracted from the balance owed on the loan, and states any deficient balance or surplus. Even larger banks or credit unions make mistakes in these documents. At times, this could make the repossession illegal.

Seek Legal Help

After your car, truck, or motorcycle has been repossessed, contact Flitter Milz, a qualified consumer rights law firm, who is experienced in car repossession law. You may be able to pursue a case against the lender, and possibly the repo agent, for a wrongful repossession.

 

Spend Your Gift Card before Delaware Takes It

The state of Delaware could confiscate your gift cards’ unused balances if you wait too long to use them

Delaware state laws allow for expired or dormant gift card balances to be turned over to the state. Gift cards that haven’t been used for five years or those that have expired are considered “abandoned property.”

Consumer lawyer Cary Flitter, with the Philadelphia law firm Flitter Milz, said, “Customers can protect themselves from having their cards confiscated by learning the expiration dates. Consumers should read the disclosure on the card or jacket it comes with. The burden should be on the seller, but there is a little bit of buyer beware that helps the consumer from losing the gift card’s funds.”

Under Delaware’s escheatment or unclaimed property laws, the holder of that abandoned property – the retailers who issued the cards – is required to report to Delaware when the funds have become abandoned and turn them over to the state.

Typically, most states have laws to collect abandoned property or funds when someone passes away without any heirs.  But only about half the states include gift cards.

 

Value your Credit Report. Keep it accurate.

Credit reports from Transunion, Experian, and Equifax are used to determine everything from your ability to get new credit to the rates that you pay for credit. If the wrong information is listed on your credit report, it can prevent you from getting approved for new credit and possibly have a negative impact on your current accounts through higher interest rates or reduced credit limits.

Where do the Credit Bureaus receive their information?

The credit bureaus receive your information through furnishers. Furnishers are businesses like banks, mortgage lenders, credit card companies, and medical or utility providers that provide data related to account ownership and performance. The furnisher has an obligation to provide the credit bureaus with accurate information.

However, when inaccurate information is provided to the credit bureaus, these errors could lead to a credit denial, a change in current credit terms, or a lower credit score.

How do I check my credit report?

Accurate credit reports are key to your financial health. Check your credit reports frequently. You can request a free credit report from each bureau every twelve months, but there are many ways to monitor your credit files on a regular basis. To check your report, send a credit report request letter to Transunion, Experian, and Equifax.

Seek Legal Help from a Consumer Lawyer

The Fair Credit Reporting Act (FCRA) is a federal law that promotes the accuracy, fairness, and privacy of information that appears in files of consumer reporting agencies.  Transunion, Experian and Equifax are the three main reporting agencies.

Violations to a consumer’s rights occur when errors remain on a credit report, or when someone accesses a credit report without the consumer’s permission.  Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against the credit bureaus and/or furnishers for violations of the FCRA.

Contact us for a free evaluation of whether your consumer rights have been violated.

Who Took My Car?

You leave your house in the morning and to drive to work. Suddenly, you realize that your car is no longer in the parking lot.

Four simple steps:

Find out who took your car and how to get it back.

1)  Was your vehicle repossessed or stolen

If you were behind on auto loan payments, it’s possible that your vehicle was repossessed by the lender. Even if you make a payment after several months of falling behind, your account may not be up to date.

Call your auto loan lender or local police department to confirm that your vehicle was repossessed and not stolen. Repossession agents should inform the local police department before the vehicle repossession takes place.

If your vehicle was repossessed, ask for specific details, such as which repossession company it was, where they are located, and when the police were notified.

2) Gather your auto loan contract

Locate the loan agreement that you signed when you purchased the vehicle. This agreement should provide details about your rights if your car is repossessed.  If you financed through a dealership, this is called a Retail Installment Sales Contract, or RISC.

After repossession, if you are unable to locate a copy of the loan agreement, you could request a copy of it from your lender, or, contact the dealership where the vehicle was purchased.  If any of your documents were inside the vehicle at the time of repossession, you should be able to retrieve them by following these steps.

Your loan agreement will say whether you have to pay off the entire balance of the loan, or only the past due payments. In addition to these payments, the lender may also ask you to pay for any storage or towing fees.

3) Gather Repossession Letters sent from the Lender

After the repossession, the lender sends the borrower a repossession notice called a Notice of Intent to Sell Property.  This letter states terms to get the vehicle back.

Once the vehicle is sold, the lender will provide a Deficiency Notice that tells the borrower whether or not a balance is owed to satisfy the loan.

4) Seek Help from Experienced Consumer Lawyers

Remember, whether you were behind on payments or not, repossession agents have to follow certain laws when they repossess your vehicle. If you think any aspect of your case may be considered an unlawful vehicle repossession, Contact Flitter Milz, for a free legal evaluation of whether your vehicle was wrongfully repossessed.

 

Debt Collectors Are Calling Me. What Can I Do?

Contact from debt collectors can be scary and overwhelming, especially when they begin to call more frequently, contact your family, or threaten you. The Fair Debt Collection Practices Act (FDCPA) was created to stop debt collector harassment and protect Americans from unfair and abusive collection tactics.

Here’s what collectors can and can’t do, and what you can do to get the calls to stop.

FDCPA Violations

The FDCPA provides guidelines that debt collectors are required to follow when they contact you about your household debt. This may be debt from medical bills, utilities, a loan, or credit cards.

Under the FDCPA, debt collectors are not allowed to harass, intimidate, abuse, or threaten you. They can’t threaten IRS reporting or a lawsuit if it’s untrue. You also can’t go to jail for owing money. Collectors should only contact you between 8am and 9pm, unless you give them permission to do otherwise, and they can’t contact family members or friends and discuss your debt.

Debt collectors also cannot:

  • Continue to contact you after you write to them and ask that they stop
  • Contact you after you’re being represented by an attorney
  • Tell you false information about the debt, like exaggerating the amount
  • Fail to tell you that they are a collector
  • Say they work for a credit bureau or give incorrect information about your debt to a credit bureau
  • Fail to report a disputed debt as disputed to the credit bureaus
  • Call your cell phone without permission
  • Place private and personal information in a visible area on a mailing envelope
  • Threaten wage garnishment, which is illegal in Pennsylvania
  • Continue trying to collect after you file for bankruptcy

If a debt collector violates any of your rights, you may be able to sue, and the collector will be responsible for the cost.

How Do I Get Debt Collectors to Stop Calling?

You can get a collector to stop contacting you if you write a cease and desist letter. Under the FDCPA, the collector is required to stop calling. Keep in mind that this does not mean the debt no longer exists.  The debt may be assigned to a new collector to begin collection effors.

If the debt seems incorrect or inaccurate, be sure to make the debt collector aware of this. Write and request validation of the debt. If you disagree with the collector’s calculation, send documentation that proves you paid or states why you don’t owe the amount that they claim. You should always send correspondence through certified mail with a return receipt so that you always have proof that they received your information.

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 evaluation.

 

Private Debt Collectors Hired IRS to Collect Taxpayer Debt

Uncle Sam Contracts Private Collectors to Collect Unpaid Taxes

The federal government has contracted out the collection of unpaid income tax with four private debt collection agencies. These agencies are CBE Group, ConServe, Performant, and Pioneer Credit Recovery.

Beginning April 2017, the private collection firms will contact taxpayers with overdue federal tax bills. At first, collection letters will be sent, stating the account was transferred by the IRS to the collector. Then calls will follow.

Beware of Aggressive Collectors

The collectors have an incentive to collect. They’ll receive 25% of every dollar collected.

Although the collectors are still required to follow the Fair Debt Collection Practices Act and respect taxpayer rights, vulnerable taxpayers could be pressured by aggressive collectors to pay more than they can afford.

The IRS also offers various taxpayer programs to eligible taxpayers. Be sure to inquire about your eligibility for these programs.

Where to Send Payments

The government’s collectors will target taxpayers owing less than $50,000 and move up from there. They may discuss payment options with taxpayers, but all payments are to be sent, either electronically or by check, to the IRS or U.S. Treasury. Payments are not to be sent to the private debt collection agency.

If you feel that you are being harassed, or that the claimed debt isn’t accurate, file a complaint with:

Consumer Financial Protection Bureau: 1-855-411-2372

U.S. Treasury, Inspector General for Tax Administration: 1-800-366-4484

Questions about Debt Collection?

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact Us if you have questions concerning contact from debt collectors.  There is no cost for the consultation.

 

How to Avoid a Bank Repossession After Purchasing a Car

The decision to purchase a new car is exciting. Vehicles provide independence and mobility. Whether you’re purchasing a car for the first time or not, having the means to drive is liberating. You can go anywhere, whenever you like.

Buying a vehicle that suits your needs and your budget can be a challenge. Often, the vehicle that we would like to drive may not be the vehicle we can afford. Before going to the dealership, take some time to shop around for a vehicle as well as the credit you’ll use to purchase the vehicle. You want to make a purchase with financial terms that are right for you.

Auto Loan Default

Bank repos occur when the borrower does not meet the terms of a signed loan agreement. If the borrower defaults, the bank, credit union, or lending institution can take the vehicle back at any time. Repossessions often take place when a borrower:

Car Repossession

Once your vehicle has been repossessed, the bank is required to provide you with a notice detailing terms to retrieve your vehicle. If you are not able to meet those terms, the bank may sell your vehicle at a private sale or auction.

After the sale, the bank will send a notice to confirm the amount of the sale. That amount will be deducted from any balance owed on the loan. If there is a deficient balance, the bank will inform the borrower of that amount and take steps to collect.

Avoid Bank Repo

Always shop around and consider your options before your buy a new vehicle. Be sure to choose a car that you’re confident you can afford. Get all the details of your car loan agreement in writing and ensure that you’re aware of the terms of the agreement. Always pay in full and on time to avoid default.

If you think your vehicle may be repossessed, follow these steps.

Seek Legal Help

Flitter Milz is knowledgeable about the laws governing repossessions 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.

What You Need to Know About Credit Reporting

Access Your File Whenever you Want

You can request all of the information that the reporting agency has. You can get a free file disclosure if:

  • there’s a negative result after someone accesses your file,
  • you’re a victim of identity theft,
  • your file has inaccurate information due to fraud,
  • you’re on public assistance,
  • or you’re unemployed but expect to find employment within 60 days.

Others must have permission

Reporting agencies can only report your information to people who have a valid need for it, like those who are reviewing credit applications, insurance, employment, rental properties, or other business.

If someone accesses your credit report and it results in a negative outcome, like denial for credit, insurance, employment, or a rental property, they’re required to tell you. They should also give you the name, address, and phone number of the agency that gave the information.

Employers must get Consent

If an employer or potential employer needs to access your report, they need your written permission.

You Can Ask for Your Credit Score

Your credit score is a number that indicates your creditworthiness. Lenders will see you as less risky if you have a higher score. Check your credit score and report regularly to make sure all information is accurate and up to date.

You Can Seek Damages from Violators

If you think your credit report was provided without your permission, you may be able to sue the credit bureau for providing your report.  The Fair Credit Reporting Act provides protection for consumers that have had their credit privacy violated.

You Can Dispute Credit Report Errors

You have the right to an accurate credit report. If any information is inaccurate, write a credit report dispute letter to the reporting agency. The bureau has 30 days to respond to your dispute.

The reporting agencies are obligated to correct or delete information that’s inaccurate, incomplete, or unverifiable. They also can’t report outdated negative information. In most cases, negative information should be removed after seven years.

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 evaluation of your credit reports for potential violation of the Fair Credit Reporting Act.

How to Dispute Errors on Your Credit Report

Because your credit affects so many aspects of your life, it’s important to check your credit report regularly to make sure all information is correct and up to date. Correcting negative listings on your reports can seem like a long and complicated process. But you have the right to dispute credit report errors if any of the listings are inaccurate.

The Dispute Process

  • Request current credit reports from Transunion, Experian, and Equifax

You can request a free copy of your credit report from Transunion, Experian, and Equifax once every twelve months. You can get a free report more often if certain events occur, such as denial of a credit application or identity theft.

You should request a copy of your credit report from each bureau to make sure that your information is accurate with all three. The bureaus report similar information, but listings can still differ from one report to another. Review all of your reports for accuracy.

WRITE to Transunion, Experian, and Equifax for a copy of your report.

Although you may be able to obtain your report online annualcreditreport.com, we recommend that you request them through the US Mail.  Online, you must accept the terms of a “click” agreement which has language that could affect your ability to bring a lawsuit if the credit bureaus violate your consumer rights.

  • Identify credit report errors

Review each credit report for errors.  You many need to locate documents such as account statements, invoices, cancelled checks, court dockets or correspondence from a creditor or collector that proves why the listing is incorrect.  Gather your documents and attach them to your dispute letter.

Five Common Credit Reporting Errors

  1. Inaccurate payment history
  2. Incorrect information, such as your name, address, birth date, SSN
  3. Someone else’s information on your report.
  4. Duplicate information: two listings for the same account.
  5. Unauthorized accounts: accounts opened without your knowledge
  • File a credit report dispute

Send your disputes to the credit bureau through the US Mail, and preferably by a traceable means, such as Certified Mail, Return Receipt.  You need to have proof that your dispute letter was received.

Tips for an effective credit report dispute

  1. Keep your letter concise and to the point. State why the information is incorrect.
  2. Dispute only one  item per letter. If there are two errors, send two separate letters.
  3. Include the credit report date, report number, and page listing of the disputed item on your letter.
  4. Enclose supporting documentation.
  5. Clearly state the action you would like the credit bureau to take.
  6. Keep a copy of your complete dispute letter with supporting documents and mailing receipts.
  • What to do if the inaccurate information remains

Under the Fair Credit Reporting Act, the bureaus are responsible for correcting inaccurate information. If the credit bureau has not corrected the information detailed in your dispute letter, you may need to:

  1. Re-dispute with the bureau
  2. Send a dispute letter to the creditor
  3. Contact a qualified credit report lawyer to evaluate your credit reports, disputes, and responses from the bureaus.

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 legal evaluation of your credit reports and dispute correspondence, and determine whether your consumer rights have been violated.

How Credit Checks Can Prevent You from Getting Hired

It’s become more and more common for employers to request a job applicant’s credit history before making any hiring or promotion decisions.  However, employment credit checks often keep qualified workers out of jobs.

Employers need written permission before they can access your credit report

If you’re interviewing for a job or being reviewed for performance or a promotion, your employer might request to view your credit file. You have to grant permission before the employer can check your credit report. The employer will provide a letter or document and ask that you sign it in order to proceed with the request of your report.

You are always entitled to receive a copy of the report that was reviewed as part of the hiring process.

Keep a copy of any document you sign

Ask the employer to provide you with a copy of the letter or document that you sign, and ask which reporting agencies will be contacted about your credit history. You’re allowed to request a copy of the report that the employer uses in their hiring decision or for your evaluation of a promotion. You may also contact the reporting agency to obtain a copy of the report sent to the employer.

If the report lists any inaccurate information, you can dispute directly with the credit reporting agency. Provide documentation that supports your dispute. Be sure to send your dispute letter by certified mail, return receipt. If the inaccurate information is not corrected by the reporting agency, contact a credit report lawyer to discuss your options.

Always keep detailed records for each job application

Note the full company name, the interview dates(s), name of interviewer or company contact, and the interviewer’s position or title. Ask for copies of all documents with your signature, especially those related to credit reporting or employment screening companies that are used to evaluate you for employment.

Maintain your personal employee file of all documents related to your employment. Keep copies of your resume, offer of employment, job description, performance letters, screening reports, and especially any letters related to your employer’s ability to access your credit file.

Seek Legal Help

Flitter Milz is a consumer protection law firm representing victims of credit reporting privacy violations.  Contact Us for a free evaluation of your credit reports, and steps taken by employers to check your credit file without your permission.