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

Hard Inquiry v. Soft Inquiry: What’s the Difference?

When a lender or financial institution accesses your credit report, it’s called an inquiry. Credit reporting agencies classify inquiries as hard or soft, and record the credit inquiries on your report.

Hard Inquiries

When you apply for credit like an auto loan, credit card, personal loan, or student loan, the lender must request permission to access your credit file. This type of inquiry will show as a hard inquiry on your credit report. If you have multiple hard inquiries, the lender may see you as a higher risk, and possibly deny your credit application. Hard inquiries may stay on your credit report for up to two years, and possibly lower your credit score, generally by a small amount.

Soft Inquiries

Soft inquiries are when the lender does not review your credit file for the purpose of new credit. Businesses may access your credit file if they have an existing credit relationship with you. For example, a credit card company or bank may access your credit file when promoting a credit account offer or special rates on a product. This type of soft inquiry should not have an effect on your credit score.

As a consumer, you’re able to request your credit report, called a “consumer file disclosure.” These requests do not have a negative impact on credit scores. Transunion, Experian, and Equifax provide free credit reports to consumers every twelve months, upon request. Throughout the year, you can choose to view your report frequently to monitor any changes to your credit file.

Take Steps to Protect Yourself

Hard inquiries are unavoidable if you want to apply for a loan or new credit card. Before making a new loan application, follow these guidelines:

  • Check credit reports for accuracy. Although Transunion, Experian, and Equifax share information, credit listings may differ from one bureau’s report to another. Check your reports for duplicate entries, someone else’s information on your report, and reporting errors. Inaccurate listings should be corrected BEFORE applying for new credit.
  • Unauthorized credit pulls. If your credit files were accessed without authorization, write to the creditor, state that you did not authorize them to pull your report, and request that the hard inquiry be removed.
  • Shop for credit, just as you would any new purchase. Prospective lenders view multiple credit checks from similar creditors as one inquiry if they happen within 14 – 45 days. Multiple inquiries for the same types of credit lines are indicators that the consumer is shopping for the best rate. Rate shopping should not impact your credit score negatively. Do not sign an authorization that allows a prospective lender, like a car dealer, to pull your credit report many times over an extended period. Be sure the credit authorization is limited to, perhaps, 3 credit pulls over one week’s time.

Seek Legal Assistance

Flitter Milz is a credit report dispute law firm that represents people who have experienced harm from hard inquiries on his or her credit reports.  Contact Us for a free legal review to determine whether your consumer rights have been violated.

Consumer Financial Protection Bureau: Successful Cases Helping Consumers

Since the formation of the CFPB in 2010, the Bureau has taken on the biggest banks, including those that open thousands of phony accounts, payday lenders that charge 200% or more in interest, abusive debt collectors, the credit bureaus, student loan servicers, and other irresponsible lenders.

The CFPB’s success has been undeniable in getting these entities to clean up their practices and refrain from abusing and overcharging consumers. The CFPB has recovered nearly $12 billion from these financial institutions to redress these abuses, making the CFPB one of the most efficient government agencies.

CFPB Success stories – helping all Americans.

  • 9/11 Victims:  Predatory lending to first responders.
  • Wells Fargo customers: Phony consumer accounts opened unknowingly by Wells Fargo employees.
  • Prepaid debit card users: RushCard denied customers access to their money through system failure.
  • Auto Lending Discrimination: CFPB and Department of Justice resolve action with American Honda Finance Corp. for discriminatory practices placing auto loans which resulted in African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans.
  • Mortgage Lending & Servicing Deception: Ocwen took advantage of borrowers at every stage of the mortgage servicing process.

Seek Legal Help from a Consumer Protection Law Firm

Flitter Milz is a consumer protection law firm  representing victims of wrongful car repossessions, debt collection abuse, credit reporting privacy & accuracy violations, and unwanted robocalls.   Contact Us to discuss whether your consumer rights have been violated.  There is No Cost for the consultation.

How to Find Out If Your Auto Loan Account is Current

A key aspect of financial wellness is to avoid spending above your means. It may be tempting to apply for an auto loan to buy a more expensive vehicle, but keep in mind that falling behind on payments not only harms your credit, but also leaves your vehicle at risk for repossession.

It’s important to stay up to date on all payments. Be sure to pay in full and on time each month. Remember, if you are late or miss a couple payments there may be additional interest or late fees owed to bring your account current. Until these fees are paid, your account is still overdue, even if you pay your next payment in full and on time.

Four steps to ensure your account is current

1) Request Payment History

Contact the lender and ask for a complete loan payment history. You may be able to access this information online, otherwise, you can write a letter to the lender.

The lender’s records will show the amount of each payment you have made, the date on which they were applied to the account, and any additional charges, such as interest or late fees. Review the records to ensure everything appears accurate. Address any overdue payments and late fees as soon as possible. If your account is delinquent, the lender can repossess the vehicle without prior notice.

2) Keep a Record of Auto Loan Payment History

Moving forward, keep a detailed record of your auto loan payments. Your personal records should include the payment date, amount, method of payment, and the date it was applied to the account. Detailed records will keep you on track with payments to ensure you don’t fall behind, and are also useful in the event that the lender makes an error.

3) What to Do if You Fall Behind on Payments

It’s common to experience financial hardship, whether it’s due to job loss, divorce, health issues, or a death in the family. If you’re having difficulty making payments in full and on time, contact your lender. The lender may be willing to defer your payments and apply them to the end of the loan.

Be sure to request the lender provide you with a letter that confirms any changes to the original loan agreement. For example, if the lender agrees to defer payments to the end of the loan, additional costs associated with the deferment will have to be paid to satisfy the loan. It’s important to have a record of any changes in terms and any additional charges you may endure due to deferment.

4) Is your Vehicle at Risk of Repossession

If you determine that your account is past due and think your vehicle may be repossessed, follow these steps and contact your lender. It may still be possible to avoid repossession if you’re able to pay off some of the overdue balance.

Seek Legal Advice

Contact Flitter Milz, an experienced consumer protection law firm, for a no cost consultation to discuss your rights if you believe your vehicle may be repossessed.

 

How to Get Personal Belongings Back After a Vehicle Repossession

A car repossession can make you feel powerless, as if you don’t have any rights regarding your property. The consequences of a repossession are difficult enough without having to worry about the personal items that were in your vehicle at the time it was taken.

Protect Your Personal Items BEFORE the
Repossession

If you suspect that your car may be repossessed, remove all personal items from the vehicle, glove box, and trunk. This includes:

  • All car purchase and loan documents. Keep these documents in a safe place.
  • Work-related items, such as briefcases, laptops, or tools.
  • Family-related items, such as personal mail, car seats, school work, or clothing.

Follow these steps prior to the repossession.

When Can a Lender Repossess a Vehicle?

When you sign a contract to finance a vehicle, the car is considered collateral. This means that the bank or credit union has the right to take back the vehicle if the borrower defaults on the terms of the contract.

Terms for default include missed payments, partial payments, or late payments, or lapse in auto insurance for unpaid premiums. Specific terms for default are listed in the loan agreement that you signed.

How to Get Personal Items Back AFTER a Repossession

Notice of Intent to Sell Property
After a vehicle has been repossessed, the lender will send a letter to the borrower that details terms to retrieve the vehicle. This letter, frequently called a Notice of Intent to Sell Property, states the location of the repossessed car so that the borrower knows who to contact to reclaim any personal items.

Retrieve Personal Property
You may be unable to retrieve attached fixtures, such as a stereo or rims, but any loose items are yours to claim. The borrower typically has 30 days to get their possessions from the car.

Deficiency Notice
Once the vehicle is sold, the lender is to send a letter to the borrower which confirms the selling price and then a calculation of any remaining balance claimed to be owed to satisfy the loan.

Damage to Your Personal Property

When the repo agent arrives to take your vehicle, you may request to remove your personal items. Car repossession laws prohibit repo agents from damaging your personal property.

If your property is damaged, get the name of the repo agent, repossession company name, phone number, and license plate number of the repo truck. Inform the lender of any damage caused by the repo agent.  As well, contact the police to file a report. Be sure to take photographs of the damaged property, and gather witness statements.

Seek Legal Advice 

Flitter Milz is knowledgeable about the laws governing the repossession of cars, trucks, motorcycles, boats and RVs.  If your vehicle has been repossessed, Contact Us for a NO COST review and evaluation of whether your consumer rights have been violated.

 

What to Do If Debt Collectors Contact Your Family Members

When you receive calls and letters from debt collectors, it can be difficult to tell which actions are legal and which are not. But when they contact family members, friends, neighbors or co-workers about your debt, be aware that your consumer rights may have been violated.

Debt collectors may not disclose details about your debt, such as payment history and amounts owed, to anyone but your.  They may ask someone where you live or your phone number, but they may not reveal any information about the debt.

Consumer Law offer protections

The Fair Debt Collection Practices Act prohibits third party contact from debt collectors without your consent. Even if you owe the debt, collectors may not use practices to intimidate or harass you by contacting someone else about your debt.

If you discover that someone you know has been contacted about your debt, ask that person to document the contact.  He or she should create a statement which includes the following:
-Date
-Time of day
-Name of caller
-Name of Collection Agency
-Caller ID
-Phone number where the call was received
-Details of the phone conversation

If the collector calls multiple times, documentation of each contact should be recorded.

Get Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of a debt collector’s abusive tactics.  Contact Us for a free evaluation of your matter.  Whether or not the debt is owed, the debt collector must follow the law.

 

 

Don’t Get Caught in a Car Loan You Can’t Afford

It may seem easier to get a loan for the car of your dreams these days, but more people are falling behind on payments and becoming delinquent on their loans. When it becomes easier to get an auto loan, auto loan delinquencies are more common.

The rise in auto loan delinquencies

The rise in delinquencies comes at a time when unemployment is low and borrowers typically should be able to make their payments. However, lenders may have loosened their credit standards and let borrowers take on more debt than they can afford.

Always read the information in any loan application to make sure that the information is accurate! Consumers should pay attention to whether their income is stated correctly on the auto loan application. If you find errors on your application, do not proceed with the purchase.

My car was repossessed. Now what?

Once delinquent, the lender may be able to repossess the vehicle without warning. If you think your vehicle may be repossessed, we recommend that you remove all car purchase and loan documents, and all personal items from the vehicle.

Once the vehicle has been repossessed, the lender will provide you with a notice detailing the terms for you to get your car back and where to retrieve your personal possessions from the vehicle. Follow these steps.

Does your credit report list the repossession inaccurately?

Check your credit report to see whether your loan payments were reported accurately. Consumers are permitted to receive one free credit report from each bureau within a twelve month period.

If the lender has reported your payment history inaccurately, send written disputes to the credit bureau.

Be sure to provide supporting documentation that shows why the information is not listed accurately on your credit report. The bureaus have 30 days to respond to your dispute. If the errors remain on your report, seek an experienced law firm to evaluate your credit reports and correspondence with the credit bureaus for a potential violation of your consumer rights.

Seek Qualified Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have had a vehicle repossessed. Contact us for a no cost legal review to determine whether your consumer rights have been violated.

 

How to Recover from Holiday Credit Card Debt

Now that the holidays have come and gone, you may be struggling with extra credit card debt. Studies have shown that the average American household with credit card debt pays more than $1,200 per year in interest. Not only does debt cause stress, it also harms your credit. Follow these steps and chip away at your holiday debt each month to avoid high interest charges and maintain healthy credit.

1) Pay More Than the Minimum

Carrying a balance each month is unhealthy for your credit score and also makes you susceptible to interest charges. To avoid a month to month balance, pay more than the minimum amount that appears on your monthly statement. Avoid spending above your means and pay off any new charges in full. This will help you put a dent in your debt and reduce the amount of interest you owe over time.

2) Pay Off a Set Amount Each Month

Set aside some time to assess your finances and determine a realistic amount that you can dedicate toward paying off your debt each month. For example, you may want to set up auto-pay on your account with this specified amount. If the amount is automatically withdrawn from your account each month, you’ll be less likely to feel tempted to spend it on something else as the payment date draws near.

3) Keep Your Credit Utilization Low

As you work toward paying off your debt, focus on keeping your credit utilization lower. Try to cap your credit card usage at around 30%, which will make your payments more manageable.

Here’s how to calculate your usage

Divide your credit card balance by your credit limit.  Move the decimal point two places to the right. This is your current credit usage. A higher percentage will harm your credit while a lower percentage will help.

          Example: Credit Usage Calculation
Statement Balance = $500
Credit Limit = $1000
$500 divided by $1000 = $0.5
Move decimal two places to the right = 50
Current Credit Usage = 50%

4) Spend Wisely

Stick to a firm budget to avoid letting your credit card balances continue to creep higher.  Evaluate your income in relation to fixed expenses.  Try to keep your spending within your means.  As you have extra funds, place them in a savings account so that you’re prepared for unexpected expenses…or those holiday gifts you’d like to buy.

Seek Free Legal Help

Once you fall behind on payments, the creditor may choose to assign or sell your obligation to a collection agency or law firm collector.  It’s important to know your rights and the laws that protect you from abusive collection tactics. Whether you owe the debt or not, the collector must follow the law.

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

Improve Your Credit Health

Make your credit health a priority by assessing your credit and determining where you can make improvements. Set yourself up for success. Identify financial goals and outline clear steps to achieve them.

Resolve to Make Payments On Time

Set up a system and strive to pay your bills on time and in full. 

  • Set up automatic payments on  accounts 
    Payments will be automatically withdrawn from your account, meaning you never run the risk of a forgotten bill.
  • Align payment dates with pay check dates
    Review payment due dates for your accounts. If an important bill is due right before you receive your pay check, contact the creditor to see if your due date could be adjusted to coordinate with your pay check date.
  • Set reminders for bill payment due dates
    Mark your calendar for dates when your payment must be made.  If you send your payment through the mail, note the mailing date so that your payment is received by the creditor on time.
  • Contact the creditor to request deferment
    If you know that you won’t be able to make a loan payment on time, contact the lender before the due date passes. The lender may allow you to defer payments until your financial situation improves. A deferment still appears on your credit report, but a deferment doesn’t reflect as negatively as a default.

Resolve to Reduce Debt

Determine a set amount that you can put toward debt payoff each month.

Identify a set time period to pay off specific debts. With focus and discipline, small manageable payments will help achieve your goal. Also, these regular on time payments show responsibility to creditors.

Improve Your Credit Score & Credit Report

A credit score is derived from a formula of your payment history, length of credit, type of credit and credit usage.  It is an indicator of how likely you are to pay your bills on time.  Scores range from 300 to 850.  A lower score means that you may be a higher risk to a prospective lender, resulting in a credit denial or unfavorable credit terms for a loan.

An accurate credit report may raise your credit score.

You can get a free credit report from each of the three main credit bureaus, Experian, Equifax, and TransUnion, every twelve months. Check your report regularly to ensure that all information is accurate and up to date. If there are errors, dispute them by sending a letter directly to the credit bureaus. Your letter should include documents, such as an account statement or cancelled check, that proves why the error should be corrected.

In addition, you may want to write to the creditor to dispute a credit report error. Show a copy of your report and state why the listing is incorrect.  Request the creditor write the credit bureau to correct the listing.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm representing victims with credit reporting accuracy and privacy issues. Contact us for a free legal evaluation to determine whether your consumer rights have been violated by the credit bureaus, debt collectors or lenders.

How Credit Reports Affect your Job Search

Your credit report affects many aspects of your life, which is why it is important to check your reports regularly to ensure that all of the information listed is up to date and accurate. You likely already know that your credit report and credit score indicate your creditworthiness to lenders. This information impacts whether or not you can secure a loan or get approved to finance a car or a home. It may also have an effect on your ability to get a job.

Employment Screening Report

Your credit report and another type of consumer report, called an employment screening report, are sometimes used by employers when reviewing applicants for open positions, or when an employee is being considered for a promotion. These reports have frequently been used by companies within banking and financial services, government, or jobs that require security clearance, but have come to be standard for other industries as well. Trucking, nursing, food, and retail services are using screening reports more and more frequently during the applicant review process.

Inaccuracies Can Hurt You

Screening reports may contain inaccurate information about your past employment, medical or financial history, criminal and public records, or education. These inaccuracies can prevent you from getting a promotion or securing a new job.

Employers Need Your Permission

An employer needs your permission before accessing your credit report or performing a background check. Third party firms that prepare background reports, such as HireRight, Intelius, or CheckMate, may have exemptions.

The employer must receive your written permission before obtaining the report, and also inform you when the report may be used in the hiring process or for consideration of a promotion.

Screening Services Must Inform You of Negative Information

Employment screening report services are also obligated to tell you about any negative information that is reported to an employer. Frequently, negative information is not relayed to an applicant until days or weeks after the employer received the information.   At that point, the job opportunity may be lost.

When an employer obtains the report and decides not to hire, keep, or promote you as a result of the information, they are obligated to provide you with a copy of the report, along with contact information for the company that provided it. If any of the information is inaccurate, you can send a written dispute letter to the company and request that the information be corrected or removed.

When a credit reporting company doesn’t correct inaccurate information, the consumer may have a claim under the Fair Credit Reporting Act.

Get a Free Legal Evaluation

Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have inaccurate information listed on credit reports or employment reports.  Contact us to discuss whether your consumer rights have been violated.  There is no cost for the legal review.

Police Involvement in Car Repossessions

In most states, repossession agents have to inform the local police department of their intent to seize a vehicle before the repossession takes place.

During the vehicle repossession, the police may be contacted by the borrower or the repo agent to come to the scene. Whether it is the borrower or repo agent who contacts the police, the officer must follow specific guidelines so he or she doesn’t violate the borrower’s constitutional rights.

What is the Role of the Police During a Vehicle Repossession?

The police are there to help keep the peace. If the situation becomes volatile, they should assist in diffusing the confrontation between the repo agent and the borrower.

The police are there to protect you and keep anyone from being harmed. It is not the police’s role to assist the repo-man in taking your car.

What Type of Police Involvement is Unacceptable?

The police should not assist or enable the repossession.

Unless the lender has taken the unusual step of obtaining a court order, the police should not order you to turn over your keys or to “step aside” and let the repo man take your vehicle.

If the police threaten you with arrest or command you to turn over the vehicle, they may have crossed the line from keeping the peace to breaching the peace. This could violate your constitutional rights.

While you obviously may need to yield to the command of an armed law enforcement officer, make it clear that you protest the repossession.

I Think the Police Crossed the Line. What Can I Do?

You may be entitled to bring a lawsuit against the police department, the repossession company, and the lender for wrongful vehicle repossession.

Gather statements from witnesses, if any, and obtain the police report that details the incident. Take a video of your interaction with the repo agent and/or police officers.  Photographs the scene, including your vehicle and any damaged property. Write a statement, including the date and time, of what happened.

Seek Qualified Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that evaluates matters for consumers who have had a vehicle repossessed.  There is no cost for the legal review. Contact Us today.