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.
The Fair Debt Collection Practices Act (FDCPA) is the federal law that offers protections to consumers from aggressive debt collectors. Whether the debt is owed or not, collectors may not harass or abuse the consumer, and they can not misrepresent the debt. If a collector violates the FDCPA, the consumer may pursue a lawsuit against the collector, and the collector will be responsible for paying the legal fees.
Continue reading 6 Ways to Handle Pushy Debt Collectors →
Most people look for ways to pay their debts and get out of a financial hole. Whether it’s by taking a second job, reorganizing payment schedules with creditors, or possibly deferring payments to the end of the loan, there are steps that can be taken to resolve delinquent accounts.
If the creditor is unsuccessful in collecting with no payment by the borrower, the creditor may designate the debt as “charged-off”.
What is a Charge-Off?
Uncollectible “charged-off” debt is an internal accounting function and means that the creditor may choose to collect at a later date, or assign the collection to a third party collector, such as a collection agency or law firm collector. Charged-off debt does not disappear. These debts may continue to be collected and probably be assigned or sold to a new debt collector.
Debt Collectors may collect Charged-Off debt
If the debt moves to a collector, the consumer may begin to receive calls or letters from the debt collector about the underlying debt. Whether the consumer owes the debt or not, the collector must follow the law called The Fair Debt Collection Practices Act.
Credit Reports list Charged-Off Accounts
The creditor is required to report charged-off debt to the credit bureaus. The creditor’s listing on the report will note the status as “Charged-Off” and can remain on the report for seven and a half years. This status carries negative weight and may impact the consumer’s ability to obtain credit.
Tips to negotiate charged off accounts
-Request an itemized calculation of the debt
-Only agree to payment terms you are able to manage
-Remain in control of your checking account
-Get the payment agreement in writing
Seek Help from a Consumer Lawyer
Flitter Milz is a nationally recognized consumer protection law firm that pursues cases against debt collectors that have violated a consumer’s rights under the Fair Debt Collection Practices Act. If you have received contact from a collection agency or collection law firm, Contact Us for a free consultation: 888-668-1225.
As we go through life it is difficult not to incur debt. Whether it is from credit card bills, student loans, medical bills, or other financial obligations, debt can be a serious obstacle for consumers.
The general consensus among debt counselors, debt collectors, and state regulators warns that ignoring debt collection letters, phone calls, or court documents is the wrong way to address scary debt situations. When in debt, it is best to confront the fear and deal with the circumstances. Otherwise, dealing with collection agencies will only make matters worse.
The best option is to avoid debt collectors altogether. If you see financial trouble coming, try to form an agreement with the original creditor and work out a reasonable payment plan before the debt is sold to a third-party debt collector.
Sometimes that’s just not possible or it may be too late. Here are some tips to stay sane when dealing with debt collection agencies:
Learn about your consumer rights and the Fair Debt Collections Practices Act. You can visit your state’s Attorney General’s Office website for information about debt collection laws. The Consumer Financial Protection Bureau (CFPB) is a federal agency established under the Obama administration. It offers a wealth of information about debt collection practices and what to do when dealing with harassing debt collectors.
Open lines of communication are best in these types of situations. You should actively write to the collector and get a written verification of the debt to make sure the debt belongs to you and the information is accurate. If you receive a court summons, do NOT ignore this! If you do not respond to the notice or show up in court at the hearing, the judge will enter a default judgment against you. Judgments are dangerous and can enable the creditor to attach bank accounts, place liens on property, and in some states, garnish wages.
Keeping complete records for all of your open accounts is the best way to track progress and prove accuracy when necessary. File account statements and keep accurate records of when payments were made, the method of payment and when the payment was applied towards your account.
Debt collectors can file suit against a consumer for not making payments on a debt. If a judgment is entered, the collector may freeze savings or checking accounts, which can be very problematic for families on a budget. Some financial experts suggest keeping separate bank accounts for funds, such as Social Security or disability checks, which cannot be used as a source of a court-ordered judgment. Debt collection can also be halted if you have declared bankruptcy.
You may want to avoid giving debt collectors your personal banking information. If you use money orders or another third-party payment service, you will have proof of payment and avoid providing personal account information. You should also avoid allowing debt collectors to make direct electronic or automated withdrawals from your bank accounts.
Any payment agreements with a debt collector must be confirmed in writing and signed by a representative of the debt collection agency before sending in any payments. This will help avoid misunderstandings.
Sending documents and correspondence to a collector via certified mail provides proof that your letter or payment was received. You can also request a return receipt for proof that your letter was received.
Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics. Contact us for a free case review. Whether you fell behind on payments or not, the debt collector must follow the law.
Medical emergencies occur as we go through life. Often, health issues are unexpected and can end up costing thousands of dollars in medical bills. With the lapse in time from when you are billed by a medical provider to the time your health insurance company pays, very quickly accounts can be turned over to third party debt collectors, and frequently, become listings on your credit report.
Even when the medical bills are paid, the time spent in collection status may negatively impact credit reports and lower credit scores. The result could make it more difficult to get approved for a loan, purchase a car, rent an apartment, or even get a job.
Your credit score is a three-digit number that’s used by lenders to predict the likelihood that you’ll pay your credit obligations on time. Scores range from 300 – 850 and are calculated based on credit history information listed on credit reports. Make sure that information listed on your credit report is accurate. Incorrect listings may contribute to lower credit scores. Take these steps to make sure your credit score is an accurate reflection of your credit history.
Obtain Current Credit Reports
Every twelve months you are entitled to obtain new credit reports for free from each Transunion, Experian and Equifax. There may be a fee from the credit bureaus if you need to request reports more often.
Review your Credit Reports for Accuracy
The bureaus list not only personal information, such as your name, birth date, social security number, addresses and employment history, but also list account payment information, liens, judgments and bankruptcies. Learn to read your credit report . If there are errors that could bring your credit score down, take steps to get them corrected.
Dispute Errors on your Credit Reports
If there are errors on your reports, send written disputes to the credit bureaus. Your dispute letter should be concise and provide documents illustrating why the listing is incorrect. Send your dispute to the bureau by Certified Mail, Return Receipt, so that you have proof your dispute was received. Be sure to keep copies of your complete dispute. The credit bureau has 30 days to respond to your dispute.
Collection contact over Medical Debt
Once a medical provider assigns the collection of a medical debt to a collection agency or law firm collector, the consumer has rights against a collector’s abusive collection practices. Whether you have been unable to pay or dispute the amount, the collector must follow the law called the Fair Debt Collection Practices Act.
Flitter Milz is a nationally recognizedconsumer protection law firm that represents victims with problems involving credit reporting errors and abusive collection practices. Whether you owe the debt or not, our firm will evaluate whether your consumer rights have been violated. Contact us today for a free legal review.
Life circumstances, such as job loss, divorce, health issues and death, can make it difficult, or nearly impossible, to keep up with financial obligations. Once we fall behind, it’s difficult to catch up. Then collectors begin to call, vehicles get repossessed, and our credit reports are impacted.
When borrowers fall behind on car loans, there may be options to discuss with the auto lender, such as deferring payments for a few months and having those payments placed at the end of the loan. Regardless, it would be beneficial to address late payments with your lender and discuss available options. If you have fallen behind, the lender may choose to repossess the vehicle.
Car repossession laws vary from state to state. Lenders may have the right to repossess a vehicle as soon as the borrower misses a payment, fails to maintain adequate insurance, or defaults in another way expressed by the contract. Lenders usually do not have to warn you that they are planning to repossess your vehicle.
A repossession company is permitted to come to your property. However, they cannot breach the peace, damage your property or vehicle, use violence, break into a locked garage or fenced area, or repossess your vehicle based on faulty information.
Most states require the lender to tell you what it plans to do with the vehicle and any rights you have. This information usually comes in the form of a letter, called a Repossession Notice, promptly after the repossession occurs. It will detail where you car was taken and inform you of when to collect any personal property left in the vehicle. The repossession notice will state when your vehicle may be sold and if the sale will take place at an auction or private sale.
After a repossession, the lender will offer you the option to redeem your vehicle by either paying the past due payments and repossession fees, or paying off the entire balance of the loan.
If you are unable to make the required payment to redeem your vehicle, the lender will it. Although they are required to get the best price possible, in most cases, the sale amount will be less than the outstanding balance owed on the loan. This situation often results in a “deficient balance” that you will be responsible to pay to your lender. The lender may choose to sue the borrower for the deficient balance.
Most lenders will report auto repossessions to the credit bureaus, whether the repossession was voluntary or involuntary. The listing can appear on your credit reports for up to 7 1/2 years.
Flitter Milz is a consumer protection law firm that represents borrowers that have had a car, truck, motorcycle, boat or RV repossessed within the past six years. We will provide a no cost consultation and evaluate whether your consumer rights have been violated. Contact Us today.
Identity theft remains a top priority for the Internal Revenue Service (IRS). It is among the fastest growing type of crime nationwide. Refund fraud caused by identity theft is one of the biggest challenges facing the IRS.
Taxpayers can encounter identity theft that involves their tax returns in several ways. Identity thieves try to file fraudulent refund claims by stealing and using another person’s identifying information.
Anyone who receives a notice from the IRS and suspects their identity has been used fraudulently should respond immediately to the contact phone number provided on the notice.
If you did not receive a notice from the IRS, but still believe you’ve been the victim of identity theft, contact the IRS Identity Protection Specialized Unit at (800) 908-4490.
Flitter Milz is a nationally recognized consumer protection law firm that represents victims with credit reporting accuracy and privacy issues or abusive collection contact resulting from identity theft. Contact Us to discuss your rights.
Building and repairing credit is easier said than done. Whether you are trying to build credit or repair credit after some financial mishaps, the discipline to meet financial decisions responsibly can be paralyzing. And if you’re in the midst of a credit crisis, the situation could seem hopeless.
For better or worse, we live in a credit-dominated society. Big purchases such as homes, cars, education, furniture, internet service, and cell phones require a credit history. Good credit enables us to make these purchases and enjoy the benefits that come with them. Bad credit makes these purchases a challenge. Although you may get approved for the loan, the credit terms may be more expensive and carry higher fees and interest rates. And, you need to be cautious. The ease of spending on credit, without paying cash at the time of purchase, can create a cycle of over spending. Suddenly, it’s difficult to meet monthly bills.
If you’ve never had credit, or if you’re working your way out of financial hardship, you may need to seek some help. One option may be to get a secured credit card from your bank. This type of card requires a cash security deposit, which reduces the risk to the issuer and can help you build a credit history. A number of banks offer secured credit cards, where you can put money on the card that acts as your credit limit. These secured cards work differently than pre-paid and debit cards. You will receive monthly bills to pay in order to avoid penalties. Most important, make sure the furnisher of this card reports to the credit bureaus. You want your good payment history to count towards building or repairing your credit.
A second option may be to become an authorized user on someone else’s credit card. This means that the primary account holder adds your name to their credit card account. You will receive a card and pay for the items you’ve charged. The accounts where you are an authorized user will likely appear on your credit report, along with your good payment history. Most of all, you want to establish financial discipline for paying back borrowed money on time.
After building up some credit, you will likely become eligible for a credit card of your own. But, beware. Credit cards are a lot of responsibility. You must avoid overspending so that you can pay off your balance in full, and on time, every month.
Whether you get hard copies in the mail or emailed statements examine how much you owe. Plan your expenses so that you’ve saved enough money to make payments on time. Bills can be scary and intimidating, especially if you’ve spent more than you can afford to pay.
Credit reports list delinquent payments and bring down your credit score. Some people find setting up automatic payments from a bank account helps to stay current on bills.
Every twelve months consumers are entitled to one free credit report from each Transunion, Experian and Equifax. Review your report for accuracy. If you find errors, dispute them by writing to the credit bureau. You want your credit report to be an accurate reflection of your credit history.
Flitter Milz is a nationally recognized consumer protection law firm that represents victims with credit report problems, those who’ve had contact from abusive debt collectors or a vehicle wrongfully repossessed by a lender. Whether the consumer fell behind on payments or not, there are laws that the credit bureau, debt collector and lender must follow. Contact Us for a free consultation to discuss whether your consumer rights were violated.
If a creditor sells your account to a debt buyer, sometimes both the creditor and the debt buyer will list the same debt on your credit report. Duplicate listings can lower credit scores and make it more difficult to get approved for a loan, buy a car, refinance a home, or get a job. Even if you pay the debt, duplicate listings may remain on your report.
Flitter Milz is a consumer protection law firm that represents people with credit reporting problems. When there is an error on a credit report that the bureaus do not correct, there may be a violation of the consumer’s rights. Contact us for a free evaluation.
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