Understanding Consumer Law

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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

What’s the Difference Between a Credit Score and a Credit Report?

You’ve heard the terms credit report and credit score, but do you know the difference between the two?

What is a Credit Score?

A credit score is a number associated with a person’s credit files to indicate their “creditworthiness”. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers. Lenders use credit scores as one of various factors in determining who qualifies for a loan, at what interest rate, and at what credit limit. Private companies use special computer programs to determine a credit score based upon a matrix of factors.

What is a Credit Report?

A credit report contains more detailed information than a credit score. It’s a statement that has information about your credit activity showing the  payment history on loans, credit cards, debt, and other financial obligations. Credit reports also list employment, legal, and bankruptcy information. The information listed on your report will in turn affect your credit score. Negative listings, such as a car repossession, can remain on your report for up to 7 1/2 years.

When Should I Check My Credit?

It’s important to check both your credit report and credit score regularly. If you are looking to secure credit for a mortgage, car loan, or personal loan,  get copies of your credit report and check your credit score BEFORE submitting an application for new credit. When a consumer requests a credit report, it is considered as a “soft inquiry” and your credit score will not be affected negatively. Always check your credit reports and scores before you apply for new credit.

Consumers are entitled to receive one free credit report from Transunion, Experian, and Equifax every twelve months.

Get Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of inaccurate credit reporting and the problems that stem from errors that are not corrected, such as loan denial, increased interest rates, or lowered credit limits.  Contact Us to discuss problems on your credit report.  There is no cost for the consultation.

 

Someone Else’s Information is on my Credit Report

Credit reports impact many aspects of  your life — from getting approval on loans to purchase an automobile or finance a home, to being hired for a job or renting an apartment.  Therefore, the accuracy of a credit report is extremely important as this information impacts credit decisions.

Errors on credit reports are common.
The Federal Trade Commission released a report indicating that 1 in 5 consumers that examined their credit reports found mistakes.  Sometimes those errors occur due to someone else’s information appearing on your report.  Common errors include misspelled names, wrong or outdated addresses, wrong birth date, incorrect social security number, outdated or incorrect employment history, or reporting you as deceased when you aren’t. These errors may occur because of:

Human Error:
Sometimes data is entered incorrectly
Identity Theft:
Someone open accounts in your name
Confusion: 
Your name may be similar to someone else; you may share other common information, such as a birth date or a similar social security number, or you may have the same name and address but are a Jr., Sr., III.
Your Error:
Sometimes incorrect information is filled out on an application, or you may have used a different variation of your name, such as calling yourself “Jon” instead of “Jonathan”.

Errors that appear on credit reports must be corrected. 

The Fair Credit Reporting Act (FCRA) requires the credit bureaus and creditors to accurately report your information and preserve your privacy.

Steps to Correct Credit Report Errors

Request a Current Credit Report
Every twelve months you can request one free credit report from each credit bureau – Transunion, Experian, and Equifax.  You’ll need to provide proof of identity, such as a current driver’s license, pay stub or utility bill, for security purposes. You can also access your credit report online at: annualcreditreport.com.

Review Your Report

Review your report and check for any inaccuracies. Make sure that your name, address, and social security number are correct. Look for any listings that you don’t recognize. Unfamiliar accounts could be someone else’s information or a mis-merged file.

Dispute Inaccuracies

If you see someone else’s information, you need to write and dispute the credit report directly with that bureau. Include a copy of the incorrect report with the disputed item highlighted. Briefly state the reason why this item is incorrect and attach any supporting documentation that explains the error. Send your letter to the bureau by Certified Mail, Return Receipt. The bureaus have 30 days to respond to your dispute. Be sure to keep copies of all dispute correspondence to and from the credit bureaus.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents victims with credit reporting errors.  If the credit bureaus have not corrected inaccurate information on your report, Contact Us for a free legal review.  We will evaluate whether your consumer rights have been violated under the Fair Credit Reporting Act.

How much do I really owe the Debt Collector?

Contact from a debt collector is always cause for concern, but not everything the debt collector tells you is fact. Debt collectors often use certain tactics to intimidate consumers, such as threatening IRS reporting or a lawsuit when none is intended. They may also tell you that you owe more than you actually do. If the amount of debt they claim does not sound right, take the following steps.

Review Correspondence

Within five days after the debt collector first contacts you by phone, they must send a letter that details the amount of the debt and the name of the original creditor. Review this letter and ensure that the amount owed and the name of the creditor are accurate.

Dispute Incorrect Information

After you receive this letter, you have 30 days to dispute any inaccuracies. Write to the collector by certified mail with a return receipt.  Enclose documentation that supports your claim, such as proof of payment, account statements or correspondence with the creditor. Request that the collector respond promptly to your dispute in writing.

Request a Validation and Itemization of the Debt

Your letter should request that the collector provide a Validation of the debt which verifies their right to collect the debt.  Secondly, your letter should request the collector provide an itemization of the debt, showing how they’ve calculated the balance claimed.  

The itemization should include the principal amount plus interest and any additional late fees. The collector is prohibited from any further collection activity until he responds to your request with proper validation of the debt claimed to be due.

Seek Free Legal Help

If the collector ignores your dispute or continues to try to collect based on inaccurate information, contact a debt collection lawyer to discuss your options.

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 legal evaluation.

Was Your Car Repossessed? Follow These Steps.

Whether you are behind on payments or not, the lender must follow a number of rules before and after a car is repossessed. These rules detail how and when they can initiate car repossession, what kind of notices must be given, and how any auction or private sale must be handled.

If any rules were overlooked during or after the repossession of your vehicle, you may be able to take legal action against the lender or car repossessor, even if you were behind on payments. If your car or motorcycle was recently repossessed, do the following.

1) Confirm the Repossession

Call the lender or local police department to confirm that the vehicle was repossessed and not stolen. Ask for details, such as which repossession company called the police and when.

2) Gather Repo Documents

Gather all purchase, loan, and repossession documents. These include your car purchase agreement, retail installment sales contract, notice of intent to sell property, deficiency notice, loan payment history, and any collection letters claiming a deficient balance is owed.

You should receive a Notice of Intent to Sell Property from the lender after your vehicle is repossessed. This notice explains how you can retrieve the vehicle, how much you must pay, the location of the vehicle, and the time and location of a private sale or auction. You should receive this notice before the vehicle is sold at private sale or auction with enough time for you to get the car back.

The lender must also provide a notice that confirms the sale price after a vehicle is sold, called a Deficiency Notice. If the sale price does not pay off the balance that is owed on the loan, you will owe the remaining balance, even if the vehicle was voluntarily given back.

3) Don’t Sign a Waiver

Do not sign any waiver or release agreement to get your vehicle back. Signing a waiver could negate any legal claim for wrongful actions by the lender. The law does not require you to sign documents to retrieve your vehicle, even if the repo agent or storage yard asks for one.

4) Get Legal Help

If you believe your vehicle was wrongfully repossessed, gather all of your documents and contact Flitter Milz for a free evaluation of your case.  Our firm will review your loan and repossession documents at no cost, and determine whether your consumer rights have been violated.

 

Debt Collectors Must Play by the Rules

Debt collection harassment affects millions of Americans. Did you know that debt collectors have to follow certain laws when they contact you, whether or not you owe the debt?

What is the FDCPA?

The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. This law prohibits debt collection companies or law firms from using abusive, harassing, unfair, or deceptive practices to collect debt from consumers.

The law covers personal, family, and household debt, including money owed on a personal credit card account, a medical or utility bill, or a loan. Commercial debts, or debts incurred as a business or commercial transaction, are not covered under this law.

Whether a debt is owed or not, collectors are not allowed to intimidate, harass, threaten, or abuse you. You may be able to sue the collector for violations of the FDCPA at no cost.

When Can Collectors Contact Me?

Collectors can contact you by phone between 8 a.m. and 9 p.m., unless you inform the collector that they are permitted to contact you outside those hours. For example, some people work shifts that would make it inconvenient to receive calls during those hours. You can request that the collector contact you during certain hours which are convenient to you. It is important to document collection calls with date, time of day, name of collector, caller ID, and details of a phone conversation or message.

Collectors may call you at work if you give them permission. If your employer does not permit you to have personal calls at work, you can inform the collector to stop calling during work hours.

Can the Collector Contact Me if I’m Represented by an Attorney?

After engaging an attorney to assist with your debt, you should inform the collector by sending a letter stating your attorney’s name and contact information. At this point, the collector is no longer permitted to contact you directly. If you continue to receive collection calls or letters, your consumer rights under the Fair Debt Collection Practices Act may have been violated.

Can the Collector Contact Someone Else About My Debt?

Collectors are not allowed to contact anyone other than yourself about your debt, unless it is to get contact information. Many times we hear that relatives, neighbors, co-workers, or friends have received contact from debt collectors about someone else’s debt.  Often the collector shares details about the debt, such as payment history and amounts owed. In these situations, it is very important to  create a document stating the date, time of day, name of caller, name of collector, Caller ID and details of the conversation or phone message.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of a debt collector’s abusive tactics.  Contact Us for a free legal evaluation.

Responsibilities of a Co-Signer

Sometimes a friend or relative with poor credit may ask you to co-sign on their car loan. It’s important to know that co-signers take on financial responsibilities for the duration of the loan. Co-signing does not just mean that you are a character reference for the borrower. Before you sign, keep the following five points in mind.

1) Get Familiar with the Account

Before you sign, make sure you know what you are agreeing to. Know the purpose of the account, the type of account, the terms, and why your friend or relative needs a co-signer.

If you co-sign, establish access to the account so that you can verify that payments are made on time and as agreed each month.

2) Understand Your Legal and Financial Obligations

Read and understand the credit contract. Be aware that a lender may be able to collect from you even when there is collateral. In the case of a car loan, for example, the lender might demand payment from you instead of repossessing the car. Sometimes, even if the car is repossessed, its value may not be sufficient to pay off the loan.

Understand that if the primary borrower defaults and has missed a payment, the lender can demand payment from you.  As well, the lender, or a debt collector, may try to collect from you.  The debt may include the principal amount, plus interest, late fees or collection costs. 

3) Monitor the Payment History

Get access to monthly statements, either online or through customer service, so that you can see when payments were applied to the account. Make certain the lender applied the payment properly, with specific amounts to principal and interest.

Don’t wait until a collector calls saying payments have not been made. By that time, your credit may already have been negatively impacted. Remember, one missed or late payment could mean a black mark on your credit.

4) Check Your Credit Reports

Check your credit reports regularly with Transunion, Experian, and Equifax to see how this loan is being reported. If there are late payments, address the problem with the co-borrower. If the reporting is inaccurate, send written disputes to the credit bureaus.

5) Prepare for the Worst

Create an account where you make the monthly payment. If the co-borrower misses or stops making payments on the loan, you’ll have funds readily available to cover the missed payment and keep your good credit name.

Seek Legal Advice

Flitter Milz is a Consumer Protection law firm that represents consumers involved with matters concerning wrongful vehicle repossession and credit reporting errors.  Contact us for a no cost consultation.

8 Things that could Harm Your Credit Score

Your credit history plays an important role in your financial health. A lower credit score and negative credit report listings make it more difficult to obtain approval for a loan application when you are trying to finance a home, purchase a car, obtain a credit card or a personal loan. Equally, these items can make it more difficult to secure a job or an apartment.

It takes time and discipline to build healthy credit. Here are eight situations to avoid as you establish your credit.

Late Payments

Late payments will harm your credit score. Pay in full and on time to improve your score.

Loan Defaults

A loan can default immediately after a missed payment, or several months after missed payments, or for other reasons, such as allowing insurance on your vehicle to lapse. This will depend upon the terms in the loan agreement. If you are struggling to make payments, contact the lender before you default. You may be able to defer payments until you are more financially stable. A deferral will appear on your credit report as well, but it will not harm your credit as much as a default.

Car Repossession

Failing to make auto loan payments can result in repossession of the vehicle. A car repossession can remain on your credit report for up to seven years. If you can’t make a scheduled payment, contact your lender to see if you can defer payments and avoid a repossession.

Charged-off Accounts

A charged-off account occurs when payments are delinquent and the bank writes the debt off as uncollectable. This generally happens after months without payment. Charged-off accounts have a very negative impact on credit and should be avoided at all costs.

Maxed Out Credit Limit

Each account has a credit limit that should not be exceeded. Strive to use 30% or less of your available credit to keep your credit score healthy.

Bankruptcy

Many consumers view bankruptcy as an opportunity to start anew, but filing for bankruptcy will negatively affect your credit score and can remain on your credit report for many years. Seek alternatives before filing. Certain consumer protection laws may protect you without having to file for bankruptcy. 

Lack of Credit History

A lack of credit history can also hurt you. Creditors will have no way to know your creditworthiness and whether or not you will be a risk. Young adults should open an account and pay off the balance in full and on time each month to build a healthy credit score over time.

Long Periods of Unemployment

A long lapse in employment and a high debt to income ratio can also hurt your credit.  

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents people that have become victim of inaccurate credit reporting, unfair debt collection practices, unlawful vehicle repossessions and “robocalls” from lenders, telemarketers and debt collectors. Contact Us to discuss your legal rights whether you have fallen behind on obligations or not.

 

What Happens if I Default on my Car Loan?

An unexpected occurrence like illness or loss of employment can leave you struggling to pay bills on time. If you are unable to pay your car loan on time, the lender may choose to repossess your vehicle. However, the lender must handle the repossession properly – whether you have fallen behind or not.   

1) Seek a Deferment Before Default 

Contact your lender before you default to see if a deferment is possible. A deferment will postpone your payments while you catch up with finances. These postponed payments are then applied to the end of the loan.

It is important to receive written confirmation from the lender showing this change to the original loan agreement. Since the terms of the loan have, in effect, been extended, the consumer needs to see how the lender has calculated any additional money to be paid at the end to satisfy the loan.

A deferment will likely still appear on your credit report, but the effect on your credit will not be as negative as a default.

2) Prepare for Repossession

If your loan is in default, understand that the lender has the right to repossess your vehicle. If you think a repossession is coming:

  • Remove all important car vehicle purchase and loan documents from your vehicle
  • Remove all personal items.
  • Note the current odometer reading 
  • Take photographs of the vehicle – interior and exterior.
  • Request that the lender provide you with a written loan payment history and a payoff figure.

3) Evaluate how to Get Your Vehicle Back

The loan agreement that you sign at the time of purchase details your rights if the vehicle is repossessed. If you financed through the dealership, this document is called the Retail Installment Sales Contract or RISC. It will state whether you must pay off the full balance of the loan, pay only past due payments, and pay for towing and storage fees.

After the repossession, you are entitled to receive a notice that details the terms for you to get your car back. This notice may be called a Notice of Intent to Sell Property. You should receive this notice before the vehicle is sold.  Once the vehicle is sold, the lender is to send a Deficiency Letter which confirms the selling price of the vehicle and any remaining balance owed on the loan.

Seek Legal Assistance

If your vehicle has been repossessed within the past six years, whether you fell behind on payments or not, you may have a case to pursue against the lender for wrongfully repossessing your car, truck, boat, motorcycle or RV. Contact Flitter Milz for a no-cost consultation.

Any Change to the Terms of your Auto Loan must be in writing

Many times a job loss, illness, death in the family or divorce cause a hardship making it difficult to keep up with financial obligations. When a borrower defaults on auto loan terms, such as late or partial payments, a lapse in insurance coverage, or death of borrower, the lender may choose to repossess the vehicle.

The loan agreement signed at the time of purchase, or Retail Installment Sales Contract, details the lender’s rights if you default on the terms of the loan, and your rights if the vehicle is repossessed.

Lending money for an auto loan gives the bank or credit union a security interest in the vehicle.  If the loan terms are not met, the vehicle can be repossessed from the borrower.  The lender may demand full payment of the loan, payment of only past due payments, and payment of repossession charges and storage fees.

The lender and borrower may discuss alternative payment options, such as deferred payments. If any changes are made to the terms of a signed loan agreement, the borrower must get those terms in writing from the lender.  For example, if payments have been added to the end of the loan, the lender must show the calculation of any additional funds required to satisfy the loan.

Never rely on a verbal agreement. Any changes to the original terms of an agreement should be in writing.  

Seek Legal Assistance

Whether you have fallen behind on your auto loan payments or not, if your vehicle has been repossessed in the past six years, Flitter Milz will evaluate the repossession for potential violation of your consumer rights. Contact Us for a no cost legal evaluation.

Can I be sent to jail if I owe money?

Debt Collection Harassment

Debt collection contact can be stressful and intimidating, especially iwhen you feel threatened. Debt collectors sometimes use abusive tactics, like threatening a lawsuit when none is intended, or threatening IRS reporting or tax consequences.

Collectors may also tell you that you can go to jail for owing money. This is a tactic that is used to intimidate, and has no legal standing. You can’t go to jail for owing money.

The Law is on your side

The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. It prohibits debt collection companies, or law firm collectors, from using abusive, harassing, unfair, or deceptive practices to collect debt from consumers. Whether you owe the debt or not, collectors are never allowed to intimidate, harass, threaten, or abuse you.

Cease & Desist Collection

If abusive collectors continue to contact you, send a Cease and Desist letter and request that collection calls and letters stop.  The collector is not permitted to contact you after receipt of this letter.  However, this does not mean the debt goes away.  Typically, the debt is assigned to a new collection agency, or possibly a law firm collector, to begin a new collection effort.

Attorney Representation

If you are represented by an attorney that is handling your debts, the collector is not permitted to contact you. You must notify the collector of your attorney’s name and contact information and request that any contact about your debt be made directly with your attorney.

Third Party Contact

Collectors may not contact anyone but you about your debt.  If family member, co-workers, neighbors or friends are contacted by a collector about your debt, your consumer rights may have been violated.

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 evaluation of contact from debt collectors.