Understanding Consumer Law

How to Use this Resource

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

Medical Debt –Three Important Changes to your Credit Reports

The three main national credit bureaus — Trans Union, Equifax, and Experian — have agreed to make changes in the reporting of medical debt. As of July 1, 2022, settled medical debt that would normally remain on credit reports for up to 7 1/2 years should come off the report. As a result, consumers may see an increase in their credit score, a benefit which can open doors to borrowing at more favorable rates for housing, loans and credit cards.

Three Important Changes to Credit Reporting

Change #1: As soon as a medical debt is paid, it will be removed from the consumer’s credit reports. This means if you’ve paid your medical bill in full and the debt still appears on your credit report as a negative mark, the tradeline and any late pay history on the credit report, will be removed.

Change #2: The period to report unpaid medical debt will increase from six months to one year. This will give people a chance to pay the medical debt off, work with a health insurance carrier, or dispute it before credit problems arise.

Change #3:  In the first half of 2023, all medical collection debt with an initial reported balance of less than $500 will be removed from credit reports.  This will result in nearly 75% of medical debt to disappear from consumer credit reports.

Medical Debt is usually unforeseen

Let’s face it.  Most medical debt is incurred unexpectedly. Patients visit doctors or seek medical treatment because they are sick or have had an injury. Due to the high cost of healthcare, many Americans have difficulty paying expensive medical bills to hospitals, physicians, labs and other medical providers.

Collectors must follow the law

Unfortunately, unpaid medical debt may be forwarded to a collection agency or law firm collector.  Once in collection, negative tradelines appear on credit reports and credit scores may drop. Consumers then begin to feel the effects of a negative credit rating.

 

Common impact of a negative credit rating
-Credit term changes, i.e. credit limits lowered, or interest rates increased
-Loan applications denials
-Landlords application denials
-Job offers or promotions retracted

Federal Laws Protecting Consumer’s Rights

The following consumer protection laws provide protections for consumers from inaccurate information appearing on credit reports and abusive collection practices by debt collectors.

Fair Credit Reporting Act

The Fair Credit Reporting Act governs how consumer credit information can be used and distributed.  It gives the consumer rights to view credit reports and dispute inaccurate information.  Consumers should obtain current copies of their credit reports from Transunion, Experian and Equifax at least every year.  When information is listed incorrectly, the consumer must take steps to dispute the errors.  The credit bureaus are required to investigate disputes and fix or delete inaccurate information within 30 days of a consumer dispute. If they don’t, they may have broken the law.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a federal law that provides legal protections for consumers from a collector’s abusive collection tactics.  Common violations to this law include:

  • Harassment or abusive contact
  • Threaten a lawsuit when none is intended
  • Misrepresentation, miscalculation, or inflation of the debt
  • Provide false or misleading information to the credit bureau
  • Continue to collect after filing for bankruptcy

When collecting medical debt from consumers, or other personal and household obligations, debt collectors must follow the law.  Violations to the FDCPA allow the consumer to pursue legal action against the collector, and the collector will be responsible for legal fees.

Get Qualified Legal Help from Experienced
Consumer Protection Lawyers

Attorney Andy Milz states, “Here at Flitter Milz, PC, we strongly believe medical debt should not be reported at all.  Unlike a mortgage, credit card, or car loan, medical debt does not represent a financial choice, but is often a result of an emergency or hardship.  And, even for the majority of consumers with some form of health insurance, getting the insurance      company to pay the bill in its entirety is always a challenge. Inability to pay medical debts should not weigh down a person’s creditworthiness.  Unfortunately, until now, health care providers, medical debt collectors, and the credit bureaus have been allowed to report this negative information.”

Flitter Milz is a consumer protection law firm that concentrates in the specialized area of credit reporting and addresses accuracy and privacy and violations of the FCRA, and abusive contact by debt collectors that violate the FDCPA.  Our firm has obtained millions of dollars in relief for consumers whose credit reputations have been damaged.  If inaccurate credit information is affecting your life, or you have been contacted by an abusive debt collector, contact us, for a no cost consultation.
Pictured: Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Can I Keep my car if I file for Bankruptcy? 5 things to know.

Buying a car is costly.  Most people finance the purchase of a vehicle by taking out a loan. The agreement states terms for regular monthly payments to be made until the debt is satisfied. If the borrower defaults on payments, the lender has the right to repossess the vehicle.

Auto Finance Law & Bankruptcy  

However, there is a complicated intersection between auto finance law and bankruptcy. Before taking any action, borrowers must understand the implications of bankruptcy and be able to determine the most prudent steps to take before and after a vehicle has been repossessed. In general, merely having your car or truck repossessed is not enough to warrant filing for bankruptcy.  Let’s try to simplify it.

Repossession = Bankruptcy?  Maybe, maybe not.

  1. Filing a bankruptcy can stop a repossession from going forward.
    When a consumer bankruptcy is initiated, the debtor protections include an “automatic stay.” This means that your creditors are prohibited from taking almost all actions to collect a debt.  This automatic provision can be a powerful way to prevent repossession of the car, but only temporarily.
  2. The automatic stay can last weeks or years.
    The stay begins automatically upon filing and lasts only as long as the Court allows it to, which can be anywhere from weeks to several years, depending on the type of bankruptcy you choose to file. However, if you filed an earlier bankruptcy within a year of the new bankruptcy case, the automatic stay will terminate within 30 days. The judge also has the choice of extending or shortening the time period in certain circumstances. Even if you file for bankruptcy, to keep your financed car you will have to resume a car loan repayment schedule.
  3. Filing a bankruptcy after the repossession will not necessarily get you the car back.
    If the lender already repossessed your car, then the bankruptcy does not necessarily require the lender to return the car.  If the car was already sold by the lender by the time you file bankruptcy, then it is already too late.  However, if the sale has not gone forward, a bankruptcy may stop the lender from selling the car, and perhaps you can get it back by agreeing to ongoing monthly payments. This is something to discuss with your bankruptcy attorney.
  4. If you file bankruptcy, you might have to eventually give up the car, but not always.
    The point of bankruptcy is to help people in debt have a fresh start.  Because of this, there are certain state and federal exemptions you can claim to prevent the car from being lost to the bankruptcy.  For example, under the federal rules, you can claim $4,450 in a motor vehicle as exempt.  This means that if you owe less than that amount on the car, you’ll be able to keep it.  If you owe more, then the trustee may sell your car, pay you $4,450 for the exemption, and distribute the rest among your creditors — unless you make a showing of need before the bankruptcy court, something your bankruptcy lawyer can help with.
  5. Even if you file bankruptcy, you will likely need to continue making car payments throughout the bankruptcy if you want to keep the car.
    This is because the lender has “lien” or “security interest” in the car, which is still recognized in the bankruptcy.  So, if you don’t pay as agreed, or if you default on the car loan in some other way (g. failing to maintain insurance) then the lender may still be able to repossess the car.  Practically speaking, you’ll need to keep paying on the car loan if you want to keep the car through your bankruptcy.

    Borrowers have rights when facing repossession

If your car was already repossessed, you have other rights as a consumer borrower, separate from any bankruptcy proceeding.  Bankruptcy is only one tool or avenue if your car or truck has been repossessed – and it might, or might not, be right for your specific situation. Consult with an experienced consumer lawyer to understand your options outside of a bankruptcy.

Seek advice from an Experienced Consumer Lawyer

If you’re concerned that the lender my repossess your vehicle, or perhaps thinking of filing bankruptcy to get your car back after repossession, contact Flitter Milz for a no cost case evaluation. Our attorneys are knowledgeable of consumer laws that protect borrowers from wrongful repossessions.
Pictured l-r: Attorneys Cary Flitter and Andy Milz.

Thinking of Going Solar? Do your homework.

Most households are looking for ways to reduce costs.  Today, utilizing the sun’s power has become an enticing option. Lowering monthly energy bills and  contributing to a green environment are common reasons that homeowners opt for solar power.  But, choosing to add solar panels to your home is not a casual decision.  It requires research, investigation and planning.

Is my home suitable for solar panels?

There are pros and cons to every decision a homeowner makes.  Like any other investment, going solar may not make sense for every home.  After gathering facts, you need to evaluate:

  1. Energy usage for the home.  How much power must be generated to satisfy the needs of people in the home.
  2. Condition of the roof.  Does the roof need repair or to be replaced? Can my roof handle the weight of panels?
  3. Location of the home.  Am I in the right climate for solar panels?
  4. Sunlight v. Shade.  Does my roof get enough sunlight throughout the day to produce the power needed for my home?  Do trees need to be removed from my property for panels to work efficiently?
  5. Panel configuration.  Does my roof have enough space for solar panels?

Shopping Solar Companies & Financing

Similar to purchasing other items for the home, when considering solar panels, homeowners must shop around, get quotes, and investigate solar panel companies to compare one offer from another. There are a wide variety of products on the market with varying levels of efficiency, durability, reliability, output and design. As well, there are a number of solar companies and installers — some are better than others. Check the company’s reputation to see if complaints been filed against them with the Federal Trade Commission, State Attorney General, or Better Business Bureau?  Also, searching court dockets for lawsuits that have been filed against solar panel companies or their finance companies may provide insight to issues that other consumer’s have faced involving solar transactions.

CAUTION #1:  Is “Free” really free?

Frequently, we hear about door-to-door solar salesman telling homeowners that the solar panels will be free. After listening to a sales presentation and learning

of the benefits of solar power, the consumer is presented an iPad or tablet to sign, believing their signature gives the salesman  permission to evaluate the property for panels.  However,  the signature, or initials, on an iPad may authorize the solar company, without the consumer’s knowledge, to:

 

-Access the consumer’s credit file.
-Utilize the signature on documents that are Doc-U-Signed
-Enter the consumer in to a contract for solar panels
-Submit applications to finance the panels.

It’s not until panels have been installed on the home and bills begin to arrive that the consumer realizes solar panels are anything but free. Instead, many consumers find that they signed into a decades-long financial commitment which can last for 20 -25 years for the panels.  Bills from the local energy provider plus the cost of solar panels make the total cost of energy burdensome. All of a sudden, homeowners finds themselves in thousands of dollars of debt when they thought the panels were for free.

CAUTION #2:  Is the solar company reputable?

Before making a commitment to get panels, investigate reviews from other consumers. Obtain quotes from multiple solar companies for comparison. Then decide which company is best for you. For example, do I get panels from SunPower, Momentum Solar or Tesla?  Which company offers the product I want to buy?  Which company is presenting me with the best system for my home? What types of problems have other consumers faced when getting panels from one company versus another?

CAUTION #3: Why did the solar company access my credit report?

Prospective lenders for solar panels, such as banks, credit unions and financial institutions, seek access to the homeowner’s credit reports to determine whether to extend credit. This can only be done with the consumer’s written permission. When reports are accessed without the consumer’s permission, the consumer’s rights may have been violated. The Fair Credit Reporting Act is a federal law that governs the privacy and accuracy of credit reports.  If you do not want your reports accessed, do not sign anything that would grant permission.

CAUTION #4: How do I pay for the solar power system?

If you don’t have cash on hand to pay for the system, you must evaluate whether to lease, enter a power purchase agreement (PPA) or finance the system through a solar loan.

The benefit of entering a solar lease or PPA is that costs are not paid upfront. The solar company owns the system on your roof and monthly payments are made to them for the energy generated by the panels.

Solar loans work like other home improvement loans. The loan is taken out through a finance company with monthly payments made to the lender for the purchase of the system.  Just like researching the solar company, homeowners must research the best way to finance the solar power system. There are several companies, such as Goodleap, Mosaic, or Sunlight Financial, that offer loans for solar panels. But ask yourself, which one offers the best terms for me?

For instance: Who is Goodleap?

Formerly known as Loanpal, Goodleap is a finance company that provides loans for solar products like rooftop solar panel systems. Goodleap teams up with door-to-door sales companies who sometimes entice people to sign up for “free” solar panels. Hundreds of consumers have complained about Loanpal/Goodleap’s business practices to the Better Business Bureau. The Better Business Bureau has rated Loanpal an “F.” From customer reviews, Loanpal received only one out of five stars. In fact, some consumers complain that they never saw or signed a contract. When faced with accusations that the solar panel salesperson engaged in fraud — such as signing up a consumer for a loan without their knowledge or consent — Goodleap has attempted to distance itself from the solar panel company.

The salesperson won’t even tell you that Goodleap needs to pull your credit report for a loan.  Your “consent” may have been buried in documents that were Doc-U-Signed on the iPad or tablet. And although you may have been promised copies of anything you signed, you never received them. Often, you won’t learn about the existence of any loan papers until the solar panels have been installed on your home.  Remember, it is fraudulent and unlawful for anyone to be signed up for a loan without written consent.

How to protect yourself when considering solar 

  • Get a copy of the contract and read it carefully before signing. There is no rush for you to enter into a deal.
  • Never give out personal information – bank account numbers, birth dates, Social Security Number – to a door-to-door salesman you just met.
  • Monitor your credit. It is illegal for a solar company to make a hard inquiry on your credit report without a permissible purpose. You must provide written authorization for someone to access your credit file.
  • Visit websites for the Federal Trade Commission, Consumer Financial Protection Bureau, State Attorney General, and the Better Business Bureau for insight on solar energy scams.

Seek Legal Help from a Qualified Consumer Law Firm

Flitter Milz is a nationally recognized consumer protection law firm that evaluates solar panel sales matters for potential violation of the consumer laws involving fraud, such as forged contracts, identity theft and credit reporting privacy violations.  Contact Us

Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Is your Credit Report Mixed with Someone Else’s Information?

Finding out that your credit report has been merged with someone else’s information usually occurs at the most inopportune time.  Often it’s when you’re considering the purchase of a home or car, taking out a student loan, or possibly looking for a new job or apartment.  However, it’s not until after credit applications are denied, or credit scores lowered, that most consumers review their credit reports.  At that point, when errors are discovered, damage to one’s credit may have already taken place.

Read more below:

Flitter Milz Nets
$360k Award in
Mixed Credit File
Lawsuit 

How do credit files get mixed?

There are a variety of reasons why credit files get mixed.  With the amount of information handled by creditors and the credit bureaus, mistakes are bound to happen.  For example, information from an application may be keyed into a file incorrectly. Digits on a social security number may be transposed, or a name misspelled from an application.  Those errors can pass from the original creditor through to the credit bureau.  Or, the credit bureau mistakenly may combine credit files of two or more different consumers into one file.  Unfortunately, the errors may not be discovered until the consumer reviews his or her report…usually after applying for new credit.

Common errors on mixed credit files
-Share a common family name, such as Smith or Jones

-Name suffixes – i.e. Sr., Jr., III
-Identical names
-Common address
-Similar Social Security Number or Birthdate
-Co-signers on loans
-Unidentifiable accounts resulting from identity theft
-Public record listings – judgments, liens, foreclosures.

Correcting mis-merged or mixed credit files 

If you believe someone else’s information has been mixed with or merged onto your credit file, a written dispute must be sent to the reporting agency.  Disputes for information on credit reports should be sent directly to Transunion, Experian or Equifax.  If errors appear on an industry specific agency report, such as ones used by employers, insurance companies, banks, or landlords for screening applicants, the dispute must be sent directly to that agency.  Correction of mis-merged or mixed credit files is similar to disputing errors on credit files.  Consumers should follow these important steps:

STEP ONE
Obtain current copies of your credit reports from Transunion, Experian and Equifax, or the industry specific agency.

Write for a current copy of your complete report.  Your letter must include two forms of identification to validate your ID and address, such as a current driver’s license and utility bill.

STEP TWO
Highlight items on your report that are incorrect.

STEP THREE
Gather documents that confirm your identity.  You must be able to distinguish yourself from the other person, such as a birth certificate, social security card, passport, driver’s license, account statements with your address, or paystub from your employer.  Provide copies of documents that specifically relate to the error(s) on the report.

Also, if you know who the mixed information belongs to, such as a relative, let the credit bureau know.  This may help in their investigation and enable a faster resolution to your dispute.

STEP FOUR
Prepare a dispute letter for the reporting bureau.  The letter must state that your file has been mixed with someone else.  Clearly identify the mistakes and provide relevant documents that show the error(s).  Request that the bureau correct your file.  Ask for written confirmation that shows the correction has been made.

The credit bureau has 30 days to address disputes

The reporting bureau has 30 days to respond to your written dispute.  If errors are not corrected, you may need to send a second dispute to that bureau, and possibly provide additional documentation.  Or, you may need to write to the underlying creditor, explain the problem and request corrected information be sent to the reporting bureau.

Can I sue the Credit Bureau or Credit Furnisher?

The Fair Credit Reporting Act is a federal law written to protect consumers from inaccurate or incomplete information listed on credit files.  When credit bureaus or credit furnishers do not take steps to correct errors on credit reports, the consumer may consider filing a lawsuit against the reporting bureau or creditor furnisher.

 

Flitter Milz in Action

Flitter Milz nets $360K Award in Mixed-File Case:
Hutchins v. Mountain Run Solutions, LLC

A U.S. federal court recently awarded $360,000 to our client, a young man whose life was upended by a debt collector who refused to remove an inaccurate account from his credit report despite our client’s numerous requests.  The case is Hutchins v. Mountain Run Solutions, LLC and can be found here.

Our client is a young professional who noticed a collection account he didn’t recognize on his credit report.  The account – which dragged down his credit score – belonged to his father, who shared the same name but had a different date of birth, SSN, and address.  The son made three disputes to the credit bureau Experian and the debt collector, Mountain Run Solutions, claiming the debt was not his and asking for an investigation, only to have his requests to investigate ignored.  He was forced to sue.

Mixed files like this, as recognized by the Consumer Financial Protection Bureau, are a big, big problem in the credit reporting industry.

After a damages hearing in federal court, the court entered judgment against the debt collector, awarding $180,000 to the son for the mental and emotional toll the negative credit caused him.  The court also said punitive damages were warranted for the debt collector’s knowing and willful violation, adding another $180,000 to the award for a total of $360,000.  (The claim against the credit bureau was resolved out of court).

Seek Qualified Legal Counsel

If someone else’s debt or a stranger’s account is on your credit report, Flitter Milz can help.  Whether your credit file has been mixed or mis-merged with a family member, someone with a similar name, or a total stranger, your consumer rights may have been violated.  Contact Us for a no cost evaluation.

Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Take Control of your Credit

Understand credit scores and credit reports

Credit is part of your financial power.  It plays a crucial role in enabling us to get the things we may need or want, such as homes, vehicles or educations. However, many consumers don’t take an active role in managing and monitoring their credit scores or credit files. There is a common misconception that your “credit score” is your credit report.  It is important to understand the difference.

What is a credit score?

A credit score is a number that predicts how likely you are to pay back a loan on time.  Information that appears on your credit report is used in a scoring model, which is a mathematical formula, to create the score. Depending on the specific data used to calculate a score, the actual credit score number can vary from one scoring model to another.  Most credit scores range from 300 – 850.  Higher scores make it easier to qualify for a loan and may result in better terms, such as interest rates and length of the loan.

Seeking Credit

When consumers seek credit, whether it be for a mortgage, auto loan, credit card, or another type of credit product, the lender will request access to the consumer’s credit and obtain copies of his or her credit reports and credit scores.
This information will assist the lender in determining whether to extend credit, and if so, the interest rate on the loan or credit card, and the credit limit.

Here are some guidelines that may help you to get and keep a good credit score

  • Pay your loans in full and on time.
  • Keep credit balances low in relation to the full credit limit
  • Develop good payment history over time
  • Only apply for the credit you need
  • Review your credit reports regularly

What is a Credit Report?

Transunion, Experian and Equifax are the three main credit reporting bureaus.  These bureaus provide credit reports which list specific information about a consumer’s credit activity and payment history. Lenders use these reports to help determine whether to extend credit or not.  As well, other businesses such as insurance companies and utilities, or prospective employers and landlords, may request access to a consumer’s report for use in making decisions about you.  Shall I give you a job offer?  Rent you an apartment?

Many people use apps, such as CreditKarma or Credit Sesame, to get a sense of where their credit stands.  But these apps do not show your credit report.  Instead, they give you only a superficial snapshot of the status of your accounts.  They may not show the most up-to-date information about your credit file, which may reflect inaccurately reported missed payments from years ago.  The only way you can see the most current information on your credit file is to obtain your credit report from one of the three main bureaus – Transunion, Experian and Equifax.

What type of information is on a Credit Report?

The type of information listed on credit reports can include:

Personal information:
Your name and name changes, current and former addresses, birth date, social security number and phone numbers.
Credit Accounts:
Name of creditor & account type, balance, payment history, credit limit &
date opened/closed.
Collection Accounts:
Credit accounts that have been assigned to a collection agency.
Public Records:
Liens, Foreclosures, Bankruptcies, Civil suits and Judgments
Hard Pull Inquiries:
Lenders that access a consumer’s credit file in the process of extending new credit.
Soft Pull Inquiries:
Businesses access consumer files for the purpose of extending a new
credit opportunity or service.

Check your credit reports for accuracy

Credit reports should be reviewed regularly for accuracy. When incorrect information appears on a credit report, the consumer must send a written dispute to the credit bureau. The dispute letter must clearly state the error that appears on the report and include documents that support the claim for correction.  The bureaus have 30 days to respond in writing to the dispute.  If the error is not corrected, the consumer may need to seek counsel from a qualified consumer protection lawyer.

How to Obtain a Credit Report?

Send a written request to the credit bureau

Consumers may obtain credit reports by writing to Transunion, Experian and Equifax. Your letter should include two forms of identification, such as a current driver’s license and utility bill.  It may take about two weeks to receive your report through the mail. Click here for a template letter.

Request your report online:

During the COVID-19 pandemic, Transunion, Experian and Equifax are offering free weekly online credit reports through annualcreditreport.com, a website authorized under federal law that allows you to request free reports from each credit reporting agency every 12 months.

Seek Legal Help from Qualified Consumer Lawyers

Attorneys at Fitz MilnerDo you have errors on your credit reports?  Problems getting credit?
Flitter Milz is a nationally recognized consumer protection law firm that evaluates matters involving credit reporting accuracy and privacy.

Contact us for a no cost legal evaluation of whether your consumer rights have been violated.  Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)

How to locate your car after repossession?

Lenders are not required to notify the borrower in advance of an auto repossession.  However, after a vehicle has been taken, the lender must send a letter to the borrower outlining terms to get the vehicle back — whether the lender is a bank, such as Well Fargo or Bank of America, a credit union, such as Pennsylvania State Employees Credit Union or Erie Federal Credit Union, or a financial institution such as Driveway Finance or PA Auto Credit. The repossession letter, often called a Notice of Intent to Sell Property, details the location of the vehicle and where personal property may be picked up, the amount to be paid to retrieve the vehicle, and the time period in which the borrower must act before the vehicle is sent to an auction or private sale to be sold.

Let’s face it.  Car repossessions never occur at convenient times. A variety of reasons may have caused default on the loan. The borrower may be suffering an illness or from a death in the family, be going through divorce, or had a job loss. Regardless, once the vehicle has been taken, the borrower must take steps to locate it and find out how to get it back. As well, the lender must follow the law.

The Role of the Repo Agent

After the lender has made the decision to repossess a vehicle, arrangements are made with a repo agent who will locate the vehicle and take it, often without warning.  In advance of the repossession, the repo agent must inform the local police department of their intent to seize the vehicle.  The repo agent may come with a tow truck to the borrower’s home or place of employment. Or, they may track the vehicle finding it at another location, such as at a shopping mall, doctor’s office, or the address of a family member or friend. Sometimes at the time of purchase, the dealership may have installed a GPS tracking device or a remote control car disabler.  The repo agent may use these devices to track vehicles that have been assigned for repossession.

In Pennsylvania, a repossession agent has to be licensed with the Department of Banking and Securities of the Commonwealth and may be hired by a bank, credit union or finance company to repossess cars, trucks motorcycles, RVs, powersport vehicles, boats or airplanes. If a vehicle is missing, the borrower should make calls to the local police and the lender to confirm it was not stolen.

Wrongful Repossession by the Repo Agent

        • Breach the Peace
        • Enter a closed garage to get your vehicle
        • Damage your car or property during the repossession
        • Threaten arrest or violence
        • Force you to pull over while driving
        • Involve the police to aid in the repossession

If you feel the repo agent handled the repossession improperly, gather documents that illustrate what happened and when, such as a written statement of events; photographs or video of the scent, and witness statements.  Contact an experienced consumer protection law firm to evaluate whether your consumer rights were violated.

Borrower’s Rights

Borrowers have legal rights, whether payments were missed or not – without filing for bankruptcy.  If you believe your vehicle may have been wrongfully repossessed, review the terms of the loan agreement to understand steps that may be taken after default. In addition, gather all correspondence sent from the lender after the repossession.  Consult with an experienced consumer protection attorney to evaluate whether your consumer rights were violated.

Your signed Loan agreement
If the loan agreement has been misplaced or was left inside the
repossessed car, the borrower could obtain a copy either by
contacting the lender or the dealership where the vehicle was
purchased.

Gather the following documents sent by the lender after repossession.

Repossession Notice from the lender
This notice will state terms to retrieve the vehicle. The lender
may demand full payment of the loan, or accept past due payments
plus late fees, and costs associated with repossession and storage.
When the borrower can not meet the payment terms to recover the
vehicle, the lender will sell it, either at an auction or private sale.

Deficiency Notice from the lender
Once a vehicle is sold, the lender must inform the borrower of the
sale by sending a letter known as a Deficiency Letter which details
the balance to satisfy the loan.

Retrieve Personal Property
The borrower has 30 days from the date of the repossession notice to recover personal property.  Afterwards, the repo agent may dispose of the property.  If you believe your vehicle is at the risk of repossession, it may be a good idea to remove all personal items and paperwork from the vehicle.

Seek experienced consumer lawyers firm

Flitter Milz has the expertise in representing borrowers whose vehicles have been wrongfully repossessed by banks, credit unions and financial companies. Contact us today for a no cost legal evaluation to determine whether your consumer rights have been violated.

 

Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

 

 

 

Solar panels on your home — an advantage or not?

Solar energy can provide benefits to many homeowners — from the financial reward of savings on energy bills, to the ecological benefits of  “going green”. While some folks may see a home with a solar power system as an added benefit, others may find it undesirable.

Regardless, the consideration of solar power and panels for the home requires research. Homeowners must explore the variety of products, evaluate the best system for the needs of the household, investigate cost savings, compare finance and/or lease terms, and finally, determine whether adding a solar system is right for their budget.

Is solar power is right for you?

Before contacting a solar sales company, the homeowner should take time to evaluate whether adding solar panels to the home would provide enough financial benefit, plus meet the energy needs of the household. Factors for consideration are: house size, roof — condition and dimensions, climate zone, community regulations, local electricity rates and government incentives. As well, the homeowner may contemplate the following:

Current energy usage?

Am I using my energy wisely?  Will solar panels reduce my monthly energy bill?
Review your energy bill for usage.  Determine ways that may reduce the current expense such as, changing light bulbs; installing dimmers; fixing a leaking faucet; repairing ductwork. Understand your cost of energy and how much you might save by changing to solar.

Sunlight Exposure?  

Does my roof get enough sunlight throughout the year?

Evaluate the sun’s path during daylight hours.  How many hours of the day does the roof get sunlight?  Calculate the number of hours that your roof is shaded.  Does the sun/shade ratio change from season-to-season?  Would solar panels provide the same benefit throughout the year?

Roof Condition?

Does the roof need repair before adding solar panels?
Does the roof and/or shingles require repair or replacement before installation of panels? Will the roof handle the weight of solar panels?  Shall I contact an independent roofer to evaluate the roof’s condition?

 

Tree Removal?

Do I need to remove trees to create more sunlight for my home?

Review landscaping around the property for sun exposure to the roof.  Will panels get enough sunlight to perform at maximum efficiency?  Consult with an arborist to estimate tree growth over a 25 year period and the impact of sunlight over the seasons. Will trees require removal or transplant?

Is solar power free?

Often, prospective customers for solar systems are told the panels will be free.  But, we must know, there is no such thing as a free lunch…and in this case, no such thing as free solar panels.  Customers will pay for the electricity that is produced by the panels, usually under a solar lease or power purchase agreement.  What is the difference?

Solar Panel Lease
A solar lease is a contractual agreement between the homeowner and the solar energy company for installation of solar panels on the roof of the home.  Usually, there is no down payment and the solar company is responsible for maintenance. The homeowner makes monthly payments to the solar leasing company at a fixed monthly amount or sells the electricity generated from the panels at a set price per Kilowatt-hour. The solar company is also entitled to all the rebates, tax breaks and incentives for solar power.  Solar leases typically last 20 – 25 years.

Power Purchase Agreement (PPA)
A Power Purchase Agreement is an arrangement in which the solar company plans for the design, permitting, financing and installation of a solar energy system on a customer’s property.  The homeowner does not own the hardware — the panels or inverter. The solar company sells the power generated to the homeowner at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the solar company receives the income from the sale of electricity as well as any tax credits and other incentives generated from the system.

PPAs typically range from 10 to 25 years and the solar company usually places a lien on the property.  The solar company remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPA, have the solar system removed or choose to buy the solar energy system from them.

Buying, Selling or Refinancing a Home with Solar Panels

Before entering an agreement for a solar power system, whether as an initial purchase, refinancing an existing contract, or purchasing a home with an existing system, you, the consumer, must obtain a copy of the solar panel contract. Take time to review the terms of the agreement. If you need clarification, consult with a real estate agent or real estate attorney for explanation of your legal and financial obligation.  Determine whether this agreement is right for you by evaluating:
-Monthly cost for panels
-Monthly cost for power
-Full term of lease or finance agreement.
Common questions:
-Ask whether you are able to assume the solar contract from the seller?
-Find out if the panels were purchased or leased.
-Inquire whether there is a lien on the property for the panels?
-Must the lien be satisfied before the sale?
-Does the solar panel contract allow for transfer to a new home buyer?
-Does the warranty transfer to the new home buyer?

Seek Legal Help from a Qualified Consumer Law Firm

Flitter Milz is a nationally recognized consumer protection law firm that evaluates solar panel sales matters for potential violation of the consumer laws involving fraud, such as forged contracts, identity theft and credit reporting privacy violations.  Contact Us

Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

 

Auto Repossession and the Pandemic

During COVID, many consumers experienced wrongful repossession of their cars, trucks, motorcycles, RVs or boats — not just by big banks, such as Wells Fargo, Chase, Capital One or Bank of America, but also by credit unions and subprime lenders. While some lenders claimed to have paused repos, the rate of repossessions during the pandemic still seems to be high.  Indeed, as the Fall and Winter of 2021, a lot of COVID pandemic protections states implemented to help consumers reeling with COVID have expired.

After falling behind, many borrowers requested to have payments lowered  or deferred by their lender. Whether suffering from hardships related to unemployment, child care expenses, or missed work due to the pandemic, vehicles were still repossessed.

When do lenders decide to repossess vehicles?

Lenders don’t care why borrowers are late. They want to be paid. Most decisions to repossess are made automatically by lenders’ computer systems, and sometimes as quickly as missing only one payment.  When the system notices a missed payment, repo orders are sent electronically to the repo agent who is assigned to take the car. These same computers will simultaneously send negative late payment and repo notations to the credit bureaus.

Fallen Behind?  Three Steps to consider.

1. Contact your lender
Call the bank, credit union or financial institution and discuss whether  payments can be postponed.  Possibly, the lender may be willing to negotiate the due date or amount.  Be sure to get any changes to payment terms in writing  – whether it’s a big bank like Bank of America or Capital One, a credit union or a sub-prime lender, you must receive confirmation of any changes to the loan from the lender.
2. Consider refinancing the loan
Contact other credible lenders to see whether your loan can be refinanced at terms that you can meet.
3. Seek legal guidance from Flitter Milz, P.C.
The attorneys at Flitter Milz are experienced in representing consumers against banks, credit unions and financial institutions, as individuals and in class action lawsuits, for violation of their rights after repossession.

MOST IMPORTANT — Don’t ignore the debt.  Seek a solution.

Borrowers have rights after repossession

Are you the victim of a wrongful auto repossession?

Wrongful Repossession:  Was my vehicle repossessed in error?
Breach of the Peace:  Did the repo agent use violence or damage my property?
Police Involvement:  Did the police assist in the repossession?
Improper Notices:  Did the lender provide proper notices after the repossession?
Credit Reporting:  Are there errors on my credit report related to repossession?

Repossessions, Credit Reporting & Credit Scores

Credit Reports
Vehicle repossessions carry negative weight on credit reports.  Consumers must check their reports for accuracy and determine whether the lender has listed the payment history, loan status or balance owed in error.  To obtain a current copy of your credit report from Transunion, Experian or Equifax consumers may write to the credit bureau or visit:  annualcreditreport.com.

When errors appear on credit reports, the consumer must send a written dispute to the bureau.  The dispute must be accompanied by supporting documents that illustrate the error.  The credit bureaus have 30 days to respond to the written dispute.

Credit Scores
Auto loans that have fallen into default, and ultimately the vehicle is repossessed, a negative listing will appear on the borrower’s credit report.  The lender’s tradeline may be listed on the reports for 7 1/2 years from the date the last payment was made. This listing will factor in to a lowered credit score and make it difficult for the borrower to secure favorable terms on loans going forward.

Seek Legal Help After Repossession

Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against banks, credit unions and financial institutions for the wrongful repossession of cars, trucks, motorcycles, RVs and boats.  Contact Us for a no cost legal evaluation to determine whether your consumer rights have been violated.

Pictured:  Cary Flitter (center),
Andy Milz (left), Jody López-Jacobs (right).

 

Are there Advantages to a Voluntary Repossession?

While most repossessions are initiated by the lender, sometimes it’s the borrower that decides to voluntarily surrender his or her vehicle.  Whether or not, after a repossession it’s important for the borrower to understand his or her financial responsibility to satisfy the loan once the lender has taken possession of the vehicle.

Surrendering Your Vehicle

The choice to voluntarily surrender your vehicle is not easy decision. Borrowers understand that the lender has the right to repossess the vehicle if they can’t meet the terms agreed upon in their auto loan agreement.

After payments are missed or late, the lender could come to take the vehicle at any time of day or night. Repossessions are stressful and usually occur at the most inopportune times.

Often, borrowers faced with the possibility of repossession may choose to voluntarily give their car back. A voluntary repossession allows the borrower to have some control and address financial troubles in a less stressful manner, and without the shock of finding the car missing.

Ten Advantages of a Voluntary Repossession:

1. Arranged return of the vehicle – date, time and location
2. Removal of all personal belongings from the vehicle
3. Removal of all important documents from the vehicle
4. Removal of the license place
5. Photograph the condition of the vehicle – interior & exterior
6. Take odometer reading to know precise mileage on the vehicle
7. Contact auto insurance carrier to inform of the voluntary repossession
8. Deliver the vehicle and keys to a convenient location
9. May not have to pay a repossession fee
10. May not have to pay storage fee

Voluntary Repossession Will Not Cancel Your Loan

A voluntary repossession does not dismiss the responsibility that the borrower has to satisfy the loan.  The financial obligation and collection process from a voluntary repossession are the same as a regular repossession.

First, after taking back the vehicle, the lender will send a repossession notice, or Notice of Intent to Sell Property, to the borrower. This letter states the location of the vehicle, terms to get the vehicle back, where to retrieve personal property, and where and when the vehicle will be sold.

Second, once the vehicle has been sold, the borrower will receive a letter called a Deficiency Notice.  This notice informs the borrower of the selling price of their vehicle and shows the calculation of any remaining balance owed on to satisfy the loan.

Collection of the deficient balance may be handled by the lender’s collection department, or the lender may assign this task to a third-party collector. If the collector is unsuccessful in collecting the balance, the lender may choose to file a lawsuit against the borrower to collect this balance.

Repossession and Your Credit Report

Both voluntary surrender and lender-initiated repossession carry negative weight on a credit report.  It’s not just the repossession that is listed on credit reports, but also, the missed or late payments that may have led to the repossession in the first place.

These negative listings can remain on your credit report for up to seven and one-half years, jeopardizing the ability to obtain another auto loan, or one with favorable credit terms.  In addition, repossessions could have other negative consequences such as creditors raising interest rates, the reduction of credit limits, or an overall drop in credit scores.

Seek Legal Help After Repossession

Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against banks, credit unions and financial institutions for the wrongful repossession of cars, truck, motorcycles, RVs and boats.  Contact Us for a no cost legal evaluation to determine whether your consumer rights have been violated.  Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)

 

Understanding Vehicle Repossession and the Impact on Credit

The hard facts about Repossession.

We all understand that when you borrow money, you need to pay it back. And if you take out an auto loan, whether it’s with a bank, credit union or other financial institution, if payments are late or missed, the lender has the right to repossess the vehicle.

Signing a loan agreement means that you agree to the terms to repay the money borrowed, plus any interest and fees, within a scheduled period of time. Opting to finance a vehicle is an important decision and carries significant responsibility and financial discipline.

Short Term v. Long Term Effects of Repossession

When the borrower defaults on an auto loan there are serious consequences. Immediately, daily life becomes upset without use of the car.  Getting to work or handling routine daily chores, such as food shopping, taking children to school, or attending doctor’s appointments, may present difficulties for the household.

But more important is the long-term consequence. Repossessions can remain on credit reports for seven-and-one-half years, beginning from the date that the account first became delinquent.  And, as long as the repossession stays on your report, it can seriously damage credit and impact the calculation of credit scores. Also, negative listings on credit reports may make it more difficult to secure new loans, and existing creditors could alter credit terms by lowering credit limits or increasing interest rates.

Factors that can Damage Credit

  • Late payments – every month a payment is missed a negative mark appears on the account’s payment history.
  • Defaults – Loan defaults carry negative weight.   i.e. charge-off or repossession.
  • Collections – Collection accounts appear as negative listings on credit reports.
  • Court Judgments – Unsuccessful collection attempts, lead to lawsuits against the borrower to obtain a judgment.

Factors Contributing to the Calculation of a Credit Score

  • Payment History – Timely payments made to an account
  • Credit Utilization – The ratio of available to used credit
  • Age of Credit – The length of time an account has been open
  • Types of Accounts – A consumer’s credit mix: mortgage, credit cards, loans, etc.
  • Application history – The number of credit applications submitted within a specific period

Legal Protections from a Wrongful Repossessions

Whether or not the borrower defaulted on the terms of the auto loan, State and Federal laws govern how lenders and repo agents are to handle repossessions properly– at the scene and afterwards. When the borrower’s consumer rights are violated, a case could be pursued against the lender, repo agent or both. Repo agents may not threaten the borrower or use physical force.  In the course of repossession, the borrower’s vehicle or property is not to be damaged.  If police are called to the scene, their job is to keep the peace, not assist with the repossession.  If personal items have been left in the repossessed vehicle, the repo agent must permit the borrower to retrieve those items.

AFTER the Repossession

Following the repossession the lender has responsibilities to the borrower.  They must provide notices that inform the borrower with steps to retrieve the vehicle and their personal property.  Once the vehicle is sold, the lender must inform the borrower of the selling price and present a calculation of any remaining balance owed to satisfy the loan.

Manage Auto Loan Payments and Credit Reporting

Monitor Credit Reports for Errors
Over the course of the auto loan, borrowers should monitor their Transunion, Experian and Equifax credit reports for accurate reporting. If incorrect information is listed, such as a late payment history, a dispute letter should be sent to the lender and the credit bureau to request correction on the report.  

Send Effective Disputes
Disputes letters must include documents that show the error, such as cancelled checks, account statements, correspondence with the lender, etc. Also, the dispute must clearly state the requested action,  an update, correction or removal of the information.

Keep Accurate Payment Records

As important as it is to make payments in full and on time, we can’t always rely on the lender to keep an accurate record of payments.  Sometimes mistakes are made. Incorrect payment amounts could be applied to the borrower’s account, or the payment could be applied to someone else’s account.  Borrowers that manage and keep accurate payment records have good documents to support disputes made to the lender and/or credit bureau.

Seek advice from a Qualified Repossession Lawyers

Flitter Milz is a nationally recognized consumer protection law firm that represents consumers in matters of wrongful repossessions and credit reporting accuracy and privacy disputes. When errors remain on credit reports after a dispute, Contact Us for a no cost legal review to determine whether your consumer rights have been violated.  Pictured: Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).