Understanding Consumer Law

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We hope the articles below help you understand your rights as a consumer. You can scroll through the titles, or sort by Practice Area or Topic. You can also use the search feature to locate information by keyword.

Flitter Milz represents people with a variety of problems involving consumer credit and collections. If you have a particular question or believe your consumer rights have been violated, Contact Us for a no cost consultation.

Consumer Law

How to Build an Emergency Savings Fund

Unfortunately, emergencies happen to all of us. Maybe your pet is suddenly sick and you have to pay an expensive vet bill. Or, you get into a fender bender and need to pay to get your car fixed. Emergencies are serious, unexpected situations that require immediate action. Many Americans don’t have enough money in savings to cover the cost of these unexpected expenses.   More often than not, they turn to credit cards to pay for emergencies.

While using credit is fine from time to time, it can be detrimental to rely on it, especially if you can’t keep up with the minimum payments. If you fall behind on payments, your account could go into default and negatively affect your credit report and credit score.

To set up an emergency fund that can help to avoid using credit cards in the future, follow these steps.

1. Establish a Specific Savings Goal

Start with a savings goal of $1000 and set aggressive benchmarks to reach your goal. Create a budget for your expenses and determine where you can cut costs for a few months. Food, entertainment, and transportation expenses are a good place to start.

2. Deduct a Set Amount from Your Paycheck

Deduct a set amount of money from every paycheck and put this into a savings account. Many online banking accounts allow you to set this up automatically so that it’s easier to stay on track.

$1000 is enough to cover many emergencies. Once you reach this goal, you can set more modest goals and work on building a more substantial savings account over time.

3. Consider Other Sources of Income

If you can’t find areas to cut expenses and are having difficulty saving a portion of each paycheck, consider potential sources for additional income. Babysitting, dog sitting, and house cleaning, or seasonal work such as cutting grass, raking leaves or shoveling snow, are all good part time options that are always in demand.

4. Take Charge of Your Finances

Assess your overall financial well-being. Request your current credit report and address any issues or inaccurate information.

If you’ve relied on credit for emergencies in the past and find yourself in debt as a result, take steps to pay off credit card debt over time. If you begin to receive contact from debt collectors, make sure you’re familiar with the Fair Debt Collection Practices Act. Under this law, debt collectors are not allowed to threaten or harass you, provide false information about your debt, or contact friends, neighbors or family about your debt.

Get Legal Help from Abusive Debt Collectors

Flitter Milz is a consumer protection law firm that represents people that have become victim to debt collector’s abusive practices.  If you have been contacted by a collection agency or law firm collector, we will evaluate whether your consumer rights have been violated – whether you fell behind on payments or not.  Contact us for a free legal evaluation.

Why You Shouldn’t Co-sign a Loan

When friends or relatives can’t secure a loan on their own, they may ask you to help by co-signing. A co-signer is often required for someone to secure a loan if they have poor credit history, or a lack of credit history.

Deciding whether or not to co-sign on someone else’s loan is a personal decision. However, there are some red flags to be aware of, and it’s important to understand that co-signing carries significant risk without much reward. Here are five signs to look for if someone asks you to co-sign a loan.

1) The person in need of a co-signer has a history of late payments

Individuals often need a co-signer when their own credit has too many negative marks to secure the credit on their own. Generally, this means that they have had difficulty making payments on time in the past and their credit has taken a hit as a result.

If you know that the person making the request has recently struggled with timely bill payments, it may not be a good idea to co-sign. If payments are missed, you’ll be liable to repay missed payments immediately and risk having to pay the full loan balance if the co-borrower defaults.

2) You anticipate needing a loan of your own in the upcoming months

Co-signing also affects your debt-to-income ratio. Even though you’re not the primary borrower, the loan will appear on your credit report. You’re liable for the payment of this loan, so it could affect your ability to secure a loan of your own. Before you co-sign, consider your current financial situation and whether or not you’ll need your credit for your own purposes.

3) You don’t have backup savings in case anything goes wrong

If the primary borrower misses any payments, you’re liable for those payments as the co-signer. Co-signers need to monitor the status of the loan and make sure all payments are made on time. They should also have backup funds in case the primary borrower lapses in payments.

4) You’re worried about your own credit

If you have concerns about how co-signing will affect your own credit, it’s probably not a good idea. If the primary borrower defaults, this could harm your credit, and it can be difficult to rebuild.

5) Your instincts are telling you not to do it

Plain and simple: if you have a bad feeling about it, don’t co-sign. It’s likely not worth the worry and risk, especially if the primary borrower has a troubled credit history.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus.  If you have co-signed a loan and the primary borrower has defaulted, it’s possible that a repossession has occurred, collectors are contacting you, or your credit has been affected.  Contact Us for a no cost consultation to discuss whether your consumer rights have been violated.

Financial Tips for New College Graduates

Graduating from college is a huge achievement. It means you’re done with studying, exams, and essays. But it also means you have to be more responsible with your finances and make sure to maintain healthy credit.

Your credit will affect many aspects of your future, like your ability to rent an apartment, secure a new loan, and even get hired for a new job. If you haven’t already, check your credit report. See what information is currently listed and make sure it’s all accurate. Dispute credit report errors with the reporting bureau to ensure that your credit history is reflected correctly.

If your credit history is relatively short, consider how you can continue to build your credit. If you have student loans, making your payments on time and in full each month will reflect positively on your credit. Obtaining a credit card and paying it off in full each month will also contribute to a higher credit score.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit reporting privacy and accuracy issues, abusive debt collectors and lenders that have wrongfully repossessed vehicles.  Contact Us for a free legal evaluation of your consumer credit problem.

How to Protect Yourself from Identity Theft

Who knows my social security number?

Identity theft is more common than you may think. Sometimes the criminal is someone you know. It could be a family member, co-worker, or friend. But other times, it’s someone you’ve never met.

Before a criminal takes the opportunity to impersonate you and use your information, take steps to protect your identity. Extensive damage to your finances occurs when new accounts are opened without your knowledge, or when existing accounts are used without your permission.

Be cautious with your personal information. Keep your passwords for bank accounts, credit cards, loans and financial accounts in a safe place.  As well, be sure to shred statements and account records after use.

Who can I share personal information with?

Certain entities, such as financial institutions, employers, the Internal Revenue Service, government programs (i.e. workers compensation and welfare), medical providers, and insurance companies, require your Social Security Number (SSN). They often access information on credit reports to determine an applicant’s credit worthiness before approving a loan, a job or promotion, a new insurance policy, or medical coverage.

Do I have to provide personal information on request?

Legitimate businesses have privacy policies that explain why they collect personal information and the affiliates they share it with. Request a copy of this policy and review it for their list of affiliates. Consumers have the right to inquire why certain information, such as name, address, phone number, date of birth, and social security number, is requested on applications and forms.

Important Questions to Ask

You may not need to provide all information that is requested on a form. You may ask:
-How the information will be used
-Where and how long it will be stored
-Whether the location is secure
-How long the information will be kept on file
-Who will have access to the information
-When the information will be deleted

If your SSN is required, you may ask if  another form of identification would be acceptable.  You may be able to give a copy of your current driver’s license, a passport, or birth certificate instead.

Can I get a new social security number?

It’s not easy to get a new social security number. You can submit an application for a new SSN with the Social Security Administration under certain circumstances. For example:

  • Identity theft victims that continue to be disadvantaged by use his or her original number
  • A social security number assigned to more than one person.
  • Sequential numbers assigned to family members causing mis-merged credit reporting files.

When a new SSN is assigned, the new number is cross-referenced with the original number so that the person receives credit for all earnings under both numbers.

To request a new SSN, contact a Social Security office near you. You will need to complete an application, show documents that establish U.S. citizenship, age, identity, and evidence of any legal name change, if appropriate. The application must explain the reasons for needing a new number and provide credible evidence and documents that detail the reasons for needing a new number.

Get Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit report accuracy and privacy issues, and those who have experienced abusive collection tactics.  Contact us today for a free legal consultation to discuss how the consumer laws may help you.

What is the Consumer Financial Protection Bureau?

The Consumer Financial Protection Bureau (CFPB) is an agency of the United States government that is responsible for consumer protection in the financial sector. Their jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, and other financial companies operating in the United States.

The CFPB’s creation was authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007-08 and the subsequent Great Recession.

The CFPB aims to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. They protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. By providing information, steps and tools, their goal is to help people make smart financial decisions.

Contact the CFPB concerning an issue with a financial product or service:

  • By Mail: CFPB, P.O. Box 4503, Iowa City, IA 52244
  • Online: www.consumerfinance.gov/complaint
  • Phone: 855-411-2372
  • Fax: 855-237-2392
  • Facebook: @CFPB
  • Twitter: @CFPB
  • U.S. Senate:  senate.gov
  • U.S. House of Representatives:  house.gov

 

Spend Your Gift Card before Delaware Takes It

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

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

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

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

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

 

Consumer Financial Protection Bureau: Successful Cases Helping Consumers

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

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

CFPB Success stories – helping all Americans.

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

Seek Legal Help from a Consumer Protection Law Firm

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

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

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

The rise in auto loan delinquencies

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

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

My car was repossessed. Now what?

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

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

Does your credit report list the repossession inaccurately?

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

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

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

Seek Qualified Legal Help

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

 

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.

 

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.