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.

Credit Reports

How a Move Can Affect Your Credit

Your credit follows you wherever you go, and that includes whether you purchase a new home or move to a new apartment. But how does the process of moving affect your credit?

Credit Inquiries

When you apply for a mortgage or fill out an application for an apartment rental, the bank or landlord will most likely perform a credit check.

There are two types of credit inquiries: hard and soft. Most financial inquiries are considered hard and have the potential to negatively affect your credit, especially if you are declined. As well, lenders may see you as a higher risk if you have several hard inquiries.

If you’re concerned about the effect of a credit inquiry on your credit score, check to see if the prospective lender or landlord would accept a copy of a credit report that you pulled yourself. You’re entitled to one free credit report from each Transunion, Experian and Equifax every twelve months. Requesting the reports yourself will not affect your credit in any way.

Avoid Breaking a Lease

The terms detailed in the lease agreement will state your options if you need to terminate a lease early.  You may have to pay extra fees or surrender your security deposit for an early termination. Make sure you pay any agreed amount on time. If you don’t, the landlord may have the right to take you to court or send the account to a debt collector. This type of activity will appear on your credit report and will damage your credit score.

Missed or Late Payments

With the stress of moving, often it is more difficult to keep track of your finances and make timely payments. Missed or late payments can be very harmful to your credit. Depending on how late the payment is, it could appear as a negative mark on your credit report and also lower your credit score significantly.

Mail Forwarding

Prior to your move, ensure that you will receive mail from your old address by taking the following steps:
-Notify the United States Postal Service to forward all mail to your new address
-Notify your creditors in writing of your address change
-Inform your landlord of your new address and contact information.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, credit reporting privacy and accuracy violations and vehicle repossessions.  Contact Us for a free consultation.

6 Credit Definitions You Must Know

Poor credit and unsteady financial standing can make many aspects of your life much more difficult than they need to be. Your credit follows you wherever you go, and it can affect your ability to get a job, rent an apartment, or secure new lines of credit. For this reason, it’s important to prioritize your credit health and always make sure your finances are in the best order that they can be.

As a consumer, it’s important to educate yourself on all of the financial aspects that affect your credit. Make sure that you’re aware of how your open accounts will increase or decrease your credit score and how certain financial mishaps are reflected on your credit report. Certain occurrences like a vehicle repossession, late payments, or a defaulted account will result in negative marks on your credit report. These types of negative marks can remain on your report for many years. Take the following steps:

Learn these 6 Important Credit Definitions.

1. Credit Report:  A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.

2: Credit Bureau: The three main credit bureaus are Transunion, Experian and Equifax. Credit bureaus collect data from lenders and creditors and provide reports to the consumer, and to prospective lenders.  The reports show a consumer’s payment history and amounts owed on credit cards, mortgages, auto loans, etc.

3. Credit Score: A credit score is based on credit history – the number of open accounts, total levels of debt, and repayment history, and other factors.  Lenders used credit scores to evaluate the probability that an individual will repay loans in a timely manner.

4. Hard Inquiry: A hard inquiry, or “hard pull”, occurs when you apply for a new line of credit, such as a credit card or loan.  It means that a creditor has requested to look at your credit report to determine how much risk you pose as a borrower. Hard inquiries show up on your credit report and can affect your credit score.

5. Soft Inquiry: A soft inquiry occurs in cases where you check your own credit or when a lender or credit card company checks your credit to pre-approve you for an offer.  Soft inquiries do not impact your credit scores.

6. Debt-to-Income Ratio: A Debt-to-Income Ratio is all your monthly debt payments divided by your gross monthly income.  This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

Check your credit reports regularly.

Ensure that all information on your credit reports is accurate and up to date by checking your reports regularly. All consumers are entitled to one free credit report each year from each three of the credit reporting bureaus.

Set Goals to Improve your Credit.

Determining benchmarks to improve your credit standing over time.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, wrongful vehicle repossessions and credit reporting privacy and accuracy issues.  Contact Us to discuss your consumer credit concern.

 

How a Voluntary Surrender Impacts your Credit

If you’re behind on your car loan payments, it’s possible that your vehicle will be repossessed by the lender. Your vehicle is considered collateral under the terms of the loan agreement, so the lender has the right to take back the car or truck if there is a lapse in payments or terms of the agreement are broken.

If you’re suffering a financial hardship, often borrowers that have fallen behind on payments may consider whether to voluntarily surrender their vehicle instead of the embarrassment of a repo-man coming to their door.  Either way, the repossession of a vehicle may impact your credit report negatively and make it difficult to get credit approval on an auto loan in the future.

What to Do Before Repossession

First and foremost, if there’s a chance that your vehicle will be repossessed, you should take the following actions in preparation:

  • Remove all purchase and loan documents from the vehicle.
  • Remove all personal belongings from the vehicle.
  • Note the current odometer mileage.
  • Take photographs of the vehicle’s interior and exterior.
  • Request that the lender provide you with a written loan payment history.
  • Request that the lender provide you with a payoff figure.
  • Do not hide or conceal the vehicle to avoid a repossession.

This will ensure that you have all the information you need along with your personal belongings should a repossession take place.

How a Voluntary Surrender and Repossession Affect Your Credit

Many consumers who anticipate a repossession wonder if the consequences will be less negative if they voluntarily surrender the vehicle to the lender. The only significant difference between the two is the way they appear on your credit report; a voluntary surrender will be listed as such, but the negative effect will be about the same as a repossession. It’s possible, however, that the lender will be more willing to enter a loan agreement with you in the future if you voluntarily surrender the vehicle.

A repossession can stay on your credit report for up to seven and a half years. It’s a negative listing that lowers your credit score and it can make it more difficult to secure a new auto loan or line of credit.

Discuss Your Options with Your Lender

If you are having difficulty making payments, contact your lender as soon as possible. You may be able to avoid repossession by deferring payments to the end of the loan and prevent your credit from taking a further hit.

Seek Legal Help

Whether you have fallen behind on your car payments or not, there are legal protections for borrowers from lenders and repo agents that wrongfully repossess vehicles.  Learn more about your rights and contact Flitter Milz, a nationally recognized consumer protection law firm.

 

Avoid These Credit Card Problems

Credit cards are useful for a number of reasons. They’re convenient when you don’t have cash on hand, and some cards carry perks like cash back or travel savings. However, you should avoid using credit for emergencies, and you should always be sure to make payments in full and on time. Carrying a balance from month to month can result in unruly interest charges that are more difficult to pay off, especially when trying to stick to a budget.

Credit Score Drop

Failing to make a payment on time just once could cause your credit score to fall as much as 110 points. Once lost, these points can be difficult to build back up and can make other aspects of your life more challenging. Your overall credit can affect your ability to secure new lines of credit, affect your interest rates, and even hurt your chances of renting an apartment or securing a new job.

Check your Credit Reports

Always be sure to stay on top of payments and check your credit report regularly. It’s not uncommon for credit reports to contain errors or inaccurate information, which could further harm your overall credit. You can request one FREE credit report every year from the three credit bureaus – TransUnion, Experian, and Equifax. Check for duplicate negative listings, someone else’s information, and any unfamiliar activity. Dispute any credit report errors immediately.

Seek Free Legal Help 


Flitter Milz is a consumer protection law firm that represents people in matters concerning credit reporting issues, contact from abusive debt collectors, or have had a vehicle repossession.  Contact us for a free evaluation of your consumer law concern —  whether you had fallen behind on payments or not.

Everyday Impact of Credit Scores

Many Americans have never checked their credit report or are aware of all the ways in which credit affects their lives. Poor credit can affect things like utility deposits, car insurance, and cell phone service options. Your credit can also affect your ability to get a job or rent an apartment.

NerdWallet Infographic

Check Your Credit

Every consumer is entitled to a free credit report from all three credit bureaus – TransUnion, Experian, and Equifax – every twelve months. Always check your credit report regularly and make sure all information is accurate and up to date. If you find any inaccuracies, dispute directly with the reporting bureau.

Improve Poor Credit

The best way to improve your credit is to make all of your payments in full and on time. Rather than carrying a small balance, it’s best to just pay it off completely. Keeping your credit utilization low will also help your score improve over time.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of credit reporting errors.  Contact Us for a free evaluation of your credit reports and determination of 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.

Are You Haunted by a Repossession on Your Credit Report?

Just when you think you’re getting your finances in order and want to apply for a new line of credit, a vehicle repossession from long ago can come back to bite you. What happens after your vehicle is repossessed, and how does it affect your credit report and credit score moving forward?

What happens after the sale of your car?

1) Collection

Once the lender sells a repossessed vehicle, you’ll receive a letter that includes the vehicle’s sale price and any remaining balance owed on the loan. This letter is called a deficiency notice.

The lender may proceed with collection of the deficient balance through their collection department. However, the lender will often assign the collection of any deficient balance to a debt collector, and the borrower will begin to receive calls and/or letters from them.

Whether you owe the deficient balance or not, collectors must follow the Fair Debt Collection Practices Act when they contact you about debt. Borrowers have rights, whether the balance is owed or not.

2) Lawsuit

After a period of time, the lender may choose to file a lawsuit against the borrower for the deficient balance. If the lawsuit is ignored by the consumer, a default judgment will be entered against the consumer.

Judgments can be dangerous! Bank accounts can be attached. Wages can be garnished. Property can be seized. Judgments can be listed on the consumer’s credit reports and impact the ability to be approved for new credit.

If you have been sued, contact a qualified consumer protection attorney to discuss your rights.

3) Credit Reporting

Vehicle repossessions negatively affect your credit report and lower your credit score. They can remain on your report for seven and a half years after the original delinquency date. The negative reporting could impact existing accounts by increasing interest rates or decreasing credit limits. The repossession could also affect your ability to be approved for new credit, whether you’re applying for a new credit card, car loan, or mortgage.

Negative credit information may also impact your ability to be promoted or hired for a new job or get approved as a tenant for an apartment. The Fair Credit Reporting Act offers consumer protection for the accuracy, fairness, and privacy of reported information. You can get a FREE credit report every twelve months from Transunion, Experian, and Equifax.

Steps to take

If you are haunted by negative reporting from a vehicle repossession, take the following steps:

  • Gather your car loan and repossession documents
  • Gather all correspondence that the lender sent AFTER the repossession
  • Gather all collection letters received for collection of a deficient balance
  • Obtain current credit reports from Transunion, Experian, and Equifax
  • Gather supporting documents such as:
  • Loan Denial Letters
  • Account statements showing interest rate increases
  • Account correspondence stating credit limit reduction

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against the credit bureaus for inaccurately reporting information.  Contact Us for a FREE case review.  We will evaluate whether your rights have been violated by the lender, debt collector or credit bureau.

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.

Value your Credit Report. Keep it accurate.

Credit reports from Transunion, Experian, and Equifax are used to determine everything from your ability to get new credit to the rates that you pay for credit. If the wrong information is listed on your credit report, it can prevent you from getting approved for new credit and possibly have a negative impact on your current accounts through higher interest rates or reduced credit limits.

Where do the Credit Bureaus receive their information?

The credit bureaus receive your information through furnishers. Furnishers are businesses like banks, mortgage lenders, credit card companies, and medical or utility providers that provide data related to account ownership and performance. The furnisher has an obligation to provide the credit bureaus with accurate information.

However, when inaccurate information is provided to the credit bureaus, these errors could lead to a credit denial, a change in current credit terms, or a lower credit score.

How do I check my credit report?

Accurate credit reports are key to your financial health. Check your credit reports frequently. You can request a free credit report from each bureau every twelve months, but there are many ways to monitor your credit files on a regular basis. To check your report, send a credit report request letter to Transunion, Experian, and Equifax.

Seek Legal Help from a Consumer Lawyer

The Fair Credit Reporting Act (FCRA) is a federal law that promotes the accuracy, fairness, and privacy of information that appears in files of consumer reporting agencies.  Transunion, Experian and Equifax are the three main reporting agencies.

Violations to a consumer’s rights occur when errors remain on a credit report, or when someone accesses a credit report without the consumer’s permission.  Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against the credit bureaus and/or furnishers for violations of the FCRA.

Contact us for a free evaluation of whether your consumer rights have been violated.

What You Need to Know About Credit Reporting

Access Your File Whenever you Want

You can request all of the information that the reporting agency has. You can get a free file disclosure if:

  • there’s a negative result after someone accesses your file,
  • you’re a victim of identity theft,
  • your file has inaccurate information due to fraud,
  • you’re on public assistance,
  • or you’re unemployed but expect to find employment within 60 days.

Others must have permission

Reporting agencies can only report your information to people who have a valid need for it, like those who are reviewing credit applications, insurance, employment, rental properties, or other business.

If someone accesses your credit report and it results in a negative outcome, like denial for credit, insurance, employment, or a rental property, they’re required to tell you. They should also give you the name, address, and phone number of the agency that gave the information.

Employers must get Consent

If an employer or potential employer needs to access your report, they need your written permission.

You Can Ask for Your Credit Score

Your credit score is a number that indicates your creditworthiness. Lenders will see you as less risky if you have a higher score. Check your credit score and report regularly to make sure all information is accurate and up to date.

You Can Seek Damages from Violators

If you think your credit report was provided without your permission, you may be able to sue the credit bureau for providing your report.  The Fair Credit Reporting Act provides protection for consumers that have had their credit privacy violated.

You Can Dispute Credit Report Errors

You have the right to an accurate credit report. If any information is inaccurate, write a credit report dispute letter to the reporting agency. The bureau has 30 days to respond to your dispute.

The reporting agencies are obligated to correct or delete information that’s inaccurate, incomplete, or unverifiable. They also can’t report outdated negative information. In most cases, negative information should be removed after seven years.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims with credit reporting privacy and accuracy problems. Contact Us for a free evaluation of your credit reports for potential violation of the Fair Credit Reporting Act.