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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.

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).

How long can a debt collector pursue an old debt?

Are you getting calls or collection letters about an old debt from years ago? Perhaps you forgot about it, or you simply did not have the money to pay for it at the time.  But now, debt collectors are calling and sending you letters, demanding that you pay up.  You may be asking yourself: What are my rights? Is it legal for the debt collector to demand payment of this old obligation?

Debt Collectors must follow the Law.

In Pennsylvania, New Jersey, and many other states, debt collectors can lawfully attempt to collect a debt no matter how old the debt is. However, federal law prohibits debt collectors from making any false, deceptive, or misleading statements in connection with the collection of any debt. This means that they cannot threaten to sue you when the debt is too old and beyond the legal time period allowable to file a lawsuit.

For example, in Pennsylvania the statute of limitations on a debt is four years from the date of default or the date of last payment. But sometimes debt collectors make misleading statements in their collection letters which suggest or imply that they have the right to sue or offer to “settle” the debt. This type of misleading statement violates the Fair Debt Collection Practices Act. When a collector violates the law, the consumer may pursue a lawsuit against the collector, and the collector will be responsible for the consumer’s legal fees.

Attempts to Collect Old Debt


Even though a debt collector can still make attempts to collect on old debts for which you cannot be sued, you should think twice before volunteering a payment. First, the amount might not be accurate, meaning that you end up paying more than what was required. Additionally, if you make a payment on an old debt, you run the risk of reviving the statute of limitations on the debt, making it possible for the creditor to sue you for the debt when it previously had no lawful basis to do so.

You’ve been sued?  Do not ignore the lawsuit.


Sometimes, the first time someone learns about a debt is through a lawsuit filed against them.  If you have been sued on a debt, it is very important that you obtain legal counsel.  Do not ignore the summons. Instead, you should seek out legal counsel.

Are debts listed incorrectly on your credit reports?

Debts are often reported to the credit bureaus, and then listed on credit reports. These debts must be accurately listed in all respects.  You can dispute any errors that appear on your credit report with respect to a debt, such as an inflated balance or an incomplete payment history.

How to dispute errors with the credit bureaus
When you submit a dispute to the credit bureaus, we recommend that you send the dispute by U.S. Mail, Certified Return Receipt, so that you have a good paper trail of your dispute.  For this reason, we recommend that you do not call the credit bureaus to dispute.  Also, do not submit disputes online. In an online dispute, you run the risk of losing important consumer rights buried in the fine print of the terms and conditions.

Also, when disputing, make sure to explain in detail the error pertaining to the debt.  Gather all supporting documents that illustrate the error and provide it to the credit bureau along with your written dispute.  The credit bureau then has 30 days to either fix the inaccuracy or delete the portion of the credit report that you disputed.

What does Charged-Off Debt mean?
There are limits on how long a debt may appear on your credit report.  Debts that have been “charged off” must be removed from your credit report 7 years and 180 days after the date of the charge off.  If such an old debt appears on your credit report, you can dispute this with the credit bureaus to have it removed.

Get Help from a Qualified Consumer Protection Law Firm


Flitter Milz is a nationally recognized consumer protection law firm experienced in representing consumers who have suffered from abusive debt collection practices and credit reporting errors.  Contact Us for a free consultation and find out how we can help.

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

The Lender Sold My Repossessed Car. Why am I being sued?

Car auction car lot

Perhaps the worst thing about having your car repossessed is that even after your vehicle is gone, the lender may not be done with you.

In some cases, lenders hire collectors or file lawsuits against borrowers to recoup what they’re owed. In this blog post, we’ll look at steps lenders may take after repossessing a car. 

Continue reading The Lender Sold My Repossessed Car. Why am I being sued?

Car Repossessed? Now Getting Sued by My Auto Lender

Lawsuit with car repossession

Perhaps the worst thing about having your car repossessed is that even after your vehicle is gone, your lender may not be done with you.

In some cases, lenders may file lawsuits against borrowers to recoup what they’re owed. In this blog post, we’ll look at what’s involved with being sued after a  car repossession.

Continue reading Car Repossessed? Now Getting Sued by My Auto Lender

How Debt Collection Laws Help Pennsylvanians

Past due bills debt

When you owe money to a debt collection agency, its employees have the right to contact you and try to recoup that debt.

But those rights only go so far. The federal Fair Debt Collection Practices Act regulates what debt collectors, or law firms acting as collectors, can do when contacting Pennsylvania consumers, and bars them from engaging in deception while trying to recover money that is owed.

Continue reading How Debt Collection Laws Help Pennsylvanians

How does a “Charge-Off” affect the consumer?

When payments on your account go unpaid, the creditor may stop you from making additional charges and list your account as a charge-off.  But even if the creditor stops trying to collect on your account, you still could be responsible for the debt.

Continue reading How does a “Charge-Off” affect the consumer?

Midland Credit Management KO’d in Flitter Milz Lawsuit

September 24, 2018/Philadelphia, PA

U.S. Court of Appeals precedential ruling impacts consumers nationwide

In an important ruling this week, the United States Court of Appeals for the Third Circuit in Philadelphia, PA agreed with Flitter Milz that a collection dun sent to a consumer was deceptive and in violation of the federal law regulating debt collectors.

Midland Credit Management, one of the largest debt-buyers and debt collectors in the United States, sent our client a collection notice stating Midland would “report forgiveness of debt as required by IRS regulations.”  Flitter Milz argued that the debt involved was so small that there is nothing ever to report to the IRS, and the statement about Internal Revenue was just a scare tactic.

The federal appeals court, sitting in Philadelphia, agreed that the consumer might be persuaded into thinking that a settlement may be reportable to the IRS, and this remark is misleading under the consumer laws.  The Court agreed with Flitter Milz, holding that “it is not merely the inclusion of a lie, but also incomplete” language in a collection letter that may violate the consumer laws. The Court has told Midland that ‘half-truths’ to consumers are not good enough.

Flitter Milz is a nationally recognized consumer protection law firm representing consumers in matters against collection agencies and collection law firms for violation of the Fair Debt Collection Practices Act. “This victory, is not just for our client and firm, but for consumers across the U.S.”, said Cary Flitter and Andy Milz.

To learn more about this case, Robert A. Schultz, Jr & Donna Schultz v Midland Credit Management, click here .  Consumers with questions about collection contact, calls or letters, from Midland Credit Management, contact us.

Midland Credit Management is a billion dollar purchaser of consumer debt, who collects and files collection lawsuits in Pennsylvania, New Jersey, New York and across the country.

Collection Contact After a Debt is Paid

Sometimes collectors contact consumers and ask for payment on a debt that was already satisfied. Whether the collector made calls or sent letters, the consumer may be left confused and uncertain about whether there was a clerical error or if the collection effort is a scam.

The Fair Debt Collection Practices Act outlines actions that debt collectors can and cannot take. If collectors contact you about a debt that was already paid, you have the right to request proof of the debt and how it was calculated. You can also request confirmation that the collector is permitted to collect the debt.

Check Your Records

Once a debt has been assigned or sold to a collector, the consumer may request information about the debt from the collector, not from the creditor. If you are not sure whether a claimed debt is owed, gather your account statements, bank records, and payment history. It may also be helpful to obtain current credit reports. These documents will assist in determining whether money is still owed. Once you’ve reviewed your papers, write the collector to dispute the debt.  Be sure to enclose documentation with your letter that proves the debt was satisfied.

Request Proof from the Collector

If you do not have proof showing payment of the debt, obtain payment information from the debt collector. You may request that the collector provides account statements from the creditor, which show the period when your last payment was made. Send a letter to the collector asking for verification of the debt and how the claimed balance was calculated.

Document Your Contact

Good record-keeping which shows your account payment history will help any disputes sent to the collector.  Maintain a file of all correspondence with the collector, including documents showing proof of payment – such as cancelled checks, money order receipts, etc.

When collectors contact you by phone, keep a log of the calls noting the date, time of day, caller ID, name of collection agent and agency, phone number where the call was received, and details of any phone conversations, messages, or texts.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact Us for a free evaluation of collection calls and letters that you’ve received.  There may have been a violation of your consumer rights.

Stay Calm When Debt Collectors Call

When it comes to debt collection, it’s important to find a balance between looking out for scams and ensuring you pay the debt you actually owe. You should begin by establishing whether or not you owe the debt the collector is contacting you about. Debt negatively affects your credit report and credit score. Make sure you take action to resolve any debts you owe.

Your rights against Abusive Collectors

To verify that the collection contact is legitimate, ask questions to find out the name of the collection agency or collection law firm and where they are located. Also, request details about the debt including the name of the original creditor, the account number, and the balance claimed. You can write to the collector and request a validation and itemized calculation of the debt.

As a consumer, you’re protected against harassment and other unfair practices by the Fair Debt Collection Practices Act (FDCPA). It’s important to ensure collectors aren’t using unfair tactics against you. Under the FDCPA, debt collectors cannot:

  • Contact you before 8 a.m. or after 9 p.m. without permission
  • Continue to call your place of employment after you ask them to stop
  • Contact friends, family or neighbors and disclose information about the debt to them
  • Harass you using threats or profane language
  • Lie about who they are or the debt you owe

Take the Appropriate Action

Once you know whether or not you owe the debt, figure out an action plan. If you owe the debt, you may want to establish a payment plan. You’ll need the collector to provide written documentation showing the total balance owed. Then, figure out how much you can pay each month until the obligation is satisfied. If you enter a payment plan with a collector, be sure to obtain written confirmation of the payment terms, the payment due date, and where your payment should be sent. Keep accurate records of all payments made and when they were applied to your account.

If you’re convinced that you do not owe the debt, write a dispute letter to the collector.  Include any proof that shows the debt was already paid or does not belong to you.  Be sure to keep a copy of your dispute letter for your files.  Request the collector respond to you in writing.

Stop Collection Contact

At any time throughout the process, you can write a Cease and Desist letter to the debt collector that states they need to stop contacting you. This may be be helpful if the debt collector is contacting you at work, during odd hours, or if you feel your consumer rights are being violated. Be sure to send your correspondence to the collector by certified mail with a return receipt. It’s important for you to have proof that your letter was received.

A Cease and Desist letter does not make the debt go away. Often the collector will transfer the debt to another collector or back to the original creditor. Once a Cease and Desist letter is sent to a collector, that collector is not permitted to contact you again or attempt collection. If the collector contacts you after receiving your Cease and Desist letter, reach out to a qualified consumer protection attorney to evaluate whether your rights have been violated.

Seek Free Legal Help 

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact Us for a free evaluation of whether your consumer rights have been violated.