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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.

Debt Collection

How to Spend Responsibly on Credit Cards

It’s hard to argue with the convenience of a credit card. Credit provides you with flexibility when it comes to spending. Your card is always available to use regardless of when you expect your next paycheck. Owning a credit card and making timely payments also helps your credit because it shows lenders that you’re a trustworthy and responsible borrower.

It’s important to establish responsible spending habits early so that you don’t find yourself with significant amounts of debt later in life. Carrying a balance each month can make it difficult to stay on top of payments. Here are some credit spending tips that you should practice now to keep your finances healthy for your future.

Set a Budget

The perk of using a credit card is having the ability to spend money you may not necessarily have at the moment. But this can be a dangerous. It can lead to spending above your means. Create a reasonable spending budget for your card to ensure that you don’t overspend.

Pay the Balance in Full Each Month

Carrying a balance from month to month like so many consumers do isn’t ideal. Many cards have high interest rates, which make it even more difficult to keep up with payments every month. Set a goal to pay your balance in full and on time each month so that you don’t end up paying exorbitant late fees and interest.

Keep Your Credit Utilization Low

It’s never a good idea to max out a credit card. Your credit utilization plays a major factor in your credit score. Ideally, you don’t want to spend more than 30% of your credit limit. This means if you have a $1,000 credit limit on a card, you shouldn’t spend more than $300. If you have a higher budget and want to use your card more, pay the existing balance before it’s due to bring your available credit back to its full amount.

Find a Card with No Annual Fees

When you shop around for a new credit card, look for ones with lower interest rates, no annual fees, and useful perks. Many cards offer cash back on any amount that you spend with your card. Others offer travel perks like airline miles.

Pay Off Credit Card Debt

Get control over credit card debt as soon as possible. Making minimum payments will mean paying excessive amounts of interest over time and can make you feel as if you’ll never get out of debt. Cut your spending wherever you can so that you can focus on paying off your debt as quickly as possible.

Seek Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, credit reporting accuracy and privacy issues and wrongful vehicle repossessions.  Contact Us with your consumer credit concerns.  There is no cost for the consultation.

What College Students Need to Know about Credit

As a college student, your credit is probably one of the last things on your mind. It can be a challenge to balance your classes and coursework while responsibly managing your finances, especially if this is the first time you have had to manage and budget your money.

Many students don’t realize that they start to build their credit right away once they take out student loans, or have expenses like utilities and rent.

If you continue to regularly monitor your credit report, pay bills on time, and keep your credit utilization low, your overall credit will remain in great standing. Good credit after college will make it easier for you to purchase a car, rent without a cosigner, and may even help you secure a job.

Tips for Building Credit

As a young person, you may not have a very extensive credit history. Unless a parent listed you as an authorized user on a credit card, your history is probably minimal. Sparse information may make it more difficult for you to secure new lines of credit or loans without a cosigner because lenders can’t be certain of your likeliness to make timely payments.

If you have student loans, these accounts will appear on your credit report and reflect positively as long as you make payments on time and in full. If you’re struggling with payments, look into income-based repayment options to avoid going into default.

You may also want to consider opening a credit card if you don’t already have one. Different types of accounts add diversity to your credit portfolio and will reflect positively on your score. Shop around for a card with little to no annual fees. Older accounts are more beneficial to your history, so the account will continue to positively affect your credit over time as long as you make payments in full and on time.

Tips for Monitoring Credit

Request your Credit Report
Every twelve months you are entitled to obtain a free credit report from each Transunion, Experian and Equifax. It’s important to regularly monitor your reports, even as a student, because there could be errors that negatively affect it. Write for a copy of your report and have it mailed to you.

Dispute Errors on your Credit Report
Although the credit bureaus have similar listings, the information that appears on one report may differ from another.  Be sure to obtain copies of all three reports and review them carefully.  If you find an error on your credit report, be sure to send a written dispute to those credit bureaus. You may also want to dispute the error with the creditor. Be sure to include any documents and relevant information that supports your claim.

Keep Your Credit Utilization Low
Your credit utilization also plays an important role in your overall credit health. If you regularly use more than 30% of your available credit, this may have a negative impact on your score. For example, if you have a credit card with a $1000 credit limit, you should avoid spending more than $300. This shows that you’re not only using a small amount of the credit that’s being loaned to you, but that you are using the credit responsibly and paying the amount borrowed.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents victims with problems involving credit reporting issues, debt collection harassment and vehicle repossessions. Contact Us for a free consultation to discuss your consumer credit issues.  If your rights have been violated, our firm will sue the credit bureau, debt collector or lender at no cost to you.

 

Credit Lessons for College Students

As a college student, this is likely the first time you’re responsible for your own finances. The way you manage your money in college can have a longstanding effect on your overall credit. Here are some important things to know about credit and what financial actions can help and hurt you.

Know the difference between your credit score and credit report

You’ve probably heard both of these terms used before, but what’s the difference between the two? Think of your credit score as an overall summary of your creditworthiness. Scores fall between 300 and 850, and the higher the number, the better the score. The average credit score is between 670 and 700, and a score above 720 is considered to be excellent. Lenders use credit scores to determine who qualifies for a loan as well as the terms of the loan agreement.

Credit reports contain more detailed information about your credit history than your score alone. They include payment history records as well as employment, legal, and bankruptcy information. Negative listings on your credit report, such as late payments, loan defaults, or a vehicle repossession, will lower your credit score.

Paying bills late will hurt your credit score

Timely payments are extremely important to your overall credit health. Late payments will appear on your credit report and have a negative effect on your credit score. Create reminders for all of your monthly bill payments like utilities, rent, student loans, and credit cards so that you don’t miss a payment and risk hurting your credit.

Checking your credit doesn’t hurt your score

There’s a common myth that checking your own credit will lower your score, but this isn’t true. Consumers are entitled to one free credit report from each of the three credit bureaus – Experian, TransUnion, and Equifax – every 12 months. You can request one from a single bureau every four months to ensure that you’re always monitoring your credit for accuracy. Credit report errors are relatively common, so it’s important to monitor your information and make sure that everything is accurate.

A potential employer can perform credit checks on you

Employment screening reports have become more and more common, especially for individuals seeking employment in banking and financial services, government, or jobs that require security clearance. They may also be used in various other industries such as trucking, nursing, food, and retail.

There are, however, certain limitations when a potential employer seeks your credit information. They must request your permission by having you sign an authorization before they can access your credit or perform a background check. You’re also entitled to a copy of the report if they choose not to hire you as a result.

Diverse account types will help you

When you start out building your credit, it’s beneficial to have a variety of accounts in good standing. This could include credit cards, federal and private student loans, and other regular bill payments like utilities. This shows lenders that you can responsibly manage different types of financial accounts. The length of time the accounts have been open also affects your score. Older accounts have a more positive impact on your credit.

Secured credit cards can help you initially build credit

If you don’t have credit history, lenders may reject your application for a new line of credit because they can’t ascertain whether or not you’re a risk. Secured credit cards are a good option for those who need to build credit, or for those who have poor credit.

A secured credit card requires an initial deposit which is then used as the credit limit on your card. You’ll get this deposit back if the card graduates to a normal credit card.

You shouldn’t max out your credit cards

Many people don’t know that the amount they spend on their credit cards in relation to their available credit plays an important role in their overall credit health. If you have a credit card, avoid spending more than 30% of your available credit. Spending more can lower your credit score.

Pay close attention to your credit health

Your credit is important for your future, so it’s important to monitor it regularly and stay on top of monthly payments. Healthy credit ensures that you won’t have an issue securing new lines of credit down the road and also sets you up for financial success.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors and those with credit reporting accuracy and privacy issues.  Contact us for a free evaluation of your consumer credit concern.

5 Money Mistakes for Students to Avoid

College is stressful enough without having to worry about financial issues. Avoid these five common money mistakes to stay on track with your spending.

1. Not Setting a Budget

There are a lot of expenses when you’re a student. Tuition and textbooks aside, you also need money for things like rent, utilities, and going out with friends. It’s easy to quickly burn through your money without realizing how much you’re spending. This is why it’s so important to set well defined budgets.

Budgets for different spending categories will keep you on track and will help prevent you from spending above your means. Look at your recent transaction history to gauge how much you typically spend on expenses like utilities, groceries, and entertainment. Set a modest and reasonable goal for each category and work on not exceeding your budget.

2. Paying Bills Late

Many students don’t realize that late bill payments can negatively affect their credit. You start to develop credit history right away, so financial irresponsibility during school could have an impact later in life. Credit history is a factor when you’re seeking new lines of credit, applying to rent an apartment, and sometimes even in a potential employment opportunity.

Always pay your bills on time. Include all bill payments in your budget and set reminders so that you don’t lose track during a busy semester.

3. Spending Too Much on Credit Cards

Credit cards are convenient. It’s easy to spend hundreds of dollars without thinking about when you have to pay it back. But overspending on your credit card means you risk spending more than you can afford.

If you only pay the minimum balance each month, you could end up paying excessive interest fees. Spending more than 30% of your available credit can also have a negative effect on your credit overall. For example, your credit score may take a hit if you spend more than $300 on a card that has a credit limit of $1,000.

Keep your credit usage below 30% and always pay off your balance in full and on time every month.

4. Not Paying Off Student Loan Interest During School

If you have student loans, you may be wondering why you should bother making payments while you’re still in school – you aren’t required to, and there’s even a grace period after you graduate for most loans.

Unsubsidized loans start to accrue interest as soon as they’re disbursed. This means that your loan amounts are slowly creeping up even when you’re still in school. Eventually, you’ll have to pay interest on top of this interest.

Depending on your interest rates, it may be entirely manageable to keep up with these payments during school. Small payments each month now could mean thousands of dollars in savings later on.

5. Spending Money on Things You Don’t Need

It’s easy to spend money on items you don’t really need – new clothes for a party, brand new furniture, new cookware. You should have some room in your budget for unexpected expenses and fun purchases, but don’t go overboard.

Before you buy something new, decide if you really need it or if you can find it cheaper elsewhere. Not only will this help you stick to your budget, it will also mean you have fewer things to pack up and move when it comes time to graduate.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors, and those with credit reporting privacy and accuracy issues.  Contact us to discuss your consumer credit concern.

Personal Finance Basics for College Students

The start of a new college semester is a busy and exciting time. As you prepare to begin new classes, it’s important to consider how you’ll manage your finances while you’re in school. Follow these tips to keep your finances in order and avoid any unnecessary additional stress.

Set a Budget

Whether you receive a stipend from financial aid, are working part-time, or get financial help from your parents, it’s important to set a monthly budget to stay on track with your finances. You should budget for mandatory expenses like room and board or rent, utilities, and groceries, but you should also consider how much you can afford to spend on dining out and entertainment. Sticking to a budget will help you stay organized and help ensure that you don’t spend above your means.

Start a Savings Account

If you work during school, make it a goal to save ten percent or more of your income and put it into a savings account. Even if it seems like a small amount, savings will help when it comes time to graduate and find an apartment or begin to pay off student loans. It’s also helpful to have some money saved up in case of an emergency.

Pay Off Loan Interest During School

Many students take out both federal and private loans in order to fund their education. If you have student loans, you likely already know that you’re not required to pay them off until after you graduate, and there is typically a six month grace period following your graduation as well.

However, it’s a good idea to pay off the interest that accrues on your loans while you’re still in school if you have the means to do so. Some of your loans may be subsidized, meaning they won’t accrue interest while you’re still in school, but unsubsidized loans begin to accrue interest from the date that they are issued. Not paying this interest means you’ll eventually have to pay interest on the interest that you didn’t pay previously.

Build Your Credit

It’s important to keep in mind that your credit history will begin to develop right away. Certain bills are included on your credit report, so it’s critical to pay them in full and on time to avoid negative marks on your credit. Student loans will also appear on your credit report and will help you establish positive history as you make payments on time.

In order to secure new lines of credit in the future, a lender will pull your report to determine your creditworthiness. It is possible to get denied for credit if you lack sufficient credit history, so it’s helpful to try to build credit while you’re still in school.

The Credit Card Act of 2009 placed restrictions on individuals under the age of 21 getting a credit card without a cosigner, but secure credit cards are still a good option. A secure credit card requires an initial deposit. This deposit then acts as your available amount of credit. You can also build credit as an authorized user on a parent’s credit card.

Check Your Credit Report Regularly

You can get a free credit report from each of the three credit bureaus – TransUnion, Experian, and Equifax – every twelve months. Checking your own credit report does not reflect negatively on your credit. You may choose to request a copy from one bureau at a time so that you can check your report several times throughout the year.

Always review your report for errors and inaccurate information. Incorrect listings can have a negative impact on your credit if they aren’t addressed. Dispute any incorrect information with the bureau and with the creditor and provide any documentation that supports your claim.

Successfully managing your finances and building healthy credit requires consistency and time. With these tips you’ll be well on your way to good credit.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics by debt collectors, and those with credit reporting accuracy and privacy issues.  Contact us to discuss your consumer credit concern.  There is no cost for the consultation.

Tips for Older Americans in Debt

After retirement, increasing amounts of debt can make it more difficult for older Americans to make payments on time. When a lapse in payment occurs, these accounts are often sent to collections and the borrower starts to receive contact from debt collectors.

If you or someone you know is receiving contact from a debt collector, take the following steps.

Ask the Collector to Validate the Debt

If you don’t recognize the debt or it seems inaccurate, ask the collector to provide you with a validation of the debt. Past due accounts are often sold to debt buyers making it difficult to determine the original creditor. By writing to the collector, you can request the name of the original creditor and an itemized calculation of the balance claimed, including principal, interest, late fees, etc.

Dispute Inaccurate Information

If you want to dispute the debt, you have 30 days after the debt collector’s initial contact to do so. Write to the collector and provide any documentation that supports your dispute. Request that the collector respond to your dispute in writing.

Stop Harassing Calls

Under the Fair Debt Collection Practices Act (FDCPA), debt collectors can’t threaten, harass, or abuse you in the process of collecting a debt. They can’t give you false or misleading information about the debt or place personal information on, or visible through, an envelope.

If you feel that you’re being harasses, you can write to the collector and request they stop contacting you.  The collector must stop contact with you. However, it does not make the debt go away. The collection will likely be assigned to a new agency or law firm collector.

Be sure to keep a log of collection calls noting the date, time of day, name of collector & agency, Caller ID and details of the conversation or phone message.

Seek Free Legal Help

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

 

How a Judgment Affects Your Credit

Many people know that unfortunate circumstances in life, such as divorce, health issues, job loss or death, can result in financial hardship.  All of a sudden, accounts go unpaid, collectors call, negative listings appear on credit reports, and sometimes, lawsuits are filed.

You are a defendant in a lawsuit
Whether the default was for a credit card, auto loan, a medical bill or another personal obligation, if you were sued DO NOT IGNORE THE LAWSUIT.  After receiving a summons, as the defendant, you must inform the court of your intent to defend.  Whether you seek legal representation from an attorney or intend to represent yourself  “pro se“, you must attend the court hearing.

Default Judgment
When you fail to appear in court on the hearing date to defend the lawsuit, a default judgment will be entered against you.  This means that the judge ruled against you in non-criminal court.  You will be required to pay the damages or judgment amount.

Judgments are public court records, which means anyone has access to view the court filings.  Credit bureaus commonly obtain these records from the courthouse and list judgments on the consumer’s credit file.  Although judgments can only be listed on credit reports for 7 1/2 years from the filing date, after that time period, judgments could be re-filed, or revived, before it expires, causing a re-reporting by the bureaus for another 7 1/2 years. This varies from state to state.

Do not Ignore a Judgment
If there’s a judgment entered against you, you must address it. Even if it’s a mistake and the debt doesn’t belong to you, you will need to take action to get it resolved to avoid negative consequences on your credit report.  Judgments allow for the plaintiff to take steps, such as garnish bank accounts, place liens on property,  and in some states, garnish wages.

You have rights against the debt collector
When a creditor assigns the collection of a debt to a third party collector, the Fair Debt Collection Practices Act (FDCPA) , offers protections from a collector’s abusive collection tactics.  Whether the consumer owes the debt or not, the collector must follow the law.

Seek Legal Help

Flitter Milz is a consumer protection law firm that represents consumers against debt collectors.   Contact Us if you have received collection calls or letters.  You have rights against the collector and may be able to bring a lawsuit against the collection agency or collection law firm for violation of your consumer rights. There is no cost to you for the legal review.

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 to Tell if Debt Collection by the IRS is Legitimate

You may have heard that the IRS has hired four private debt collection agencies to collect unpaid income tax.  These agencies are CBE Group, ConServe, Performant and Pioneer Credit Recovery. This means that consumers may begin receiving collection contact from these agencies.  To tell the difference between a scam and legitimate collection contact on behalf of the IRS, take note of the following key points:

You’ll only be contacted if you have unpaid income tax debt

If you’re contacted out of the blue by someone claiming to be affiliated with the IRS, but know you’ve never been contacted about unpaid taxes before, it’s not legitimate. These firms will be focusing on individuals with unpaid taxes that go back several years. Consumers will have heard from the IRS multiple times already.

You’ll receive a notice in the mail first

The firms acting on behalf of the IRS won’t begin with phone contact. You should receive a letter from both the IRS and the debt collection firm prior to being contacted by phone.

They’ll only ask you to send payments directly to the IRS

Anyone who asks you to remit payment anywhere other than directly to the IRS is illegitimate. Never provide personal financial information like a credit or debit card number over the phone.

They still have to follow the Fair Debt Collection Practices Act

Working with the IRS does not mean the firms are exempt from complying with the Fair Debt Collection Practices Act (FDCPA). Among other regulations, debt collectors are not permitted to:

  • Threaten or harass you
  • Discuss your debt with anyone other than you
  • Tell you incorrect information about the debt
  • Contact you after 9pm or before 8am, unless you request that they do so

Questions about Debt Collection?

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

How Increased Interest Rates Will Affect You

What does it mean when the Federal Reserve increases interest rates and how will it affect your overall financial well-being?

Rate increases by the Federal Reserve may impact auto loans, mortgages, savings accounts, credit cards and refinanced loans. Unfortunately, if you carry a balance on that credit, you’ll most likely see your monthly payments increase. Paying off your credit balance with each statement will not only help you avoid an increase in monthly payment amounts, it will also help to improve your overall credit score.

If you can’t afford your monthly payments and your account goes into default, it may be sent to a third party debt collector. Debt collectors must follow specific guidelines when they contact you about your debt. The Fair Debt Collection Practices Act  is the federal law that outlines violations to a consumer’s rights by abusive debt collectors. You may request the collector provide validation of the debt and a detailed itemization of the amount claimed.

Negotiate a Payment Plan

You may also be able to negotiate a payment plan with the collector. Charges like interest and late fees could be removed from the balance when negotiated. If the collector is willing to agree to a payment plan, be sure to get the agreement in writing.  This letter should detail payment terms including the monthly payment amount, payment due date, total of payments and total balance owed.  Be sure to make your payments as agreed.

Settled Debt and Tax Implications

If you settle a debt consisting of $600 or more in principal — the actual loan amount, not interest or fees — for less than the full balance owed, there could be income tax consequences.  If you have questions concerning tax on a settled debt, be sure to seek advice of an accountant or tax advisor.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive debt collection tactics.  Contact Us for a free evaluation of collection letters and phone calls that you have received.  Whether or not you owe the debt, the collector must follow the law.