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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.

Mixed Credit Files…a common problem

Scenarios involving mixed credit files are all too common today.  A mixed credit file, or mis-merged file, can happen when your credit information is commingled with someone else’s on your credit report. For years, the credit bureaus have been told their methods of matching consumer data is fundamentally flawed, but the often-devastating errors keep happening.

TRUE STORY from Flitter Milz
A Flitter Milz client was denied an auto loan for a car, despite having perfect credit.  When he asked the dealership for his credit report, he was shocked to find a negative collection account belonging to his father, who had a similar name, but different date of birth and SSN.  A lawsuit was filed for our client against the collection agency and credit bureaus under the Fair Credit Reporting Act (FCRA) for mixing our client’s file with his dad’s.  A federal court awarded our client $360,000 plus attorneys fees for continuing to report inaccurate information on his credit reports.

Common mixed file scenarios

1) A parent’s account appearing on their child’s credit file.
2) A child’s debt negatively effecting the parent’s good credit.
3) A total stranger’s delinquent auto loan appears on an innocent consumer’s credit report simply because they share a similar name or social security number.
4) John Q. Public’s criminal conviction in Ohio is listed on John T. Public’s employment screening report in New Jersey, preventing John T. Public from getting a job.

The impact of mixed credit files

Mixed credit files can have a serious affect on your life.

Credit Denials: Credit files that have been mixed between one consumer and another can lead to credit denials for an auto loan, mortgage, education or other personal loan.
Employment Denials: Errors like these can also cause you not to get a job, promotional or security clearance.
Housing Denial: You can also be denied housing, if a landlord relied on an inaccurate credit report.

Steps to address Mixed Credit Files

If you have experienced a credit denial due to a mixed or mis-merged credit file take the following steps.

Step 1: Obtain current credit reports
Write to the main credit bureaus — Transunion, Experian, and Equifax — to request a current copy of your reports, or visit annualcreditreport.com.  You may need to provide proof of identity, such as a current driver’s license, utility bill or pay stub to have the reports sent to you.

Step 2:  Review your credit reports for accuracy
Review listings on each report as information may vary from one report to another.  If you do not recognize accounts or if the information is incorrect, you will need to take steps to get the errors corrected.  Common signs of mixed files include:
– Name spelled incorrectly
– Wrong SSN, addresses, or phone numbers
– Wrong employers listed
– Accounts you do not recognize
– Inquiries you don’t recognize
– Public records or judgments from courts in cities you never lived in
– Criminal records that don’t belong to you

Step 3:  Gather denial letters and supporting documents
Collect copies of all denial letters received from creditors, employers, or landlords, and all other documents related to the error.

Step 4: Contact qualified Consumer Law Attorneys

Attorneys Cary Flitter, Andy Milz and Jody López-Jacobs are nationally recognized consumer protection lawyers with experience to evaluate your credit reporting problem. There is no cost for the legal review.  Contact Us Today. Pictured:  Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Flitter Milz Wins Again Against the Credit Bureaus

Federal court in Philadelphia rules TransUnion must go to trial

On April 11, 2023, the United State District Court for the Eastern District of Pennsylvania ruled that a class action case on behalf of consumers against TransUnion may proceed to trial for failing to investigate consumer disputes.

In Norman v. TransUnion, Flitter Milz client Duane Norman alleges that TransUnion failed to investigate his two disputes of an inquiry made on his credit report without permission. As well, he claims that TransUnion, as a company practice, chooses to not investigate disputed inquiries which is in violation of the Fair Credit Reporting Act (FCRA).

In August 2020, the Court decided that Mr. Norman’s case should proceed as a class action for all other consumers across the country who disputed inquiries to TransUnion, only to have TransUnion do nothing in response to their disputes.

In Tuesday’s opinion, the court denied TransUnion’s motion to have the case thrown out on summary judgment before trial.  The court found that there was enough evidence that TransUnion acted willfully in violation of the FCRA, and that the class of consumers represented by our firm can proceed with their claims for punitive damages at trial.

The court reiterated that inquiries (notations on your credit report that show you applied for credit) can be disputed by consumers and TransUnion is obligated by law to investigate those disputes.

Seek Help from a Fair Credit Reporting Lawyer

If you have an inquiry you don’t recognize on your credit report, you should dispute it and request that the credit bureau perform an investigation of your dispute.  If they do not, you may have a case!

Flitter Milz attorneys are nationally recognized consumer protection lawyers with the experience to evaluate your credit reporting problems.

To provide a no cost legal evaluation, we will request a current copy of your credit report coming directly from each of the three main bureaus — Transunion, Experian and Equifax.  As well, we will need documents supporting your claim.

CLICK HERE:  Learn how to Dispute Credit Report Errors Effectively

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

3 Simple Steps to get your Financial Life in Order

Errors on your credit reports can derail your finances, and sometimes prevent you from obtaining the credit you may need. By checking your credit reports regularly with the three main bureaus — Transunion, Experian and Equifax — you can make sure negative entries and inaccurate listings don’t stand in your way of getting the car loan, mortgage, job or apartment you deserve.  Take these steps to work towards your financial freedom.

TRUE STORY from Flitter Milz
Our client purchased a new car after trading in his old car.  The finance company failed to report to the credit bureaus that his old car loan was paid in full, and reported him late for several months.  The credit bureaus refused to correct their reporting, despite the client’s dispute letters.  After hiring Flitter Milz to help sue the credit bureaus. The credit bureaus paid a confidential settlement for slandering his credit.

Step 1:  Write for your credit reports

Request a current report from each of the three main credit bureaus –Transunion, Experian, and Equifax.  You will need to enclose two forms of identification, such as a current driver’s license and utility bill, with your letter. CLICK HERE:  Obtain credit reports from Transunion, Experian and Equifax.

Step 2:  Identify problems on your report

Credit reports show the history of credit accounts and illustrate whether a consumer is a good credit risk.  Consumers must review their reports for accuracy and take steps to correct inaccurate information.  Common credit reporting problems are:

  • Mixed Files
    Someone else’s information on your report. For example, family members or people with similar names could be mixed with your file.  CLICK HERE:  Is your Credit Report mixed with someone else’s information?
  • Ex-spouse’s information
    It’s a common misperception that a divorce decree changes contracts with lenders.  Actually, the divorce decree is only an agreement between you and the court. After divorce if an ex-spouse’s information is listed on your credit accounts, you must write the creditor to have his or her name removed.
    CLICK HERE How to maintain good credit during divorce.
  • Incorrect notations for Closed Accounts
    A closed account on your credit report is an account that is no longer active, meaning it was either closed upon your request or automatically closed by the creditor. The effect of a closed account on your credit report may differ depending on the account standing.  An account in positive standing won’t have any negative payment history. Should an account appear to be closed by the creditor when you closed it, this notation could carry negative weight on your credit report and the notation must be corrected.
  • Public Record Errors
    Judgments, tax liens, bankruptcies, and lawsuits must be listed accurately on credit reports.  If a public record is listed incorrectly, or does not belong to you, a dispute letter must be sent to the credit bureau with documents that explain the error.
  • Bankruptcy listings
    Accounts discharged in bankruptcy need to be identified correctly on your credit report as “discharged in bankruptcy”. In some cases, a bankruptcy can appear on your report because of mistaken identity, identity theft, administrative mistakes, or a completely random error.
  • Identity Theft
    Accounts opened fraudulently in your name or used without your authorization could appear on your credit reports. Specific steps to stop the theft need to be taken.    CLICK HERE: What to do if your Identity is Stolen
  • Strange Inquiries
    You must provide permission for someone to access your credit report.  If there are entries you do not recognize, letters must be sent to the credit bureau to request who obtained your report and for what reason.
  • Obsolete Information
    In most cases, a credit reporting agency may not report negative information that is more than 7 years old, or bankruptcies that are more than 10 years old.  When outdated information is listed on credit reports, a dispute letter must be sent to the credit bureau with documents that support your request for the information to be corrected.
  • Errors
    Incorrect payment histories, payment status, closed accounts, etc. must be listed accurately.  When credit reports list incorrect information, written disputes must be submitted to the bureaus with documents that support your dispute and illustrate why the error is to be corrected.  CLICK HERE:  Learn how to read a credit report

Step 3: Have a No Cost Legal Review

Flitter Milz attorneys are nationally recognized consumer protection lawyers with the experience to evaluate your credit reporting problems.

To provide a no cost legal evaluation, we will request that you provide a current copy of your report from each of the three main bureaus — Transunion, Experian, and Equifax, plus documents that illustrate why the information must be corrected. If it appears that you have a valid problem,  we may request that you send disputes to the credit bureaus and/or credit furnishers in an attempt to get the problem corrected.  Should the error remain, there may be a violation to your consumer rights.

CLICK HERE:  Learn to Dispute Credit Report Errors Effectively

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

 

 

 

Employment or Tenant Reports Often Mix Consumers’ Files

Background Check Wrongly Says I’m a Criminal!

All it takes is someone with the same or similar name, birthdate, address, or other matching identifying information to have a stranger’s record inaccurately mixed with yours.  Their DUI, their theft conviction, or their sex offence can then show up on YOUR report.  It’s no surprise then that bad background checks for employment, rent, or security clearance can ruin someone’s livelihood and reputation in an instant.

F L I T T E R  M I L Z:   Client Story

Flitter Milz understands the impact of employment background checks. Recently, a client of ours was moving to a new town.  He applied for a job, and a rental home.  He was denied the job, and the rental. Our client inquired with the employer and landlord.  After receiving a copy of the background screening report, he found that a stranger’s criminal history appeared on his report.  This story is all too common today. 

CFPB on Background Reports:  Accuracy and Privacy

The Consumer Financial Protection Bureau (CFPB) recently published an advisory warning that background check companies must take care not to mix consumers’ files or otherwise threaten consumer privacy.   According to CFPB Director Rohit Chopra, “The CFPB will be taking steps to use the Fair Credit Reporting Act (FCRA) to combat misuse and abuse of personal data on background screening and credit reports.”

 

Permissible Purpose to Obtain Background Check

More than 90% of prospective employers, landlords, insurance companies and banks use background check data as part of their application process.  These companies must have a legally permissible purpose to obtain a copy of a consumer’s background report when evaluating the consumer for credit, insurance, housing, or employment decisions. The consumer is entitled to a copy of the background check report used to evaluate his or her application.

Background Reports to be Accurate and Kept Private

Background reports include information such as, employment history, credit information and legal problems. In some cases, social media accounts may show up.  The more data listed in a background check could mean a greater possibility for error.  As a result, the consumer could be denied a job, housing, insurance or credit. Just one error on a background report can cause significant harm.  Procedures for maintaining and dispensing accurate information are critical. Background reports must ensure proper identification of the applicant, plus accurate data related to the applicant.  Disclaimers by background reporting companies do not cure permissible violations.  Instead, they could violate a person’s privacy, which is strictly prohibited under the FCRA.

Written Permission for a Background Check

When a background check is required, the prospective employer or landlord must obtain written permission from the applicant to request a report.  A Disclosure Notice and Authorization form must be filled out and signed by the applicant, then submitted to the background check company. Most authorization forms require the applicant’s full name, date of birth, social security number, current zip code, phone number and email address.  Screening for some types of employment may require additional information, such as motor vehicle reports, employment verifications or international criminal checks.

Victim of a Mixed Credit Files?  Steps to Take

If you’re the victim of a mixed file, take steps to dispute the errors with the reporting bureau.

  • Obtain a copy of the screening report used by the employer or landlord to evaluate your application.
  • Prepare a written dispute and send it to the background check company. Enclose a copy of the report with the error highlighted. Include documents which illustrate why the reported information is incorrect.
  • Request investigation of your dispute. The background company must send a response to your dispute, and correct or remove the inaccuracy within 30 days of your dispute.

Seek help from a Fair Credit Reporting Lawyer

The attorneys at Flitter Milz have extensive experience dealing with violations of the Fair Credit Reporting Act.  If a background checking company fails to correct information on your report, and you’ve suffer the loss of a job, rental, or other damages, you may be able to sue the company for money – and your legal fees will be paid by that violating reporting bureau.  Contact us today for a no cost legal evaluation.
Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Loan Applications & your Credit Reports

Consumer credit is when credit is advanced to a consumer for the purchase of personal or household goods or services. The system for extension of credit allows consumers to borrow money, or incur debt, and to defer repayment of that money over time.

Obtaining Credit

Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase. For example, if a consumer wants to purchase expensive items such as a home, car, or an education, it’s unusual for that person to have cash available to make the purchase.  Obtaining credit permits the consumer to make the purchase and pay for it with scheduled monthly payments over a specific period of time.

Finance Options

Consumers may explore options to finance the purchase by contacting banks, credit unions and financial institutions. The terms for borrowing money may vary from one lender to another.  After submission of a credit application, lenders take steps to evaluate the borrower’s creditworthiness. Typically, a credit application triggers a hard inquiry on the borrower’s credit reports.

Credit Application Submission

Consumers must provide written permission for their credit report to be accessed. The reports aid in assessing payment history and the borrower’s ability to repay debt to a lender and not default.  Credit scores are a 3-digit number that reflect a consumer’s ability to repay a loan and help to determine terms, such as interest rates and length of the loan.

Most important, in advance of seeking new credit, consumers should obtain a current copy of their credit report from each of the three main bureaus – Transunion, Experian and Equifax, and review the reports for accuracy. If there is information that is incorrect or needs to be updated, a dispute should be filed with the credit bureau.  The bureaus have 30 days to respond to the dispute.  Once information is corrected, the consumer may see an increase in his or her credit score. 

Five Factors Considered in the Loan Application Process

      1. Character:
        Does the borrower have a good credit payment history? Have payments been managed well in the past?
      2. Capacity:
        What is the borrower’s ability to repay the loan?  How much debt does the borrower have in relation to his or her income?
      3. Capital:
        Does the borrower have assets or savings to put towards the loan?  Will the borrower make a down payment?
      4. Collateral:
        Does the borrower have assets that can be provided as security for the loan?
      5. Conditions:
        Lenders may consider how the borrower plans to use the loaned money. Also, they may evaluate economic conditions that dictate whether the loan may be high risk and one that they want to take.

 Credit Denial

Borrowers must be prepared for the lender to approve or deny the application. If the consumer is denied a loan, the lender must send a letter to the consumer explaining the specific reason, or let the consumer know about their right to request information that led to the decision for denial within 60 days.  Also, if the denial is related to information that appears on the credit report, the lender must provide the credit bureau name, address and phone number for the consumer to inquire about the denial.

Are credit references necessary?

A credit reference is one of the methods lenders and service providers use to determine a borrower’s creditworthiness.  Credit references can include your bank, previous landlords, employers, or companies whose bills you’ve paid regularly.  Depending on the type of application, it is best to submit the best reference for the situation.  Typically, this person or company would improve the borrower’s chances for approval for the type of loan that is sought. 

Seek advice from Experienced Consumer Lawyers

If you’ve been denied credit due to errors on your credit report, contact Flitter Milz for a no cost case evaluation.  Errors on credit reports can lower your credit score, which can hurt your ability to get new lines of credit or receive favorable terms on a new loan.  Contact Us today.

Buying a new car? Make sure your credit reports are in order.

A car purchase is one of the most exciting purchases a consumer makes. But let’s face it, cars are expensive and you have to figure out how to pay for them.

Before visiting the dealership, consumers must review their finances and evaluate payment options.  Informed buyers allow for making the best car buying decisions.  Car salespeople are known to pressure potential buyers in to selecting vehicles from their lot — often ones the consumer may not want or be able to afford.

Four steps to prepare for purchasing a vehicle

STEP 1:  Obtain current copies of your credit reports

Lenders request access to consumer’s credit files in the process of evaluating the buyer for a new loan. Credit reports provide detailed information related to Credit Report and Credit Historythe consumer’s credit accounts, including balances and payment history.  When reports reflect incorrect information, lenders may deny applications for credit.

Before submitting a credit application, consumers should obtain current credit reports from each bureau – Transunion, Experian and Equifax — and evaluate the reports for accuracy.  If there are errors, written disputes must be sent to the bureau.

To obtain credit reports, prepare a request and send it by US Mail to the bureau.  The letter should be accompanied by two forms of identification, such as a current driver’s license, a utility bill, or pay stub.  It may take about two weeks to receive reports from the three bureaus.  Alternatively, you could visit annualcreditreport.com to obtain reports online.

STEP 2:  Review credit reports for items that could hurt your Credit Score

Banks, credit unions or financial institutions review the consumer’s credit reports and scores in the process of determining whether to extend credit or not.  Various factors are considered in the evaluation process:

  • Payment history:  Were payments made in full and on time?
  • High Debt to Credit Utilization: How much credit is used compared to the total amount of credit that is available?
  • Multiple Hard Inquiries: How many credit inquiries have been made within a period of time? Would this borrower be considered high-risk?

When there are errors on credit reports, the consumer must take steps to correct them. Sometimes, tradelines are not listed accurately by lenders or creditors on credit reports.  These errors, which could result in lower credit scores, must be corrected in advance of a new credit application.

STEP 3: Evaluate options to pay for the new car

Determine the price range of the car you can afford before deciding on the car you want to drive.  Evaluate your finances and determine how you’ll be able to pay for the vehicle.

Should I pay with cash?
The advantage of purchasing a car with cash is that you own the vehicle free and clear.  You will not pay interest on monthly loan payments, or have lease payments which do not build equity in a vehicle that can be sold later.  However, car buyers must consider whether it makes the best financial sense to allocate funds to purchase a car with cash.

Should I enter in to a lease?
Leasing a car allows for driving a “better car” for less money.  This option can be advantageous to some consumers as there is no down payment, lower monthly payments, and repair costs can be covered under the manufacturer’s warranty.  At the end of the lease, the vehicle is returned to the dealership — you don’t own the vehicle. Issues such as early termination costs, mileage overages, or wear-and-tear must be addressed with the leasing company.  After leasing, some consumers may choose to purchase the vehicle they had leased and enter a finance agreement to pay for it.  Others may choose to enter a new lease for a brand new car.

Should I finance the vehicle?
The process for selecting a car can be tedious.  Decisions involving which manufacturer, model, color, and options, as well as availability can make the purchase difficult.

Equally important is the process to determine how to pay for the car.  Questions such as: Do I have funds to put towards a down payment?  Do I have a vehicle to trade?  How much will the dealership give me for the trade? Which lender provides the financing rates and terms? Do I need to purchase a warranty?

Shop for the Financing

Once the decision is made on the specific car you want to buy, and you know how much it will cost, it’s time to shop for financing. Whether its with a bank, credit union, or financial institution, explore and compare loan offers for interest rates, loan terms, and monthly payment amounts.  Most dealerships encourage buyers to work with their finance manager for these arrangements. But beware of add-ons, such as extended warranties, GAP insurance, or extra equipment which add to the total cost of the vehicle.

Do not feel pressured by the salespeople at the dealership.  Take your time to review the documents. Think about the following:

  1. Shop for the car, then, separately, shop for the financing.
  2. Review the Paperwork:  Does the Buyers Order list all items you want on your car. Do the numbers add up?
  3. Is the amount of the down payment listed correctly?
  4. Is the amount of the trade listed correctly?
  5. Read the loan agreement carefully before signing.  Do you agree to the terms?  Payment due date?  Do the numbers add up?

If the paperwork is not correct, demand that it be corrected. If you’re not satisfied, you can always go elsewhere.

STEP 4:  Cost of Ownership
Do not overlook the cost to care for the vehicle. On average consumers keep a car for about 6 years, whether it’s new or used, . Estimate expenses such as, maintenance, repairs, insurance, and fuel. No matter which car you buy, maintaining the vehicle is an important part of your investment.

Legal Evaluation of Credit Reporting Problems

Have you been denied an auto loan due to errors on your credit reports? Flitter Milz is a nationally recognized consumer protection law firm that represents consumers in matters against the credit bureaus for inaccurate credit reporting.  Contact us for a no cost legal evaluation.

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

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).

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

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

Read more below:

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

How do credit files get mixed?

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

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

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

Correcting mis-merged or mixed credit files 

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

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

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

STEP TWO
Highlight items on your report that are incorrect.

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

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

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

The credit bureau has 30 days to address disputes

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

Can I sue the Credit Bureau or Credit Furnisher?

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

 

Flitter Milz in Action


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

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

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

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

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

Seek Qualified Legal Counsel

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

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

Take Control of your Credit

Understand credit scores and credit reports

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

What is a credit score?

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

Seeking Credit

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

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

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

What is a Credit Report?

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

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

What type of information is on a Credit Report?

The type of information listed on credit reports can include:

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

Check your credit reports for accuracy

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

How to Obtain a Credit Report?

Send a written request to the credit bureau

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

Request your report online:

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

Seek Legal Help from Qualified Consumer Lawyers

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

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

Auto Repossession and the Pandemic

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

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

When do lenders decide to repossess vehicles?

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

Fallen Behind?  Three Steps to consider.

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

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

Borrowers have rights after repossession

Are you the victim of a wrongful auto repossession?

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

Repossessions, Credit Reporting & Credit Scores

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

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

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

Seek Legal Help After Repossession

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

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