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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.

Collection Contact

Debt Collectors Are Calling Me. What Can I Do?

Contact from debt collectors can be scary and overwhelming, especially when they begin to call more frequently, contact your family, or threaten you. The Fair Debt Collection Practices Act (FDCPA) was created to stop debt collector harassment and protect Americans from unfair and abusive collection tactics.

Here’s what collectors can and can’t do, and what you can do to get the calls to stop.

FDCPA Violations

The FDCPA provides guidelines that debt collectors are required to follow when they contact you about your household debt. This may be debt from medical bills, utilities, a loan, or credit cards.

Under the FDCPA, debt collectors are not allowed to harass, intimidate, abuse, or threaten you. They can’t threaten IRS reporting or a lawsuit if it’s untrue. You also can’t go to jail for owing money. Collectors should only contact you between 8am and 9pm, unless you give them permission to do otherwise, and they can’t contact family members or friends and discuss your debt.

Debt collectors also cannot:

  • Continue to contact you after you write to them and ask that they stop
  • Contact you after you’re being represented by an attorney
  • Tell you false information about the debt, like exaggerating the amount
  • Fail to tell you that they are a collector
  • Say they work for a credit bureau or give incorrect information about your debt to a credit bureau
  • Fail to report a disputed debt as disputed to the credit bureaus
  • Call your cell phone without permission
  • Place private and personal information in a visible area on a mailing envelope
  • Threaten wage garnishment, which is illegal in Pennsylvania
  • Continue trying to collect after you file for bankruptcy

If a debt collector violates any of your rights, you may be able to sue, and the collector will be responsible for the cost.

How Do I Get Debt Collectors to Stop Calling?

You can get a collector to stop contacting you if you write a cease and desist letter. Under the FDCPA, the collector is required to stop calling. Keep in mind that this does not mean the debt no longer exists.  The debt may be assigned to a new collector to begin collection effors.

If the debt seems incorrect or inaccurate, be sure to make the debt collector aware of this. Write and request validation of the debt. If you disagree with the collector’s calculation, send documentation that proves you paid or states why you don’t owe the amount that they claim. You should always send correspondence through certified mail with a return receipt so that you always have proof that they received your information.

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 evaluation.

 

Private Debt Collectors Hired IRS to Collect Taxpayer Debt

Uncle Sam Contracts Private Collectors to Collect Unpaid Taxes

The federal government has contracted out the collection of unpaid income tax with four private debt collection agencies. These agencies are CBE Group, ConServe, Performant, and Pioneer Credit Recovery.

Beginning April 2017, the private collection firms will contact taxpayers with overdue federal tax bills. At first, collection letters will be sent, stating the account was transferred by the IRS to the collector. Then calls will follow.

Beware of Aggressive Collectors

The collectors have an incentive to collect. They’ll receive 25% of every dollar collected.

Although the collectors are still required to follow the Fair Debt Collection Practices Act and respect taxpayer rights, vulnerable taxpayers could be pressured by aggressive collectors to pay more than they can afford.

The IRS also offers various taxpayer programs to eligible taxpayers. Be sure to inquire about your eligibility for these programs.

Where to Send Payments

The government’s collectors will target taxpayers owing less than $50,000 and move up from there. They may discuss payment options with taxpayers, but all payments are to be sent, either electronically or by check, to the IRS or U.S. Treasury. Payments are not to be sent to the private debt collection agency.

If you feel that you are being harassed, or that the claimed debt isn’t accurate, file a complaint with:

Consumer Financial Protection Bureau: 1-855-411-2372

U.S. Treasury, Inspector General for Tax Administration: 1-800-366-4484

Questions about Debt Collection?

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics.  Contact Us if you have questions concerning contact from debt collectors.  There is no cost for the consultation.

 

What to Do If Debt Collectors Contact Your Family Members

When you receive calls and letters from debt collectors, it can be difficult to tell which actions are legal and which are not. But when they contact family members, friends, neighbors or co-workers about your debt, be aware that your consumer rights may have been violated.

Debt collectors may not disclose details about your debt, such as payment history and amounts owed, to anyone but your.  They may ask someone where you live or your phone number, but they may not reveal any information about the debt.

Consumer Law offer protections

The Fair Debt Collection Practices Act prohibits third party contact from debt collectors without your consent. Even if you owe the debt, collectors may not use practices to intimidate or harass you by contacting someone else about your debt.

If you discover that someone you know has been contacted about your debt, ask that person to document the contact.  He or she should create a statement which includes the following:
-Date
-Time of day
-Name of caller
-Name of Collection Agency
-Caller ID
-Phone number where the call was received
-Details of the phone conversation

If the collector calls multiple times, documentation of each contact should be recorded.

Get Free Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of a debt collector’s abusive tactics.  Contact Us for a free evaluation of your matter.  Whether or not the debt is owed, the debt collector must follow the law.

 

 

How to Recover from Holiday Credit Card Debt

Now that the holidays have come and gone, you may be struggling with extra credit card debt. Studies have shown that the average American household with credit card debt pays more than $1,200 per year in interest. Not only does debt cause stress, it also harms your credit. Follow these steps and chip away at your holiday debt each month to avoid high interest charges and maintain healthy credit.

1) Pay More Than the Minimum

Carrying a balance each month is unhealthy for your credit score and also makes you susceptible to interest charges. To avoid a month to month balance, pay more than the minimum amount that appears on your monthly statement. Avoid spending above your means and pay off any new charges in full. This will help you put a dent in your debt and reduce the amount of interest you owe over time.

2) Pay Off a Set Amount Each Month

Set aside some time to assess your finances and determine a realistic amount that you can dedicate toward paying off your debt each month. For example, you may want to set up auto-pay on your account with this specified amount. If the amount is automatically withdrawn from your account each month, you’ll be less likely to feel tempted to spend it on something else as the payment date draws near.

3) Keep Your Credit Utilization Low

As you work toward paying off your debt, focus on keeping your credit utilization lower. Try to cap your credit card usage at around 30%, which will make your payments more manageable.

Here’s how to calculate your usage

Divide your credit card balance by your credit limit.  Move the decimal point two places to the right. This is your current credit usage. A higher percentage will harm your credit while a lower percentage will help.

          Example: Credit Usage Calculation
Statement Balance = $500
Credit Limit = $1000
$500 divided by $1000 = $0.5
Move decimal two places to the right = 50
Current Credit Usage = 50%

4) Spend Wisely

Stick to a firm budget to avoid letting your credit card balances continue to creep higher.  Evaluate your income in relation to fixed expenses.  Try to keep your spending within your means.  As you have extra funds, place them in a savings account so that you’re prepared for unexpected expenses…or those holiday gifts you’d like to buy.

Seek Free Legal Help

Once you fall behind on payments, the creditor may choose to assign or sell your obligation to a collection agency or law firm collector.  It’s important to know your rights and the laws that protect you from abusive collection tactics. Whether you owe the debt or not, the collector must follow the law.

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

How much do I really owe the Debt Collector?

Contact from a debt collector is always cause for concern, but not everything the debt collector tells you is fact. Debt collectors often use certain tactics to intimidate consumers, such as threatening IRS reporting or a lawsuit when none is intended. They may also tell you that you owe more than you actually do. If the amount of debt they claim does not sound right, take the following steps.

Review Correspondence

Within five days after the debt collector first contacts you by phone, they must send a letter that details the amount of the debt and the name of the original creditor. Review this letter and ensure that the amount owed and the name of the creditor are accurate.

Dispute Incorrect Information

After you receive this letter, you have 30 days to dispute any inaccuracies. Write to the collector by certified mail with a return receipt.  Enclose documentation that supports your claim, such as proof of payment, account statements or correspondence with the creditor. Request that the collector respond promptly to your dispute in writing.

Request a Validation and Itemization of the Debt

Your letter should request that the collector provide a Validation of the debt which verifies their right to collect the debt.  Secondly, your letter should request the collector provide an itemization of the debt, showing how they’ve calculated the balance claimed.  

The itemization should include the principal amount plus interest and any additional late fees. The collector is prohibited from any further collection activity until he responds to your request with proper validation of the debt claimed to be due.

Seek Free Legal Help

If the collector ignores your dispute or continues to try to collect based on inaccurate information, contact a debt collection lawyer to discuss your options.

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

Debt Collectors Must Play by the Rules

Debt collection harassment affects millions of Americans. Did you know that debt collectors have to follow certain laws when they contact you, whether or not you owe the debt?

What is the FDCPA?

The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. This law prohibits debt collection companies or law firms from using abusive, harassing, unfair, or deceptive practices to collect debt from consumers.

The law covers personal, family, and household debt, including money owed on a personal credit card account, a medical or utility bill, or a loan. Commercial debts, or debts incurred as a business or commercial transaction, are not covered under this law.

Whether a debt is owed or not, collectors are not allowed to intimidate, harass, threaten, or abuse you. You may be able to sue the collector for violations of the FDCPA at no cost.

When Can Collectors Contact Me?

Collectors can contact you by phone between 8 a.m. and 9 p.m., unless you inform the collector that they are permitted to contact you outside those hours. For example, some people work shifts that would make it inconvenient to receive calls during those hours. You can request that the collector contact you during certain hours which are convenient to you. It is important to document collection calls with date, time of day, name of collector, caller ID, and details of a phone conversation or message.

Collectors may call you at work if you give them permission. If your employer does not permit you to have personal calls at work, you can inform the collector to stop calling during work hours.

Can the Collector Contact Me if I’m Represented by an Attorney?

After engaging an attorney to assist with your debt, you should inform the collector by sending a letter stating your attorney’s name and contact information. At this point, the collector is no longer permitted to contact you directly. If you continue to receive collection calls or letters, your consumer rights under the Fair Debt Collection Practices Act may have been violated.

Can the Collector Contact Someone Else About My Debt?

Collectors are not allowed to contact anyone other than yourself about your debt, unless it is to get contact information. Many times we hear that relatives, neighbors, co-workers, or friends have received contact from debt collectors about someone else’s debt.  Often the collector shares details about the debt, such as payment history and amounts owed. In these situations, it is very important to  create a document stating the date, time of day, name of caller, name of collector, 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 a debt collector’s abusive tactics.  Contact Us for a free legal evaluation.

Can I be sent to jail if I owe money?

Debt Collection Harassment

Debt collection contact can be stressful and intimidating, especially iwhen you feel threatened. Debt collectors sometimes use abusive tactics, like threatening a lawsuit when none is intended, or threatening IRS reporting or tax consequences.

Collectors may also tell you that you can go to jail for owing money. This is a tactic that is used to intimidate, and has no legal standing. You can’t go to jail for owing money.

The Law is on your side

The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. It prohibits debt collection companies, or law firm collectors, from using abusive, harassing, unfair, or deceptive practices to collect debt from consumers. Whether you owe the debt or not, collectors are never allowed to intimidate, harass, threaten, or abuse you.

Cease & Desist Collection

If abusive collectors continue to contact you, send a Cease and Desist letter and request that collection calls and letters stop.  The collector is not permitted to contact you after receipt of this letter.  However, this does not mean the debt goes away.  Typically, the debt is assigned to a new collection agency, or possibly a law firm collector, to begin a new collection effort.

Attorney Representation

If you are represented by an attorney that is handling your debts, the collector is not permitted to contact you. You must notify the collector of your attorney’s name and contact information and request that any contact about your debt be made directly with your attorney.

Third Party Contact

Collectors may not contact anyone but you about your debt.  If family member, co-workers, neighbors or friends are contacted by a collector about your debt, your consumer rights may 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 contact from debt collectors.

 

How do I know if the Debt Collector is Legitimate?

Calls from debt collectors are worrisome, especially if the collection agency or law firm collector name is unfamiliar to you. You may be told misleading or false information about a debt they claim you owe.  Or, you may be threatened with an action if you don’t pay. Here are a few signs that may indicate that the collector isn’t legitimate.

You Don’t Recognize the Debt

If the debt in question is completely unfamiliar to you, it could be a scam. Ask that the collector provide a validation of the debt and a detailed itemization of any amount they claim is owed.

If you don’t recognize the collection firm, keep in mind that creditors will often assign past due balances to a collection agency or law firm collector. You may begin to receive collection calls or letters demanding payment from this third party collector years after defaulting on credit cards, loans, medical bills, etc.

You are not provided with details

If you are unfamiliar with the collection agency, ask the collector for the name of the firm, where it’s located – address and phone – and the collection agent’s name.   Also, ask the name of the underlying creditor, account number and balance claimed.  A collector who won’t provide any of this information is worthy of suspicion.

You are asked to provide personal
identifying information

Never provide or confirm personal identifying information, such as social security number, birth date or bank account numbers, over the phone. Request that the collector send you a letter detailing the name of the creditor, account number and amount owed.

If you do not like the way you’ve been treated by the collector, you may write and request they Cease & Desist all contact with you.

You are Threatened by the Collector

Under the federal Fair Debt Collection Practices Act (FDCPA), debt collectors can’t threaten to take an action they don’t intend to take.  For example, they can’t say, “We’ll sue you if you don’t pay,” when they have no intention of filing a lawsuit.  If you are threatened with a lawsuit or possibly arrest, your consumer rights may 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 legal evaluation for violation of your consumer rights – whether you owe the debt or not!

Co-signing a Loan: All Risk, Little Reward

Co-signers lend their names and good credit histories to the primary borrower, usually when the other borrower cannot obtain credit on his or her own.  For example, a parent may co-sign for a child who does not yet have a credit history. Or, someone may be asked to co-sign by a friend or relative whose credit is tarnished, has negative marks in their credit history, or a low credit score.

Co-signing a loan does not mean that you are serving as a character reference for someone else. Here’s what you should know before you co-sign a loan.

Five Dangers of Co-Signing a Loan

1) You’re Liable

When you agree to co-sign on a loan, you are liable for payment of the loan. You risk having to repay any missed payments immediately, or having to pay the full loan balance if your co-borrower defaults.

If the co-borrower defaults on the loan, the lender can use the same collection methods against the co-signer, such as demanding repayment of the entire loan, filing a lawsuit, and garnishing bank accounts after a judgment.

Credit scores may be impacted negatively by any late payments or defaults by either co-borrower. If the primary borrower dies, loses a job, goes through divorce, files bankruptcy, or otherwise fails to make payments, all responsibility for meeting the terms of the account generally transfers to the co-signer.

In some cases, the person who thought they were merely a co-borrower or guarantor was really listed in auto finance documents as the primary borrower. Be aware that if your co-borrower is primarily irresponsible for timely monthly payments, your credit score could suffer if he or she pays late, even if the lender did not give you a timely notification of the missed payment.

2) You Could Be Sued if Payments Aren’t Made

Failure to pay on the loan (or another breach of the loan agreement, like not keeping up the car insurance) means the lender can come after you for the entire balance. The co-signer often gets sued first because their credit is stronger and the bank believes they’re more likely to repay the debt.

3) It’s Difficult to Remove Your Name from the Loan

Once the account is opened, it’s very tough to remove a co-signer from the loan. We often hear stories of car buyers being told by the salesman to return after four to six months, at which time the dealer will supposedly remove one of the borrowers from the paperwork. This is not true, but rather a tactic to sell cars. Both the primary borrower and co-signer need to satisfy the loan in order to terminate the loan agreement, or obtain the lender’s express permission to remove one of two co-borrowers.

4) Tax Consequences of Settled or Unpaid Debt

The lender might not want to go through the trouble of suing you, so they agree to settle a post-repo deficiency balance for less than the balance owed. This means that you could have tax liability for the difference.

For example, if you owe $10,000 and settle for $4,000, you may have to report the remaining $6,000 as “debt forgiveness income” on your tax returns and pay tax on it. Settling on the account for less than the full sum may also leave a negative mark on your credit report. You may need to seek professional tax advice on this.

5) Difficulty getting approved for a loan

Before you co-sign for someone, think about whether or not you’ll need to use your credit for your own needs. A lender may deny a credit application if there is too much credit in your name or the balances are too high relative to your income.

Seek Legal Advice

Flitter Milz is a nationally recognized consumer protection law firm representing people in matters against lenders, debt collectors and the credit bureaus.  Whether you or the co-borrower has fallen behind on payments or not, Contact Us for a FREE evaluation of whether your consumer rights have been violated.

6 Ways to Handle Pushy Debt Collectors

Fair Debt Collection Practices Act FDCPA

The Fair Debt Collection Practices Act (FDCPA) is the federal law that offers protections to consumers from aggressive debt collectors.  Whether the debt is owed or not, collectors may not harass or abuse the consumer, and they can not misrepresent the debt.  If a collector violates the FDCPA, the consumer may pursue a lawsuit against the collector, and the collector will be responsible for paying the legal fees.

Continue reading 6 Ways to Handle Pushy Debt Collectors →