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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.

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 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.

Avoid These Credit Card Problems

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

Credit Score Drop

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

Check your Credit Reports

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

Seek Free Legal Help 


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

How to Build an Emergency Savings Fund

Unfortunately, emergencies happen to all of us. Maybe your pet is suddenly sick and you have to pay an expensive vet bill. Or, you get into a fender bender and need to pay to get your car fixed. Emergencies are serious, unexpected situations that require immediate action. Many Americans don’t have enough money in savings to cover the cost of these unexpected expenses.   More often than not, they turn to credit cards to pay for emergencies.

While using credit is fine from time to time, it can be detrimental to rely on it, especially if you can’t keep up with the minimum payments. If you fall behind on payments, your account could go into default and negatively affect your credit report and credit score.

To set up an emergency fund that can help to avoid using credit cards in the future, follow these steps.

1. Establish a Specific Savings Goal

Start with a savings goal of $1000 and set aggressive benchmarks to reach your goal. Create a budget for your expenses and determine where you can cut costs for a few months. Food, entertainment, and transportation expenses are a good place to start.

2. Deduct a Set Amount from Your Paycheck

Deduct a set amount of money from every paycheck and put this into a savings account. Many online banking accounts allow you to set this up automatically so that it’s easier to stay on track.

$1000 is enough to cover many emergencies. Once you reach this goal, you can set more modest goals and work on building a more substantial savings account over time.

3. Consider Other Sources of Income

If you can’t find areas to cut expenses and are having difficulty saving a portion of each paycheck, consider potential sources for additional income. Babysitting, dog sitting, and house cleaning, or seasonal work such as cutting grass, raking leaves or shoveling snow, are all good part time options that are always in demand.

4. Take Charge of Your Finances

Assess your overall financial well-being. Request your current credit report and address any issues or inaccurate information.

If you’ve relied on credit for emergencies in the past and find yourself in debt as a result, take steps to pay off credit card debt over time. If you begin to receive contact from debt collectors, make sure you’re familiar with the Fair Debt Collection Practices Act. Under this law, debt collectors are not allowed to threaten or harass you, provide false information about your debt, or contact friends, neighbors or family about your debt.

Get Legal Help from Abusive Debt Collectors

Flitter Milz is a consumer protection law firm that represents people that have become victim to debt collector’s abusive practices.  If you have been contacted by a collection agency or law firm collector, we will evaluate whether your consumer rights have been violated – whether you fell behind on payments or not.  Contact us for a free legal evaluation.

How to Pay off Credit Card Debt

Believe it or not, the average household debt is approximately $134,643 — an amount which can include mortgages, auto loans, credit cards and personal loan balances. Debt has continued to increase as cost of living increases. And as a result, many Americans rely on credit cards to pay for expenses they can’t necessarily afford.

If you’re in debt, the idea of paying it off probably feels overwhelming and unrealistic. It can be difficult to keep up with minimum payments while managing other everyday expenses. But if you make a long-term plan to pay off your debt, and stick with your plan, you’ll make significant progress toward your goal.

Five Steps to Address Debt

  1. Make more than minimum payments on credit card and loan balances

2. Prioritize your debts and pay off those with the highest interest rate first

3. Contact the creditor to see if you can make adjustments to your account.  You may be able to change a payment due date or lower an interest rate, to accommodate your budget and income.

4. Evaluate personal items to liquidate. Use the funds to pay off or lower your debt

5. Create a budget and track your spending.  Evaluate where you may be able to cut expenses.  The money you save can be used to lower your debt.

Protection from Abusive Collectors

Contact from debt collectors can cause additional stress. You have rights under the Fair Debt Collection Practices Act (FDCPA).  This federal law prohibits collectors from using deceptive, misleading abusive tactics to collect consumer debt. Under the FDCPA, debt collectors are not permitted to:

  • Threaten or harass you
  • Tell you false information about your debt
  • Contact family and friends and disclose information about your debt
  • Continue trying to collect from you if you requested they stop

But debt collectors may not always provide accurate information about your debt resort to unlawful tactics to get you to pay. If any information seems inaccurate, ask that the collector provide Validation or Itemization of the debt.

Seek Free Legal Help

Flitter Milz is a consumer protection law firm that represents consumers that have become victim of unfair collection practices by debt collectors and collection law firms.  Whether you owe the debt of not, the collector must follow the law.  Contact us to discuss your consumer rights.

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.