Understanding Consumer Law

How to Use this Resource

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.

Seeking Credit

Is Your Credit Score Holding You Back?

 

Is Your Credit Score Getting in the Way?

Building or repairing your credit isn’t easy. Whether you’re starting from scratch or trying to recover after financial setbacks, staying on top of your finances can feel overwhelming.

As well, relying too heavily on credit can create its own problems. Not paying cash up front, make it easy to spend more than you can afford. Before long, monthly payments can pile up and become difficult to meet.

How to Start Building Your Credit

If you don’t have an established credit history—or you’re trying to rebuild after financial difficulties—you may need to seek some help.

Option One
One option is a secured credit card. These cards require a deposit, which typically becomes your credit limit. Because the lender has less risk, they’re often easier to obtain. Unlike debit or prepaid cards, secured credit cards require monthly payments. To get the full benefit, make sure the company reports your payment history to the credit bureaus so your positive activity helps improve your credit.

Option 2
Another option is becoming an authorized user on someone else’s credit card account. In this arrangement, the primary cardholder adds you to their account. You’ll receive a card, and the account may appear on your credit report. If the account is managed responsibly, it can help you build a positive credit history. Of course, this works best when the primary user consistently pays on time.

The key in both situations is developing consistent habits—especially paying what you owe on time.

Check Your Credit Reports Regularly

Consumers are entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—every week. Reviewing your reports allows you to spot mistakes or unfamiliar accounts. Use annualcreditreport.com to access your free credit reports.

Hard Inquiry v. Soft Inquiry: What’s the Difference?

Accessing your own report would be a “soft inquiry” and does not damage your credit score at all. On the other hand, your score can drop by a few points if you have a “hard inquiry”—which can occur when your credit report is accessed by a creditor. This can happen when you apply for credit, but it can also happen illegally—when a creditor pulls your credit report without your permission.

Send a written dispute if you notice inaccurate information or an impermissible hard inquiry. Correcting errors can make a meaningful increase to your credit score.

Seek Legal Help from Qualified Consumer Lawyers

Flitter Milz is a nationally recognized consumer protection law firm representing individuals facing credit reporting errors and credit privacy violations.

Your consumer credit reports (and other consumer reports) are to be kept private under federal law. If there is a lingering inaccuracy on your credit report(s), or if you believe someone has accessed your credit report without legal authorization, contact us for a no cost consultation at: Phone:  888-668-1225     Email:  consumers@ConsumersLaw.com

 

 

 

Even High Earners fall behind on car payments

Many Americans struggle with debt.  Especially now, as recent reports show that more people are falling behind on their personal loans and credit cards. It’s not just low-income families, but higher earners are having trouble too.

According to the Federal Reserve Bank of New York, about 4.8% of household debt is now late. That is the highest level since 2017.  Auto repossessions in the 4th quarter of 2025 were reported at over 800,000 vehicles—nearing a 15 year high—with over 3 million repossessions in 2025.

Debt Is Growing — Even for Middle-Income Families

Nonprofit credit counseling agencies say they are seeing more people from various income brackets asking for help. In fact, many agencies reported a big jump in new clients in 2025.

Before the pandemic, the average person seeking credit counseling made about $40,000 a year and had around $10,000 in unsecured debt, such as credit cards or personal loans. Today, financial stress is spreading beyond low-income households. The average person making about $70,000 a year carries nearly $35,000 in unsecured debt  That’s about half of their yearly income.

What Is “Survival Debt”?

Experts say people are shifting from “extra spending” debt to “survival debt.” This means many families borrow money by using high-interest credit cards or loans to pay for basic needs such as groceries, gas, utility bills, and rent or mortgages. Although credit may act as a lifeline to prevent hunger or homelessness, it often leads to a cycle of only making minimum payments, which ultimately keeps the consumer in debt.

Mortgage and Credit Card Problems Are Rising

Falling behind on credit cards, auto loans and mortgages have become more common.  For example, about 13% of people with FHA home loans show an increase in making late or missed payments.  These loans, often used by first-time homebuyers, may result in mortgage foreclosures.

Why the Numbers May Look Better Than They Are

Some people enroll with credit counseling agencies to assist with management of debt. The agencies help with financial education, budgeting and payment plans to oversee regular payments to accounts.  The advantage is that these plans may combine several obligations into one monthly payment, and offer a lower interest rate.  As well,  the credit bureaus may list the accounts as “current” while minimum payments are made, instead of listing late or missed payments.

What This Means for You

Conflicts about money and finances can be destructive to relationships. When savings are gone and safety nets for emergencies are lost, pressure intensifies for couples with every bill that comes to the house.

Seek Help from Qualified Consumer Lawyers

If you are struggling with debt and have begun to receive collection calls, have issues with inaccurate information on your credit report, or are worried about a possible repossession of your car, you have legal rights. Contact Flitter Milz for a no-cost consultation.
Toll Free:  888-668-1225 or Email: consumers@consumerslaw.com

 

 

 

Sourced – Americans With Higher Incomes Are Starting to Fall Behind on Payments, Wall Street Journal, February 12, 2026, Imani Moise.

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).

 

 

 

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)

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)

Understanding Auto Loan Financing

Auto Loan

Cars, trucks, motorcycles, RVs or boats, they’re all expensive.  It’s unusual that these purchases are made in cash.  Whether buying a new or used vehicle, most people choose to finance the purchase and make specified payments over a designated period of time.  Financing can be arranged in two different ways.

Continue reading Understanding Auto Loan Financing →

How Will Borrowing Money Affect My Credit?

Getting a Loan

Taking out a loan can help you build your credit.  But remember, to get that benefit, loans must be paid back in full and on time, and according to the terms of the loan agreement.  When these terms are not met, the lender can take steps to repossess collateral and collect any money that is owed.  As a result, the defaulted loan can be listed negatively on credit reports and lower your credit scores.

Let’s take a closer look at how this all works.

Continue reading How Will Borrowing Money Affect My Credit? →

E-Signing Your Rights Away

In our increasingly paperless society, more and more companies are requiring consumers to sign contracts electronically, called “e-signing.”  You may have encountered this yourself.  A door-to-door salesperson promises you a deal that sounds almost too good to be true, but only if you sign their electronic tablet on the spot.  An online lender guarantees to get you money now, but only after you check the boxes on the website.  The convenience seems hard to pass on.  You don’t even have to deal with the finicky fine print! Instead, you get what you want, and you can get it now.

Continue reading E-Signing Your Rights Away →