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

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 →

Who Can See Your Credit Report?

Your credit report contains quite a bit of information about your financial history. It includes personal information, all of your open credit accounts and whether or not they are in good standing, and any negative marks, such as accounts in default or vehicle repossessions. Due to the sensitive nature of this information, not just anyone can see a copy of your credit report.

Continue reading Who Can See Your Credit Report? →

What do Auto Lenders check on your Credit Report?

When you apply for an auto loan, lenders will perform a credit check on you. Your credit affects whether or not you’ll be approved for the loan, and the interest rate for the loan. The interest rate and terms of the loan have a major impact on how much you will end up paying overall, so it’s important that you know where your credit stands BEFORE you apply for an auto loan. When you apply, lenders will look at the following components of your credit file.

Continue reading What do Auto Lenders check on your Credit Report? →

Get to Know Your Credit Report

Checking your credit report regularly helps you understand where you stand when it comes to your finances. Many organizations, especially lenders, use credit reports as a way to get to know a consumer’s spending habits. They can be used to determine whether or not to approve someone for a new line of credit, a home loan, or a rental property. Although credit reports include a significant amount of information about you, there are certain things that will not be included.

What’s On Your Report

Credit reports contain the following information:

  1. Identifying information, including your name, address, social security number, employment information, and birthdate.
  2. All credit accounts you’ve opened, such as credit cards and loans. This section includes both open and closed accounts and provides details on each account, such as the type of account, date it was opened, credit limit, account balance, and all past payments made.
  3. All inquiries regarding your report from the past two years. Inquiries often come from lenders checking your credit before approving you for a loan or line of credit.
  4. Negative information, such as late payments, car repossessions, foreclosures, defaults, tax liens, collection accounts, judgments and bankruptcies.

What’s Not On Your Report

While credit reports have a majority of your financial information included, there are certain items that will not appear.

For example, credit reports list your employers but do not contain further information regarding your employment status or salary.

While information regarding lines of credit are listed, bank account balances, retirement accounts, 401k, and investment or brokerage account information is not included.

Also, your credit report will not be affected by marriage. After you’re married, your credit report and credit score remains independent of your spouse’s. Marriage will only affect your credit for accounts you and your spouse open together.

How to Obtain Your Credit Report

The three credit bureaus (Equifax, Experian, and TransUnion) are each required to provide one free credit report to consumers every 12 months. In order to obtain these reports, write a letter to the bureaus and request your report. Be sure to include two forms of identification, such as a current driver’s license and utility bill, with your letter.  You should receive your report within approximately two weeks.

Monitor Your Report Regularly

Credit reports are an effective way to determine if you’ve been a victim of fraud or if any mistakes have been made regarding your credit history. You should carefully review your credit file and report any suspicious listings. If you believe that you are a victim of identity theft, you should take steps by notifying the police, the credit bureaus and the creditors. If you have disputed errors and the credit bureau has not corrected your report, you can contact an attorney to discuss whether your consumer rights have been violated. Checking your report regularly is a good idea so that you can dispute errors as soon as possible.

Why It Matters

Credit reports are essentially a compilation of your credit activity. They allow lenders and other organizations to get to know you. When you learn how to read and interpret your credit reports, you will become confident to dispute any inaccuracies, and handle the errors in a timely fashion.  Viewing your reports regularly, helps to eliminate any surprises when you apply for loans or other lines of credit, apply for a job, or attempt to rent an apartment.

Seek Legal Advice

Flitter Milz is a nationally recognized consumer protection law firm based in suburban Philadelphia, Pennsylvania, that represents consumers in cases involving credit reporting accuracy and privacy violations.   Contact us for a free consultation to discuss problems with your credit reports.