If the collection account giving you trouble falls into one of the following three categories, you should be able to get the entry removed from your credit report without too much trouble. Just follow these tips to clean up your credit and improve your credit scores by getting those collections off of your credit report.

Collection Accounts on Credit Report: Statute of Limitations

The Problem:

The easiest collection accounts to remove from your credit report are those that shouldn’t be there due to the statute of limitations on reporting. This one is usually pretty easy to spot: the collection agency will generally send you a notice about a debt that is many years old. When you don’t pay, they increase their collection activities, including putting a notation on your credit report.

Later, when you look at your credit report, you’ll see the debt listed in collections with a much more recent delinquency date. Occasionally, the date will be accurate but the collection will still be added, even though the statute of limitations for reporting the debt has passed.

What You Need to Know:

Re-aging the debt to make it appear as though it is more recent is against the law and the Fair Debt Collection Practices Act, but debt collectors hope that you won’t realize that your rights are being violated. If the debt is more than seven years old, it can’t be reported on your credit report, period.

The only exceptions to this are items such as judgments and bankruptcies, which can stay on your report for up to 10 years. This does not include credit card accounts, or loans, even if they were a part of a bankruptcy settlement.

What You Can Do:

In this instance, filing a dispute with the credit bureaus should be enough. You may need to have documentation that proves that the debt is older than is being reported, but in many cases you may not.

Collection agencies know that they are taking a risk in reporting debt that is legally too old to appear on your credit report, so most debt collectors will remove the item from your credit report as soon as you file the complaint.

Collection Agency Complaints on the Rise

Collection Accounts on Credit Report: Inaccurate Information

The Problem:

Another common issue with collection accounts on your credit report may be the accuracy of the entry. When charged off accounts are bought and sold, it’s not uncommon for pertinent account details to get lost in the shuffle. It’s also not uncommon for collection agencies and debt collectors to attempt to attach an extra “fee” or surcharges to the original debt.

When you check your credit report, you may notice higher balances than the original debt. You may also notice a difference in the balances from one collection agency to another as the debt is shuffled around.

What You Should Know:

Legally, the collection agency cannot add additional charges to your original debt, unless the agreement you signed with the original creditor explicitly states that such charges may be added when an account goes into collections.

What You Can Do:

This is another instance where you should be able to dispute the debt and have it removed from your credit report. However, be prepared to have documentation to back up the original debt amount. For credit card charge-offs in particular, sometimes the interest charges and penalty fees continue to accrue for months after your initial delinquency.

Another option is to request verification of the debt. In some instances, the various changes in the amount you owe may be due to poor bookkeeping. In that instance, if the collection agency is unable to verify the debt, they will have to stop all collection activity regardless of whether or not you actually owe the debt.

If you have documents showing the final amount of the bill before it went into collections, you’ll want to include a copy in your dispute. Make sure that the collection agency isn’t adding their own “processing fee” or “convenience fee” to the outstanding amount by comparing their information to your records.

Collection Accounts on Credit Report: Settling the Debt

The Problem:

In those situations where the debt is both accurate and recent, you may have no other choice than to settle the debt. However, you should first make sure that the collection agency is the one who has possession of your debt.

When a collection account has been bought and sold multiple times, it can be difficult to follow the paper trail and find out who actually owns the debt. Also, you may find that the original creditor will still accept payment if they are using the debt collection agency for their own in-house collection services, rather than selling the charge off account.

What You Should Know:

You may not have to pay the entire amount of the past-due bill. Often, collection agencies will take less than the original amount due. However, they are also much less likely to remove the collection from your credit report if it is not paid in full.

Professional credit repair companies can be helpful in this situation, as they can often speak with the collection agency on your behalf to work out a solution that you can stick with.

What You Can Do:

Make sure you have all the relevant information about your debt and the collection agency. Be prepared to negotiate and don’t promise to pay more than you can afford. If possible, get the collection agency to agree to remove the collection account from your credit report once the payment clears.

While there are no quick answers for getting collection accounts on your credit report removed, patience and persistence does pay off. If you regularly dispute the inaccurate information on your report, you can increase your credit scores and qualify for the level of credit that you know you deserve.

1. They try to collect on debts the consumers don’t owe. Many consumers have complained that Allied Collections has attempted to collect debt that wasn’t theirs. Sometimes there will be a shared first or last name, and Allied will think that that is sufficient evidence to dump the debt onto an innocent party. One consumer said she was repeatedly called about a debt for somebody with a different last name. Each time she tried to explain that it wasn’t her and asked Allied Interstate to stop calling her. All Allied did was accuse her of lying. This individual finally had to file a lawsuit against Allied Interstate to stop the harassment. Another individual was forced to pay $400 on a debt he did not owe because he didn’t want to go through the hassle of fighting against Allied Interstate Inc.

2. They charge people’s credit cards without authorization. One individual actually tried to work with Allied Interstate to settle his debt and all he got for it was a number of unauthorized charges on his credit card statement. What happened was he spoke with a representative who said he could work out a low monthly payment plan. However, the supervisor said that the payment plan was lower than what they could allow. The consumer then said that he didn’t want to do it then and that Allied wasn’t authorized to charge his card – but they charged him anyway.

3. They call friends, neighbors, relatives, and co-workers. Allied Interstate Collections will contact anyone they can find in order to track down the individual they show owing them money. They will stop at nothing to get paid. This tactic often involves them calling friends, relatives, neighbors, and even co-workers. Some have complained about being contacted by Allied looking for people they haven’t associated with in 5-10 years. This tactic has caused a lot of consumers to be not only upset, but also embarrassed.

4. They utilize intimidating and aggressive tactics over the phone. They will try to bully customers into paying debts without even first verifying that the debt is valid. In addition, they will ask for sensitive personal information without demonstrating that they are who they say they are. When customers do ask who they are, they simply state that they are a collection agency. That’s not enough information to provide a smart consumer with peace of mind. In addition, people complain that they are generally rude and do not cooperate when information is requested from them.

5. They will call customers many times in a single day. Allied is relentless and they will keep bothering you until you pay them, or file a cease and desist order against them. Some consumers have complained about being called as many as 10 times in a single day. Still others said they received more than 20 calls in a period of three weeks.

1. Don’t panic. Getting a call from NCO Financial debt collections can be intimidating. However, it is important to remember that you are in control. Too often consumers hear that they owe a debt and just assume they have to pay it on the spot. Remember that you are the one with the money they are trying to collect. NCO collections can’t make a dime off of you without you giving it to them. Don’t let them bully you and make sure you understand what you are doing before you do it.

2. Know your rights. The Fair Debt Collection Practices Act provides consumers with certain rights pertaining to how NCO and other debt collection agencies can try to collect on the debt you may owe. NCO Financial cannot harass, threaten, or use language that is hostile or abusive in order to collect on debts. If this law is violated, you can contract your state attorney general’s office. Collection agencies have had to pay fines totaling several millions of dollars for not complying with this act.

3. Validate the debt. If you aren’t positive that the debt belongs to you, do not pay it. NCO Financial debt collection makes mistakes all the time. If you are at all uncertain, you may request a debt validation letter from NCO in order to ensure that you actually owe the debt they are saying you owe.

4. Negotiate a compromise. NCO Financial will sometimes be willing to accept repayment on less than the full amount that is owed to them. Remember, they only make money when you give it to them, and they would rather collect on some money, than on nothing at all. Tell them what you can afford to pay and over how many months you are willing to make payments. Many times they will accept a reasonable offer.

5. Keep records of everything. If you come to an agreement with NCO collections, make sure you receive written confirmation of your agreement from them. Also, if they are using abusive language over the phone, be sure to record the call and verify the number it came from. If you don’t have proof, your claims will not carry much weight.

Method 1: The prevention of delinquency.

Creditors will either turn over delinquent accounts to a collection agency or they will have an in-house collection department. Either way, they will not simply forget about the debt. The best way to avoid collection attempts is to not become delinquent in your payment responsibilities. A lot of misplaced anger results from people who would have no problems were they just to pay on time and protect their credit to begin with.

Method 2: Write a cease letter.

Federal law requires collection agencies to stop their attempts to collect a given debt if they receive a written cease letter. There are many online to use as samples. Basically, they simply state that you wish for their organization to stop any type of attempts to collect from you. You further state that you will deal only with the creditor that you owe the debt to.

Method 3: Attorney cease letters.

If your personally written cease letter fails to be effective in stopping a collection agency’s attempts to settle debts with you, a letter written from an attorney will normally do the trick. Federal law requires collection agencies to cease contact with any consumer when that consumer is known to be represented by an attorney.

Method 4: You can work out an agreement to pay with the collection agency.

You can certainly stop a collection agency from calling you by agreeing to pay. That’s what they’re really after anyway. Aggressive debt collectors are paid based on what they collect in a given time period. They become more zealous about their endeavors to collect when they believe that you are simply ignoring them. If you talk with them in a professional manner and come to terms for repayment, they will be much more polite. Remember, if you strike a deal with a debt collector; tell them you will not pay anything until you receive the deal in writing.

Method 5: Bankruptcy.

There is an automatic stay on collection attempts that goes into effect when you file for personal bankruptcy. In order for any debt collector to further attempt debt collection, he or she must obtain specific permission from a bankruptcy court. This is a rare occurrence. Also, bankruptcy courts will never grant this permission to anyone attempting to collect unsecured debts from you. As you know, bankruptcy is a most serious act. It should be reserved for use only in cases of severe financial turmoil.

You do not have to suffer the harassment of collection agencies anymore. You can stop collection agencies from contacting you and disturbing your quietude. Utilize the above methods to stop collection agencies today!

For legal purposes, any entities that are not original creditors – including lawyers – are considered collectors. Lucky for you, collectors must adhere to the guidelines of the Fair Debt Collection Practices Act (FDCPA), which will be the basis of your debt validation proceedings. It applies even to those collectors who legally have bought your debt (i.e. they still do not become your “creditor”.)

Generally, debt collectors must be able to prove that:

1. They own the debt legally and have been authorized to collect it from you.

2. The full amount of the debt that they are pursuing is accounted for and documented by your original creditor.

3. They can provide a copy of the original legal contract that you signed with your creditor.

The following is a step-by-step guide of actions to take to demand your right to debt validation:

• Send the collections agency (or lawyer, etc.) a certified debt validation letter asking them to validate your debt. Allow them 30 days to respond to your request. If they fail to do so, they are in violation of the law.

• Meanwhile, if you do not believe they have the right to collect from you, send the credit bureaus (Experian, Equifax, and TransUnion) a certified letter disputing collections actions on your report.

• If the collection agency responds in writing with proof of the three FDCPA requirements listed above and you wish to pursue your dispute further, you may find out whether or not they are authorized to collect in your state. If they are not, write another letter stating the violation and threaten to sue if they do not both cease collections efforts and alert the credit bureaus.

• If the collection agency responds in writing and does not provide sufficient proof, write them another letter specifying their violation of FDCPA. Tell them either to cease collections efforts and alert the credit bureaus or you will file a lawsuit. Allow at least two weeks for a response, and then follow through with your threat in small claims court.

Most collectors will give in before you will have to get the law involved, and some cases may be much easier than others. If a collector has bought or has been assigned your debt, they inherently do not “own” your debt and therefore cannot prove your obligation to pay (unless there is a clause in your original contract). Similarly, unqualified and deceitful collections agencies probably will want to rid themselves of your situation as quickly as possible.

It should be noted that creditors may take legal action against you, so it almost certainly is not in your best interest to just ignore a debt that you think cannot be proven. If you fail to take action and demand proof (or lack thereof) from a collections agency, it really does not matter what you believe to be just and accurate. You still may find yourself with a judgment against you.

Attempting debt validation might sound a bit daunting, but the financial benefits that you may gain from enforcing your rights certainly make it worthwhile for many people. FDCPA and contract laws are usually on your side. And if a collection agency lacks proof of your obligation to pay, well then…you might as well not.