Methods of Dealing with Collections Agencies on Your Credit Report
Usually the collection bureaus are infamous for using illegal tactics, have poor documentation and are not actually authorized or licence to collect. This makes it easier for you to deal with a collector who is insecure to get your way and walk right in and out. Here are five methods on how to deal with revenue agencies on your credit report-
1. Pay for delete:
In this pay for delete method you have to pay small amounts for small collections ($500 or less), like medical collections or utility bills. In exchange you can ask the collectors to get your listing off the credit list in totality. Get to know the expanded version of this tried and tested method which has proved very fruitful.
2. Settling the Debt:
Settling the debt technique is very much similar then the pay for delete method. The difference lies as this method deals with amounts that are sizeable (over $1,000). This method involves discussion and negotiation for a settlement amount agreeable to both parties. Tough negotiations are to be made to get the collection department to concur to remove the listing from your credit report. Generally, the collection agencies settlement agreement provide you agree to pay in one lump sum.
3. Debt Validation:
It is better to validate your debt by leveraging the protection of the laws laid in the Fair Debt Collection Practices Act. This method involves writing a letter to the revenue agency, and catching the agency off balance. It is real beneficial for you in the long run. If you find the collection agency non responsive you can threaten to take legal recourse by filing a case.
4. Dispute with Credit Bureaus:
If you recognise any negatives incurred on your credit report, you can use protection of section 623 of the Fair Credit Reporting Act which allows consumers to dispute. You can request for an investigation of the account. The creditor or revenue agent must respond within 30 days. The credit bureaus must contact the collection and request proof of the debt owed. If the credit bureaus fail to provide information, they must delete the negative information from your credit report.
5. Dispute with Collection Agencies:
You have the right to write letters to the credit bureaus to dispute the information provided by a collection agency. This is a basic credit repair technique under section 101 which must be completed within a month of receipt of the request. If the representative cannot provide the information within the given time period, the information must be removed from the credit report by law.
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