Removing Collections from Credit Reports

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Premier Credit Plus
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Removing Collections from Credit Reports
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• Debtsin collections are a common form of debt in
  the United States. About thirty-five percent of
  people have a type of debt in collections.
• But what is a collection, and why should you
  remove it? Is it important?
• Having a debt in collections can seriously harm
  your credit score and report. Avoiding your late
  payments and debt collections is the best way to
  safeguard your credit report, nonetheless,when
  something falls through the cracks, and you get a
  debt in collections, you still have some options.

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Collections Explained

• When consumers do not pay their credit cards off
  every month or their checks bounce, this debt
  becomes delinquent. If the debt is not paid for
  several months, creditors can either 1) turn the
  debt over to their internal collection department
  or 2) sell the debt to a collection agency.
  Either way, the delinquent debt moves to a
  separate account on the credit report
  called collections. This placementseverelyharms
  credit scores
• When a debt goes into collections, it is no
  longer the responsibility of the creditors to
  make sure the money is repaid. Now, the
  collectors will pursue those payments.

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Collection Agencies What They Do

• Who are the collectors? Collectors are people
  working for a collection agency whose primary
  focus is to recover delinquent funds from
  borrowers who either have not paid up or have
  defaulted their accounts.
• Collection agencies must follow specific rules
  and regulations when seeking payments, according
  to the Fair Debt Collection Practices Act
  (FDCPA).
• Heres what they can do
• mail you late-payment notices
• call your personal and work phones

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• knock on your front door
• contact family and friends to verify your
  information
• reach out to your employer about your taxes and
  other monetary issues
• try to collect on old payments after the statute
  of limitations has expired
• Heres what they cannot do
• try to collect on payments when you cannot be
  located, you have filed bankruptcy, or your debt
  has been labeled uncollectible.
• sue or threaten to sue unless payments are made
• physically threaten for payments
• perform a legal seizure of assets, unless you
  lost a lawsuit against the collectors
• contact you at work if you expressly stated your
  employer disapproves of such calls

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What You Need to Know

• According to Debt Collection Answers, there are
  4,100 collection agencies in the United States,
  and the industry is projected to grow twenty-six
  percent in the next three years. In 2015, the
  consumer complaints concerning debt collection
  rested at twenty-nine percent. Over the past few
  years, success rates for recovery of delinquent
  debt declined to twenty percent. In short, the
  collection business is difficult for both debtors
  and collectors.

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• The drop in collection removal rate and the rise
  in consumer complaints may indicate a populace
  that does not know what collections are or how to
  handle them. Removing collections is very
  important.
• Past-due payments and collection accounts make
  up thirty-five percent of your credit score,
  costing you 100 points or more. A low credit
  score makes it difficult for you to obtain a
  mortgage or other types of loans. In other words,
  removing a collection can spring-board your
  credit report and score significantly. However,
  if you already have a low credit score,
  collections do not affect you as much.

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How to Remove the Problem

• There are three simple ways to remove debt
  collections.
• 1) Within the first 30 days of a collection
  department or agency contacting you, send them a
  letter requesting they validate your debt.
  Mistakes in debt collection are common, and you
  want to make sure that the debt collection is not
  a scam. It says in section 809 of The Fair Debt
  Collection Practices Act, collection agencies
  must give you validation if you ask them to. If
  they validate your collection, then it is
  accurate, and you need to pay it. However, if
  they cannot validate it, you may request that
  they remove the collection.

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• 2) Or, send them a letter of goodwill. Explain
  your situation and why you were unable to pay off
  the debt promptly. If you have paid the debt,
  mention that the collection is paid off. The low
  credit score may be keeping you from making a
  large purchase or taking out a loan, so explain
  why you need the collection renewed. Reiterate
  and go into further detail on the situation that
  kept you from paying. Be courteous and respectful
  in your goodwill letter. Nothing is more
  unconvincing than a rude letter that is demanding
  something.

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• 3) If the letter of goodwill is rejected, comb
  through your credit report and note every
  inconsistency and problem. Make a note of
  everything in great detail. If the collection
  agency got the amount of debt wrong, note it. If
  they failed to mention the date of first
  delinquencywhen you first failed to pay the
  debt note it. Send them a letter that is
  detailed and accurate, explaining why they must
  update and correct the report or remove it.
  Inconsistencies in the report make it difficult
  for the collection agencies to upkeep your debt
  collections and may cause them to remove it.

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• If all your attempts to remove the collection
  fails, pay off the debt anyway. Having a paid-off
  collection on your credit report is not good, but
  its better than having an unpaid one. It shows
  creditors that you have taken care of your
  business and makes them more likely to do
  business with you than if you hadnt paid it off.
  And after seven years, the collection will be
  removed from your credit score. So, things will
  eventually improve.
• Once your collection has been removed, play it
  safe and keep up with your payments. The best way
  to remove a collection is to avoid it altogether.
  And in case of unforeseen circumstances, save
  up an emergency fund to safeguard you from any
  hassle or debt collections. If you have any
  concerns or if you are looking for professional
  advice, get in touch with us today.Contact us
  844-829-2292

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Contact Us

• Address -  147-08 235 Street Rosedale NY 11422
• Phone -  844-829-2292
•  Fax - 844-829-0960
•  Email - info_at_premiercreditplus.com
• Website - https//premiercreditplus.com/