Is the collection notation accurate? Or is the account inaccurately listed as in collections? If you were never behind on payments, then your account should not be listed as in collections. In this situation, you have a strong case to get the collection notation removed. Does the collection agency own the debt? If the account is really in collections, then you should try to figure out if the creditor has hired a collection agency to help it collect from you. Ask whoever calls you, or write the collection agency to ask. If the original creditor still owns the debt, then you might have few options. You cannot have accurate information removed from a credit report. [1] X Research source Consequently, if your account really is in collections, then you might want to work out a payment plan with the creditor. Or, if the collection account is more than four years old, you might not want to do anything. The older an account, the less it impacts your credits core. Has the debt been sold to a collection agency? Often, the collection agency pays pennies on the dollar for the right to the debt. Therefore, your $10,000 credit card debt might have been bought for a few hundred dollars. If your original creditor has sold the debt, then you might want to try and get the collection removed from your report. Because the debt is worth so little to the collection agency, they might not contest your attempt to remove it. How old is the collection account? Collection accounts should automatically fall off your credit report after seven and a half years. [2] X Research source
To illustrate: say you defaulted on a credit card in 2004. The account should no longer be on your credit report and the statute of limitations on the debt should have expired. However, if you agree to make a partial payment on the debt in 2015, then the collection account becomes “live” again. The clock starts over. Accordingly, you should be careful about what you say to collection agents who call you. You cannot make payment or even agree to make payment. [5] X Research source Either can re-age an old debt. If you don’t know what to say on the phone, hang up on the collector.
Take any correspondence with the creditor/collection agency and a copy of your credit report to the attorney. If you cannot afford a lawyer, then see if there are any legal aid organizations in your area. Legal aid organizations provide free or low-cost legal services to those with low incomes. To find a legal aid organization near you, visit the Legal Services Corporation’s website at www. lsc. gov. You can search by zip code.
Telephone: call 1-877-322-8228 and request your free reports. They will be mailed to you. Internet: visit annualcreditreport. com and request the reports. Mail: send a written request to Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281. You can use the Federal Trade Commission’s request form available for download at http://www. consumer. ftc. gov/articles/pdf-0093-annual-report-request-form. pdf.
The account is not really in collection. The collection account is listed as “installment,” “revolving,” or “120 days late. ” These are terms used for non-collection accounts and should not appear with any collection account. The account balance is wrong. The day of the first delinquency is wrong. This date matters because the collection account should fall off your credit report after seven and half years from the date of the first delinquency. Both the original account and the collection account appear as “in collections” on your credit report. Your credit score will suffer more if both accounts are listed as in collections. Instead, the original account should be listed as “charged off” or “transferred to a collection agency. ”[8] X Research source
You can type up your own letter or use a sample letter provided by the Federal Trade Commission at http://www. consumer. ftc. gov/articles/0485-sample-letter-disputing-errors-your-credit-report-information-providers. You should adjust the letter to reflect your situation. Be as detailed as necessary to adequately explain why the collection notation is inaccurate. If you need to use extra sheets of paper, then do so. Once you complete the letter, make sure to keep several copies for your records.
Equifax Information Services, LLC, P. O. Box 740256, Atlanta, GA 30374. [10] X Research source Experian’s National Consumer Assistance Center, P. O. Box 4500, Allen, TX 75013. [11] X Research source TransUnion LLC, Consumer Dispute Center, P. O. Box 2000, Chester, PA 19022. [12] X Research source
Equifax’s online dispute system is available on its website. Click on the “Credit Report Assistance” tab at the top of the page. Then select “Dispute info on credit report” from the drop-down menu. You can reach Experian’s online dispute system by visiting its website and going to the “Consumer Assistance” heading. Then select “Disputes. ”[13] X Research source TransUnion’s online dispute system is available at its website. Click on the “Credit Reports, Disputes, Alerts & Freezes” tab at the top of the page. [14] X Research source
The creditor must then perform its own investigation of the dispute. Once it has completed its investigation, it will report the results to the CRA. If the creditor decides that you are right about the collection account, then it must notify all three CRAs. [16] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source The CRA will also send you written results of its investigation.
