Debt Collections

Debt Collections and What To Do

by Dec 27, 2021Debt Collectors0 comments

Debt collections hurt your score. 

It does not matter if it is a medical collection, credit card, automobile repossession. All debt collections hurt your score. A mortgage loan officer can grant some leeway to a medical collection, but only when your credit score is where they need it to be. So if your score is too low, that medical collection is part of the problem.

It used to be standard practice if you paid the collection, it would be deleted from your credit reports, and your score would go up. 

This has become rare; technically, it is a violation of Federal law to delete a collection for payment. The collection will still show up for seven years, but you reset the clock to day one and lower your score by 8-10 points by paying. 

If Debt Collector is willing to delete it for payment, get that in writing before paying it. Best Credit RX had a client in which the Debt Collector told her they would delete for payment. She paid, and they did not delete the collection. Nothing was in writing, and nothing could be done.

What you should do with any debt collection is demand validation. A letter from a debt collector should state that the debt is assumed valid unless you challenge it within 30 days. Challenge it every time. The burden of proof is on the debt collector.

How can Best Credit Rx help? We will utilize Federal laws (The Fair Credit Reporting Act and The Fair Debt Collection Practices Act) to force the debt collector to produce required specific documentation required to report to the credit bureaus and attempt to collect on a debt. 

We know that debts in collections are bought and sold in batches of thousands for pennies on the dollar. No lawyer is reviewing to ensure it meets the letter of the law. They are banking on their various scare tactics to get you to pay without question. 

So when we come along and demand specific documentation under your legal rights, we are banking on them not having it, in which case game over. 

They must cease and desist all debt collections efforts and have them removed from your credit report. You’d be amazed at how many of these get deleted. If we never challenged them the right way, they would still be on the reports, harming people’s credit.

Finally, know your rights. A debt collector may not:

  1. Threaten or harass you
  2. Claim to have a warrant for your arrest
  3. Impersonate or imply they are with law enforcement
  4. Threaten to freeze bank accounts or garnish wages (unless they do so, you will be notified in advance by the court, not on the phone.)

If a debt collector is hounding you, send them a letter via certified mail instructing them to immediately cease and desist ALL phone calls. Let them know they can reach you by US Mail and provide a good address. Once that letter is received, if they call, it is an automatic $500 fine against them each time they call. Complain at www.consumerfinance.gov

Credit Repair

Best Credit RX improves your credit score. Get a credit check. We are a credit repair company. If you are looking for the best way to repair your credit, starting with a copy of your credit report is your first step. We recommend using Best Credit Rx. We are a national company. We provide a free credit report, a copy of your credit score, or information about bankruptcy, credit repair, or identity theft. We can help you understand all these items:

  • Credit Check
  • Credit Rating
  • Mortgage Pre-Approval
  • and More

We answer your questions about:

  • Credit Repair
  • Identity Theft
  • Short Sale
  • Foreclosure
  • Bankruptcies
  • Repossessions
  • Business Credit

We can even help you get approved for a mortgage. Best Credit Rx is an expert about the credit bureaus and credit scores (Experian, Transunion, Equifax, Innovis). Best Credit RX can help you resolve all your issues.

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