Collections and Credit Firms Facing Broad New Oversight
Better Credit…Better Options
A collection account showing up on your credit report may have a significant negative impact on your credit scores. When an original creditor has either charged-off an account or deemed it uncollectable they may sell that debt to a collection agency. Typically if the collection agency is unable to reach you to make payment arrangements they may report the debt as a collection on your credit report.
Unfortunately, once it gets to this point even if you pay the collection you may typically see little to no immediate increase in your credit scores. You may see an increase over time depending on other factors on your credit report and how much you may be reducing your total debt amount, but many consumers have been very frustrated to find out that paying a collection off only updated the status to a “Paid Collection”, but did not improve their credit scores like they thought it would. Credit scoring is based on a risk model so the fact that there was a collection placed on the credit report at some time is a factor the designers of the credit scoring models consider high risk.
One thing that is very important is that the Fair Credit Reporting Act states that any item on your credit report must be accurate, complete, and verifiable and there are also additional consumer protection laws that govern creditors and collection companies and their procedures as well such as the Fair Credit Billing Act, the Fair Debt Collection Practices Act, Health Insurance Portability and Accountability Act, and the Fair and Accurate Credit Transactions Act. These consumer protection laws are very important however, they are very long and detailed laws that most consumers don’t have time to research to find out how they impact them or the creditors and how they would go about enforcing them and keeping the creditors accountable.
There are many different types of collections from medical collections, credit card debt collections, utility bill collections, phone bill collections, and many more that come from just about any type of service provider or creditor. We have looked through millions of collection accounts on credit reports and have unmatched experience in removing or correcting inaccurate, unverifiable, or incomplete collection accounts. As a part of our 7 stage system, which makes us the most advanced and unique credit repair company in the country, we are able to go through the credit reporting agencies and/or the creditors and collection companies if needed to uphold your consumer protection rights.
We do not cut any corners and we do not allow the credit reporting agencies, creditors, or collection companies to do so either, as we use our proprietary audit methods and collect a detailed paper trail in order to insure the best results for our clients. When debts exchange hands between companies and then information is then shared between that company and several other companies in order to report that information you can imagine the amount of errors that occur during those processes.
If you have any collection accounts on your credit report we encourage you to call us for a free credit analysis from one of our experienced credit experts today at 1-888-799-7267