How to Remove Debt Collection from Credit Report
If you default on a debt commitment, your original creditor may sell your debt to a debt collection agency. When a debt goes into collection, the negative information is often submitted to the major credit agencies, negatively impacting your credit score.
Credit card bureaus must remove your collection record from your credit card report once a specified amount of time has passed. You can take several steps to eliminate it from your credit file sooner if you believe there is an error.
from your credit card report is a daunting task, but you can rest easy because DoNotPay will help you do that.
How to Remove Collections Off of Your Credit Report
A collection record will reduce your credit rating and last up to seven years on your credit file. A collection record can often prevent you from obtaining a mortgage or car loan. You can settle a debt and still have it appear on your credit record, to be clear. The account can't simply be changed to a "paid collection" by the credit monitoring bureaus.
It is, however, possible to from your credit record. Here are four strategies to get collections off your credit file, raise your credit score, and regain borrowing capacity:
- If you have repaid the debt, you can request a goodwill erasure.
- If you find an error in the collection, you can challenge it.
- Request that the collection agency validates the debt.
- Negotiate a "Pay-for-Removal" contract.
What Happens If I Ignore Debt Collectors?
If you ignore or evade the debt collectors, the collection agency may resort to alternative means to recover the debt, such as filing a lawsuit against you. They will not stop until the debt is paid in full.
In instances where you cannot reach an agreement with a collection company, you should speak with a lawyer to advise you on your legal avenues. Your local regulatory aid agency or website may be able to provide you with information. Based on your earnings and where you live, you may also be eligible for free assistance.
What to Do When You Feel Aggravated by Debt Collectors?
Collection agencies will push the limits in getting the money that you owe. If you feel that collectors are bordering or may have crossed the line to harassment, you can seek help from the CFPB or Consumer Financial Protection Bureau. Below are their contact details:
|Company||Consumer Financial Protection Bureau|
|Mailing Address||Consumer Financial Protection Bureau
PO Box 27170
Washington, DC 20038
|Phone Number||(855) 411-2372|
|Email or Contact Form||Ask CFPB|
How to Respond to a Debt Collection Lawsuit
Debt litigation begins when you receive a summon, 'You've been served', which informs you that you've been sued. The reason you're being sued is explained in the complaint. Some states have modified versions of these papers or call them by different names.
There are three processes for responding to a debt lawsuit:
Address Every Complaint in the Suit
- The case against you is laid out in various numbered sections in the Complaint. There are normally between 10 and 30 numbered sections in debt collection suits. After reading each section, consider how you'd like to answer. You have options for responding.
- If you concur with everything in the paragraph, you can accept it.
- If you want the collection agency to demonstrate that the paragraph is true, deny it. Select this option if you don't comprehend the text or don't have the details you need to react.
Make a Case for Affirmative Defenses
An "affirmative defense" is a rationale why the individual suing you doesn't have a cause; it's your legal defense. If you don't specify these defenses in your response, you won't be able to use them afterward. Declaring your affirmative arguments is a once-in-a-lifetime opportunity: if you don't do so now, the court will bar you from doing so afterward.
Respond to the Plaintiff's Complaint by filing a Reply with the court
You are now ready to submit your answer after you have completed your response, replied to the sections in the suit, and established your affirmative defense. The answer form is pointless unless it is appropriately filed. Otherwise, it's the equivalent of doing schoolwork but failing to turn it in.
The experience may seem intimidating as collectors are trained to cower you in a corner so you’d pay up. Take advantage of DoNotPay’s expertise in providing advice so you can stand taller and win this battle.
How to Deal With Debt Collections on Your Own
There are several ways to deal with debt collectors on your own, including.
If a debt collector calls you, you must take the following steps:
- Tell the truth about your financial condition, including any other debts you may have.
- Return emails and calls promptly.
- Consent to a repayment schedule if you can't afford to pay the debt.
- If your contact information changes, notify the debt collector.
Maintain Good Records
Keep track of any correspondence with the debt collector. Including:
- Date and time that the debt collectors contact you.
- Contact details of the debt collectors.
- Details on how they contacted you and what ensued.
How to Stop Debt Collections With DoNotPay
If you are unable to stop debt collections on your own, DoNotPay will help you. Here's how it works:
- Search "debt collection" on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to the CFPB.
And that's it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We'll deliver your request directly to the debt collectors via first-class mail or file your Complaint automatically with the CFPB so that they're no longer able to use unfair debt collection practices.
What Else Can DoNotPay Do?
DoNotPay provides several other services, including:
- Canceling your subscriptions
- Drafting financial aid appeal letters
- Helping you deal with unpaid bills
- Helping you increase your credit limit
- Helping you get a clean credit report.
Reach out to us today at DoNotPay and have your credit report in check!