Credit Repair Questions & Answers

Collections

A collector keeps calling me about a debt I know nothing about, any ideas for me?

Collectors can be persistent, but then again, that’s their job! We advise our credit repair clients to politely ask the collector to put the request in writing and send it in the mail. Read More »

I got a collection letter, should I ignore it?

No one likes getting a collection letter. But you should not ignore it. On the contrary, you should open it right away. You might be surprised to hear that a significant number of collection letters are not valid. Read More »

Does the reporting period get extended when a collector updates an account, or when a new collector buys a debt?

When a collector takes over a collection account they inherit the reporting period start date. Collections are supposed to stop reporting seven years from the original date of default. The reporting period cannot legally be reset by the transfer of a debt. Read More »

I have three collections for the same old charge-off, is this right? Can you help?

When a collector sells a debt to another collector, or returns it to the original creditor they are supposed to remove the collection account entirely from your credit report. Unfortunately, collectors are often remiss. Hence the need for credit report repair. Read More »

How can I stop a collector from calling me?

There are a variety of credit repair tools available to stop collectors from calling you. Read More »

I stopped paying my credit card bills and they have been charged off and turned over to collectors. Can credit repair erase these collection accounts?

Credit repair is not about erasing debt or removing accurate information from your credit report. Having said that, it is always worth a close look at your reports to see if there are any reporting errors that need to be corrected. As it happens charged off accounts are one of the most common sources of issues needing credit repair attention. Read More »

I just noticed that I have inquiries from a couple of collectors. Are they allowed to check my credit?

Collectors are allowed to check your credit. The Fair Credit Reporting Act lists all of the "permissible purposes" for which the credit bureaus are allowed to furnish credit reports. Among these purposes is the collection of a debt. See Section 604 of the FCRA below. Read More »

Credit Repair and Collections

Many collectors are professionals and do their job properly without crossing the line into the realm of improper behavior. But there are others that are aggressive, intentionally intimidating, and use questionable tactics to achieve their goals. If you are not comfortable dealing with a collector, there are many quick credit repair techniques you can employ to silence their calls, and even gain the upper hand.

Many of these credit repair techniques are covered here in our Question & Answer section, but here is a brief overview designed to touch on each.

No Calls at Work

If you feel hassled by collector calls during the day you can employ this simple credit repair tool to stop the calls. Just tell them that your employer does not approve of you accepting such phone calls. Per the Fair Debt Collection practices Act once you inform them of this they must stop work hour calls.

Demand Written Communications

This credit repair technique is simple common sense. We recommend it to all of our credit repair clients and it has proven to be very effective. There is but one caveat, you must be firm and stand your ground. When a collector calls inform them politely that you do not discuss your financial affairs over the phone. Tell them that if they send you something in writing you will investigate and respond appropriately.

Debt Validation

Once you receive their written notice you may apply the next credit repair tool, debt validation. Under the Fair Debt Collection Practices Act collectors must validate a debt if you request it in writing within 30 days of receiving a collection letter. If they cannot do so they must stop collection efforts and cease reporting to the credit bureaus.

Cease Communication Letter

This powerful credit repair tool should be employed with care. If you send a letter to a collector formally asking them to cease all communication with you they must do so. This may sound like an attractive option, but be aware that cease communication letters often trigger another less desirable action, namely a lawsuit. Before sending a cease communication letter check your facts. It may be helpful to know your original default date, your statute of limitation, and the reporting period limit.

Attorney Management

If you are not comfortable with the advances of collectors, and if you have the financial ability, you may want to employ an attorney to handle your collection activity. Because of the cost this is not for everyone, but it is a very effective credit repair technique. Once you mention that you have an attorney collectors are required to ask for the attorney contact information and direct future communication to them. This credit repair technique serves the purpose of stopping collector calls, but there is another potential benefit. The attorney may never hear from the collector. If the collection is weak or undocumented, as many are, the collector will give up on the spot.

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