If you have collections, and question their accuracy, it may not be enough to dispute them with the credit bureaus. You may need to focus your credit repair efforts on the collectors themselves.
The law that governs the collection industry is called the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA you have the right to challenge a collection directly with the collector. This right is limited in both time and scope, so if you want to have leverage with the collector you must know the rules.
The Collection Letter
Prior to reporting a collection to the credit bureaus, a collector is required to send you a notice of collection, commonly known as a collection letter. This notice must contain specific language indicating your right to dispute the collection within thirty days of receiving the notice.
Post-Reporting Debt Validation
You have the right to validate a debt each and every time you receive a collection letter. Debt validation of an already reported account can result in the removal of the account from your credit report in the case the collector no longer owns the debt. Or it may serve as an entry point for negotiation, in case the collector does validate.
The specific scope of debt validation includes your right to demand that the collector provide proof they have the legal right to collect, which may be demonstrated in the form of an assignment or purchase of the debt. In addition, you have the right to request an objective accounting of the amount the collector says you owe.
Credit Repair Results
If the collector cannot provide the documentation requested they must cease collection efforts and not report the collection account to the credit bureaus. If they have already reported to the bureaus, they must withdraw their reporting.
If You Need Help
If you are a member of our credit repair service just provide us with copies of any new collection letters you receive. We will handle the debt validation process for you. If you have questions about collections, or would like to chat with us about credit repair, just give a call!