Removing collection accounts from your credit report is one component of the credit repair process. It is important to mention that dealing with collection accounts is not a straight forward task and requires different strategy based upon the specific situation. Taking the wrong action and the debt collector might sue you! Additional point which is very important that you must familiarize yourself is the statute of limitations (SOL) on debt collection for your specific state. Also check if the SOL for the debt has expired.
Following you can find an overview of the basic strategies that you might use in order to remove collection accounts from your credit report:
Settlement With The Collector
By contacting the debt collector and offering a settlement of the debt, you might reach your goal. One option is to pay the full amount of the debt and the collector will remove it from your credit report. Another option is to negotiate with the collector trying to reach a better settlement for you for a lower amount while the collector also remove the collection item from your credit report.
Settlement With The Creditor
This option is only possible if the collector is collecting money for the original creditor. If the debt been sold, then this option is not valid. In this option you are trying to reach a settlement with the creditor. The creditor has the ability to settle the debt with higher flexibility than the collector. If you show seriousness, politeness and good will you might reach a better deal with this option in the form of lower payment and the removal of the collection account.
Challenge The Validity Of The Collection
In case that the collection agency doesn't have the right to collect the debt since they fail to validate it under the FDCPA, the option of sending a dispute letter is the suitable one. In this option, make sure you do your research on the laws and regulations in your state before disputing so you'll not do any vital mistake that will put you under a worse condition.
Looking For Collector Failures
By recording phone calls with the collection agency, analyzing mails that they sent you and basically, any interaction that you have with them, you might find some violations that the collection agency made. With the violation information on your hand you can simply send them a complaint letter about the violations and offer to consider the matter closed if they will remove the collection item from your credit report.
The above tactics are just an overview of the major possibilities to try and remove collection accounts from one's credit report. Again, in order to have better chances of success with the removal of collection items, you must fully understand your state's laws regarding collections and be familiar with tried and tested practices. If your main goal is to increase your credit score, I highly recommend you to hire professional services that will assist you with their experience. In my opinion, Lexington Law will give you the best value to your money, because they are good and charge a ridiculously low fee.
Removing collection accounts is not an easy task and requires accuracy and experience to handle it. As the main goal is to increase your credit score significantly, I highly recommend you to get the assistant of experienced credit repair company like Lexington Law to improve your credit score. They don't cost much and they have a very long list of happy customers.
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