How to Disputing Collections With Credit Score Agencies
Disputing collections accounts with the credit bureau is a difficult process. It can be one of the most difficult and time consuming aspects of recovering from past debt. A debt collection agency is often aware of the consequences of challenging them and will do whatever they can to avoid disputing. The consequences of disputing collections can be difficult to recognize and even more difficult to overcome.
Most people do not realize that when they challenge an item in their credit report or accounts, it becomes part of a system for tracking your credit history. The item becomes part of a file labeled as an “Agency Dispute”. These are filed with all the major credit bureaus and are updated on a monthly basis. Every time you file a disputing collection’s item, it moves up in rank in the farm system.
The purpose of these listings is to provide proof that the debt was not paid by the individual in question. In order to do this, you must be able to provide proof that the debt did not come from any legitimate source. One of the ways this can be done is to provide evidence that the creditor is asking for legal action. For example, they may be sending collection letters to collection companies. This provides evidence that the account was not paid on the date it was written.
Another way that disputing collections can be accomplished is by removing negative information about you from your credit report. Most credit repair agencies provide lists of the negative information that they find on debt collector reports. They usually charge a small fee to remove this information. There are also debt collectors who can remove negative information for a fee.
A good credit report, however, does not provide the proof necessary to prove the validity of the collections. There are other steps you can take to remove these collections from your report. The first step is to request copies of the seven years’ records that the debt collector has on you. This will give you enough time to research and challenge their claims with each agency.
Once you have the records you need, challenge all collection accounts individually. This requires you to send the collection agency a letter requesting the information be removed from your credit score. If they are willing to work with you, they may remove some of the collections or dispute the account. This is one way to challenge the collections in most instances. You may have to send the dispute in writing requesting them to prove they have the right to collect the debt from you.
Most debt collectors try very hard to collect what they can from you, even if you are legally at fault for the debt. They also have competition from other collection agencies. When you ask them to remove collections from your report, they will often request the creditor to remove other accounts as well. These practices can make it difficult for you to get the accounts removed, but if you are persistent, it can be done.
Disputing collections can help you protect your credit rating and reduce your stress level related to debt collectors. Even if you do not receive a response to your initial dispute, keep checking in with the agencies. Many will eventually remove the accounts once they hear from you. You may also want to dispute an entire collection account if you have a financial problem and do not know where to turn for assistance. Some will attempt to contact you via phone while others will send a letter. Either way, by disputing the account, you will provide evidence that you are requesting that the account be removed from your report.