What To Do If A Surprise Collection Shows Up On Your Credit Report.

If you’ve ever financed a car, house, phone, or just about anything else lately, there’s a high likelihood you’ve encountered a surprise collection of which you were unaware you had. Unfortunately, this happens to an alarmingly high number of consumers, leaving most to ponder what can be done to try and fix the issue.

In many cases, people fall victim to just paying the collection without verifying its origin or how it ended up on their credit report. This can have negative repercussions on your credit health. When you pay a collection, it can potentially lower your credit score by updating the Date of Last Activity and therefore extending the amount of time that account will stay on your credit report. In addition, you may be paying a collection that was placed on your credit report incorrectly, which would put that creditor in direct violation of the FCRA and/or the FDCPA.

So, what should you do? First, follow these three steps:

  1. Write down the Creditor Name, Account Number, Amount, Opened Date, and Date of Last Activity (and original creditor or source if available)

  2. Contact the creditor and ask them to send you proof of the debt, as you were not properly notified of the account. (Be prepared… collection agencies can be aggressive)

  3. Search for records, letters, or notices of the debt going to a collection status.

If you find that the account is inaccurate, unverifiable, misleading or outdated, here are a few options for you to pursue to resolve the account:

  1. Schedule a Free Credit Evaluation with Premier Credit and discuss solutions to responsibly remove the account from your credit report.

  2. Go to FTC Sample Dispute Letter and dispute the account directly with each credit bureau.

If you think the account is accurate, follow these instructions to resolve the account:

  1. Contact the creditor and negotiate the reporting outcome before negotiating the balance. Your goal should be to remove the account from your credit report upon paying the debt.

  2. Contact our team for a Free Credit Evaluation and discuss solutions on how Premier Credit can take that burden off your plate and work to get the best outcome on the negotiation of the debt.

Don’t let a surprise collection limit your purchasing power. Take action and be persistent to find a solution that helps you restore your credit health.

Want more free-resources? Go to www.premiercredco.com/free-resources for blog articles and more!

Alex Grimnes