How to Beat Collectors with Credit Repair

Credit Repair Knowledge is Power

Before reporting to the credit bureaus a collector must furnish a collection notice. This may be a straightforward collection letter, or may take the form of an offer to settle. Either way, the receipt of a collection notice is the beginning of your collection adventure. As with any credit repair issue you should take a few minutes to understand your legal rights. Collectors are governed by the Fair Debt Collection Practices Act (FDCPA). Understand your rights and you will be able to control the situation and maybe even come out ahead. When it comes to credit repair, knowledge really is power.

A Collection Letter is an Opportunity

If you receive a collection letter please don’t ignore it. You have a very special legal credit repair opportunity under the Section 809 of the FDCPA. For thirty days from the time you receive the letter you have the right to demand that the collector provide you with proof that they have the legal right to collect, as well as an objective accounting of the amount they claim you owe. This credit repair process is called debt validation. Once you have initiated your debt validation request the collector must cease all collection actions and not report to the credit bureaus. If the collector cannot provide the documentation required these prohibitions become permanent; the collector and the questionable account must vanish from your life and your credit report forever.

Cease Communication Letter

Under the Section 805 of the FDCPA you have the right to demand that a collector stop communicating with you altogether. It is simple but powerful credit repair strategy, just write a letter, send it via certified mail, and you will never hear from the collector again. The letter of the law actually allows the collector to contact you one more time to inform you that that they will not contact you again, or to inform you that they intend to invoke a specific remedy, like the initiation of a lawsuit. Which brings me to a cautionary note; getting rid of pesky or aggressive collectors sounds like an attractive credit repair outcome, but before doing so you better do a bit of homework or you may find yourself in hot water.

Look Before You Leap

If you really want to get rid of an aggressive collector you should evaluate the situation very carefully before sending a cease communication letter. Collectors will abide by the requirements of the FDCPA and stop contacting you. But you need to know that they still have the right to try to collect the debt by other legal means, which may be even less palatable than a rude phone call. Collections over one thousand dollars may be perceived as substantial enough to justify a lawsuit. This may or may not happen, but you must be aware of the possibility. If you decide not to risk pushing a collector too far the FDCPA offers two other credit repair remedies for unwanted phone calls.

Other Credit Repair Collection Solutions

You have the right to stop collection calls during working hours by informing the collector that you are not allowed to take his or her calls while you are on the job. This is a simple FDCPA credit repair cure and although they may still write letters and call you outside of working hours at least they won’t interrupt your livelihood. There is one more clause in the FDCPA that may be useful. If you are uncomfortable about dealing with a collector and you can afford to hire an attorney, the FDCPA requires that collectors immediately stop contact you upon being told that you have an attorney. From that point forward they must direct all communications to the attorney. This can be very effective for another reason. Some collectors employ deceptive collection techniques. These methods tend to be effective on consumers that don’t know better, but no collector will attempt to speak to a lawyer in the same manner. In fact, if the collector’s case is not on firm ground he may never even call the attorney. A perfectly nice credit repair result!

Get Professional Credit Repair Help

You do not have to manage collection issues on your own. Most legitimate credit repair services offer comprehensive counseling on such issues and will even take care of the debt validation process on your behalf. They should also research the statute of limitation on the debt which may open up other opportunities like negotiating a payoff. Credit repair issues are important and if you feel the need for help please know that you don’t have to be alone. Best Wishes!

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