Are you getting phone calls, demanding letters, or do you have Alliance One on your credit report? Alliance One is an independent debt collector. They will work with lenders to purchase the rights to an old alleged debt of yours.
Who Is Alliance One Collection Agency?
They are a collection agency that started business in March, 1999. According to their website, they have 85,000 employees, in 45 countries. And specialize in account receivables for the following types of debt: financial services, government, healthcare, retail, telecommunications, utilities, and more.
4 Steps To Protect Yourself From Alliance One
1. Validate Your Debt
If Alliance One is currently contacting you. Then you should request that your debt is validated. You can do this by sending a debt validation letter or hiring a credit repair service to do it on your behalf.
Alliance One is obligated to respond to your letter by providing you with: proof that they legally own your account, that they were either assigned your account by the lender or purchased collection rights for your debt, and any other relevant information regarding your debt. Along with the date of your debt with the original lender, the amount Alliance One paid for your account, or if it was assigned for collection with the original lender.
Federal law in the form of the Fair Debt Collection Practices Act (FDCPA), says they must provide this information to you. This is your way of saying: “Hey, prove this debt is mine and you can legally collect on it.”
If Alliance One is unable to provide you with this documentation. Then your debt is null and void. In other words, you don’t have to repay the debt. And the credit bureaus are supposed to be notified to remove collections from credit report or other related information about this account.
2. Negotiate A Settlement Agreement
If Alliance One does validate your debt. And your debt is within the statute of limitations, typically seven years. Then you should negotiate a settlement payment. You should never pay the full amount!
Instead, negotiate to pay less. You can always negotiate with a collection agency to pay less than the total amount due. Frequently, the balance is artificially inflated by default interest rates, collection fees, late fees, and more.
As a condition of your settlement payment, you must get Alliance One to agree: they will stop reporting your account information to the credit bureaus. This way you can clean up your credit report after your settlement payment.
If you neglect to get this agreement. Your unpaid collection will just be changed to a paid collection after your payment. This is still a very bad item to have on your credit report, and it will significantly lower your credit score.
3. Remove Alliance One From Your Credit Report
You are entitled to dispute any item on your credit report that you believe is inaccurate, questionable, or incorrect. This is your consumer right granted by the Fair Credit Reporting Act (FCRA). There are three ways to dispute credit report items online, over the phone, and by mail.
Once the credit bureaus get your dispute, and deem it valid, they’re required to investigate the item. During which they’ll contact Alliance One for verification of the account and the pertinent details. If you’ve settled your account, following our advice, then Alliance One won’t verify your account during the credit bureau investigation.
In accordance with the FCRA, the credit bureaus must remove unverifiable items from your credit reports. This is how to clear credit history and do so legally, by exercising your consumer rights.
4. Alliance One Is Suing Me
If you have been sued or are being sued by Alliance One. We strongly encourage you to get professional credit help. This is a very serious situation. If you get a credit judgement and are found responsible for repaying, you could potentially have your wages garnished, liens placed against you and or your property, and possibly even asset seizure.
Please, investigate your local legislation because each state has unique laws. Not to mention, your credit score will be destroyed! If you are being contacted by Alliance One, it’s wise resolve this situation before it becomes an even bigger problem.
Look, your credit score is very much like your Grade Point Average (GPA) in school days past. It matters not if you’re acing all your classes, if you’re failing Gym class, because this one negative mark is going to ruin your overall GPA.
This is also true of your credit score. FICO is very open and very clear about this. And this is precisely why it’s so vital we clear credit file dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair companies to help.
Because in 2016 alone, over 9 million negative items were removed from consumer’s credit reports. One of the best firms is the Credit Pros. They’ve helped client’s successfully remove collections, late payments, charge offs, judgements, liens, and many more negative credit report items.
Get a free credit consultation with a certified FICO professional by calling toll-free 1-877-418-7596. And for more tips, techniques, and strategies to fix credit with Dan Willis, sign up for our free newsletter and join our congregation.
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