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
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 attorney. 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.
- Including the date of your debt with the original lender, the amount Alliance One paid for your account, or if it was assigned upon a compensation for collection with the original lender.
Federal law in the form of the Fair Debt Collection Practices Act, 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 suppose 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 7 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. You can dispute the credit bureaus directly or you can hire a credit repair service to help.
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 help. This is a very serious situation. If you get a credit judgement and are found responsible to repay. You could potentially have your wages garnished and your credit score will be destroyed! If you are being contacted by Alliance One, please resolve this situation immediately.
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