Allied Interstate is one of the biggest collection agencies in the United States. They will collect on many types of debts including charge offs, utilities, cell phone services, and many more.
Did you know Allied Interstate paid a whopping $1.75 million dollar fine to the Federal Trade Commission (FTC) for violating the Fair Debt Collection Practices Act (FDCPA)?
In 2006, the FTC began an investigation into Allied Interstate Inc. This investigation revealed that Allied Interstate was making improper and harassing phone calls. To make matters worse they would ignore and not validate consumers debt validation requests.
To clarify, if you’re dealing with bill collectors contacting you about paying a debt. Your very first step is to request debt validation. This is the legal way of saying to the collection agency: “Prove this is my account and that you are the current owner.”
It is a common rumor that debt collectors will attempt to collect on debts illegally. The director of the FTC Bureau of Consumer Protection, said about Allied Interstate in the press release announcing the $1.75 million dollar fine: “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.”
Allied Interstate Inc.
3000 Corporate Exchange Drive
Columbus, OH 43231
Phone number: 1-800-811-4214
How To Dispute A Debt With Allied Interstate
As we mentioned, your very first step is to ask for debt validation. This is how to dispute a debt. The collection agency upon receipt of your request is going to have to provide you with legal evidence that shows if they purchased your account or are working with the creditor.
Additionally, they are the current owners of your account. And your debt is within the statute of limitations. It is common for many collection agencies to not comply with debt validation requests. If this is your result, then you will not have to repay the debt.
As in legally, the debt is forgiven. This is one of your rights as a consumer, granted by the FDCPA. Moreover, they’re supposed to notify all three credit bureaus to have them remove collections from credit report files, concerning this account.
However, as you can see from the FTC fine of Allied Interstate. Federal regulation and laws are not always followed by collection agencies. In reality, is it is common practice for debt collectors to violate consumer federal rights on a daily basis. Evidenced by the endless litany of Consumer Financial Protection Bureau (CFPB) and FTC fines to the industry.
The statute of limitations is the legal time window for which you are responsible for repayment of a debt. And it’s not forever. It does vary state to state, so for full details investigate your local legislation. Generally, it’s about seven years from the last date of account activity.
Once this time window or statute of limitations expires, then legally the debt is forgiven. We’re not arguing morals, or ethics, simply the law. And beware, because one of the common industry tactics is to re-age consumer accounts, for obvious reasons.
Yes, this legal time window doesn’t apply to every type of consumer debt, but it does apply to most including: charge off debt, healthcare, credit cards, utilities, telecommunications, retail, and many more. The few exceptions include defaulted federal student loans, and federal income tax.
What If Allied Interstate Is Suing Me?
If you are being sued by Allied Interstate it is of critical importance that you show up on your court date. You can contact the court and request a different court date, should you have a scheduling conflict. But, if you neglect to show up the court will have no option but to award a default judgment against you.
This is the worst, because the judge must find in favor of Allied Interstate. Most people don’t show up. The collection agencies want a judgement, because it gives them such an increased arsenal of debt collection weapons to pursue you with.
Before sharing, each state has unique laws, so for full details about what can and can’t be used against you investigate your local legislation. If Allie Interstate or any debt collector gets a judgement against you, they can potentially garnish your wages, have liens placed against you and or your property, and potentially even asset seizure.
In other words, regardless of your state of residence, they have a lot more potentially financially dangerous weapons. Further, if you get a judgement smacked on your credit report, it’ll obliterate your credit score. This is one of the worst items to have.
It’s a public record. And while we fully acknowledge the new data standard requirements, all three credit bureaus implemented on July 1st, 2017 do in fact make it much more likely to remove judgement from credit report files. Frankly, it’s a brave new world with these changes for folks curious about how to remove public records from credit report files. If possible, it’s much easier to avoid this path.
How To Negotiate and Pay Off Allied Interstate Collections
Now, to the nitty-gritty and how to pay off collections debt. First, only enter into negotiations, if your account is validated, and within the statute of limitations. Next, always, negotiate to settle your account for just a fraction of the balance.
Often you’ll be able to pay off collections for as little as 15% up to 45% of the balance. This is standard operating procedure, and they’ll be happy to accept a settlement for less. But, wait, if this is all you do, once you make payment the only thing that will happen is a change in the status of the collection on your credit report.
It’ll be changed to a paid collection. This is a negative, derogatory, and damaging item. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can damage and drag your score down by up to 100 points.
You see, we must clear credit history dings, and remove this collection item entirely from your credit file. And this is going to require a second stipulation to your settlement agreement with Allied Interstate. You must get them to agree, that in exchange for your payment, they’ll stop reporting your account information to the credit bureaus.
This is critical. They’ll be willing to agree to this, and in our final step, we’re going to look at how to clean credit report dings, blemishes, and remove this collection item. On a side, you may hear folks claim you should instead request a pay for delete model of dealing with debt collectors.
You’re welcome to try this approach, where you demand they first delete the item from your credit report, before you pay. It sounds nice. But, in our decade plus experience, we’ve yet to hear of anyone actually being able to use this fantastic sounding approach with any success. Which is for obvious reasons, we need not share here.
Remove Allied Interstate From Your Credit Report
We’re specifically looking at how to dispute items on credit report files, and we’ll be exercising your consumer rights granted by the Fair Credit Reporting Act (FCRA). This federal legislation enables us to dispute and challenge any item on our credit reports, so long as we believe it’s been made in error, is misleading, or incorrect.
And we’re going to dispute the Allied Interstate collection item. You can file your credit report dispute online, over the phone, or by mail. Once the credit bureaus get your dispute and deem it valid, they’re required to investigate the item. They call it a reinvestigation, by the way.
During this, they’ll contact Allied Interstate and request they verify your account. As per your settlement agreement, Allied Interstate won’t verify your account. And in accordance with the FCRA, this means the credit bureaus must remove this item from your credit reports. This is how to clear credit dings, blemishes, and remove negative items. And do so legally.
In sum, your credit score is just like your Grade Point Average (GPA) in bygone school days. It doesn’t matter if you’re acing all your classes, if you’re failing underwater basket weaving, because that negative mark is going to ruin your overall GPA.
This is also true of your credit score. And why it’s so essential to clean 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 credit repair firms is The Credit Pros. They’ve helped client’s 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 about how to improve my credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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