Asset Acceptance is a large collection agency. They have the authority to report negative information about you to the credit bureaus. And they can file a lawsuit against you, for repayment of a debt. They maybe contacting you about a debt that originated as a charged off credit card, personal loan, utilities, cellular phone service, and more.
According to their website they are: “A leading purchaser and collector of charged off consumer debt.” This means, they are buying debt accounts from other collection agencies! It is important to follow the steps below, before you negotiate a settlement payment with Asset Acceptance. You may not be responsible to pay this debt. It is also important to clear credit report information about this debt account.
Asset Acceptance Capital Corp.
P.O. Box 2036
Warren, MI 48090-2036
Phone number: 1-800-545-9931
5 Steps To Resolve A Debt With Asset Acceptance LLC
1. Statute of Limitations
If your debt is a charged off credit card, for example. You are only legally responsible to pay this debt back for seven years. This time window starts to tick away after your first month of missed payments, with the original credit card issuer. However, debt collectors commonly violate this federal regulation.
They will illegally attempt to collect payment from you. And report bad credit about this account often past the seven year statute of limitations. For more about how to deal with collection agencies spend a moment to review the Fair Debt Collection Practices Act (FDCPA). These are federal rules and laws about how Asset Acceptance and any collection agency can attempt to collect a debt from you.
2. Debt Validation Request
If your debt is within the statute of limitations. You should request debt validation, before you pay. This will force Asset Acceptance to provide you the legal documents that show they have current ownership of your debt account.
Two big reasons why you need to do this. First, it is very common for collection agencies to not have the paperwork. Or just not be organized enough to access it, and possibly just not want to spend the time sending you the required information. If this happens, your debt is null and void. This means, you don’t have to pay and are not legally responsible!
Second, from insiders that work at collection agencies, we’ve been told that it is not out of the ordinary for a collection agency to continue to try and collect on a debt account. Even, if they do not have the legal rights to collect on that account.
For example, if a collection agency sells your debt account to another collection agency. Then they are giving up their legal rights to collect payment on your debt account. Only the new agency can collect payment. But some debt collectors will continue to try and collect on a sold debt account, despite this being blatantly illegal.
3. Your Being Sued
If you are being sued, you don’t have to hire an attorney but it may be a good idea. You should be able to negotiate a settlement with Asset Acceptance and avoid a court date. However, if Asset Acceptance moves forward with their lawsuit against you, please do everything in your power to show up on your court date.
If you just don’t show up. Asset Acceptance will be awarded a default judgment against you. This could result in your wages being garnished for repayment
4. Negotiate a Settlement Agreement
Now, if your account is validated, and it’s within the statute of limitations time window, our next step is to negotiate a settlement agreement directly with Asset Acceptance. And there’s two keys to this, the first is to always negotiate to settle for less. This way you’ll be paying off debt in collections for just a fraction of the balance.
Often, you’ll be able to settle for as little as 15% up to around 45% of your total balance. This is normal, and standard operating procedure. However, this second part of your agreement is mission critical.
We must get Asset Acceptance to agree that in exchange for our payment, they’ll stop reporting our account information to all three credit bureaus. If we neglect this part of the contract, once we make payment, the only thing that’ll happen is a change in the status of the collection on our credit reports.
It’ll be changed to a paid collection. This is still a negative, damaging, and derogatory item to have. And it’s going to drag down your credit score. Anthony Sprauve, a spokesman for FICO, says collections on credit report files can damage and drag your score down by as much as 100 points. That’s massive!
The reason we aren’t going to pursue a straight forward pay for delete approach, is simple. This is hocus pocus. In our 10 plus years of helping folks we’ve yet to hear of one collection agency, or one individual use this method.
The idea is you demand the debt collector delete the item from your credit report, and then you make payment. And Oh how wonderful it sounds. But, it just ain’t reality, any more than jolly Saint Nick is coming thru your chimney. And what about the house’s without chimneys?
Listen, Asset Acceptance will agree to stop reporting your account information. We can virtually guarantee they won’t agree or actually delete the item from your credit report. We need to use this last step to clean up credit report dings, blemishes, and remove this negative item.
5. Dispute Collections From Credit Report
In this final step, we’re discussing how to dispute credit report items, and specifically this Asset Acceptance collection item on your credit report. To do this, we’ll need to exercise some of your consumer rights granted by the Fair Credit Reporting Act (FCRA).
This federal legislation enables us to challenge and dispute any item on our credit reports, so long as we believe that item is misleading, incorrect, or made in error. There’s three ways to file your credit report dispute: online, over the phone, and by mail.
Once the credit bureaus get your dispute, and find it valid, which is another conversation for another time and place. So make sure to sign up for our free newsletter to get more help with credit repair with Dan Willis, and join our congregation.
Once the credit bureaus get your dispute, and find it valid, they’re required to investigate the item. They call it a re-investigation, nonetheless, they’ll contact Asset Acceptance for verification of your account, and the pertinent details.
As per your settlement agreement, Asset Acceptance won’t verify your account during the credit bureaus investigation. As such and in compliance with the FCRA, this means the credit bureaus must remove this item from your credit file. This is how to clean credit report dings, blemishes, and remove negative items, and do it legally.
In sum, you’re going into war with some fierce opponents when you’re dealing with debt collectors. Their top priority is only to get your money into their grubby little paws. Your best interest, let alone future credit worthiness, is of absolutely no consequence.
If you’re concerned with how to fix your credit, an appropriate metaphor is to view your credit score, like your Grade Point Average (GPA) in glory school days bygone. It doesn’t matter if you’re acing all your courses, 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. And why it’s of such paramount importance to clean up credit report dings, blemishes, and remove the negative items. Chances are, you’ll also need to remove charge offs from credit report files, if this is a credit card debt, or potentially need to work on removing judgements from credit report. Regardless, it can be done.
We encourage our members to consider professional, legal, and effective credit restoration services to help with this. 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 about how to improve credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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