Asset Recovery Solutions is an aggressive third party debt collection agency. They’re headquartered in Des Plaines, Illinois and will service a variety of types of consumer accounts including: credit cards, charge offs, student loans, consumer loans, retail, automotive, and more.
If you’re currently receiving harassing phone calls or threatening letters, it’s imperative that you know and understand your rights as a consumer. One of the most common mistakes is for well intended folks to just pay a delinquent debt, with the false belief this is how to get better credit.
As the saying goes, good intentions paved the path to hell. And this is doubly true in the world of debt collections. You see, if you simply pay off a delinquent debt the only thing that will change is the status of the collection on your credit reports.
It’ll be changed to a paid collection and that’s still a bad credit history listing, that’s going to damage and drag your credit score down. According to FICO, a collection on your credit report files can damage your score by up to 100 points.
The second common mistake is to ignore Asset Recovery Solutions with the forsaken belief they’ll just disappear like a warm fart on a windy day. Listen, the most common result of unpaid debt collections is a civil lawsuit. In other words, they’ll sue you for payment.
This can result in a judgement against you and that can potentially lead to wage garnishment, asset seizure, and even liens being placed against you or your property. To add insult to injury a judgement on credit report files is one of the worst items to have and this will significantly damage your credit score.
Asset Recovery Solutions, LLC
2200 Devon Ave #200
Des Plaines, IL 60018
5 Tips For Asset Recovery Solutions
1. Request Debt Validation
The first step for all consumers when dealing with Asset Recovery Solutions is to request debt validation on your account. This is your right protected by the Fair Debt Collection Practices Act (FDCPA). You need to make this request in writing and using certified mail.
Once Asset Recovery Solutions receives your validation request, they’re required to respond by providing you with the evidence that proves this is your account, and they own the collection rights to it. If they neglect to validate your account, then you’re no longer legally responsible for payment.
Moreover if they’re following regulations they’re suppose to contact all three credit bureaus to have them erase collection listings from your credit report. However if your account is validated, then you’ll need to examine the details on the paperwork they send.
2. Legal Time Frame
Look, for the vast majority of types of consumer debt, you’re not legally responsible for payment forever. This is called the statute of limitations and this is a state law, so please investigate your local listings for exact details.
Generally you’re legally responsible for payment for about seven years from the first date of delinquency. After this time expires, then the debt is forgiven, and you no longer have a legal responsibility for payment. This legislation applies to most types of debt, but one exception is defaulted student loans.
Beware, one of the dirty little debt collection industry secrets is many agencies will re-age consumer accounts. This way they can continue to attempt to collect payment, along with reporting negative information on your credit reports, all in attempt to pressure you to pay.
3. Negotiate Settlement Agreement
If your account is valid and within the statute of limitations, we’re going to next negotiate a settlement agreement directly with Asset Recovery Solutions. There’s two crucial keys with this step, the first is to always negotiate to settle your debt for much less than the total balance.
Typically you’ll be able to negotiate and settle a delinquent debt for a mere 10% up to 40% of the total balance. For instance with a $500 debt you’ll likely be able to pay just 25% or $125.
Now the second key is to get Asset Recovery Solutions to agree that in exchange for your payment, they’ll stop reporting your account information to all three credit bureaus. This is critical because next we’ll be discussing how to get collections off credit report files, so you can earn a credit score truly representative of your worthiness.
4. Credit Bureau Dispute
In this step we’re looking at how to clear your credit report of negative, derogatory, and damaging listings. This is going to require us to exercise additional consumer rights, granted by the Fair Credit Reporting Act (FCRA).
This legislation empowers you to dispute and challenge the accuracy of any item on your credit reports, so long as you belief it’s inaccurate, questionable, or made in error. There’s three ways to file your credit bureau disputes: online, over the phone, and by mail.
Naturally we’re going to dispute the Asset Recovery Solutions listing. Once the credit bureaus get your dispute and find it valid, then they’re going to investigate the item by contacting Asset Recovery Solutions and requesting verification of the account.
As per your settlement agreement, Asset Recovery Solutions is not going to verify your account during the credit bureau investigation. This forces the credit bureau to clear bad credit listings from your credit history, regarding this account, in order to comply with the FCRA.
5. Get Help
It’s an unavoidable truth that simply knowing, understanding, and even attempting to exercise your consumer rights, just ain’t enough. The debt collection industry is regularly and consistently fined millions of dollars for violating consumer rights.
For this reason we encourage our members to consider professional, legal, and legitimate credit repair companies to assist. Get more credit score help with a free credit consultation by calling toll-free 1-877-418-7596. And for more tips, strategies, and techniques to fix credit with Dan Willis sign up for our free newsletter and join our congregation.
Get a FREE Credit Consultation