Are you getting a flood of phone calls? Threatening letters? Have you discovered an AWA Collections account on your credit reports? If so, you’re in the right place.
AWA Collections is also know as Adler Wallach and Associates, and they’re an aggressive, independent, debt collection agency. They’re located in southern California and service debt nationwide.
They’ll collect on many types of consumer accounts including: financial services, healthcare, telecommunications, utilities, government, and many more. According to their website, they work exclusively on a consignment basis. In other words, they work on straight commissions and will share any money collected with the original lender, creditor, or account holder.
The first item on the agenda when dealing with debt collectors is the Fair Debt Collection Practices Act (FDCPA). This is federal legislation intended to regulate the debt collection industry, and it’s worth your review in detail, at your convenience.
In short, it says debt collectors are required to be honest, upfront, and not deceptive. It further says they’re required to treat you with that modicum of respect and dignity, that every human being deserves.
Does Paying Off AWA Collections Improve Credit Score?
If the only thing you do is pay off collections, and nothing more, it won’t improve your credit score. The only thing that happens is a change in the status of that item on your credit reports.
It’ll be changed to a paid collection. This is still a negative, damaging, and derogatory item that’s guaranteed to lower your credit score. Anthony Sprauve, a spokesman for FICO says, collections on your credit reports can damage and drag your credit score down by as much as 100 points.
Look, the key to fix your credit score is removing the dings, blemishes, and negative items from your credit reports. For some folks, after first performing the necessary due diligence and following the tips in this article, may discover paying off collections is the most effective way to clear credit report dings, blemishes, and remove this AWA Collection item.
Debt Collection Weapons
We need to share what AWA Collections can legally do to attempt to collect payment from you. Of course, they’ll be calling you, sending demanding letters, and they’ll report negative information on your credit reports.
In addition, they can legally charge your account sky-high interest fees, and even collection fees to rapidly inflate your total balance. Moreover, these guys are beyond aggressive, let us share a quote from their official website.
“We are never forgetful of the fact that our task is both to provide the debtor the motivation to pay our client’s account and to show that the ability to pay the account exists within the debtor’s budget.” Yes, you read that correctly.
Not only do they completely disregard the fact that most people are happy and willing to pay truly, legitimate debts. Especially, when they can. They also completely dismiss the fact that some people can’t pay.
There’s many folks in this country living on fixed income’s. And this writer’s step-granny in her final years, she was being hounded non-stop by aggressive, obnoxious, and lawbreaking debt collectors. Scaring the living daylights out of her, which no one would agree is right.
Threatening little old ladies, come on man! That’s low. Moreover, in our decade plus experience of working with folks personally to improve bad credit, we’ve learned the overwhelming majority of people will pay their debts, especially when they’re able to.
The idea that AWA Collections is going to motivate us, may as well be a synonym for threaten, scare, and try and manipulate us. Further, who are they to know, let alone decide, if someone has the ability or the budget to repay a debt? That’s pretty arrogant and self-righteous.
This quote, is indicative of the culture at AWA. To view debtor’s as deadbeats, that need to be motivated to pay, because they wouldn’t otherwise. And these deadbeats need to be shown they can pay. That’s a really pessimistic outlook, disrespectful, and insulting to every person that’s ever had a nickel worth of debt.
Nevertheless, if AWA Collections is unable to collect payment, they can legally sell the rights to your account to yet another debt collector. This new collection agency will begin calling you, sending letters, and they’ll report even more negative information on your credit reports.
The second option, and much more likely option is they’ll sue you. Yes, they’ll file a civil lawsuit against you for repayment. And it sure looks, like they take this approach often.
According to their website: “We have attorneys in all 50 states that can handle accounts in the event litigation is authorized by your firm. The final step in our collections process is to disclose to the debtor that legal action that may be taken if we do not receive payment immediately.”
This is not in compliance with the FDCPA, which very clearly says debt collectors can’t threaten legal action unless they fully intend on following through with it. In the quote above, you can see AWA Collections says “legal action that may be taken.”
The FDCPA doesn’t have any maybe’s in it, this can’t legally be done, unless they fully intend to sue you. If they’re following the law and regulations, which sure doesn’t appear to be the case.
The reality is most debt collectors don’t follow the rules.They break the law, as often as the drug dealers break our drug laws. Everyday. Yet, we digress.
If AWA Collections files a civil lawsuit against you, their goal is to win a judgement. Because then they’ve really got you by the short and curlies. Not only does the time limit on your debt, extend potentially forever, because judgements can be renewed.
Depending on your state of residence, they may be able to garnish your wages, have liens placed against you and or your property, and even asset seizure. Each state has unique laws, so for full details, investigate your local legislation.
It gets worse, because a judgement on credit report files, will ruin your credit score, virtually overnight. The most stomach turning part of these lawsuits, is many debt collector lawsuits are won either without the proper evidence, and have been won using fraudulent evidence.
Please, don’t just ignore this issue, because it’s very likely it’ll snowball into a much bigger problem. AWA Collections, just on brief review of their website, doesn’t see you as much more than a deadbeat, who they’ll be able to squeeze some money out of. After all, they are going to motivate you to pay. Humbug!
AWA Adler Wallach Associates Inc
1045 West Katella Ave
Orange, CA 92867
Phone number: 1-714-771-3690
4 Tips To Deal With AWA Collections
1. Request Account Validation
The very first step of dealing with collection agencies, and AWA Collections, for every consumer is to first request debt validation on your alleged collection account. This is your consumer right under the FDCPA.
It’s most effective to make this request in writing, using certified mail, with return receipt requested. This way you’ll have evidence they received your validation request. Essentially, since we didn’t do any business directly with AWA Collections, we’re requesting they prove this is actually are debt.
You see, they’re required to respond within 30 days of receipt by providing us with the paperwork, documentation, and evidence proving this is our debt. This paperwork should also show us the details about the account such as who the original lender was, the dates of account activity, total balance, etc.
If they fail to validate your debt, for any reason even if they don’t have their paperwork in order, in compliance with the FDCPA the debt is legally forgiven. As in you’re no longer legally responsible for payment. They’re also supposed to contact all three credit bureaus to have them remove collections from credit report files, regarding this account.
2. Statute of Limitations
If they do validate your account, we next need to review this paperwork in detail. We’re looking for your dates of last account activity. You see, you’re not legally responsible for repayment forever.
Our state lawmakers have passed the statute of limitations, this state legislation says exactly how long we are legally responsible for repayment. Every state has unique laws, so for full details, check out your local legislation.
Generally, this is about seven years from the first date of delinquency. Once this time window expires, then the debt is legally forgiven. Your legal obligation to repay ends with the statute of limitations time window.
This applies to most types of consumer debt including: medical bill collections, telecommunications, charge off accounts, credit cards, utilities, retail, and so many more. The few exceptions include federal income tax, and defaulted federal student loans.
Warning. One of the dirtiest debt collection industry tactics is to re-age consumer accounts. Often, this is done illegally, and for obvious reasons, they can continue to attempt to motivate you to pay. Despite you legal obligation being over.
3. Negotiate a Settlement Agreement
Let’s talk about how to pay off debt in collections, and to do this, we’re going to negotiate directly with AWA Collections. It’s best to only enter negotiations, after your account has been validated, and you’ve checked the legal time window.
Assuming everything’s on the level, we next need to negotiate a settlement agreement. There’s two parts to your agreement. First, always negotiate to settle your debt for less than the total balance.
This is standard operating procedure. AWA will be thrilled to accept a settlement payment for less, and they anticipate this result. Often, you’ll be able to settle your debt for as little as 15% up to about 45% of the balance.
For example, with a $1,000 debt you may be able to settle for just 20% or $200. The exact amount, will depend on the type of debt, and how old the account is. But, you can always settle for less.
The second part of your agreement is vitally important. You must get AWA Collections to agree that in exchange for your payment, they’ll stop reporting your account information to all three credit bureaus.
If we neglect this part of our agreement, once we make payment, we’ll get stuck with that paid collection on our credit reports. We encourage you to get this settlement agreement in writing before making any payments.
We also need to take a moment a share the popular pay for delete approach when negotiating with debt collectors. The idea, is you demand AWA Collections delete the negative information from your credit reports, and then you’ll make payment.
As wonderful as this sounds, and even as reasonable as it sounds, it’s just wishful thinking. You’re welcome to try, but we can just about guarantee they won’t do it, or any collection agency. Unfortunately.
You’ll see this pay for delete baloney all over the place. But, in our decade plus of working first hand with folks on the front lines of fixing bad credit, we’ve yet to hear of one person or any collection agency, ever agreeing to this. It’s not practical.
Instead, it’s way more effective to get them to agree to stop reporting your account information to all three credit bureaus, in exchange for your payment. This they will agree to, and with this agreement, we’ll be able to clean up your credit and remove this AWA Collection item.
4. How To Remove AWA Collections From Credit Report
In this final step, we’re discussing how to dispute items on credit report files, because this is how we’re going to remove the AWA Collection item. To do this, we’ll need to exercise more of your consumer rights, specifically those under the Fair Credit Reporting Act (FCRA).
This federal legislation is what enables us to challenge and dispute any item on our credit reports, so long as we believe it’s incorrect, misleading, or made in error. And yes, we’re going to dispute the AWA Collection item.
You can file your credit report dispute online, over the phone, and by mail. Once the credit bureaus get your dispute, they first have to deem it valid, which is another conversation for another time and place.
So make sure to sign up for our free newsletter for more help with credit with Dan Willis, and join our congregation. Once the credit bureaus get you dispute and find it valid, they’re required to investigate the item.
They’ll call it a re-investigation. Nevertheless, they’ll contact AWA Collections and ask them to verify your account. As per your settlement agreement, AWA Collections won’t verify your account during the credit bureaus investigation.
As a result, and in compliance with the FCRA, this means the credit bureaus must remove the AWA Collection item from your credit report. This is how to clear your credit report dings, blemishes, and remove negative items. And do so legally, by exercising your rights as a consumer.
Listen, AWA Collections from the start has a really poor view of you as a human being, who most likely experienced some of life’s lemons first hand. I’m willing to bet you’re more than a good, quality, hard-working, and honest individual.
Who if given the respect and dignity, worthy of every human being, and if cooperated with would be happy, or at least willing, to pay off a debt. Of course, assuming it’s legitimate and it’s your’s. Most human being are this type of person.
For AWA Collections to have such a poor view of their debtor’s also disregards that debt collections are notorious for being riddled with errors. It also disregards some folks have had their identities stolen, and sometimes lenders and creditors mistakenly send accounts to collections. Human beings, make mistakes.
However, when you’re dealing with debt collectors, and it sure sounds like extra with AWA Collections, it’s akin to swimming with sharks. And there’s blood in the water.
AWA Collections clearly says they only get paid when they collect from debtor’s. In other words, they work on consignment, or commission. Now, if you really believe they’re concern is anything other than solely focused on squeezing money out of you, you may also believe Jolly Ole Saint Nick visits every house on Christmas Eve?
After all, even they say, part of their service is giving you the motivation to pay. And then to show you how and why you can afford to pay. That’s on par with saying everyone can afford to buy a Lexus. It’s not reality.
Most of all, you’re going to have to get real tough. You’re going to need to study up on the continuously evolving debt and credit laws in our country. And you’re going to have to be your own advocate to protect yourself, your pocketbook, and your credit score.
At the end of the day, your credit score is a lot like your Grade Point Average (GPA) in glory school days bygone. It doesn’t matter if you’re acing all your classes, if you’re failing underwater basket weaving, because this negative mark is going to ruin your overall GPA.
This also applies to your credit score. And why it’s so important that we take assertive action to clean credit history dings, blemishes, and remove the negative items. We encourage our members to consider professional, legal, and effective credit restoration services.
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 successfully remove collections, late payments, charge offs, judgements, liens, and so 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 fix my credit with Dan Willis, sign up for our free newsletter and join our congregation.
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