Are you getting an avalanche of phone calls, or letters from CMRE Financial Services? Have you discovered a CMRE collections mark on your credit reports?
If so, you’re in the right place. CMRE Financial Services is a third-party debt collector. They’re headquartered in Brea, California and service debt nationwide.
They were founded in 1974 and work exclusively with the healthcare industry. According to their website, they’ll collect many types healthcare debt including for hospitals, healthcare systems, ambulance services, dental practices, doctor’s offices, and more.
The purpose of this article is to share precisely how to handle CMRE Financial Services. From what they can do to collect this alleged debt, to protecting yourself, exercising your rights as a consumer, and most importantly keeping your creditworthiness intact.
The first item on our agenda is the Fair Debt Collection Practices Act (FDCPA). This is federal legislation passed by Congress with the intention of regulating the debt collection industry.
In brief, it says debt collectors are required to be honest, up-front, and straightforward. In addition to providing you with that modicum of respect and dignity that every human being deserves.
It says much more, and it’s worth reviewing in detail at your convenience. And yes, the FDCPA is violated about as often as the drug laws in our country.
Will Paying CMRE Collections Improve Credit Score?
The most pressing concern for most folks is will paying off collections improve credit? It’d make sense if it did. But, as of 2018 no it won’t.
You see, merely paying collections and nothing more will only result in a change in the status of the CMRE collection mark. It’ll be changed to a paid collection.
This is still a negative mark. According to Anthony Sprauve, a spokesman for FICO, collections on your credit report can damage and drag your credit score down by as much as 100 points. That’s huge!
The key to getting a better credit score is to remove this item entirely from your credit reports. As if it were never there. And for some folks, after first performing the necessary due diligence and the four steps in this article, they may discover the easiest and most efficient way to get a clear credit report is to pay this collection account.
CMRE Financial Services Collection Weapons
In addition to the endless phone calls, and letters, CMRE Financial Services is also going to report negative information on your credit reports. It’s very likely they’ll also inflate your total balance.
Legally, they can charge your account a high-interest rate, and believe it or not even collection fees. If they’re unable to collect payment they have two options.
First, they can turn around and sell the rights to your account to yet another debt collector. This new debt collector, of course, will begin calling you, sending letters, and they’ll report even more negative information on your credit reports.
Alternatively, they can file a civil lawsuit against you. As in sue you. According to the CMRE Financial Services website, they do offer litigation services. In other words, they provide this service to their clients, legal action against consumers.
Their goal is to win a judgement, because then they’ve really got you by the short and curlies. Judgements can result in wage garnishment, liens being placed against you and or your property, and even asset seizure.
For full details, check out your local legislation, because every state has unique laws. The worst part, if you get stuck with a judgement on credit report files, your credit score will be annihilated and virtually overnight.
Please, don’t just ignore CMRE Financial Services with the false belief they’ll just disappear like a fart on a windy day. Chances are this issue, will snowball into a financial crisis.
CMRE Financial Services
3075 E. Imperial Hwy Suite 200
Brea, CA 92821
Phone number: 1-714-528-3200
4 Steps For CMRE Collections
1. Request Debt Validation
The very first step for dealing with CMRE Financial Services is to request debt validation on your alleged account. This is your consumer right, granted by the FDCPA.
It’s most effective to make this request in writing, and send it using certified mail, with return receipt requested. This way you’ll have evidence you made your validation request, and they received it.
You see, when we request debt validation we’re basically saying CMRE Financial Services you first prove this is truly my debt. And then we may be able to discuss repayment.
They’re required to respond to your validation request by providing you with the documents, paperwork, and evidence that does, in fact, prove this account is yours. This paperwork will also show you all the details related to the debt such as who the original healthcare provider was, the account balance, dates of account activity, etc.
If they fail to validate your debt, then in compliance with the FDCPA, you’re no longer legally responsible for payment. Further, they’re supposed to contact all three credit bureaus to have them remove medical collections from credit report files, concerning this account.
2. Statute of Limitations
If your account is validated, our next step is to review this paperwork in detail. We’re looking for your last date of account activity, because you’re not legally responsible for payment forever.
In fact, state law called the statute of limitations says exactly how long you are legally responsible for repayment. This legislation does vary by state, so for exact details, check out your local listings.
Generally, it’s about seven years from the last date of activity. Once this time-window runs out and expires then according to the statute of limitations, this debt is legally forgiven. In other words, your legal obligation ends when this time-window expires.
The statute of limitations applies to most types of consumer debt and most definitely applies to medical bills in collections, along with credit cards, charge off accounts, utilities, telecommunications, and so many more. The few exceptions are defaulted federal student loans, and federal income tax.
Warning. Yes, warning and a stern one, debt collectors especially late-stage debt collectors are notorious for re-aging consumer accounts. With the obvious purpose of continuing to try and collect payment. Frequently, this re-aging is done illegally.
3. Negotiate a Settlement Agreement
If your account is validated, and within the statute of limitations, our next step is to share how to pay collections and so it will improve your credit score. This is going to require us to create a settlement agreement, directly with CMRE Financial.
There’s two parts to your agreement, and it’s best to get this in writing. First, when it comes to how to negotiate medical bills with collection agency, we need to settle and pay off collections for just a fraction of the total balance.
Often, we’ll be able to negotiate and pay as little as 15% up to around 45% of the total. For instance, with a $1,000 debt, we may be able to pay as little as 20% or just $200.
But, wait this second part of our agreement is mission critical. We must get CMRE Financial Services to agree that in exchange for our payment, they’ll stop reporting our account information to all three credit bureaus.
If we overlook this second part of our agreement, we’ll get stuck with that paid collection mark on our credit reports. And as we’ve shared, that’s very likely to cause us to have a bad credit score.
Pay For Delete
Have you heard about a pay for delete approach to dealing with debt collectors? If not, this is where we first demand CMRE Financial Services delete the negative item from our credit reports, and then we’ll make payment.
This sounds so wonderful. And you’re very welcome to try it. But, please, don’t hold your breath. We truly have better odds of catching jolly Saint Nick in our chimney, than any debt collectors ever agreeing to a pay for delete.
In our decade-plus years of experience working the front-lines with folks fixing credit, we’ve yet to hear of one debt collector ever making this agreement. And for those of us in the industry, it’s beyond wishful thinking for so many reasons, that we don’t have the time to share here.
Instead, it’s much more pragmatic and effective to simply get CMRE Financial Services to agree to stop reporting your account information to the three credit bureaus, in exchange for our payment. This is something they will agree too, albeit maybe reluctantly.
4. How To Remove Medical Bills From Credit Report
Our final step is discussing how to remove medical bills from credit report files. As in the CMRE collection mark, because this is messing up our credit score. To do this, we’re going to need to exercise more of your consumer rights.
This time those granted by 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 inaccurate, misleading, or made in error.
And yes, we’re going to dispute the CMRE collection item. There’s three ways to file a credit report dispute: online, over the phone, and by mail. Once the credit bureaus get your dispute they first get to deem it valid or frivolous.
This is another conversation for another time and place. So make sure to sign up for our free newsletter for more credit help with Dan Willis, and join our congregation.
Once the credit bureaus get our dispute, and deem it valid, they’re required to investigate the item. They’ll call it a re-investigation. Nevertheless, during their investigation, they’ll contact CMRE Financial Services and request they verify the collection account.
As per our settlement agreement, CMRE Financial won’t verify your account during the credit bureaus investigation. As a result, and in compliance with the FCRA, the credit bureaus must remove this item from your credit reports.
Every single one of those items on your credit reports, must be verifiable. This is how to get rid of bad credit, and legally by exercising your rights as a consumer. And long before the maximum seven-year sentence.
On a sidebar, if you have this CMRE collection item on all three of your credit reports, you’ll need to file three separate credit bureau disputes. One dispute per bureau. For example, you’ll need to file an Equifax dispute, to potentially remove this mark from your Equifax credit report.
Along with an Experian dispute for your Experian credit report. And of course, a TransUnion dispute for your TransUnion credit report. Assuming this collection mark is on all three of your credit reports. The credit bureaus are separate entities.
Look, it can be intimidating, scary, and just downright a pain in the you know what trying to deal with debt collectors and the credit bureaus. These people are not your friends, they couldn’t give less of a flip about you or your creditworthiness.
By nature, your relationship with debt collectors is adversarial. Their profit is directly related to how much or how little you know about your rights as a consumer. You don’t have to just live with medical bills on credit report files for seven long years.
When all is said and done, your credit score is much like your Grade Point Average (GPA) in glory school days past. 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 too is true of your credit score. And this is why it’s of such paramount importance to clean credit report dings, blemishes, and remove any negative items from your credit reports.
We encourage our members to consider professional, legal, and legitimate credit restoration companies. 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 their 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 get your credit score up with Dan Willis, sign up for our free newsletter and join our congregation.
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