The ConServe collection agency is a large, aggressive, third party debt collector. They specialize in servicing defaulted student loans, both federal and private. The ConServe collection agency was founded in 1985 and they’re headquartered in Fairport, New York.
The purpose of this article is to share precisely how to deal with a ConServe debt collection, if you’re currently receiving obnoxious phone calls and demanding letters. Or if you’ve simply discovered negative information on your credit reports regarding this account.
The ConServe collection agency came into possession of your account information because your student loan went into default. Which for federal loans occurs after 360 days of delinquency.
While you have many rights as a consumer under the Fair Debt Collection Practices Act (FDCPA) when it comes to federal student loans, ConServe has additional weapons to collect this type of debt. The first big difference with defaulted federal student loans is these accounts are exempt from the statute of limitations.
This is the legal time window for which you’re responsible for payment. In other words, you can be legally responsible for repayment forever. However that doesn’t mean you’ll have to suffer with a bad credit history forever.
ConServe Debt Collection Tactics
In addition to the phone calls and letters from ConServe, they’re also going to report negative information on your credit reports. And this will consequently damage and drag your credit score down.
Further if they’re unable to collect payment from you, they can file a civil lawsuit against you. As in they can sue you for repayment. This can result in wage garnishment, asset seizure, and even liens being placed against you and or your property.
The worst part is you’ll get slapped with a judgement on credit report files and this will destroy your credit worthiness. According to the ConServe collection agency website they work in partnership with many law firms to pursue this path against individuals.
Beware, when it comes to defaulted federal student loans because ConServe is able to seize your tax returns for payment. Along with being able to garnish your wages and even Social Security payments.
Very rarely will you be able to discharge student loan debt through personal bankruptcy. And you’ll likely be responsible for significantly more money because the debt collection agency can legally charge you fees and interest on your account, so it can quickly balloon to a much larger sum.
Listen, when you owe the federal government money all the rules and laws that apply to the majority of other types of consumer debt such as charged off credit cards, or medical bill collections are tossed out the window. The feds can and will do pretty much exactly what they want, after all they’re who make the laws.
It is possible to work out a payment plan with ConServe. Our so called elected representatives have created an income-based repayment program with the good intention of helping folks suffering from financial hardship.
This program currently requires you to pay 15 percent of your discretionary income for 25 years, and then the remainder of the loan is forgiven. Of course, assuming you’re accepted into the program.
ConServe Collection Agency
200 CrossKeys Office Park
Fairport, NY 14450
Phone number: 1-800-724-7500
4 Consumer Tips
1. Account Validation
One of your consumer rights under the FDCPA is to request account validation on your debt. This requires ConServe collection agency to provide you with the documents, evidence, and paperwork that proves this is a legitimate debt and you’re truly responsible.
You should make this request in writing and using certified mail. If the ConServe collection agency fails to validate your account, then you’re no longer legally responsible for payment. Moreover they’re suppose to contact all three of the major credit bureaus to have them clear credit report files of any derogatory information regarding this account.
2. Statute of Limitations
While federal student loans are exempt from the statute of limitations, private student loans are not. If the ConServe collection agency does validate your account, the next step is to examine the documents they send you and you’re searching for the date of last activity with the original lender.
You see, the statute of limitations says you’re only legally responsible for payment of a debt for typically seven years from the date of last activity. After which the debt is forgiven.
Please investigate your local listings as to the exact amount of time you’re legally responsible, because the statute of limitations is state legislation. And it does vary from state to state. This applies to private student loans, credit cards, medical collections, charge offs, repossessions, and the vast majority to types of consumer debt.
Be forewarned one of the dirty little debt collection industry secrets is to re-age consumer accounts. This way they can continue to attempt to collect payment from you, along with reporting negative information on your credit reports.
3. Negotiate Settlement
If your account is valid and within the statute of limitations, you’ll next want to negotiate a settlement directly with the ConServe collection agency. You’ll have the opportunity to work out a payment schedule, but it’s mission critical to follow two key principles.
It’s wise to always to negotiate to settle your debt for much less than the total balance. You can do this because debt collectors will add fees and interest to your balance, thus they’re eager to negotiate with you and accept a payment for less.
The precise amount you’ll be responsible for will depend upon if your debt is a federal loan or private. Typically with other types of consumer debt you can settle for as little as 10% up to 40% of the total balance. For instance with a $2,000 debt you may be able to settle for just 30% or $600.
If your account is the result of a federal loan, they’ve got you by the short and curlies, and therefore you’ll have less wiggle room. Nevertheless, you can and should negotiate to settle for less because otherwise you’re fueling big profits into the hands of these debt collection agencies.
The second principle is to get the ConServe collection agency to agree in exchange for your payment, they’ll stop reporting your account information to the credit bureaus. If you neglect this part of your agreement, once you make payment the only thing that will change is the status of the item on your credit report.
It’ll be changed to a paid collection and that’s not how to improve your credit score. FICO the company that calculates consumer credit scores says collections on your credit report files can damage and drag your credit score down by up to 100 points.
4. Dispute Credit Report
This fourth and final step requires you to exercise additional consumer rights granted by the Fair Credit Reporting Act (FCRA). We’re going to use this legislation to clean up your credit report, because these dings, negative, and derogatory items are the cause of a bad credit score.
The FCRA empowers you to challenge and dispute any item on your credit report, so long as you believe it’s inaccurate, questionable, or made in error. We’re going to challenge the ConServe collection agency listing and you can file your credit bureau disputes online, over the phone, or by mail.
Once the bureaus get your dispute and find it valid, they required to investigate the item. During which they’ll contact the ConServe collection agency to verify your account.
As per your settlement ConServe will not verify your account with the credit bureaus. And in compliance with the FCRA, the credit bureaus must remove this item from your credit reports. This is how to repair bad credit legally.
For the average consumer it’s a cold harsh world navigating the shark infested world of credit and debt. There’s an abundance of alphabet soup laws that are intended to make the process of exercising your rights, consumer friendly.
Yet they neglect to do so for most people, and the painful truth is even if you know your rights, that doesn’t mean you’ll be able to exercise them. The Federal Trade Commission (FTC) has issued fines over and over again to the debt collection industry and the credit bureaus for violating consumer rights.
For this reason, we encourage our members to consider legal, legitimate, and top credit repair companies. Take action today for expert credit score help with a free credit consultation by calling toll-free 1-877-418-7596. And for more tips, strategies, and techniques on how to get better credit with Dan Willis, sign up for our free newsletter.
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