Credit Collections USA is a large, nationwide, full-service third-party debt collection agency. They’re located in Morgantown, West Virginia.
They service many types of consumer debt accounts with an emphasis in medical bills. However they’ll also work with and collect on utilities, retail, internet services providers, and more.
If you’ve gotten the endless phone calls, threatening letters, or have simply discover Credit Collections on your credit reports, you’re in the right place. And we need to begin with the Fair Debt Collection Practices Act (FDCPA).
This is federal legislation intended to regulate the debt collection industry. It’s worth reviewing in detail at your convenience. But, in short, it says debt collectors are suppose to be honest, and give you the modicum of respect and dignity, we all deserve.
And yes, much like our drug laws, the FDCPA is violated virtually everyday, and with practical immunity. If you feel your consumer rights have been violated it may be in your interest to report Credit Collections to the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), your state Attorney General’s office, and potentially even your personal attorney.
Will Paying Off Collections Improve Credit?
Your most urgent concern is probably if I pay off collections will it help my credit? Naturally. And the answer is no, not if that’s all you do. You see, the only thing that changes when you just pay off collections is the status of the item on your credit reports.
It’ll be changed to a paid collection. This is a negative credit report item. And it will damage your credit score. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can drag your score down by as much as 100 points.
The key to fixing credit is to remove this item from your credit report. As if it never happened. And for some folks, after following our tips below and first performing the necessary due diligence, may find that paying off debt in collections is the best way to clear credit report dings, blemishes, and remove this collection.
In addition to the relentless phone calls, constant letters, Credit Collections USA is also going to report negative information on your credit reports. They can also add interest and collection fees to your total balance.
If they’re unable to collect payment, they have two options. First, they can sell the rights to your collection account to yet another debt collector. This new collection agency will begin contacting you for payment, and they’ll report even more negative information on your credit reports.
Alternatively, and this is a common result with unpaid debt in collections, is you’ll be sued. Yup, they can file a civil lawsuit. Their goal and hope is to be awarded a judgement.
Because this can result in wage garnishment, liens being placed against you and or your property, and even asset seizure. For full details investigate your local state legislation, because every state has unique laws.
Please, don’t just ignore this issue because chances are it’ll snowball into a much bigger problem. And getting stuck with a judgement on credit report files, is needless to say a much more painful headache to sort out.
Credit Collections USA, LLC
16 Distributor Drive, Suite 1
Morgantown, WV 26501
Phone number: 1-800-228-3048
4 Consumer Steps For Credit Collections USA
1. Request Account Validation
The very first step when it comes to dealing with debt collectors is to request debt validation on your alleged account. This is your consumer right, granted by the FDCPA.
You see, since we didn’t do any business directly with Credit Collections USA, this is performing the due diligence. Essentially we’re saying prove this is actually my account, and a legit debt, and after we may be able to discuss repayment.
Because Credit Collections USA is required to respond to your validation request by providing you with the evidence, paperwork, and documents that does this. This paperwork should also show you the details of the debt such as: who the original creditor was, the dates of account activity, the total balance, and more.
We strongly encourage you to make your debt validation request in writing, and send it using certified mail with return receipt requested. This way you’ll have evidence they did receive your validation request.
Listen, if they fail to validate your account, which may be simply a matter of not being able to locate the necessary documents. According to the FDCPA, the debt is forgiven. As in you’re no longer legally responsible for payment.
Moreover they’re suppose to contact all three credit bureaus to have them get collections removed from credit report files, regarding this account. If however, they do validate your account, we next want to review this paperwork in detail.
2. How Old Is The Account?
In this paperwork, we want to locate your last date of account activity. Listen, for the overwhelming majority of types of consumer debt accounts, you’re not legally responsible for payment forever.
This is called the statute of limitations. And it is a state law, so for full details, investigate your local legislation, because each state has unique laws. Generally, this legal time window is seven years from the first date of delinquency.
Once that time period expires, then the debt is legally forgiven. And the statute of limitations applies to most types of consumer debts including medical debts, charge off accounts, credit cards, utilities, retails, and many more. The few exceptions include federal defaulted student loans, and federal income taxes.
Warning. Yes, please be on guard because one of the most common debt collection industry tactics is to re-age consumer accounts. For obvious reasons, they can continue to attempt to collect payment on the account.
3. Settlement Agreement
Assuming your account is validated, and within the statute of limitations, our next step is to negotiate a settlement agreement directly with Credit Collections USA. And there’s two essential keys with this step.
First, always negotiate to settle for less. Often you’ll be able to negotiate, so you’re paying off debt in collections for just a fraction of the total. Typically, you’ll be able to settle for as little as 15% up to 45% of the balance.
This is standard operating procedure, and they’ll happily accept a payment for less. This is also because your balance has likely been vastly inflated with fees, interest, etc.
The second part of your agreement is mission critical. In exchange for your payment, you must get Credit Collections USA to agree they’ll stop reporting your account information to the credit bureaus.
Otherwise, we’ll get stuck with that paid collection item on our credit reports. They’ll be willing to do this, one thing they won’t do, and you see written about all over the place is what’s called a pay-for-delete.
Many so called experts claim collection agencies will delete a negative item from your credit reports in exchange for payment. This is hocus-pocus. In our decade plus experience we’ve yet to hear of even one person or collection agency willing to accept this proposal.
Instead, request they simply stop reporting your account information to the credit bureaus. They will have no problem doing this. And it’s wise to get this agreement in writing.
4. Remove Collections From Credit Report
In our last step here, we’re discussing how to dispute items on credit report, and specifically this Credit Collections USA item. Because this is how we’re going to clean up credit report dings, blemishes, and remove this negative item.
To do this, we’ll be exercising more of your consumer rights, and this time those 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 it’s inaccurate, misleading, or made in error.
There’s three ways to dispute credit report items: online, over the phone, and by mail. Once the credit bureaus get your dispute and deem it valid, they’re required to investigate the item.
During which they’ll contact Credit Collections USA and ask them to verify your account. As per your settlement agreement Credit Collections won’t verify your account during the credit bureau’s investigation.
In compliance with the FCRA, this means the credit bureaus must remove this item from your credit report. This is how to clear bad credit items, and do so legally, using your rights as a consumer.
It’s intimidating dealing with debt collectors and their aggressive, rude, and downright obnoxious behavior. And their business model is intended to screw you, and at best capitalize on your lack of knowledge about the debt collection industry. For further details, check out our article about how to remove medical bills from credit report.
If you’re working to improve credit score information, and apt metaphor for your credit score is it’s a lot like your Grade Point Average (GPA) in school days bygone. It doesn’t matter if you’re acing all your courses, but failing underwater basket weaving because this negative mark is going to tank your GPA.
This is also true of your credit score. And it’s why it’s so mission critical that we clean credit report dings, blemishes, and remove negative items. We encourage our members to consider professional, legal, and effective credit restoration companies to help.
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 fix my credit with Dan Willis, sign up for our free newsletter and join our congregation.
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