Credit Systems International is a large, aggressive, third-party debt collection agency. They’re headquartered in Fort Worth, Texas. And service a variety of types of consumer debt accounts with an emphasis on healthcare, utilities, and government debts.
If you’re currently dealing with the endless phone calls, demanding letters, or have discovered Credit Systems International on your credit reports? You’re in the right place. And the first thing we need to share is the Fair Debt Collection Practices Act (FDCPA).
This is federal legislation intended to regulate the debt collection industry and protect you the consumer from aggressive, and unethical debt collectors. It’s worth reviewing in detail, at your convenience. In short, it says debt collectors are supposed to be honest, and treat you with a modicum of respect and dignity.
Will Paying Off Credit Systems Collections Improve Credit?
Chances are your most pressing question is if I pay off collections will it help my credit? Understandably, and it makes logical sense that it would, and in full disclosure it can. However, if you only pay off collections the only thing that happens is a change in the status of the item on your credit reports.
It’ll be changed to a paid collection. This is still a negative, damaging, and derogatory item to have on your credit report and it has a high likelihood of causing you to have a bad credit rating. Anthony Sprauve, a spokesperson for FICO, says collections on your credit reports can damage and drag your score down by up to 100 points.
Listen, the key to fixing credit is to remove negative items from your credit reports. And for some folks, after first doing the due diligence and if you follow the suggestions in this article, will discover paying off collections can be an effective way to clear bad credit items from your credit reports.
Credit Systems Collection Methods
Now, in addition to the obnoxious phone calls, and threatening letters, Credit Systems is also going to report negative information on your credit reports. And they’ll often rapidly inflate your total balance by charging interest fees and even collection fees.
If they’re unable to collect payment, they have two options. First, they can sell the rights to your account to yet another third-party collection agency. This new debt collector will of course begin calling you, sending letters, and they’ll report even more negative information on your credit reports.
Alternatively and a very common result of unpaid debt in collections is you’ll be sued. Yup, the collection agency with their in-house attorneys will file a civil lawsuit against you for repayment. Their goal is to win a judgement.
If this happens, they can garnish your wages, have liens placed against you and or your property, and even asset seizure. For precise details, investigate your local state legislation, because every state has unique laws.
Credit Systems International, Inc.
1277 Country Club Ln
Fort Worth, TX 76112
Phone number: 1-800-316-8064
4 Tips For Credit Systems Collections
1. Request Account Validation
The very first step when dealing with collection agencies is to request debt validation on your account. This is your right as a consumer under the FDCPA. Essentially, we’re saying to Credit Systems International prove this is a legit debt and my account. After all, we didn’t do businesses directly with them.
You see, they’re required to respond within 30 days of receipt by furnishing you with the documents, evidence, and paperwork that proves this is your account. This paperwork will also show you who the original lender was, the dates of account activity, total balance, and all the related details.
If they’re unable to validate your debt, then in accordance with the FDCPA, the debt is legally forgiven. As in you’re no longer legally responsible for repayment. Moreover, Credit Systems is supposed to contact all three credit bureaus to have them remove collections from credit report files, concerning this account.
It’s most effective to make your validation request in writing, and send it using certified mail, with return receipt requested. This way you’ll have evidence they received your validation request.
If they do validate your debt, we want to review this paperwork in detail. We’re looking for your last date of account activity. Because contrary to popular belief you’re not legally responsible for repayment forever.
2. Statute of Limitations
Here we’re talking about the statute of limitations, this is the legal time window for which you’re responsible for repayment of a debt. This is state legislation and it does vary, so for exact specifics, check out your local listings.
Generally, this time window is about seven years from the last date of account activity. Once this time window expires, so does your legal responsibility to repay the debt. Not necessarily moral or ethical, but your legal responsibility.
This legislation applies to the overwhelming majority of types of debt including medical bill collections, utilities, charge off debt, credit cards, telecommunications, and many more. The few exemptions include federal income tax, and defaulted federal student loans. Check out our article for full details on how to remove medical bills from credit report.
Warning. Yes, warning one of the most frequent government fines to the debt collection industry is for illegally re-aging consumer accounts. They do this for obvious reasons. And we just want you to know, it’s naive to believe debt collectors are sitting around waiting to forgive anyone’s debt account.
3. Negotiate a Settlement
If your debt is validated, and it’s within the legal time window, our next step is to negotiate a settlement agreement directly with Credit Systems International. There’s two parts to your agreement, the first is to always negotiate to settle for less than the total balance.
Frequently, you’ll be able to pay off debt collectors for just a fraction of your balance. Often, in the ballpark of 15% up to 45% of the total. For example with a $1,000 debt, you may be able to settle for just 25% or $250.
The second part of your agreement is mission critical. You must get Credit Systems International 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, we’ll get stuck with that paid collection on our credit reports. And we encourage you to get this agreement in writing. And as an extra insurance policy if you pay by check write in the memo line something about their agreement to stop reporting your account information.
This will constitute legal, and binding evidence when they deposit your check. And will ensure we’ll be able to clean up credit report dings, blemishes, and remove this collection item from your credit reports, here in this next step.
4. Remove Credit Systems Collections From Credit Report
In this step, we’re looking at how to dispute credit report items, and to do this we’ll need to exercise more of your consumer rights, specifically those granted by the Fair Credit Reporting Act (FCRA).
This is the federal legislation that enables us to challenge and dispute any item on our credit reports, so long as we believe that item is incorrect, misleading, or made in error. There’s three ways to file your credit report dispute: online, over the phone, and by mail.
Once the credit bureaus get your dispute, and deem it valid, which is another conversation for another time and place. So make sure to sign up for our free newsletter for more credit help and join our congregation.
But, once the credit bureaus get your dispute and say it’s valid, they’re required to investigate the item. They call it a re-investigation, but nevertheless, they’ll contact Credit Systems International looking for them to verify your account information.
As per your settlement agreement, Credit Systems 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, and any unverifiable item.
This is how to clear your credit report dings, blemishes, and remove negative items, and legally. The big challenge is getting the credit bureaus to find your dispute valid, and conduct an investigation.
The credit bureaus have a long, storied history of violating consumer rights under the FCRA. Most notably, in just 2015 all three credit bureaus collectively settled and paid $6 million to 31 state attorney general’s for allegedly violating consumer rights under the FCRA.
They were allegedly ignoring consumer dispute requests, or erroneously finding them frivolous. And this makes perfect sense, because most people don’t realize the credit bureaus are for-profit businesses, and they must spend money that’s otherwise profit when they investigate consumer disputes.
This is why they’re so reluctant to do so. Moreover, this is why Congress felt it necessary to pass the FCRA, requiring the credit bureaus to do this. And this federal legislation was passed way back in 1970, over 40 years ago, and the credit bureaus are still breaking the rules!
To wrap this all up, you’ve got to be tough dealing with debt collectors. Your best interest is not on their priority list, any more than your credit score’s best interest. You must be your own advocate.
If you’re working to fix your credit score, an appropriate analogy is your 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 is also true of your credit score. And this is why it’s so essential to clean credit history dings, blemishes, and remove any negative items. This is the most effective way to get a better credit score, erasing the items that are dragging it down.
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 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 improve my credit with Dan Willis, sign up for our free newsletter and join our congregation.
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