Fair Collections and Outsourcing is a collection agency. If you are being contacted by them through written correspondence or by phone, it is for collections on an alleged debt.
Who Are They?
Fair Collections and Outsourcing or as they refer to themselves FCO, is a debt collector with over 25 years of experience. They specialize in collections on housing units, according to their website their expertise is with collection on senior and assisted living accounts, military accounts, and student housing.
Will Paying Off FCO Collections Help Credit?
Many folks first concern is if I pay off collections will it help my credit? And the short answer is no. FICO says: “The fact that you have collections listed on your credit report will almost certainly lower your FICO score.”
You see, the key to improve credit score information is to remove this negative item, Fair Collections and Outsourcing is reporting about you. These dings, negative items, are what’s damaging most folks credit scores. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can damage and drag your score down by up to 100 points.
And for some folks, paying off debt in collections, can be an effective way to clean up credit report dings, blemishes, and remove negative items. However, it’s smart to follow our suggestions below, to make sure you’re doing this most effectively, efficiently, and intelligently.
Now in addition to the phone calls, demanding letters, and FCO reporting negative information on your credit reports. If they’re unable to collect payment, they have two options. First, they can sell the rights to your debt, to yet another collection agency.
This new debt collector will begin calling, sending letters, and of course, they’ll report even more negative information on your credit report. And the most common result of unpaid debt in collections, is a late stage collection agency, FCO or another debt collector, can legally file a civil lawsuit against you.
As in they can sue you for payment. If this happens you’ll be notified of your court date with a summons. And it’s important to appear, even if you don’t have the financial ability to pay a dime. Because most lawsuits, the defendant doesn’t show up, and this forces a judge to award a default judgement.
If they win their case, they’ll be awarded a judgement. This is their goal, because then they have the ability to garnish your wages, place liens against you or your property, and potentially even asset seizure. Every state has unique laws, so for full details investigate your local legislation. The worst part is a judgement will destroy your credit worthiness.
And while new data requirement standards went into effect for all three credit bureaus on July 1st, 2017 making it far easier for folks to remove judgement from credit report files. And remove public records from credit report files. This is still not an easy, or guaranteed path, and if possible, best to avoid.
Fair Collections and Outsourcing
12304 Baltimore Ave.
Beltsville, MD 20705
Phone number: 1-877-324-7265
Before Paying Fair Collections and Outsourcing
1. Check The Dates
The statute of limitations, a state law that does vary from state to state, places a legal maximum amount of time, you’re responsible for repayment of a debt. Typically this is about seven years from the first date of delinquency.
Once this time window expires, so does your legal obligation. This applies to the vast majority of types of consumer debts including: charge off debt, utilities, healthcare, credit cards, and many more. The few exceptions include defaulted federal student loans, and federal income taxes.
Beware, one of the dirty debt collection industry tactics is to re-age consumer accounts. This enables them to continue to attempt to collect payment, despite your legal obligation expiring. It’s wise to investigate your last date of account activity, before paying off collections.
2. Request They Validate Your Debt
You should contact Fair Credit and Outsourcing to request validation of debt, this is your right granted by the FDCPA. The best way to do this is through a debt validation letter and sent with certified U.S. postal mail, return receipt requested. This is going to require FCO to prove they can legally collect upon your alleged debt account.
Experts estimate that up to 50% of all debt validation requests are not complied with. If Fair Collections and Outsourcing is unable to validate your debt then you are not legally responsible for paying it. As in the debt is legally forgiven. And the credit bureaus will be notified to remove collections from credit report files, regarding this account.
3. Negotiate a Settlement Agreement
Now let’s talk about exactly how to pay off debt in collections, and the first step is to only enter negotiations if your account is validated, and within the statute of limitations. If so, then we want to negotiate a settlement agreement directly with Fair Credit and Outsourcing.
The first part is to always negotiate to settle for less, so you’ll be paying off collections for just a fraction of the total balance. Frequently you’ll be able to negotiate and settle for as little as 15% up to about 45% of your balance. For instance, with a $600 debt, you may be able to settle for just $150 or 25%.
The second part of your settlement agreement is mission critical. We must get Fair Credit and Outsourcing to agree that in exchange for our payment, they’ll stop reporting our account information to all three credit bureaus. If we overlook this part, once we make payment, the only thing that will happen is a change in the status of the item.
It’ll go from unpaid to a paid collection. This is still a negative item, and it’s going to damage our credit score. It’s wise to get your agreement in writing, and we’d suggest including a notation about the credit reporting stopping, in the memo line on a personal check when you make payment.
4. How To Get Collections Off Credit Report
This final step we’re looking at how to get collections off your credit report, and this is going to require us to exercise your consumer rights, specifically granted by the Fair Credit Reporting Act (FCRA). This is how to dispute items on credit report files, using this federal legislation.
This is how we challenge an item, and we can dispute any item we believe is made in error, misleading, or inaccurate. As you’ve probably guessed, we’ll be disputing the FCO collection item. You can file your credit report dispute online, over the phone, or by mail.
Once the credit bureaus get your dispute, and find it valid, they’re required to investigate the item. They call it a re-investigation, as if there was an original investigation before it was slapped on your credit report. Nevertheless when the credit bureaus investigate they’re going to contact Fair Collections and Outsourcing and request verification of your account.
As per your settlement agreement, FCO won’t verify your account with the credit bureau’s re-investigation. The FCRA says any item that can’t be verified, must be removed. This is how to remove collections from credit report files, and legally.
Look, your credit score is a lot like your Grade Point Average (GPA) in school days past. It doesn’t matter if you’re acing all your courses, if you’re failing underwater basket weaving, because this one negative mark is going to decimate your GPA.
This is also true of your credit score. FICO is very clear about this. And this is why it’s so important to clear credit file dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair 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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