The First National Collection Bureau is a first and third party collection agency. They’re headquartered in McCarran, Nevada and have over 100 people on staff.
They service accounts nationwide. And collect on a wide variety of consumer debt including: credit cards, consumer loans, utilities, auto, telecommunications, student loans, and more.
If you’re currently dealing with First National Collection Bureau or have discovered negative marks on your credit report, you’re in the right place. First, it’s mission critical you understand your rights as a consumer many of which are granted under the Fair Debt Collection Practices Act (FDCPA).
Look, when most people find out they have an alleged debt with a collection agency, they immediately pay it off. What’s worse, many believe this is an effective way to make your credit score go up.
It makes logical sense, but this is what First National Collection Bureau and every debt collector is hoping you’ll do. The reality is when you just pay off collections, the only thing that changes is the status of the item on your credit reports.
It’s changed to a paid collection. This is not a positive, credit building item to have! It’s still going to cause you to a have a low credit score, and according to FICO, can damage your score by up to 100 points.
It’s true, a paid collection is slightly better than an unpaid collection, but not much. Moreover, there is due diligence that every consumer should practice before paying any alleged debt, especially to a company you never directly conducted business with.
We need to share the legal methods First National Collection Bureau can take against you to collect this debt. Of course, you’ve received phone calls, letters, maybe even emails nowadays.
They’re also going to report negative information on your credit report about this account. With the goal of causing you to have a poor credit score.
If they’re unable to collect, or you simply ignore them, they’ll turn around and can sell your account to yet another collection agency. This new agency will start calling you, and they’ll report more negative information on your credit report.
And on, and on it can legally go. Typically the larger the debt, the more collection agencies will purchase the rights, and try to collect payment. Eventually, without any action, First National Collection Bureau, or another agency will sue you. As in they’ll file a civil lawsuit against you.
With the goal of being awarded a judgement against you. Because then they’ve got you by the short and curlies, and can potentially have your wages garnished, liens placed against you, or your property, and even asset seizure.
Every state has unique laws, so please investigate your local listings for the exact possible collection methods. And of course, you’ll get slapped with a judgement on credit report files. This is tantamount to exploding your credit score, and any future worthiness for seven long, expensive, and embarrassing years.
First National Collection Bureau, Inc.
610 Waltham Way
McCarran, Nevada 89434
Steps To Deal With First National Collection Bureau
1. Request Account Validation
The very first thing you should do when dealing with First National Collection Bureau is to request account validation. This is your consumer right, granted by the FDCPA.
You should make your request in writing and use certified mail with return receipt. This will provide you evidence they received your request.
Essentially we’re saying first prove this is a legit debt, and then we can potentially discuss payment. They’re required to respond by furnishing evidence and paperwork that shows who the original creditor was, the dates, balance, etc.
If they fail to provide this, then according to the FDCPA, the debt is forgiven. They’re also supposed to notify the credit bureaus to have them remove collections from your credit report, regarding this account.
2. Age of Your Account
If they do validate your account, you’ll get the documents, and we need to look for your date of last activity. You see, in all 50 states, our elected representatives have passed what’s called the statute of limitations.
This is legislation that says exactly how long you and I are legally responsible for a debt. It’s not forever, just like we no longer go to debtors’ prison.
In most states, it’s seven years from the date of last activity. This means, if your account is over seven years old, it’s supposed to legally be forgiven, and you’re no longer legally responsible for payment.
Of course, check your local listings for the exact amount of time, because every state is different. And it doesn’t apply to every type of consumer debt, most but not all.
The overwhelming majority of types of consumer debt are covered. And beware, the debt collection industry is notorious for both outright ignoring the statute of limitations, and also illegally re-aging consumer accounts, so they can continue to attempt to collect payment.
3. Negotiate a Settlement Agreement
Assuming your account is valid, and within the statue of limitations, the next step is to negotiate a settlement agreement directly with First National Collection Bureau. And there are two keys here.
The first key is to always negotiate to settle your account for less than the total balance. For example, if your balance is $1,000 you very well may be able to pay only 25% or $250.
This is standard, and for a variety of reasons, most notably collection agencies purchase the rights to your debt for just pennies on the dollar. In other words, they’ll still be able to earn a profit, even if they settle your account for less.
The only other way collection agencies earn money is if they work on consignment, this is where they share the money collected with the original creditor. And of course, this still ensures they’ll be profitable settling your account for less.
Typically you’ll be able to settle for as low as 10% up to 40% of the balance. This will depend directly on the age of your account, the older it gets, the less you’ll likely have to pay.
This second key is mission critical, as part of your settlement, you must get First National Collection Bureau to agree they’ll stop reporting your account information to the credit bureaus, in exchange for your payment. Otherwise, you’re going to get saddled with that paid collection on your credit report, that we mentioned earlier.
4. Clear Credit History
This fourth and final step we’re talking about how to get rid of bad credit and specifically remove that collection item from your credit reports, because it’s damaging and dragging your credit score down. We’ll need to exercise more of your consumer rights, specifically those granted under the Fair Credit Reporting Act (FCRA).
This legislation gives you the right to challenge any item on your credit report, so long as you believe it’s questionable, misleading, or an error. Naturally, we’re going to dispute the First National Collection Bureau item.
You can file your credit report dispute online, over the phone, or by mail. Once the credit bureaus receive your dispute, and deem it valid, they’re required to investigate the item.
During which they’ll contact First National Collection Bureau and ask them to verify your account. And because of your settlement agreement with First National Collection Bureau, they will not verify the account with the credit bureaus.
To comply with the FCRA, this means the credit bureaus must remove this item from your credit reports, because it’s unverifiable. This is how to get collections off your credit report, and legally.
The reason we suggest this method, instead of requesting a pay for delete is because we’ve found zero debt collectors are willing to agree to a pay for delete. They’re much more willing to agree to simply stop reporting your account, possibly because you’ll still have to perform another step to get a clear credit file.
Please, be cautious when dealing with collection agencies. Many of them, blatantly violate consumer rights, and the law. And even the best debt collectors are frequently preying on consumer’s and their ignorance. This is because their profit margin is directly in line with how much money they can squeeze out of someone.
Obviously if everyday Joe, just doesn’t know he can negotiate to pay less, and pays the total $1,000 on his debt, from our earlier example. If First National Collection Bureau purchased his account for only $100, that’s $900 of profit.
Rather than negotiating to pay $250 for example. The takeaway is please don’t get taken advantage of. This industry leaves countless victims, every year.
At the end of the day, your credit score is much like your Grade Point Average (GPA) in glory school days bygone. It doesn’t matter if you’re acing all your classes, if you’re failing Gym class, because this negative mark is going to ruin your overall GPA.
This is also true of your credit score. FICO is very transparent about sharing this fact. And this is why it’s so essential to clean credit report dings, blemishes, and remove any negative credit report 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 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 improve credit score with Dan Willis, sign up for our free newsletter, and join our congregation.
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