Are you receiving a flood of phone calls, threatening letters, or have you discovered Franklin Collection Services on your credit reports? If so, you’re in the right place.
Franklin Collection Services is an aggressive, third-party, debt collection agency. They’re based in Tupelo, Mississippi and were established in 1980. They collect and service a wide variety of types of consumer debt, nationwide, including: medical bill collections, charge off accounts, defaulted student loans, telecommunications, and more.
It’s essential to understand your consumer rights when dealing with collection agencies. Many of these rights are granted by the Fair Debt Collection Practices Act (FDCPA). This federal legislation is supposed to regulate the debt collection industry.
In short, it says debt collectors are required to be honest and straight-forward. Along with giving you the modicum of respect and dignity, that every human being deserves. And yes, this legislation is broken about as frequently as our drug laws. For full details, it’s worth checking out the FDCPA at your convenience.
Does Paying Off Franklin Collections Help Credit?
It can, when done properly. But, just paying off debt in collections and nothing more, will only change the status of the item on your credit reports. It’ll be changed to a paid collection.
This is still a bad, negative, and damaging item to have and it’s guaranteed to lower your credit score. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can damage and drag your score down by as much as 100 points. That’s huge!
That said, for some folks after first performing the required due diligence and following the four tips below, may find out that paying off collections is the easiest, and most effective way to clear credit report dings, blemishes, and negative items. But first, we’re going to share the collection weapons at Franklin Collection Services disposal.
Debt Collection Weapons
In addition to the endless phone calls, demanding letters, and the negative information on your credit report. Franklin Collection Services can also inflate your total balance by charging interest fees and even collection fees.
If they’re unable to collect payment, they have two options. They can sell your account to yet another debt collector. This new debt collector will then start calling you, sending letters, and they’ll report more negative marks on your credit reports.
The second option is they can sue. Yes, Franklin Collection Services can file a civil lawsuit against you. Moreover, according to their official website they say they’ll “go to court for you” talking about the you being their client, who would have been your original lender, or creditor.
In other words, it looks like they actively use this method of suing consumer’s. The goal is to win a judgement, because if this happens, they’ve truly got you by the short and curlies.
Depending on where you live, because every state has unique laws, judgements can result in wage garnishment, liens placed against you or your property, and even asset seizure. Further, if you get slapped with a judgement on credit report files, it’ll decimate your credit score, and virtually overnight.
Franklin Collection Services, Inc.
2978 West Jackson Street
P.O. Box 3910
Tupelo, MS 38801
Phone number: 1-800-262-7590
4 Consumer Tips For Franklin Collection Services
1. Request Debt Validation
Look, when it comes to how to deal with debt collectors the first step for every consumer dealing with every collection agency, is to request debt validation on your account. This is your consumer right under the FDCPA.
Basically, we’re saying Franklin Collection Services, you first prove this is my account, legit, and everything’s on the level, and then we can potentially discuss repayment. After all, we never did any business directly with the Franklin collection agency.
It’s most effective 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 received your validation request.
You see, they’re required to respond within 30 days of receipt by providing you with the documents, evidence, and paperwork that proves this is your debt. This paperwork will also show you all the details about your account including who the original lender or creditor was, the total balance, dates of account activity, etc.
If they fail to validate your debt, for any reason, then in compliance with the FDCPA this debt is legally forgiven. As in you’re no longer legally responsible for payment. Moreover, they’re supposed to contact all three credit bureaus to have them get collections removed from credit report files, regarding this account.
2. Statute of Limitations
If they do validate your account, we want to review this paperwork in detail. We’re looking for your last dates of account activity. You see, you’re not legally responsible for repayment for most types of consumer debt, forever.
Our state lawmakers passed the statute of limitations that says specifically how many years we are legally responsible for repayment. And this does vary by state, so for full details, check out your local legislation.
Generally, it’s about seven years from the first date of delinquency. Once this time window runs out, then the debt is forgiven. And this applies to most consumer debts, not all, but many.
The few exceptions are federal income tax, and federal defaulted student loans. Most everything else it does govern including medical collections, charge off debt, credit cards, telecommunications, utilities, retails, and many more.
Warning. One of the most common fines to the debt collection industry is for illegally re-aging consumer accounts. Of course, this is so they can continue to attempt to collect payment. Your legal obligation to repay ends with the statute of limitations time window.
3. Negotiate a Settlement Agreement
If your account is validated, and within the legal time window, our next step is talking about how to pay off collection debt, and so it will help with credit score. There’s two parts to your agreement.
First, we always want to negotiate to settle our debt for much less than the total balance. Often, we’ll be able to negotiate and pay as little as about 15% up to 45% of the balance. This is normal, and what Franklin Collection Services anticipates, a settlement for less.
The second part of your agreement is essential. We must get Franklin Collection Services to agree, they’ll stop reporting our account information to all three credit bureaus, in exchange for our payment.
If we neglect this part, we’ll get stuck with that paid collection on our credit report. And you may have heard about the pay for delete approach?
If not, this is another so-called way of dealing with debt collectors where we demand they first delete the item from our credit reports, and then we’ll pay. This is a common approach you’ll see all over the internet.
But it’s bunk! It’s not true, and for so many reasons to those of us working and familiar with how the debt industry operates. As great as it sounds, we can guarantee Franklin Collection Services and no debt collector will ever agree to delete an item, in exchange for payment.
Unfortunately. In our over a decade of working with folks personally, we’ve yet to hear of one case of this pay for delete approach truly happening. You’re still welcome to try.
However, they will agree to stop reporting your account information. It’s a small and subtle difference, but it does make all the difference, and you’ll soon see why.
4. Clean Up Credit Reports
In this final step, we’re talking about how to dispute credit report items. This is how we’re going to remove the Franklin Collection Services item from your credit reports.
We’re going to exercise more of your consumer rights, specifically granted by the Fair Credit Reporting Act (FCRA) in order to do this. This federal legislation is what enables us to dispute and challenge any item on our credit reports, so long as we believe that item is inaccurate, misleading, or made in error.
There’s three ways to dispute credit report items: online, over the phone, and by mail. And yes, we’re going to dispute the Franklin Collection Services item. Once the credit bureaus get our 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 fixing tips with Dan Willis, and join our congregation. But, once the credit bureaus get our dispute and deem it valid, they’re required to investigate the item.
They’ll call it a re-investigation. Nonetheless, they’ll contact Franklin Collection Services and request verification of the account. As per our settlement agreement, Franklin won’t verify your account during the credit bureaus investigation.
In compliance with the FCRA, this means the credit bureaus must remove this item from our credit reports. This is how to clean your credit history dings, blemishes, and remove the negative items. And legally.
Look, you’re swimming in dangerous shark-filled waters when dealing with debt collectors. They don’t have your best interest at hand, and least of all you or your family’s financial future. You’re going to have to be super tough and firm with these guys.
If you’re working to fix credit score information, and apt analogy is 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 underwater basket weaving, because this negative mark is going to ruin your overall GPA.
This principle also applies to your credit score. And why it’s so mission critical that we exercise your consumer rights, and clear credit history dings, blemishes, and remove 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 improve my credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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