National Credit Adjusters is an aggressive, third party collection agency. They’re headquartered in Hutchinson, Kansas, and service a variety of types of consumer debt including: charge off accounts, financial services, payday loans, retail, and more.
If you’re currently dealing with the obnoxious phone calls, threatening letters, it’s mission critical you understand your rights as a consumer under the Fair Debt Collection Practices Act (FDCPA). This is federal legislation that is suppose to regulate the behavior of collection agencies.
And this law is broken all the time, including allegedly by National Credit Adjusters (NCA). In January 2017, a proposed class action lawsuit in Wisconsin, claims NCA was misrepresenting themselves saying they had a license in said state, when in reality they did not hold said license.
In other words, egregious lying. Which is one of many guidelines put forth in the FDCPA. In this article we’re going to share four steps to dealing with NCA collections, while protecting your rights, your credit history, and your wallet.
With your original lender or creditor after about six months or 180 days of delinquency, they likely charged off your account. They reported this charge off account on all three of your credit reports, and then sent your account to National Credit Adjusters.
Now in addition to the phone calls, and letters, NCA is going to report more negative information about your account on all three of your credit reports. And if they’re unable to collect payment, they have the legal ability to turn around and sell your account to yet another collection agency.
Obviously this new agency will repeat the process, and ultimately with the majority of unpaid collections they result in a civil lawsuit. As in you can be sued for this debt. Their hope is to win a credit judgement against you because then they’ve got you by the short and curlies.
They can potentially garnish your wages, place liens against you and your property, and even asset seizure. Investigate your local listings, because the exact methods available do vary by state.
National Credit Adjusters
327 West 4th
PO Box 3023
Hutchinson, KS 67504
4 Steps For NCA Collections
Warning, many well meaning individuals upon discovering they have an alleged collection debt, instinctively and automatically pay it in full. They logically and understandably believe this is how to improve credit.
But, all this does is change the status of the collection on your credit report. It’s changed to a paid collection. This is still a negative item and it’s going to cause you to have a low credit score.
According to Anthony Sprauve, a spokesman for FICO, a collection on your credit report can drag your score down by as much as 100 points. Ouch!
1. Request Account Validation
The very first step to take with National Credit Adjusters is to request validation on your account. This is your consumer right, granted by the FDCPA. It’s most effective to make your request in writing and using certified mail with return receipt requested.
This gives you evidence they received your validation request. They’re required to respond by providing you with evidence and documents that prove this is your debt.
These documents should clearly show the legitimacy of your account including: the original lender, balance, dates of account activity, etc. If they fail to validate your account, then by law the debt is forgiven.
2. How Old Is Your Account?
If they do validate your account, when you receive these documents, you want to identify the date of last account activity. You see there’s additional state legislation, that does vary by state so investigate your local laws, that governs how long you’re legally responsible for a debt.
This law is called the statute of limitations, and generally it’s about seven years. Once this time window runs out, the debt is no longer your legal responsibility. You may continue to be contacted by NCA or other collection agencies, but according to the law you have zero responsibility legally for payment.
Believe it or not, many people have been sued for debt collections that had aged long past the statute of limitations, and have even won! This law is a valid defense should you find yourself among this ever rapidly growing number of Americans.
Beware, one of the most common violations of the debt collection industry is to illegally re-age consumer accounts. This way they can continue to attempt to collect payment. In full disclosure the statute of limitations doesn’t apply to every type of consumer debt.
Federal taxes, and federal student loans in default are exempt. However every other type of consumer debt is governed by the statute of limitations including: charge offs, retail, payday loans, medical bills, utilities, credit cards, and many more.
3. Make a Settlement Agreement
If your account is valid, and within the statute of limitations, your next step is to negotiate a settlement agreement directly with National Credit Adjusters. And there’s a few pieces to this step, the first is to always negotiate to settle your debt for less than the total balance.
Typically you’ll be able to settle your account for just a fraction of the balance, often in the ballpark of as low as 10% up to 40%. For example, with a $1,000 debt you may be able to settle for just 25% or $250. This is standard operating procedure and they’ll happily accept a payment for less.
The second piece of this agreement, and it’s mission critical, is that you get NCA to agree that in exchange for your payment they’ll stop reporting your account information to the credit bureaus. If you overlook this part, you’ll get slapped with that paid collection, we discussed earlier.
4. Dispute Credit History
Now in this last step, we’re looking at how to clear your credit history of this negative information. We’re going to exercise more of your consumer rights and this time those granted by the Fair Credit Reporting Act (FCRA).
This legislation gives you the right to challenge and dispute any item, so long as you believe it’s incorrect, misleading, or made in error. Of course we’re going to file your credit bureau disputes for the NCA collection item.
Once the credit bureaus get your dispute, and find it valid, they’re required to investigate the item. They’ll do this by contacting National Credit Adjusters and ask them to verify your account, the balance, dates, etc.
As per your settlement agreement with NCA, they’re not going to verify your account with the credit bureaus during their investigation. And this means, the credit bureaus must remove collections and negative information regarding this account, from your credit reports.
Look, it can be intimidating, and downright aggravating trying to deal with aggressive and obnoxious debt collectors. Especially if they don’t follow the rules or the law.
Please, don’t be one more of the many victims. Every last alphabet soup law has been passed to protect you. And if your big picture objective is to fix your credit scores, it’s essential you remove the negative items from your credit reports.
Did you know in 2016 alone, over 9 million negative items were removed from consumer’s credit reports? We encourage our members to consider legal, affordable, and professional help.
One of the top credit repair companies is the Credit Pros. They’ve helped their client’s remove all types of negative credit report items including: collections, late payments, charge offs, judgements, liens, and many more.
Get a free credit consultation by calling toll-free 1-877-418-7596. And for more strategies, techniques, and tips about how to repair credit with Dan Willis sign up for our free newsletter, and join our congregation.
Get a FREE Credit Consultation 1-877-418-7596