National Credit Systems is an independent third party collection agency. They specialize in collecting consumer debt on behalf of the apartment industry. They’re headquartered in Atlanta, Georgia and were originally founded in 1991.
Look, if you’re receiving obnoxious phone calls and threatening letters claiming you must pay National Credit Systems, it’s imperative that you fully understand your rights as a consumer. One of the most common mistakes is to pay off debt in collections, and with the blasphemous idea that this is how to get a better credit score.
It’s logical and makes sense, but that’s just not the way our systems in America operate. FICO the company that calculates consumer credit scores says collections on credit report files can damage your credit score by up to 100 points.
When you simply go about paying off collections, the only thing that changes is the status of the collection listing on your credit report, to a paid collection. This is a negative listing and will cause you to have a bad credit score.
The second deadly mistake is to just ignore debt collections with the false belief that it’ll just disappear like a warm fart on a windy day. While it’s true for the vast majority of types of consumer debt you’re not legally responsible for payment forever.
The more frequent result with unpaid debt collections is a lawsuit. As in National Credit Systems has the ability to sue you for payment. This can result in a judgement against you and that can lead to wage garnishment, asset seizure, and even liens placed against you.
The worst part is you’ll get slapped with a judgement on credit report files and this will annihilate your credit score, virtually overnight. This is one of the worst items to have and will definitely cause you to have a bad credit history.
Beware according to the National Credit Systems website they work hand in hand with lawyers to pursue this path. In other words, it’s a safe bet they’ll sue you for payment on this NCS collections account. Continue reading to discover the four steps to exercise your consumer rights.
National Credit Systems Inc
3750 Naturally Fresh Blvd
Atlanta, GA 30349
4 Steps For NCS Collections
1. Request Account Validation
The very first step to dealing with an NCS collections debt is to request account validation. This needs to be done in writing and using certified mail. Essentially you’re saying prove this is actually my debt.
This is your right granted by the Fair Debt Collections Practices Act (FDCPA). It’ll require National Credit Systems to respond by providing you with evidence that proves this is your account, and they own the collection rights.
If they fail to validate your debt then you’re no longer legally responsible for payment. Moreover they’re suppose to contact all three credit bureaus to have them remove collections from credit report files, concerning this account.
2. Legal Time Window
If however they do validate your account, you’ll want to inspect these documents and look for the date of last activity with the original lender. Listen for the vast majority of types of consumer debt you’re only responsible for payment for typically seven years.
This is called the statute of limitations and it’s a state law, so investigate your local listings for the exact figures. This applies to most debts including: past due rent, medical debt, charge offs, repossessions, and many more. One of the few exceptions is defaulted student loans.
One of the dirty debt collection industry secrets is they’ll frequently re-age consumer accounts. This way they can continue to attempt to collect payment, along with reporting bad credit on your credit reports, thus damaging your credit score.
3. Negotiate Settlement
If your account is valid and within the legal time window, you’ll next want to negotiate a settlement for your NCS collections account. There’s two keys here, the first is to always negotiate to pay less than the total balance.
For instance if they’re contacting you to pay $800 you’ll often be able to settle the debt for less, such as 20% or $160. You’ll likely have to pay in the ballpark of 10% to 40% of the total balance.
Now it’s imperative that you get National Credit Systems to agree to stop reporting your account information to all three credit bureaus, in exchange for your payment. If you neglect this, then the only thing that will change when you make payment is the status of the collection on your credit report.
It’ll be changed to a paid collection. As we shared earlier this can damage your credit score by up to 100 points. We need to erase bad credit listings in order to achieve the credit score you truly deserve.
4. Credit Bureau Dispute
In this last step we’re removing collections from your credit report by exercising your consumer rights granted by the Fair Credit Reporting Act (FCRA). This legislation empowers you to dispute any item on your credit report that you believe is inaccurate, questionable, or made in error.
We’re going to dispute the NCS collections listing. You can file your credit bureau dispute online, over the phone, or by mail. Once the bureaus get your dispute and find it valid they’ll conduct an investigation.
During which they’ll contact National Credit Systems and ask them for verification of your account. As per your settlement agreement National Credit Systems won’t verify your account with the credit bureaus. In accordance with the FCRA this means the credit bureaus must remove this item from your credit report.
This is how to clear bad credit. And when it comes to repairing credit, removing credit report dings is proven to be the most effective method. This is because those dings, the negative listings, are the cause and culprit for a less than perfect credit score.
The unfortunate truth is collection agencies and the credit bureaus regularly, habitually, and consistently violate consumer rights. This is evidenced by the abundant Federal Trade Commission (FTC) fines issued to the both these industries.
Your credit score is akin to your Grade Point Average (GPA) in school days past. Even if you’re acing all your courses, but you’re failing Art class, your overall GPA is going to be ruined. This same principle applies to your credit score. This is why it’s so important to clean up credit report dings, blemishes, and derogatory items.
We encourage our members to consider professional, legal, and legitimate credit repair services to assist and enforce their consumer rights. 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 successfully helped client’s 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 about how to improve credit with Dan Willis, sign up for our free newsletter and join our congregation.
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