National Recovery Solutions is a third party collection agency. They’ll purchase the rights to your account for just pennies on the dollar and then begin contacting you for payment.
They’re located in Lockport, New York and specialize on collecting multiple types of debt including: student loans, charged off credit cards, past due bank accounts, and more. It’s imperative that you fully understand your rights as a consumer and how exactly to navigate the treacherous waters of debt collection.
The first key insight we’ll discuss is precisely what debt collectors can do to try and pressure you to make payment. Of course, they’ll report bad credit about you to the three major credit bureaus, along with contacting you by mail and phone to request payment.
After about six months if they’re unsuccessful in their collection efforts, they’ll sell your account to yet another debt collector. This new collection agency will also report negative credit about you on your credit report, and the frequent outcome of delinquent debts is a civil lawsuit.
Yes, you can be sued in a civil court for repayment of this alleged debt. This can result in a judgement against you, which can cause your wages to be garnished. It’s also possible for liens to be placed against you and your property. Please check your local laws as the specifics will depend upon your state of residence.
The most common mistake consumers make dealing with debt collectors is believing that if they simply pay an old debt that will improve credit. The cold harsh truth is when you just pay off debt in collections, the collection listing on your credit report will only be changed to a paid collection. That’s not a good positive credit building item to have on your credit report.
National Recovery Solutions LLC
6425 Dysinger Road
Lockport, NY 14094
Phone number: 716-923-7485
Four Tips To Deal With National Recovery Solutions
1. Statute of Limitations
The first thing you should do with an alleged debt from National Recovery Solutions is to identify the account. Is it your account and do you recognize who the original lender or creditor is?
This is relevant because, for the majority of consumer debt accounts, you’re not legally responsible for repayment forever. In fact, most debts fall inside the statute of limitations which is the legal time window for which you are responsible for payment.
This is frequently about seven years and it’ll depend upon your state of residence. Please double check your local statute of limitations for the exact amount of time. Once this time window expires then the debt is forgiven and it should be a relatively easy item to remove from your credit reports.
This time window starts running from the date of delinquency with the original lender or creditor. For example one of our members reached out to us and shared that he’s dealing with National Recovery Solutions for an old charged off Citibank credit card account.
The statute of limitations began ticking for this account from the first date of delinquency with Citibank. In other words, when National Recovery Solutions acquired the collection rights to his account, the debt had already aged a substantial amount of time.
One of the few exceptions to the statute of limitations is student loans. However charged off credit card accounts, medical bills in collections, utilities, and many more types of debt are regulated by this legal time window.
One of the devious and sneaky tactics debt collectors often utilize is to re-age a consumer debt account. This enables them to continue contacting you for payment, along with being able to report negative credit about you to the three major credit bureaus. This is all done in an attempt to pressure you into making payment.
2. Account Validation
Assuming your account is within the legal time frame for which you’re responsible, you’re next step needs to be requesting debt validation for your account. This is your right granted by the Fair Debt Collection Practices Act (FDCPA).
You should request debt validation using certified mail, so you’ll have evidence should you need it, that they received your validation request. This will require National Recovery Solutions to respond by providing you with documents, evidence, and paperwork proving they’re the legal rights holder on your account.
If your debt is not validated then you’re no longer responsible, and they should notify all three of the major credit bureaus to have them remove collections from credit report files for you. If however your account is validated then we’ll need to look into making a settlement agreement, full details inside tip number four.
Requesting debt validation on your account is one of the most powerful tools for every consumer to use against collection agencies. It’s common for debt collectors to not validate an account and the exact reason for this varies from not having the paperwork together to not wanting to invest the time providing a legal response to wise consumers.
The Federal Trade Commission (FTC) has fined collection agencies many times for ignoring consumer debt validation requests. If this happens or you’re rights have been violated please report the culprit to your state’s attorney general, along with the federal authorities.
Every law has been passed to protect you the consumer from aggressive collection agencies, lenders, and even the credit bureaus. It’s up to you to exercise your rights.
3. Credit Dispute
Now let’s discuss exactly how to remove collections from credit report files. This negative information is what’s damaging and lowering your overall credit score, and if you’re working to earn good credit then you must clean up credit report errors, inaccuracies, and questionable listings.
The most effective way to clear bad credit on your credit reports is to file a credit bureau dispute. This is how you notify the credit bureaus there’s an error on your credit report, and it needs to be investigated and possibly removed.
Again this is your right granted by the Fair Credit Reporting Act (FCRA). This piece of legislation gives you and every consumer the ability to challenge any item on your credit report, that you believe to be questionable, inaccurate, and misleading. It also requires the credit bureaus to investigate consumer disputes.
Once the credit bureaus find your dispute valid, then they’ll investigate the listing by contacting the company reporting the negative information and requesting verification for the account and any pertinent details. If the item can’t be verified then it must be removed from your credit report.
The unavoidable truth is that removing inaccurate information from your credit report, isn’t as easy as just sending in your credit bureau dispute. The law’s in our opinion were intended to make it this simple, however, the credit bureaus are private for-profit businesses.
The only reason the credit bureaus do investigate consumer disputes is because of regulations, and federal laws. It’s a little-known fact that the credit bureaus must spend money that’s otherwise profit when they do investigate consumer disputes.
Therefore there’s a clear cut financial interest for them to avoid conducting investigations. This is why many people get frustrated and give up on removing errors from their credit reports. Some folks will even try to convince you it’s illegal to remove accurate bad credit. This is pure unadulterated baloney!
The FTC has fined all three of the major credit bureaus collectively and multiple times. One of the most egregious of these alleged violations of the credit bureaus was complying with requests to create toll-free phone numbers for consumers to file a dispute.
However, they neglected to hire any staff members to answer the phones! Of course, the FTC did issue a fine for the unreasonable hold times consumers endured.
The point with all this is when you’re dealing with aggressive collection agencies, lenders, and even the three major credit bureaus you must be aware of your rights, as a consumer. Many wise individuals will turn to a professional credit repair service to assist them in this process.
The alternative is to become an expert in credit and debt laws and try to navigate these perilous waters yourself. However you choose to move forward keep in mind all these laws exist to protect you, and your rights.
4. Negotiate a Settlement Agreement
Now, let’s talk about how to pay off collections debt, and so it will help your credit. If your account is within the legal time period and it’s been validated, next you should negotiate a settlement agreement with National Recovery Solutions.
First, it’s key to negotiate to pay less than the total balance they’re contacting you for payment on. Often you can negotiate and get their agreement for settlement for somewhere between 20% and 40% of the total debt. For example, if you have a $2,000 debt, then you’ll likely be able to settle the account for around $600.
It’s vital that in exchange for your payment, you get National Recovery Solutions to agree that they’ll stop reporting your account information to all three of the major credit bureaus. This way you’ll be able to remove negative information on your credit report, and won’t be stuck with a paid collection.
You’ll need to file a credit report dispute, which we’ve discussed in tip number three. When the credit bureaus do investigate your dispute they’ll contact National Recovery Solutions and ask them to verify your account. As per your settlement agreement, your account won’t be verified and thus the listing must be removed from your credit report.
When all is said and done, your credit score is just like your Grade Point Average (GPA) in school days gone by. It doesn’t matter if you’re acing all your classes, if you’re failing Art class, because that one negative mark is going to ruin your overall GPA.
This is exactly how your credit score works. FICO openly says this. And this is why it’s so essential to clear credit file dings, blemishes, and negative items. We encourage our members to consider professional, legal, and legitimate credit repair companies to help with this.
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 to fix my credit with Dan Willis, sign up for our free newsletter and join our congregation.
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