Northland Group is a collection agency, they’ll collect on old debt accounts. This is commonly known as junk debt. It means Northland Group purchased your debt account from another debt collection agency.
There are also reports of them collecting on: credit card accounts, student loan debt, medical bills, and more. Some of the credit card companies include: Capital One, Citibank, Discover, and more.
Who Is The Northland Group?
The Northland Group is an independent debt collector. They most likely purchased your debt account from another agency. However, they could have instead been assigned your account by the original creditor. Northland Group is located in Edina, Minnesota and started business in 1982.
Northland Group will typically start collection attempts, by sending you a written letter that identifies your account and balance. In this letter, there will often be a settlement offer. Frequently, it will be for an offer for roughly 35% of your balance.
If your balance is $2,500. Then you will probably see a settlement offer for about $875. This may appear like a good deal and you may even recognize the debt account as a debt you do own. But it is essential to follow the short guidelines below before you pay the Northland Group.
You see, for most people they first want to know if I pay off collections will it help my credit? Understandably. And the short answer is no. The only thing that happens when you simply, even happily go paying off debt in collections, is the item on your credit report has its status changed.
It goes from unpaid, to paid. A paid collection, is still a negative credit report item, and it’s guaranteed to damage your credit score. FICO says: “The fact that you have collections listed on your credit report will almost certainly lower your FICO score.”
That said, if you first perform the necessary due diligence on your account, and it’s all legit. Then paying off collections, following the guidelines below, can be a very effective way to clear credit history. This is paramount to improve your credit score.
Listen, we’re not advising you ignore this account either, because the most common result of unpaid debt in collections, is a civil lawsuit. Yes, collection agencies, can and do very regularly sue consumers in civil court for repayment. And all the more with credit card collections, and charge off debt.
This can result in a judgement being awarded, which in turn, can cause your wages to be garnished, liens to be placed against you and or your property, and potentially even asset seizure. Investigate your local legislation, because each of our 50 great states, have unique laws.
The worst part, if you get a judgement on credit report files, it’ll obliterate your credit score, and virtually overnight. This is one of the worst credit report items to have, so please, make sure to address this issue, before it becomes a mountain of a problem.
Northland Group Inc.
7831 Glen Roy Rd. Suite 250
Edina, MN 55439
Four Key Steps To Dealing With Northland Group
1. Statute Of Limitations
Northland Group focuses on collecting old junk debt accounts, often these accounts were originally credit card debts. But a credit card debt is governed by the statute of limitations. This is a state law that limits the amount of time you are responsible for repayment of most debts.
Most commonly, it is seven years. But that will depend on what state you live in. The idea is after seven years from your first missed payment, then the debt is no longer legally your responsibility to repay. It is forgiven. And the negative credit must be erased from your credit report.
There are consumer complaints about Northland Group attempting to collect on debt accounts that have aged passed the statute of limitations. Take caution when dealing with bill collectors to avoid paying a debt, you may not be responsible for. This is common industry practice, to re-age consumer accounts.
2. Request Your Account Is Validated
You can request this with a debt validation letter. You can write it yourself or hire a credit repair service to do this for you. Your debt validation request is going to require that Northland Group provide you with the paperwork on your account.
This includes, if Northland Group purchased your debt or it was assigned by the original creditor? The dates of delinquency on your account? And the legal evidence that proves they own your account?
It is not uncommon for collection agencies to just not validate your debt. If this happens, then Northland Group should notify the credit bureaus to remove bad credit on your credit report, about this account. It also means your no longer responsible for repayment.
3. Settlement Agreement
If Northland Group is able to validate your debt, it may be in your interest to negotiate a settlement agreement. It would be wise to review the date of delinquency on your account. If you are only a few months away from the statute of limitations, it may be easier to just wait for your clean credit report naturally.
If you choose to pay this old debt account. Then you should always negotiate to pay less than the total balance. For example, if Northland Group is offering a settlement amount of 35% of your total amount. Then you can make a counter offer of say 20%.
4. File a Dispute With The Credit Bureaus
If you make a settlement payment to Northland Group, you must get them to agree to stop reporting your account information to the credit bureaus. This way you can file a credit bureau dispute and remove any bad credit that Northland Group has reported.
There are three ways to dispute credit report items online, over the phone, and by mail. Once the credit bureaus get your dispute, and deem it valid, they’re required to investigate the item. During which, they’ll contact Northland Group for verification of your account.
As per your settlement agreement, Northland Group won’t verify your account, during the credit bureaus investigation. And in compliance with the Fair Credit Reporting Act (FCRA), the credit bureaus will have to give you a clear credit history, and remove this item. This is how to remove collections from credit report, and do so legally.
In sum, your credit score is a lot like your Grade Point Average (GPA) in school days past. It matters not, if you’re acing all your classes, if you’re failing underwater basket weaving, because this one negative mark is going to destroy your GPA.
This is also true of your credit score. FICO is very open and clear about this. And this is why it’s so vital that we clean up credit report dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit cleaning services.
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 fix credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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