Palisades Collection is a debt collection company. Are they contacting you or have they reported bad credit on your credit report? If so, it is important to know how you can fight back!
Who Is Palisade Collections?
Palisades Collection is a subsidiary of Asta Funding another collection agency. Palisades will collect on many different types of debt accounts including: charge off debt, healthcare, telecommunications, retail, utilities, and more.
Palisades Collection LLC
210 Sylvan Ave.
Englewood, NJ 07632
Phone number: 201-567-5648
How Palisades Got Your Information
Asta Funding will often purchase your debt account from a lender or a third-party collection agency. Then Palisades Collection will begin contacting you for repayment. They will report a debt collection on your credit report and this will damage your credit score.
Complaints Against Palisades Collection
There are a wide array of consumer complaints about Palisades Collection LLC and Asta Funding. Many of these complaints are regarding debt collection attempts on accounts that are: aged passed the statute of limitations, manipulation of last activity on an account, and inflated balances due on your account.
As we mentioned, Asta Funding is frequently the purchaser of the debt accounts. Then they will pass the account on to Palisades to attempt collection. However, the debt account appears to be owned by Asta Funding. Did you know Palisades Collection and Asta Funding only pay pennies on the dollar for collection rights on your debt account?
For example, if you had a credit card that gets charged off. Then Palisades Collection begins contacting you for payment. The amount that Palisades is attempting to collect from you, or credit card collections, is almost always astronomically higher than your closing balance, before your credit card was charged off.
This is a result of two reasons, first, you’ll be charged a sky-high default interest rate. Your credit card will charge you a high-interest rate before they actually charge off your debt. This interest rate will be charged and fees for the last six months your credit card account is open.
On a side note when the credit card issuer charges your account off, they can use it as a tax break. From a business perspective, it makes sense that credit card companies would like a bigger tax break when it is possible. Therefore the bigger your balance the bigger the tax write off for the credit card issuer.
Second, Palisades Collections can legally charge you a collection fee. Yes, you read that correctly. Palisades and other collection agencies can legally add collection fees to your account balance. Sometimes these collection fees are massive, tens of thousands of dollars, depending on the size of your debt, of course.
How You Can Fight Back Against Palisades Collections
1. Request Account Validation
You should first request validation of your debt before you even speak with Palisades. This is your consumer right, granted by the Fair Debt Collection Practices Act (FDCPA). It’s best to make your request with a debt validation letter, sent certified mail, with return receipt requested.
This way you’ll have evidence they received your request. You see, they’re required to respond within 30 days of receipt, by providing you with the documents, paperwork, and evidence that proves this is in fact, your account.
If they fail to validate your debt, then in accordance with federal law, the debt is forgiven. As in you’re no longer legally responsible for repayment. And they’re supposed to notify all three of the credit bureaus to have them start getting collections removed from credit report files, regarding this debt.
2. Statute of Limitations
The next step is looking at the statute of limitations. This is a state law, and it places a maximum amount of time you’re legally responsible for repayment of a debt. And it ain’t forever.
Generally, it’s about seven years from the last date of account activity. This does vary, from state to state, for for full details, check your local legislation. If you’re account is validated, we want to review the paperwork, because we want to identify the last date of account activity.
Warning. One of the dirty debt collection industry tactics is to re-age consumer accounts. This is one of the common violations, the industry is fined for, seemingly constantly.
This legal time window doesn’t apply to every type of debt, but it does to the overwhelming majority including: credit cards, automotive, charge off accounts, utilities, retail, healthcare, and so many more. The few exceptions include defaulted federal student loans, and federal income tax.
3. Negotiate a Settlement
Only if your account is validated, and within the statute of limitations, do we now need to talk about how to pay off debt in collections, and so it will improve your credit score. And there are two critical parts to your agreement.
First, always negotiate to settle your debt for only a fraction of the total balance. Frequently you’ll be able to negotiate, and be paying off debt in collections for as little as 15% up to around 45% of the balance. For instance, with a $900 debt, you may be able to settle for 30% or $300. This is standard operating procedure.
Second, you must get Palisades Collection to agree that in exchange for your payment, they’ll stop reporting your account information to all three credit bureaus. If you overlook this part, once you make payment, the only thing that will change is the status of the collection on your credit report.
It’ll be changed to a paid collection. This is still a negative item, and it’s going to damage your credit score. Anthony Sprauve, a spokesman for FICO, says collections on your credit reports can damage and drag your score down by up to 100 points. That’s huge.
4. Clean Up Credit Report
You see, the fundamental truth to fixing credit is removing the negative items from your credit reports. Which is why our final step we’re talking about how to clean up credit report dings, blemishes, and specifically remove this Palisades Collection item.
This is going to require us to exercise more of your consumer rights, and those granted by the Fair Credit Reporting Act (FCRA). This federal legislation is what lets us challenge any item on our credit reports, so long as we believe it’s been made in error, is misleading, or incorrect.
In other words, we’re discussing how to dispute credit report items. And yes, we’re going to dispute the Palisades Collection. You can file your credit dispute online, over the phone, and by mail, directly with the credit bureaus (Experian, Equifax, and TransUnion).
Once they get your dispute, and deem it valid, they’re required to investigate the item. During which they’ll contact Palisades Collection, and request they verify your account. As per your settlement agreement, Palisades collection will not verify your account during the credit bureaus investigation.
By the way, the credit bureaus call it a re-investigation. Nevertheless, the FCRA, says any item on your credit report that can’t be verified must be removed. This is how to clear credit history dings, and legally, and how to remove this collection item.
At the end of the day, your credit score is just like your Grade Point Average (GPA) in bygone school days. 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 decimate your GPA.
This is also true of your credit score. And why it’s so important to clean credit history dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair 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 improve credit with Dan Willis, sign up for our free newsletter and join our congregation.
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