Are you receiving a flood of endless phone calls, or letters from RGS Financial? Have you discovered an RGS Financial collection item on your credit reports?
If so, you’re in the right place. RGS Financial is a large, aggressive, third-party debt collection agency. They were founded in 2005, and their corporate offices are located in Richardson, Texas.
They’ll collect and service a variety of types of consumer debt accounts including healthcare, credit cards, automotive, education, utilities, and more. On a side note, they also provide business process outsourcing (BPO) services.
There are consumer reports claiming that RGS Financial is a junk debt buyer, however we are unable to confirm this, and there are reports to the contrary. It looks like they may provide collection services for junk debt buyers.
Nonetheless, the purpose of this article is to share the four steps for consumers for dealing with RGS Financial. These four steps will show you how to protect yourself, exercise your rights as a consumer, and protect your creditworthiness.
The first item we need to share is the Fair Debt Collection Practices Act (FDCPA). This is federal legislation passed by Congress with the intention of regulating the debt collection industry. It’s the rules and regulations.
In brief, it says debt collectors are required to be honest, straightforward, and upfront. They’re also required to provide you with that modicum of respect and dignity, that every human being deserves.
It says much more, and it’s worth your detailed review at your convenience. And yes, the FDCPA is violated just about as often as our drug laws in this country.
Will Paying Off RGS Financial Collections Help Credit?
The most common concern for folks is will paying off collections help credit? You’d think so. It certainly makes sense.
But, as of 2018 no. You see, the only thing that happens if you just pay collections and nothing more, is a change in the status of this item on your credit reports. It’ll be changed to a paid collection.
This is still a negative item, that’s likely to lower your credit score. According to Anthony Sprauve, a spokesman for FICO, collections on your credit reports can damage and drag your credit score down by as much as 100 points.
Look, the key to get a better credit score is to remove this collection mark entirely from your credit reports. As if it were never there. And this is a realistic goal, because every year, millions of collection items are removed from consumer’s credit reports.
That said, for some folks after following the four steps in this article, they may discover paying RGS Financial collections is the easiest and most effective way to get a clear credit history. However, it’s imperative, we first perform the necessary due diligence on this alleged collection account.
RGS Financial Collection Tools
Of course, RGS Financial is going to call you, send you demand letters, and they’re going to report negative information on your credit reports. In addition, it’s likely they’re going to inflate your total balance.
Legally, they can charge your account with high-interest rate fees. And believe it or not, even collection fees. And these can be substantial amounts of money. If they’re unable to collect payment, they have two options.
First, they can sell the rights to your account to yet another debt collector. This new debt collector will, of course, begin calling you, sending letters, and they’ll report even more negative information on your credit reports.
Alternatively, they can sue you. As in file a civil lawsuit against you. Their goal is to win a judgement, because then they’ve really got you by the short and curlies.
Judgements can result in wage garnishment, liens being placed against you and or your property, and even asset seizure. For full details, check out your local legislation, because every state has unique laws.
The worst part about a judgement on credit report files, is it’ll decimate your overall credit score, and virtually overnight. We want to avoid this route, if at all possible.
According to the official RGS Financial website, they provide “asset location services.” It’s unclear if this is for the purpose of filing civil lawsuits against alleged debtors, or if it’s in conjunction with their automotive debt collection services. In other words, to repossess a vehicle.
Please, don’t just ignore RGS Financial and with the false belief they’ll just disappear like a fart in the wind. It’s much more probable this financial annoyance will snowball into a financial nightmare.
In full disclosure, there’s reports that RGS Financial services consumer debt on a consignment basis. This is just like commissions. And their are claims that this is often for the original creditor or lender.
Our point is simply if you ignore this debt you can legally be sued, regardless if it’s by RGS Financial, the original lender, or another third-party debt collector. The official RGS Financial website goes to great pains to assert they treat all people with respect and dignity, and they very well may.
Much of this, is unimportant to consumers, but we need to add that if they don’t actually own the rights to your account. As in they’re working on behalf of a lender or even another company, who retains the rights, that company is who can legally re-sell your account to another debt collector.
1700 Jay Ell Dr
Richardson, TX 75081
Phone number: 1-469-791-4700
4 Consumer Steps For RGS Financial
1. Request Debt Validation
The very first step to dealing with RGS Financial is to request debt validation on your alleged collection account. This is your consumer right, granted by the FDCPA.
You see, when we request debt validation, we’re essentially saying to RGS Financial you first prove this is truly my debt and then we may be able to discuss repayment. They’re required to respond by providing you with the documents, paperwork, and evidence that does, in fact, prove this is your debt.
This paperwork should also show you all the details about the account such as who the original lender or creditor was, the dates of account activity, the total balance, and much more. It’s most effective to make this request in writing, and send it using certified mail, with return receipt requested.
This way you’ll have evidence you made your request, and they received it. If they fail to validate your account, for any reason, then in compliance with the FDCPA you’re no longer legally responsible for payment. Further, they’re supposed to notify all three credit bureaus to have them remove collections from credit report files, concerning this debt.
2. Statute of Limitations
If they do validate your account, our next step is to review this paperwork in detail. We’re looking for your last date of account activity, and in many cases, this is your last date of payment.
You see, you’re not legally responsible for most types of consumer debt forever. In fact, our state lawmakers have passed state legislation called the statute of limitations.
This legislation says exactly how long you are legally responsible for repayment. This does vary by state, so for full details, check out your local legislation.
Generally, this legal time window is seven years from your last date of account activity. Once this time window runs out and expires, then in accordance to state law, so does your legal obligation for repayment.
In other words, you’re only legally responsible for this debt for a specific number of years. The exact number of years will be in your specific state’s statute of limitations legislation, and again this legal time window does vary by state.
This applies to most types of consumer debt including medical bill collections, credit cards, utilities, private student loans, retail, repossessions, auto deficiencies, and many more. The few exceptions are federal student loans in default and federal income tax.
To be clear, unless you have a federal student loan such as a Perkins or Stafford loan that’s guaranteed by our government then your account is regulated by the statute of limitations time window. All other types of consumer debt are governed by this time window.
Warning. Yes, a warning debt collectors and especially late-stage debt collectors and junk debt buyers are notorious for re-aging consumer accounts. This is often done illegally, and with the obvious purpose of continuing to attempt to collect payment, despite your legal obligation ending.
3. Negotiate a Settlement Agreement
There’s two parts to your settlement agreement, and it’s best to get this in writing. First, we want to negotiate to settle and pay off collections debt for just a fraction of the total balance.
For instance, if you have an $800 debt, you may be able to settle and pay just 25% or $200. This is standard operating practice, and RGS Financial will be thrilled to accept a settlement for less payment.
But wait, it’s mission critical we get this second part of your agreement in place. We must get RGS Financial to agree they’ll stop reporting our account information to all three credit bureaus, in exchange for our payment.
Otherwise, we’ll get stuck with that paid collection item on our credit reports. And as we’ve mentioned, this is virtually guaranteed to cause us to have a bad credit score, potentially dragging our score down by as much as 100 points.
Pay For Delete
Have you heard of using a pay for delete approach to dealing with debt collectors? If not, this is where we first demand RGS Financial delete the negative item on our credit reports, and then we’ll make payment.
How wonderful it sounds. It’d be great if this was an effective approach to paying collection agencies. But, it’s not. This is beyond wishful thinking, despite seeing it all over the internet.
Truly, we have better odds of seeing PETA (People for the Ethical Treatment of Animals) opening a butcher shop on every American street corner. In our decade-plus years of experience working with folks to fix credit, we’ve yet to hear of one individual or one debt collector ever making this agreement.
Instead, it’s much more effective and pragmatic to simply get RGS Financial to agree to stop reporting our account information to all three credit bureaus, in exchange for our payment. This is an agreement they will make, albeit in some cases, reluctantly.
4. How To Remove Collections From Credit Report
In our final step, we’re talking about how to dispute items on credit report files, because this is how we’re going to remove this RGS Financial collection mark. As we’ve shared, this negative item is hurting your credit score.
To do this, we’ll need to exercise more of your consumer rights. This time, those granted by the Fair Credit Reporting Act (FCRA). This federal legislation enables us to challenge and dispute any item on our credit reports, so long as we believe it’s inaccurate, misleading, or made in error.
There’s three ways to file your credit bureau dispute online, over the phone, and by mail. Once the credit bureaus get our dispute they first get to deem it valid or frivolous.
This is another conversation for another time and place. So make sure to sign up for our free newsletter for more about how to improve credit score with Dan Willis, and join our congregation.
Once the credit bureaus get our dispute, and deem it valid, they’re required to investigate. They’ll call it a re-investigation. Nevertheless, during which they’ll contact RGS Financial and ask them to verify the collection account.
As per our settlement agreement, RGS Financial won’t verify the account during the credit bureaus investigation. This is the second part of our settlement agreement.
As a result, the credit bureaus must remove this item from our credit reports. This is how to remove bad credit, legally, and by exercising your rights as a consumer. Every last one of those items on our credit reports is supposed to be verifiable.
By the way, if this RGS Financial collection item is on all three of your credit reports with Experian, Equifax, and TransUnion. We’ll need to file three separate credit report disputes. One dispute per bureau.
In other words, we’ll need to file an Equifax dispute to potentially remove this item from our Equifax credit report. Along with an Experian dispute for our Experian credit report. And so on, the credit bureaus are separate entities.
Look, it’s far from easy dealing with debt collectors. Even the best, most respectful, and most law-abiding debt collector doesn’t have your best interest at heart. By default, this is an adversarial relationship.
Nor, is it easy trying to exist in our brave new world with less-than-perfect credit. Not only is poor tax expensive, our creditworthiness virtually dictates our quality of life. Not to mention the stigma that’s associated with having less-than-perfect credit.
For many folks, dealing with debt collectors leaves them feeling as if they’re living in ancient biblical times. They’re David going into battle with the mighty Goliath. And you’re telling me all I get is this lousy sling-shot and a few pebbles? Come on, man!
At the end of the day, your credit score is much like your Grade Point Average (GPA) in glory school days past. It doesn’t matter if you’re acing all your courses, if you’re failing underwater basket weaving, because this negative mark is going to ruin your overall GPA.
We encourage our members to consider professional, legal, and legitimate credit restoration companies. Because the good news is 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 their client’s successfully remove collections, late payments, charge offs, liens, judgements, repossessions, and so 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 get your credit score up with Dan Willis, sign up for our free newsletter and join our congregation.
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