Stellar Recovery Inc. is an aggressive third-party collection agency. They specialize in servicing charged off debt accounts including telecommunications, auto loans, utilities, and more.
They have two office’s located in Jacksonville, Florida, and Kalispell, Montana. The purpose of this article is to show you exactly step by step how to fight back against Stellar Recovery collection agency and protect your rights, your credit, and your pocketbook.
Stellar Recovery Inc.
1327 Highway 2W #100
Kalispell, MT 59901
Phone number: 406-755-9522
5 Steps To Fight Stellar Recovery
1. Collection Tactics
Naturally, Stellar Recovery will be sending you threatening letters and harassing phone calls. Additionally, they’ll also report negative information about you to the three major credit bureaus. If they’re unable to collect payment from you, then they’ll often turn around and sell your account to yet another collection agency.
This new agency will begin calling you, sending letters, and they’ll report even more negative information on your credit report. Frequently unpaid debt in collections will ultimately result in a civil lawsuit, as in they’ll sue you in court for repayment.
This can result in a judgment against you and potentially lead to your wages being garnished. It’s mission critical that you address this issue and head on, before it results in a much more devastating situation. You do have rights and tools to fight back.
2. How Old Is Your Account?
The second step is to identify your account with the original lender or creditor. This is essential because for the vast majority of types of debts you’re not legally responsible for repayment forever. In fact, most consumer debts are governed by the statute of limitations.
This is the legal time period for which you’re responsible for the account. Once this clock runs out, then the debt is forgiven and you’re no longer responsible. This time window will vary from state to state so please check your local listings.
Generally speaking, it’s about seven years and that time starts ticking from your first date of delinquency with the original lender. One of the sneaky tactics many debt collectors will use is to re-age consumer accounts.
This is often done illegally and it enables collection agencies to continue contacting you for payment. Along with being able to destroy your credit worthiness for years to come, and all in an attempt to pressure you into paying off collections.
3. Validate Your Account
The third step is to request account validation on your alleged debt. This is your right protected by the Fair Debt Collection Practices Act (FDCPA). This should be done in writing and using certified mail.
Once Stellar Recovery receives your validation request, they’re required to respond by providing you with the legal documents, paperwork, and evidence that proves they’re the legal owner of your collection account, and can accept payment. If your account is not validated then you’re no longer legally responsible for it.
Moreover, they’re supposed to notify the credit bureaus to have them start the process of getting collections removed from credit report files, regarding this account. The unavoidable truth is the Federal Trade Commission (FTC) has consistently issued fines to the debt collection industry.
Many of these fines are for violations of the FDCPA and there’s even been collection agencies that have been fined for completely ignoring consumer validation requests. This is why we strongly encourage you to submit your validation request in writing and using certified mail. This way you’ll have evidence of your request and if your rights are violated it’s essential to take action.
The primary purpose of account validation is to force Stellar Recovery to prove this is your debt. If your account is validated then you’ll need to negotiate a settlement agreement which will be discussing momentarily. It’s not uncommon for collection agencies to not validate consumer accounts.
4. Credit Report Dispute
In this fourth step, we’re looking at how to remove collections that Stellar Recovery has reported on your credit reports. We’re deploying the credit report dispute process which is your right granted by the Fair Credit Reporting Act (FCRA).
This is the legislation that gives you and every consumer the right to dispute any item on your credit reports that you believe is questionable, inaccurate, and misleading. The FCRA also requires the credit bureaus to investigate consumer disputes.
During an investigation, the credit bureau will contact the creditor that’s reporting the item, and ask them to verify the account and any relevant information. If the account is not verified, then in accordance with the FCRA, it must be removed from your credit report.
You can file your credit dispute online, over the phone, and by mail. The big challenge consumers face is in convincing the credit bureaus that your dispute is valid and it should be investigated.
The cold harsh truth is the credit bureaus are private for-profit businesses and when they investigate consumer disputes they’re spending money that’s otherwise profit. This is why it’s so difficult for every consumer to remove even the most obvious errors from their credit reports.
Because there’s a clear and vested financial interest for the credit bureaus to find your dispute invalid, so they don’t have to investigate and can earn bigger profits. Should you encounter the typical credit bureau bureaucratic red tape and stall tactics, please don’t just give up.
Smart consumers will often employ professional, legal, and legitimate credit repair companies that have the legal resources to enforce your rights and get the credit bureaus to follow the laws. You see, challenging information on your credit report is your right, exactly like it’s your right to vote.
There is some bogus belief that it’s somehow illegal to challenge and dispute so called accurate bad credit on your credit reports. This is baloney! All the laws have been passed to protect you and every average consumer.
5. Negotiate a Settlement Agreement
The fifth and final step to dealing with Stellar Recovery is to negotiate a settlement agreement. This should only be done after you’ve checked the statute of limitations and validated your account.
There are two important things to note when negotiating a settlement. First, you should always negotiate to settle your account for less than the total balance. You see, Stellar Recovery purchased the rights to your debt for just pennies on the dollar. This means they’ll be happy to accept a settlement for less.
The second item of note is for you to get Stellar Recovery to agree that in exchange for your payment, they’ll stop reporting your account information to the three major credit bureaus. This way after you submit your payment you can file a credit report dispute.
When the bureaus investigate by contacting Stellar Recovery for verification of your account, it won’t be verified as per your settlement agreement. Thus the credit bureaus will have to clear credit report files of this derogatory and damaging information that Stellar Recovery has reported about you.
Should you overlook this part of your settlement agreement, upon making your payment the collection item on your credit report will only be changed to a paid collection. This is not a positive item that will build credit. In fact, many consumers see their credit score drop because this paid collection appears to be recent activity to the credit scoring algorithm.
Dealing with aggressive and unethical debt collectors will often leave consumers feeling like they’re in the ancient biblical story of David versus Goliath. This isn’t far from the truth.
You see, every alphabet soup law has been passed to protect you and every average consumer from these aggressive debt collectors and even the credit bureaus. None of these laws were passed to protect the collection agencies or the credit bureaus from consumers.
At the end of the day, your credit score is a lot like your Grade Point Average (GPA) in school days past. It doesn’t matter if you’re acing all your classes, if you’re failing underwater basket weaving, because that one negative mark is going to screw up your overall GPA.
This principle applies to your credit score too, and this is why it’s so important to clean up credit report dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair services to help.
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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