How to remove collection accounts
Collection accounts can be very damaging to your credit score. Not only does the actual collection account listing look bad on your credit reports, but there’s more than likely a charge-off on there that’s bringing your score down too.
Debt collectors purchase your debt from a creditor that you failed to pay-off. So now both the original creditor – listed as a charge off – and the collection agency will show up on your credit reports. Both will drag your score down.
Dispute the Collection
If the collection account isn’t 100% accurate on your credit reports you have every right to challenge it with any of the credit bureaus. This is why you need to really go through each account on your reports with a fine tooth comb.
For anything that appears questionable or just plain wrong you need to send a dispute letter to each bureau that’s listing it that way. Find a nice sample dispute letter, fill in your information and send the letter by certified mail. This will guarantee that they’ve received your letter.
Legally, the bureaus have a 30-day window to investigate your claim and either verify it, correct it or remove it altogether. If you didn’t get the result that you were looking for, but you have proof that you’re right, send another letter. Don’t get down on yourself if you hit a little opposition.
Deal With the Original Creditor
In the event that you know that collection account is yours, or it came back verified with proof, try to get the original creditor to take the debt back. You can’t force the original creditor to take back the debt from the collection agency, but if definitely do it if you can.
If you deal with the collection agency, the original creditor’s charge-off will stay on your credit report for up to 7 years even if you pay the collector in full. If you get the original creditor to take the debt back, the debt collector no longer has a right to that money and can’t report it to the bureaus anymore.
Getting a Collection Removed
If it’s not actually your debt, than the dispute process should remove it. If you’re able to get the original creditor to take the debt back, the collection agency can no longer report it. However, if it’s your debt and the original creditor refuses to take the debt back, you’re going to want to work out a pay for delete agreement with the debt collector.
Make sure that you get the agreement in writing before you make a single payment, otherwise the collection agency will definitely “forget” about your agreement. Once it’s all paid off, make sure that you check your reports again to make sure that it’s been removed from a credit report. If it is, dispute it.
If all of this seems a bit overwhelming, contact My Credit Group for a free credit repair consultation and a complete analysis of your credit reports.
