Online Credit Repair

How to Remove a Collection Item from Your Credit Report

March 14th, 2009

Every time the phone rings, you cringe. Could it be another collection agency calling to razz you about the bill you didn’t pay? Then, you go to your mailbox, only to find the pesky collection agencies are there too. How can you make these calls and letters stop? And more importantly, how can you remove a collection from a credit report, so it won’t bother you for years to come?

A collection is an overdue debt that has been turned over to a collection agency. Debt collection is a billion dollar a year industry. Collection agencies buy debts for cheap and then try to recover the complete total owed. These debts can come from a variety of places, including credit cards, lenders, libraries, cell phone companies, rental stores, gyms, cable companies, doctor offices, utilities, and more.

Once a debt is sent to collection, it also appears on your credit report. A credit report collection hurts your credit score, and remains there for seven years. A collection on a report is seen as irresponsible behavior to future creditors.   

Collection agents are only paid when they get the debtor to pay his or her debt. This can cause many of these collection agents to become frustrated or harassing. Despite this, it is very important to keep your composure and stand of for your rights … Because you do have them!   

First and foremost, according to the Fair Debt Collection Practices Act, a collection agent collector can contact you via mail, telephone, telegram, or fax. They can also approach you in person; however that is not a commonly used practice. Collectors are not allowed to contact you at inopportune times, including before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if you tell them that your supervisor would not approve.

To stop the collection agency from contacting you, write a letter to the collector telling them to stop. Once the collector receives this, they can’t contact you again regarding your desired payment. The only other reasons you would hear from them again would be them notifying you that they will not contact you, and that the creditor is taking legal action.

When you write this letter, it’s important to understand that this does not meant the debt is eliminated. It only means the collection agency cannot bother you regarding this credit report collection.

Credit collectors also cannot participate in unfair practices, including threatening or deceiving you, just to name a few practices. If you believe that an agent has broken the law, you can sue the specific collector.

To remove a collection, negotiate with the bill collector. Before you pay the total debt, have the creditor put in writing that after the payment in full, this collection will be removed from your report. You can also follow up with the credit reporting agency and dispute the collection. This will help you remove a collection, and get back on the path to good credit.

Entry Filed under: Improving Credit Score