Got collections?

Collections will NOT come off your credit report if you just pay them. Before you pull out the check book, verify/dispute with the credit bureau (CB) that it's actually YOUR debt, and the collection agency (CA) has the right to collect the money. You do this by sending out a verification letter. Basically you are asking to the big three to make sure your name, social security number, address, etc. are correct. Under the Fair Credit Reporting Act http://www.ftc.gov/os/statutes/031224fcra.pdf the CB must correct any incorrect information within 30 days if notification to the bureaus; or must delete the listing. If the item or items are verified, you then follow the steps to validate with the collection agency, if the collection comes up valid by all parties, you then pay with a pay for deletion letter.

If you have already paid the bill still send out this letter. I had a few paid collections that I asked for verification and the collection agencies were to lazy to report anything. Within two weeks they fell off my credit report and my score jumped 20 points overnight!

Verification Sample Letter:

Your Name

Your Address

Credit Bureau Name

Credit Bureau Address

Today’s Date

Dear Equifax,

               Please verify and provide evidence that the following accounts belongs on my credit report and that my rights have not been abrogated. Some of the accounts have been paid, but I am not admitting liability on my part. In the event that none exists, please delete these damaging accounts.

Collection Company Name: Person Owing Money to: Account #8425****

Collection Company Name: Person Owing Money to: Account #8425****

Collection Company Name: Person Owing Money to: Account #8425****

Collection Company Name: Person Owing Money to: Account #8425****

Upon conclusion of the following request, please mail me an updated copy of my credit report to the address above. 

Sincerely,

Your Name

Your Date of Birth

Social Security Number

TransUnion

2 Baldwin Place
P.O. Box 2000
Chester, PA 19022

Experian

P.O. Box 2104

Allen, TX 75013

Equifax

P.O. Box 740241
Atlanta, GA 30374-0241