How to Make Collections Companies Remove Negatives if I Pay in Full

It's possible to obtain a free credit report online.

As a preliminary matter, collection companies are under no legal or ethical obligation to remove negative marks from your credit if those negative marks are accurate. This is true regardless of whether you eventually pay off the debt owed. If, however, you pay the debt and the collection company continues to make negative reports, there's something you can do about it.

Instructions

1. Know your rights. The Fair Credit Reporting Act entitles you to one free credit report per year from each of the United States’ three major credit reporting agencies, Equifax, Trans Union and Experian. You also can pay for additional reports, which should cost less $11. Your credit report will tell you which collection agencies and other creditors are responsible for negative information on your credit report.

2. Gather evidence. If a collection agency is reporting you did not pay a debt when, in fact, you did, you need to prove the collection agency is mistaken. Bank statements, receipts and check stubs are just a few of the things that should reflect your payments.

3. Write a letter to the credit reporting agencies and the collection company informing them that you dispute the negative information reported on your credit report. Enclose copies of the evidence gathered in support of your position. Send the letter certified mail, return receipt requested, so you’ll have proof the reporting agencies and creditor received your letter.

4. Mark your calendar. The credit reporting agency has 30 days from the date it receives your letter to investigate your claim. During this time, it will forward the information you provided to the creditor who reported the negative information. The creditor, upon receiving the information and conducting its own investigation, must report its findings to the credit reporting agency. If the creditor finds it has made a mistake, it must inform the credit reporting agency of this mistake. The agency then will remove the incorrect information from your credit report.

5. Ask for notice. Upon request, a credit reporting agency will send notice of your corrected credit report to every entity that received a copy of your credit report in the previous six months. The time limit is two years if the entity pulled your credit report for employment-related reasons.

Tips & Warnings

• Follow up with the credit reporting agencies or collection agencies if they don't respond in a timely manner to your letter disputing negative marks on your credit report.

• Beware of scams where companies claim they can repair your credit for a small fee. According to the Federal Trade Commission, a company cannot legally remove accurate information from your credit report.

References

• Federal Trade Commission: Facts for Consumers