How to repair bad credit and raise your FICO score

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By Brett1965
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How to remove collection account off your credit report

Difficulty: Easy

Instructions

Things You'll Need:

word processor
file folders
all 3 updated credit reports

Step 1

Debt validation is the Ultimate Secret Weapon to use again your creditors.Under the FDCPA if a collection agency has the intention of collecting a debt from you they must notify you in writing by LAW!! You as a consumer have 30 days to dispute the debt and question it validity. Now if the 30 days has passed in most cases you can be sure that they have no proof that you recieved a letter from their agency.You basically can request a debt to be validated from a collection company at any time.
Step 2

By law (FDCPA Section 809,validation of debts 15 USC 1692g)basically states that a collection agency must validate a debt to your satisfation. The following pieces of information must be provided to you in order for the collection agency to validate your debt:
1. An agreement with your client that gives them permission to collect on this alleged debt.

2.An agreement bearing the signature of the alleged debtor where he/she agreed to pay the credit.(This works best with credit cards and cell phone debts)

3.The complete payment history on the account so that the exact amount of the debt may be determined(starting with the original creditor)
Step 3

If a creditor can not verify a debt then:
1.They cannot collect the debt

2.They cannot contact you about the debt.

3.Under the Fair Credit Reporting Act(FCRA),violations of the FCRA and the FDCPA states you can sue for $1,000 in damages for each violation.
Step 4

1.Send a letter(see attached letter) requesting validation to the collection agency.

2.Wait about 20-30 days.If they have not sent you proof to your satisfaction as outlined above send a copy of your registered mail receipt and a copy of your first letter you sent with a statement that they have not complied with Federal Laws and are now in violation.Let them know that they need to remove the collection account lisiting from your credit reports immediately or you will seek legal action for violations of the FCRA and FDCPA.

3.Wait 10-20 days, they will either remove it or not respond.99 percent of collection agencies will give in to your demands and send you a letter stating the removal of their lisiting to all three credit reporting agenies.
Step 5

Collection companies cannot pursue collection activities after you request debt validation.So if the credit bureaus state that the listing is verfied you have just been provided proof of a violation by that collection agency.
Step 6

Please use this letter as a temeplate:

Jane bob
1111 anywhere
Atlanta, GA 10000

Collection agency's name
P.O. Box 9006
Smithtown, NY 11111-9006

May 13, 2007

U.S. Certified Mail # 7005257000000220700

Re: Acct # 002500000206845034-B (bad collection, LLC wireless)

Collections Manager:

This letter is regarding the account referenced above, which you claim I owe. This is a notice that your claim is disputed. I am requesting validation, made pursuant to the Fair Debt Collection Practices Act Section 809 [15 USC 1692g]. Please note that I am requesting "validation"; that is competent evidence bearing my signature, showing that I have some contractual obligation to pay you.

Please also be aware that any negative mark found on my credit reports from your company or any company that you represent for a debt that I don't owe is a violation of the Fair Credit Reporting Act; therefore if you cannot validate the debt, you must request that all credit reporting agencies delete the entry.

Pending the outcome of my investigation of any evidence that you submit, you are instructed to take no action that could be detrimental to any of my credit reports.
If you do not own this debt, you must remove the derogatory marks from my credit report per the Fair Credit Reporting Act.

This letter is also a formal request, citing Section 805 [15 USC 1692c] of the Fair Debt Collection Practices Act, to cease any further communication with me unless it is:
(1) to advise that your collection efforts have been terminated;
(2) to notify me of any specified remedies
(3) to notify me that you have invoked a specified remedy

Please note that any failure on your behalf to comply with the laws of the Fair Credit Reporting Act and the Fair Debt Collection Practices Act will result in legal action.

Best Regards,

Jane Bob
Step 7

Please visit: http://www.vrtechmarketinggroup.com/bmitchell2/

for a consultation or visit: www.creditletters.net for our special reports and credit restoration letters.

Comments

cidflyer said

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on 11/17/2009 Before you hire a Credit Repair Company make sure you check with the Ethical Credit Repair Alliance (ECRA) to see if your company is an ethical one at www.ECRAonline.org

on 7/9/2009 Excellent article. To me it is very important to read articles at ehow specially yours, because I learned each day a new idea to make my life easier, thanks for writing this wonderful article. Keep up the good work.