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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

Tactics To Eliminate Collections

By: Daniel Rosen May 18, 2021

If ever the world needed Credit Heroes, it’s NOW! 

If you are a Credit Hero, you really are CHANGING LIVES every day!

The fact is, the debt collection industry is FLOODING consumers with more harassing phone calls than ever before!  

But there are options!

Credit repair is the best way to fight the giant debt collection agencies and WIN! 

 


Did you know...

  • There are over 250k debt collectors placing over ONE BILLION calls each year 
  • Consumer debt in the United States has ballooned to over 14 trillion dollars
  • One in every four Americans has at least one account in collections?

I’ll tell you EXACTLY what you can do about it … step by step! 

Now, you’d think the easiest way to make “it all go away” is to just settle for a portion or even pay the full amount to the creditor. 

But does that REALLY work? And is it the best way to go? 

The answer is … NO! 

It’s true, there isn’t a magic wand that makes it all go away.

But there is a proven disputing method that’s highly effective. So let’s dive into it! 

Depending on your client’s circumstances, this method is on a case-by-case basis so you should always use your best judgment to find the right strategy.  

My FIGHT BACK AND WIN Framework… How To Keep the Pressure On! 

Your first move is ALWAYS sending verification requests directly to the credit bureaus using a round 1 letter, regardless of the type of collection. You can access this letter in your Credit Repair Cloud, or if you don’t have an account yet, you can get one for 30 days free at CreditRepairCloud.com!

Remember, the credit bureaus are required to contact the furnishers that reported the information for you, so you won’t need to contact the furnishers individually - it’s all done for you. 

After the bureaus contact the furnishers, they only have 30 days to respond. If they don’t respond in time, the disputed items are AUTOMATICALLY DELETED.  

Your next move ALWAYS depends on the response! 

Based on the response, you may need to follow up several times.

  • OR you may want to request a reinvestigation with the bureaus that do not respond appropriately.
  • OR, if they respond with a stall tactic, you may need to demand the method of verification.
  • OR you may need to send a warning.

This could linger on for some time and if you still don't get the result you wanted you may decide to file a complaint with the CFPB, FTC, or State Attorney General or even bring in an FCRA attorney to take them to court 

Remember, the key is to continually apply pressure and NOT GIVE UP. 

What happens next?

If you feel you’ve exhausted your options with the bureaus, you can move on to 

Challenge the collection with the original creditor using section 312 of the Fair and Accurate Credit Transaction Act or you can request validation with the debt collector directly. 

This process could go back and forth, just like it did with the bureaus - but again, the key is persistence and pressure. 

As you follow up with reinvestigations, warnings, or complaints, if the debt collector ignores your validation demand, you can always send the “Estoppel By Silence” letter found with the Letter Finder Feature in your Credit Repair Cloud account. If you don’t have a Credit Repair Cloud account, you can sign up for 30 days FREE at CreditRepairCloud.com.

This letter is backed by case law, and it essentially tells the debt collection agency that by ignoring you and being silent when you asked them to validate the debt, they have failed their obligation and they must agree with you. It could stand up in court if it ever got that far.

After you send the Estoppel By Silence letter, if the debt collector does not delete the item, you can do the same process of following up, demanding reinvestigations, sending warnings, filing complaints …

OR you can partner up with an FDCPA attorney to file suit against the collector.

Should you EVER pay a collection agency?

Once you’ve followed up with the bureaus and the debt collector with requests, reinvestigations, warnings, complaints, and suits, and the item STILL has not been deleted, it may be time to consider a payment plan.

A payment plan could be the right strategy if ...

  • you’ve completely exhausted your options with the bureaus 
  • and you’ve also done the same with the original creditor 
  • and the debt collection agency

At that point, your next move is to work out a payment arrangement between your client and the debt collector. 

There are 2 payment options. 

First, you can offer a pay-per-delete. This is where your negotiating skills come in!

With a pay-per-delete, you are offering either a full or partial settlement ... but in return, you insist the item is COMPLETELY DELETED. 

Most debt collectors will agree to this, but most will also want the full payment, so you’ll need to discuss it with your client and the debt collector, and come to an agreement. 

Find your pay-per-delete letter templates in the Credit Repair Cloud library … there are a few to choose from!

Which brings us to the final option … A settlement offer 

A settlement is an agreement to consider the debt paid. Sometimes the debt collectors want the full amount, and sometimes they’ll agree to a fraction. It really depends on what your client can afford and what the debt collector will accept.

What about OLD debts that are in collections? 

One word of caution when settling debts ...

If you have a collection account that is set to fall off your client’s credit report soon, you should ALWAYS be very cautious before negotiating a settlement.

Doing this can reset the collections clock on that negative item. This means the item will stay on your client’s credit report for another seven years, showing as a paid collection ... which can do more harm than good

Remember to follow your best judgment based on your client’s situation, and that will help you decide what your strategy is, on a case-by-case basis. 

So that’s it! A solid roadmap, right?!

That’s my PROVEN strategy to eliminate collection accounts!

And, in case you haven’t heard about our Credit Hero Challenge ...

It’s a live experience that has helped tons of Credit Heroes get their first paying clients, get certified in disputing, and to gain confidence as they launch their credit repair business on a solid foundation so they can change alotta lives and make a great living in the process! 

We’re starting again soon, so join before the doors close! Just go to CreditHeroChallenge.com!


 

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

0:00  

What's up, Credit Heroes? You know those pesky accounts that pop up on your clients credit reports? I'm talking about the ones that are from companies that they never did business with the ones who love to call at all hours of the day and night, the ones who love to call your clients at work and harass them? Yeah, you know what I'm talking about, right? I'm talking about collection accounts. The debt collection industry is booming. And collection accounts are the most common negative items that are appearing on consumers credit reports. So what is the secret to removing collection accounts once and for all? Well, today, I'm going to tell you my step by step process. So stick around! 

 

So the big question is this. How can we take our passion for helping people with their credit, and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing, so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

 

Okay, before we jump into this, if you are new to my podcast, be sure to click to subscribe and if you're watching on YouTube, hit that like button and leave me a comment, because believe it or not, these things really helped me. And if you want to know more about how to go from zero to Credit Hero in just a couple weeks, then go to creditherochallenge.com. Okay, let's dive in! The world needs Credit Heroes now more than ever. And to put this in perspective, the debt collection industry employs over a quarter of a million debt collectors, who placed over a billion phone calls every year. And at the time that I'm recording this podcast, consumer debt in the United States has ballooned to over $14 trillion. And one out of every four Americans has at least one account in collections. That's mind boggling, right? So what can you do about it? Can you just wipe them out by paying them? No! You can't! Unfortunately, there isn't a magic wand that just makes it all go away. But I have developed a proven systematic approach that is highly effective, and I'm going to share it with you today. Again, this is not for every single case. So use your own judgment to determine what strategy to use. Okay, so here's how this works. The very first step, it's always going to be sending verification requests directly to the credit bureaus using a basic round one letter. Regardless of the type of collection, you can access the basic round one letter in your Credit Repair Cloud. And if you don't have an account yet, you can get one for 30 days free at creditrepaircloud.com. Now the credit bureaus are required to contact the furnishers who reported that information on you so you don't need to contact the furnishers directly. It's all done for you. And after the bureaus contact the furnishers. They only have 30 days to respond. If they don't respond in time, the items you disputed, they automatically get deleted. Now your next move always depends on their response. Okay, depending on the response, you may need to follow up several times, or you may want to request a reinvestigation with the Bureau's that don't respond appropriately, or if they respond with a stall tactic. You may need to demand the method of verification, or you may need to send a warning. Now keep in mind, this can drag on for quite some time. And if you still don't get the result you wanted, you may decide to file a complaint with the CFPB, the FTC or the state attorney general or even bring in an FCRA A attorney to take them to court. The key is to continually apply pressure and don't give up. So what happens next? If you feel that you have exhausted your options with the Bureau's, you can move on to challenging the collection with the original creditor using section 312 of the fair and accurate credit transaction act. Or you can request validation with the debt collector directly. This process again, it can go back and forth and back and forth, just like it did with the Bureau's. But again, the key to winning is persistence and pressure. If the original creditor does not delete the item, you can follow up with re investigations, warnings or complaints. If the debt collector completely ignores your validation demand, then you can send the estoppel by silence letter, which is found with the letter finder feature in your Credit Repair Cloud account. This estoppel by silence letter, it essentially tells the debt collection agency that by ignoring you and being silent when asked to validate the debt, then they must agree with you. And it's backed by case law, and it could stand up in court if it ever got that far. Now, if the debt collector does not delete the item, you can do the same process of following up demanding re investigations, sending warnings, filing complaints, or you can even partner up with a FDCPA attorney to file suit against the collector. So what if that doesn't work? What options are left? Well, at that point, if you feel that you have completely exhausted your options with the Bureau's and you've also done the same with the original creditor and the debt collection agency, it may be time to bite the bullet and work out a payment arrangement between your client and the debt collector. This boils down to two options. One, you can offer a pay per delete. And this means you are offering either a full or a partial settlement. But in return, you are insisting that the item gets completely deleted. Now most debt collectors will do this, but most will want the full payment. So you'll need to discuss it with your client and the debt collector and come to an agreement. We have several paper delete letter templates in the Credit Repair Cloud Library. The only other viable option at this point is to offer a settlement. A settlement is an agreement to consider the debt paid. Sometimes it's for the full amount. And sometimes it's for pennies on the dollar. It really depends on what your client can afford, and what the debt collector will accept. You should always be careful about settling an old debt. If you have a collection account that is set to fall off your clients credit report soon. And then you come along and negotiate a settlement, it can actually restart the status date, and then stay on for an additional seven years showing as a paid collection, which actually does your client more harm than good. And again, you'll need to use your best judgment and determine what you'll do on a case by case basis. So that's it! That is my proven strategy to eliminate collection accounts. Now if you want to get really good at disputing, I recommend that you join our Credit Hero Challenge. It's a live experience that has helped tons of Credit Heroes to get their first paid client to get certified in disputing and to gain confidence as they launch their credit repair business on a solid foundation so that they can change a whole lot of lives and make a great living in the process. We're starting another challenge very soon. So to join before the doors close, just go to creditherochallenge.com. And if you're finding value in the things that I'm sharing on this podcast, click below to subscribe! And if you're feeling kind, rate me and give me a review because this is a new podcast, and I can use all the help I can get. And I will see you on the next episode. And until then be a Credit Hero and keep changing lives!

 

Hey, everybody, it's Daniel again. And really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud Community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting started, and you dream of having a successful business your own, so you can quit your nine to five and fire your boss and have financial freedom, or so you can add another revenue stream to your existing business, if that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business. To build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online, and go to creditherochallenge.com. That's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now at creditherochallenge.com.

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