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!
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