Can a Collection Agency Ruin Your Credit?

According to attorneys who are experienced in consumer protection, if a collection agency submits an erroneous item on your credit report, you have the right to challenge that item.   If this collection on your credit report goes unchecked, it will ruin your credit rating.

In order to keep yourself from going crazy from this collection item, keep a detailed list of any calls you make or letters you send to the bill collectors.  Make sure to ask for a return receipt when mailing correspondence, so you have a hard copy for your files.  If you make a payment arrangement with a collection agency, never do a check by phone or personal check.  Use a money order so they do not have access to your checking account and try to seize funds.

Sneaky bill collectors will ask for further personal information as a way of trying to sound helpful, but don’t give out any information.  They will use this against you to dig up dirt for a potential lawsuit.

All collections are negotiable and a payment plan can be worked out.  This might be a better option so that the black mark on your credit can be erased.

Remember, if you make ANY deal with a collection agency, make sure you negotiate for full deletion from your credit reports. (Our Lexington Law attorneys used a debt validation technique to get most collection items off our credit report.)

Here is a thorough detailed discussion on how to deal with a collection agency.