Completing Your Settlements…The Proper
Way
You got your settlement letter, you paid your settlement amount(s),
what more needs to be done right? Not so fast. There are a couple things you
should know.
Correcting
your Credit Score
When a settlement is complete, there are several
things that occur. Within the first 30-60 days of the final payment being made,
a creditor will notify the credit bureaus that your account is either SETTLED,
PAID NOT AS AGREED or PAID. As I mentioned earlier in the book. (Chapter 5)
Make sure you negotiate the terms of your credit while negotiating the account.
Once you settle your last account, wait about a month or two before you pull your credit report. You’ll need to check each account to ensure the creditor has properly marked it. If you were a good negotiator, and followed my advice, you should have notes or copies of your settlement letters for each one of your accounts.
If your credit report doesn’t properly reflect the agreed terms you set with your creditor, all you have to do is provide a copy of the letter to the credit bureaus. Allow them two to three weeks to process, and you should get a letter in the mail with an update.
Checking your credit is vital as in some instances, one account could be reported two or three times if it’s been sent to multiple agencies. There have been times when one collection agency will report the delinquency, then the next agency will report the same account again. This can reduce your score. Make sure you correct it by providing the settlement letter, and proof of payment to the credit bureau, then let them know that there is more than one reporting on the same debt. They have to remove it from your report.
If you’re having difficulties with resolving an error on your credit report, you can file a complaint against the credit bureaus too. Keep reading as I explain what agencies to contact and what to expect.
Once you settle your last account, wait about a month or two before you pull your credit report. You’ll need to check each account to ensure the creditor has properly marked it. If you were a good negotiator, and followed my advice, you should have notes or copies of your settlement letters for each one of your accounts.
If your credit report doesn’t properly reflect the agreed terms you set with your creditor, all you have to do is provide a copy of the letter to the credit bureaus. Allow them two to three weeks to process, and you should get a letter in the mail with an update.
Checking your credit is vital as in some instances, one account could be reported two or three times if it’s been sent to multiple agencies. There have been times when one collection agency will report the delinquency, then the next agency will report the same account again. This can reduce your score. Make sure you correct it by providing the settlement letter, and proof of payment to the credit bureau, then let them know that there is more than one reporting on the same debt. They have to remove it from your report.
If you’re having difficulties with resolving an error on your credit report, you can file a complaint against the credit bureaus too. Keep reading as I explain what agencies to contact and what to expect.
Where
to file complaints
It seems all too often these days that consumers
gets the raw end of the deal while big companies continue to profit from them.
You have rights as a consumer, and you also have the power to exercise those
rights.
It used to be that a consumer could file a complaint against a collection agency or credit card company and most likely it got filed in some cabinet. Eventually when the cabinet began to overflow with paperwork, a little investigation or a slap on the hand would occur. This isn’t good enough. If you have a valid complaint against a creditor, collector, collection agency, law firm or the credit bureau something needs to be done about it.
First and foremost, you should always TRY to resolve the issue with the collection agency or law firm first. However, if time is of the essence and/or the agency isn’t working with you, then you should consider filing a complaint with one of the below agencies.
There are several agencies you can file complaints with; however, you need to know how each one will handle your complaint before you waste your time. For example, let’s say a collection agency has been harassing and calling you at 6 a.m. every day. You’ve informed them that they’re violating the law and to cease, but they continue. You’ve mailed them a cease and desist letter, but they ignore it and keep calling. It’s time to take action! For one, you could sue them for this, but, if you don’t want to go that route, you can always file the complaints. Trust me, if nothing else, It’ll make you feel better.
It used to be that a consumer could file a complaint against a collection agency or credit card company and most likely it got filed in some cabinet. Eventually when the cabinet began to overflow with paperwork, a little investigation or a slap on the hand would occur. This isn’t good enough. If you have a valid complaint against a creditor, collector, collection agency, law firm or the credit bureau something needs to be done about it.
First and foremost, you should always TRY to resolve the issue with the collection agency or law firm first. However, if time is of the essence and/or the agency isn’t working with you, then you should consider filing a complaint with one of the below agencies.
There are several agencies you can file complaints with; however, you need to know how each one will handle your complaint before you waste your time. For example, let’s say a collection agency has been harassing and calling you at 6 a.m. every day. You’ve informed them that they’re violating the law and to cease, but they continue. You’ve mailed them a cease and desist letter, but they ignore it and keep calling. It’s time to take action! For one, you could sue them for this, but, if you don’t want to go that route, you can always file the complaints. Trust me, if nothing else, It’ll make you feel better.
Association of Credit and
Collection Professionals (ACA): The ACA International is a non-government
agency set up to help represent collection agencies, debt buyers, attorneys and
creditors. It’s a non-profit company that has over 5000 members. If you
encounter any problems and have been unable to resolve your issue, you can
always contact this agency. The ACA may attempt to mediate and resolve certain
issues between you and a collector or its agency. I can’t say you’ll have
definitive results; however, it’s worth a shot.
Better Business Bureau (BBB): The BBB is not a government
regulated agency, in fact, it’s recently been under scrutiny as companies have
to register and pay in order to get a higher rating. There’s a scoring system
from A to F, similar to restaurant ratings. Eventually, when a business
receives enough complaints from consumers it can lower the companies score
online. However, the BBB has no authority to resolve any issues you may have
with a company or business. If anything, they can place a call or send a letter
regarding the complaint filed, but that’s pretty much it. All you’re doing by
filing a complaint with the BBB is harming the creditor’s online reputation. My
suggestion is to file a complaint with a few agencies such as the BBB, the FTC,
the CFPB and Attorney General. (I’ll explain what those are in a minute) This
should generate enough pressure on the creditor to handle the complaint.
The Federal Trade Commission (FTC): I believe all consumers
should become familiar with this agency. The FTC regulates companies in the
area of telemarketing, advertising, identity protection, financial services and
more. The FTC enacted a bill in the 1970’s known as the Fair Debt Collection
Practices Act. This act regulates the debt collection industry. I highly
recommend you get familiar with it. Filing a complaint with the FTC can be
helpful in building a case against an agency; however, you’re not likely to get
an immediate resolution. The FTC will initiate an investigation after having
received a number of complaints. This could eventually lead to fines, penalties
and other repercussions for the company, agency, its employees, owner, or
affiliates. I recommend filing a complaint no matter what. You know what they
say; a pebble thrown in water can create big ripples in the long run.
Consumer Financial Protection Bureau
(CFPB): There’s
recently been a change in the financial industry like I’ve never seen. The
federal government launched a new regulatory agency to help consumers receive
the justice they deserve. Unlike the BBB, the CFPB is a government agency which
has the authority to enforce justice and protect consumers from unethical and illegal
practices in the area of finance. This includes the big banks, auto finance,
home loan lenders and pay day loan providers. In fact, this is the first agency
that regulates the credit bureaus. If you have any false or inaccurate
markings on your credit, and the bureau isn’t correcting the issue, you now
have a place to file a complaint. This is the first agency I would file a
complaint with!
Office of Consumer Affairs: Each state has their own
Office of Consumer Affairs. They’re there to help protect consumers, and
businesses alike, from unfair, unlicensed, or dishonest companies. This would
be a good agency to file a complaint with, for example if a collection agency
isn’t properly licensed to do business in your state. If you’re unsure about
whether a company is operating illegally, just contact your states Office of
Consumer Affairs and ask. You can also file a complaint online, it’s pretty
easy. Depending on the complaint and the company, they’ll initiate an
investigation that can lead to court, fines, penalties and more.
Attorney General (AG): The Attorney General’s
office for your state is pretty much as high as you can go for any legal
related issues. Consider these guys the head sheriff in town. They’re set up to
protect the public from any illegal civil or criminal activity. The AG is one
step up from your District Attorney. If you’ve encountered any issues with a
collection agency, a collector or its affiliates, which can be considered
illegal, you may want to file a complaint with the AG. For example, if you
worked out a settlement for one of your debts and the collection agency
processed the payment twice and refuses to do a refund, it’s illegal and
downright stealing.
Let me tell you, when a collection agency receives a letter or phone call from one or more of the above, they WILL want to resolve your case. At the same time, make sure your complaint is valid. If it’s petty, I guaranty you’re not going to get results. When I say “petty” I mean filing a complaint with your Attorney General because a collector cursed at you. That’s more of an FTC or BBB complaint. If you’re still unsure about which agency to file a complaint with, I suggest doing some research online for your state. Just remember, you have recourse as a consumer, just because you owe money doesn’t mean you’re a deadbeat. If that were the case, I think all of America would be in the same boat, and then what? You have rights, get to know them.
Well, I hope that helps you to realize that there are things that you can do if you are being harassed by a creditor or collector. Let’s say someone broke into your house and stole your computer, what would you do? You would call the cops and report it. Or, if someone in a store is rude to you, you would contact their manager and report it. In most cases, consumers don’t know that they could do something about being abused by collectors. You do have recourse and should use these resources if the situation arises.
In the next chapter, I’ve compiled questions and answers that have come up over the years. If you have a question that hasn’t been answered through this book, don’t hesitate to contact me directly, and I’ll answer it for you. Or check out my website, www.TheDebtLady.com, you might just find what you’re looking for.
Believe it or not, you’re almost done! Keep going, I swear you won’t regret it.
Let me tell you, when a collection agency receives a letter or phone call from one or more of the above, they WILL want to resolve your case. At the same time, make sure your complaint is valid. If it’s petty, I guaranty you’re not going to get results. When I say “petty” I mean filing a complaint with your Attorney General because a collector cursed at you. That’s more of an FTC or BBB complaint. If you’re still unsure about which agency to file a complaint with, I suggest doing some research online for your state. Just remember, you have recourse as a consumer, just because you owe money doesn’t mean you’re a deadbeat. If that were the case, I think all of America would be in the same boat, and then what? You have rights, get to know them.
Well, I hope that helps you to realize that there are things that you can do if you are being harassed by a creditor or collector. Let’s say someone broke into your house and stole your computer, what would you do? You would call the cops and report it. Or, if someone in a store is rude to you, you would contact their manager and report it. In most cases, consumers don’t know that they could do something about being abused by collectors. You do have recourse and should use these resources if the situation arises.
In the next chapter, I’ve compiled questions and answers that have come up over the years. If you have a question that hasn’t been answered through this book, don’t hesitate to contact me directly, and I’ll answer it for you. Or check out my website, www.TheDebtLady.com, you might just find what you’re looking for.
Believe it or not, you’re almost done! Keep going, I swear you won’t regret it.
