If you are dealing with a collection agency such as Lockhart Morris & Montgomery on your credit report, it can be pretty stressful.
Whether you've been alerted to it via a credit monitoring service or have stumbled upon this item while reviewing your report, you might be wondering how you should best go about addressing this issue.
While having a collection account listed can seem like a huge blow, it is worth mentioning that when you take the right steps in getting such items off your credit report—an especially important step when the account has been inappropriate or inaccurately reported—you can improve your credit.
In this comprehensive guide, we will show you how to remove Lockhart Morris & Montgomery from your credit report by focusing on disputing errors, understanding your rights, and improving your credit health.
What Exactly Lockhart Morris & Montgomery Stands For
Lockhart Morris & Montgomery is a debt collection agency and if they have found their way onto your credit report, it's a sign that they were assigned or purchased a debt that you owe or are alleged to owe. This entry in collections can hurt you, so knowing what you're dealing with before you make any resolution is a big plus.
Why Are They on Your Credit Report?
Creditors will often resort to hiring third-party agencies like Lockhart Morris & Montgomery to collect on debts that are owed to them. Once the debt has been assigned to a collection agency, the agency may report this account to the credit bureaus (Experian, Equifax, and TransUnion).
This collection account will be reported on your credit report for about seven years from the time of the first late payment, but if you feel that the entry is incorrect or simply not right, you are entitled to dispute it.
Suppose you see a collection from Lockhart Morris & Montgomery on your credit report, and you're fairly certain this debt was actually paid in full. You have cleared the debt from your credit report, but since you paid the debt, the collection agency has wrongfully reported it as unpaid based on what seems to be an error on their part.
In that case, it would be important to challenge the misleading information so that it could be taken off.
Impact of Collection Accounts:
A collection account fits into a fallen behind debt, showing up on your credit report like a warning from creditors that you did not pay what is due.
However, not every collection comes through with the truth. Sometimes, accounts can get misreported, reported twice, or put in the name of an incorrect individual. The Fair Credit Reporting Act (FCRA) empowers consumers to appeal against the incorrect and unverifiable information on their credit reports.
And you should exercise that right if Lockhart Morris & Montgomery reported a fictitious account.
Your Rights Under the Fair Credit Reporting Act
The Fair Credit Reporting Act offers consumers protection against unfair credit reporting practices. Awareness of these rights is critical while dealing with debt collectors such as Lockhart Morris & Montgomery.
FCRA Guarantees
Dispute Inaccurate Information: Suppose the debt shown by Lockhart Morris & Montgomery was not yours, is out of date or unverifiable—you may contest it in court.
Request Debt Validation: You may request proof from the collection agency that the debt—owned you down to the last penny—is correct. This whole process is known as "debt validation."
Accurately Reporting: The Credit bureaus must verify the information they are reporting as correct. If an error occurs and you are able to prove it, this error has been rectified or removed.
Imagine receiving a notice from Lockhart Morris & Montgomery concerning a debt, only to find the telling details are all wrong: either the amount is inaccurate, or the nature of the debt just eludes you.
You ask for debt validation, and the agency has failed to give evidence in the required time. In this case, you may dispute the entry with the credit bureaus on the basis that the agency did not verify the debt.
Utilizing the FCRA in Your Dispute
When disputing information about a debt collector such as Lockhart Morris & Montgomery, you will need to adopt a structured approach.
Contact the Credit Bureau: File a formal dispute with the crediting bureaus on which your collection account appears. Explain what is not accurate in your dispute clearly.
Provide Supporting Documentation: If you have any documentation showing that the debt is either inaccurate or settled, include it in your dispute.
Monitor the Timeline: According to the FCRA, the credit bureau has a maximum of 30 days to investigate the dispute. If verification by the collector is not furnished, the negative item shall be removed.
Pro Tip
Working with a credit repair company can ease you through this step because they will carry out the entire dispute process for you. They will send in-depth dispute letters while making sure that the process follows the law.
The Process: Step by Step
Now that you exactly know the rights, here's the dispute process itself. Getting this collection account by Lockhart Morris & Montgomery removed will take time, patience, and attention to detail.
The First Step: Read Your Credit Report Thoroughly
Before starting the dispute, you need to have copies of your credit report from the three major credit bureaus: Experian, Equifax, and TransUnion. This will allow you to view these reports in full so that you can see what has been reported and detect possible discrepancies.
For example, let's say you seek financing for a new car, but the lender denies your application. According to the lender, there is a collection showing up on your report. You check your report note and realize that Lockhart Morris & Montgomery is there for being a creditor.
Hence, the debt is not recognized by you, and you want to take action against this.
Step 2: File a Dispute With the Credit Bureaus
If, from the analysis of your report, you make a finding that there is no collection with them or that they cannot verify such collection, it would then be time for you to file the dispute with the credit bureaus.
Consider Including the Following:
Your Contact Information: Be sure to correct your name, address, and other information to correspond with what is on your credit report.
Summarize the Error: State at length why you believe the collection is not accurate or needs to be deleted.
Supporting Documents: Include any documentation that may substantiate it, including proof of payment, correspondence with Lockhart Morris & Montgomery, or settlement letters.
Removal of Requested Wrongful Statute: If the collection entity is not proved to exist, ask the credit bureau to remove the erroneous entry.
Step 3: Follow Up
After the dispute is filed, the credit bureau has 30 days to investigate your claim and come up with an answer. In this time, they will get in touch with Lockhart Morris & Montgomery to verify.
If the collection entity cannot be validated, the bureau must remove the account from your report.
Pro Tip
Make notes of any letters exchanged and dates. You want to ensure that the clock is ticking if the bureaus do not respond or have not resolved the dispute within 30 days.
What Happens If the Debt Is Verified?
It is only sometimes that the collection is verified after a dispute. Don't riot; there is a way to deal with it.
Understanding Debt Verification
Debt verification means that Lockhart Morris & Montgomery has responded to the credit bureaus that they have proof that the debt belongs to you.
Normally they will provide documentation such as:
- The name of the original creditor
- The amount of the debt
- Evidence that the debt was transferred or sold to the collection agency
You file a dispute with the credit bureau, yet Lockhart Morris & Montgomery substantiate that you do indeed owe the debt. Achieving full verification may seem like the end of the road, but resolution is indeed possible.
Negotiate with the Collection Agency
Even though the account has been verified, there is still some room for negotiation with the collection agency. You may ask for "pay-for-delete" where you settle the debt with Lockhart Morris & Montgomery in exchange for removing the collection from your credit report.
Pro tip
Get the agreement in writing before paying. Some agencies may go along with the offer, but an unwritten agreement does not bind the removal of the entry from your report.
Other Legal Protections:
If you believe Lockhart Morris & Montgomery violated your rights during the debt collection process (such as harassment or failing to verify the debt), legal grounds for argument are there. The Fair Debt Collection Practices Act is a guideline on what debt collectors must do when collecting debts.
If need be, you can consult with a consumer rights attorney or work with a credit repair company as they help you with your options.
How to Avoid a New Collection Account
The best way to deal with a collection account is to prevent one in the first place. Mistakes do occur, and debts can be inaccurately reported, but being aware of this fact already puts you in a better position to avoid future collection accounts.
Review Your Credit Report Regularly
It is extremely essential to keep checking your credit report consistently. Through this process, you can catch the errors or signs of potential identity theft before they turn into larger problems.
Under the FCRA, each of the three major credit agencies gives you the right to freely request a credit report once every one year.
Suppose you find that a little medical bill you forgot to pay has slipped into collections. While going through your report, you notice the error before it can escalate appreciably, so you soon act against it, so that the debt is paid off before it can inflict long-term damage.
On the other hand, one may come across a small medical account previously forgotten to be paid. You are astute and catch the error on your credit report before it gets to be critical. You then take immediate steps to square things before any enduring damage is done.
If you owe money and are having a hard time making your debts, be proactive about keeping in contact with the creditors. Many creditors will work on a payment plan if you alert them before sending the account to collections.
Insider Tip: If your creditor is willing to negotiate, make sure to get everything in writing. This protects you from possible "miscommunications" or false promises down the road.
Call For Help
Credit repair may assist you in shoring up your credit health and disputing inaccuracies on your credit report. It is nice to have somebody oversee your file-a professional to help should you find yourself at a loss to know how to deal with a collection account from Lockhart Morris & Montgomery. They have the expertise to protect your rights well.
Final thoughts: Disputing and wiping clean collections from your credit report may seem like an uphill task, but with the right knowledge and approach, you can shoulder in empowerment on the issue. If it's Lockhart Morris & Montgomery who have made the mistake, or if it's the credit bureaus themselves, anything done by you will go a long way toward protecting credit health.