First Credit Services is a debt collection agency that most often appears on credit reports when an individual owes money or falls behind in payments. They usually work with service providers like healthcare institutions and gyms to collect past-due bills.
Discovering an entry from First Credit Services on your credit report can be very intimidating to say the least, because collections entries are often perceived as a major red flag in the minds of most lenders. If you do find First Credit Services on your report, you need to understand what it is doing there to begin with.
Sometimes these entries do prove to be completely accurate, but in others, they are the result of a clerical error, outdated information, or, even worse, identity theft. For example, a gym membership bill that Jane had successfully disputed may eventually resurface months later, with First Credit Services reporting the matter to collections despite the fact that Jane had already resolved the matter.
Collection accounts like those from First Credit Services can negatively affect your credit health overall, causing problems when you attempt to get new accounts in the future. For this reason, it becomes important to dispute inaccurate or otherwise harmful entries as soon as possible.
If the thought of embarking on the convoluted dispute process overwhelms you, reach out to us at CreditSage; we would be more than happy to handle the entire process for you.
Steps to Verify the Legitimacy of the Collection Account
Before taking steps to remove First Credit Services from your credit report, verify the legitimacy of the collection entry. Here's a step-by-step guide:
- Obtain Your Credit Reports
Request your credit report from all three major credit bureaus—Equifax, Experian, and TransUnion—for a comprehensive view of your credit profile. Check for a negative entry from First Credit Services on each separate report, as this helps to see whether the debt is repeated throughout.
- Review the Accuracy of the Entry
Go through every entry with First Credit Services and authenticate the accuracy of information such as the amount of the debt, the account number, and any creditor details with respect to your recent records. Consider Mark, who stumbled upon a strange and unwelcome $300 debt from First Credit Services. Upon cross-verifying the details of the debt with his own records, he found that it did not match with any of his past debts.
- Validate the Debt
Under the Fair Debt Collection Practices Act, you are entitled to seek validation of any of your debts from the agency directly. Write to First Credit Services, requesting clarification about the debt and its origin, including the original creditor's name and copies of all relevant supporting documents. Remember, if they cannot give you proper validation within 30 days of your request, you can easily dispute the entry and have it removed.
Dispute Errors on Your Credit Report
If you are certain that there is indeed an error relating to the First Credit Services entry, it is now time to start the dispute process. Here are your next steps:
- Contact the Credit Bureaus
Prepare a formal dispute letter to each credit bureau reporting the erroneous information. Clearly explain why you believe that the entry is incorrect and provide supporting documents, such as receipts or correspondence, that work to prove that the debt is invalid. For example, Sarah provided First Credit Services with proof of payment for a $150 medical debt. As a result, the agency agreed to completely remove the collection entry.
- Monitor the Investigation Process
After you have submitted your dispute, the credit bureau will have 30 days to investigate your dispute and respond to you. They will contact First Credit Services to verify the accuracy of the information. If First Credit Services cannot provide verifiable proof, the entry will be deleted from your report.
- Follow Up as Necessary
Monitor the status of your dispute consistently. Should the bureau's response not be satisfactory or if more information needs to come forth, be prepared to provide further clarification. For example, if the investigation confirmed the debt, but you possess evidence that contradicts this conclusion, you might need to further escalate the dispute with the use of additional documentation. If you simply don’t have enough time to follow up consistently, CreditSage can handle all of this on your behalf.
Working with First Credit Services Directly
If the credit bureaus do not resolve the issue for you, you should consider handling the matter by directly approaching First Credit Services instead:
- Request Verification Again
Again, reach out to First Credit Services and request verification of the debt. This will clearly demonstrate your seriousness in refuting the validity of the debt, therefore pressing the agency to substantiate its claim.
- Negotiate a Settlement
If the debt is valid but you want to decrease the negative impact that it has, consider negotiating a pay-for-delete agreement with First Credit Services. Put simply, you will agree to pay the full amount of the debt in exchange for the removal of the entry from your credit report. Hypothetically, suppose David had $500 in collections. In negotiating a $350 settlement, First Credit Services would then delete the entry. Although this option can work, the agency does not have any legal obligation to accept it. If you want further information about this option and how to specifically approach it, CreditSage would be happy to offer our expert advice.
- Documentation
Keep copies of all of your correspondence and agreements with First Credit Services. In the case that the agency does not remove the entry subsequent to your successful dispute, having an email or a letter documenting a pay-for-delete agreement can help protect you.
What to Do if Your Dispute is Rejected
You should prepare for the possibility that your dispute will not be resolved in your favor. In such instances, one might consider the following steps:
- File a Complaint with the CFPB
If First Credit Services is unable to validate the amount or, instead, receives a complaint from the credit bureau without a justification, you should consider lodging a grievance with the Consumer Financial Protection Bureau (CFPB). The CFPB is in charge of regulating practices related to the credit industry and could assist in having your complaints adequately addressed.
- Seek Legal Assistance
In cases where First Credit Services continues to report on an incorrect entry despite overwhelming evidence, the services of a legal professional specializing in consumer rights may be useful. They will guide you on filing for possible damages due to FDCPA or Fair Credit Reporting Act violations. For instance, Rachel hired a lawyer when her valid disputes were ignored; in just a couple of months, she finally had the erroneous entry removed. If you need any help finding a capable legal professional, CreditSage can help you with this.
- Continue to Improve your Credit Health
In addition to disputing errors, it is also important to cultivate sound financial habits that will support your credit health on a long-term basis. This means monitoring your credit report for new errors, making timely payments, and keeping credit utilization low. This strategy makes the impact of future disputes less severe on the entirety of one’s credit profile. Remember, you can always contact CreditSage if you need further assistance with this complex process.
Fighting such errors can take time and will require some effort on your part, but the long-term financial stability and quickened loan approval are worth the effort.