Dealing with inaccurately or unfairly reported collection entries onto your report is frustrating and overwhelming. Upon detection of an entry labeled Structured Settlement Debt Collector on your credit report, you must act quickly. Being reported with outdated or erroneous information can severely impact your credit health, hence it is better to act sooner than later.
Here in this article, we will discuss the basic steps by which you can go ahead to resolve it efficiently, all with the help of CreditSage.
A Brief Look at Structured Settlement Debt Collector Agency
Who is Structured Settlement Debt Collector?
Structured Settlement Debt Collector is a collection company. They claim outstanding balances for their clients with and on behalf of creditors such as lenders or service providers.
If their name is written on your credit report, it means that they have reported something you supposedly owe.
Why Are They on Your Credit Report?
In reality, most of these would-be collectors see less than 10% than they report to the credit bureau. They often tend to report accounts simply to push consumers into payment.
Once the agency goes ahead to report the account, it goes against a consumer as a black mark from the date reported.
These are only a few of the many reasons why one would have an entry:
- You either owe the valid debt.
- The debt is old or jointly paid, yet the agency still proceeds with reporting it.
- You owe the debt, but it is on your report through some mistake or other.
This first step to clearing your record is to understand the reason for the entry.
How Do Debt Collection Entries Affect Your Credit Health?
While debt collection entries normally do not stay on your credit report forever—the care duration is often seven years—they do cause problems there during the time in-between. The same will hamper your chances of procurement of a loan or financial service. Hence, try to settle the issues as soon as feasible.
Don’t worry, if you do not know where to begin. CreditSage specializes in disputing errors that show up on credit reports: with their support, you can secure an earnest pursuit that will help get off Structured Settlement Debt Collector from your report.
Checking and Verification of the Debt
Obtain Your Credit Report and Review It
The first step into solving this problem is to obtain a copy of your credit report from all three major credit bureaus, Equifax, Experian, and TransUnion. You have the right to obtain free credit reports yearly.
Once you receive your credit report, check the information on the debt that is being reported by the Structured Settlement Debt Collector.
This includes checking for:
- The name of the original creditor.
- Understanding the reason for the entry is the first step toward clearing the record.
Debt Verification
Determine that the debt is accurate and that you owe it before moving forward. The few principles of how to commence verification are given below:
Request Validation
The act provides that within 30 days of being contacted by a debt collector, you have the right to make a request for validation of the debt. This requires the agency either to demonstrate to you that the debt is valid and that it has the authority to collect it or send to you the relevant information concerning the debt.
Some mistakes might be made where the reported debt is incorrect. Take, for example, wrong account numbers, incorrect balances, or even that such accounts actually belong to other people.
Check Your Records
Go through your financial records to see if you have already paid or settled this debt. You might also find inconsistencies that can support proving the item false.
What Happens When the Debt Is Not Valid?
If the Structured Settlement Debt Collector cannot offer enough validation or if you find inaccuracies, you would have grounds to dispute the entry.
CreditSage can negotiate the dispute for you and ensure that everything is done correctly and no negligent errors are committed.
Disputing the Debt on Your Credit Report
Prepare Supporting Documents
If you think that the debt was wrongfully reported, begin amassing evidence that can advance such a claim.
Such supporting documents could be:
- Payment receipts
- Bank statements
- Correspondence with creditors or debt collectors
- Proof that the debt is not legal
Good documentation will only support your argument, putting it on the more favorable side of the outcome.
File Dispute Against the Credit Bureaus
After acquiring the evidence, you file formal disputes with the credit bureaus reporting the debt.
Your dispute must explain:
- The nature of the error
- Attach all proof
- Provide contact information
Depending on the bureau, you can file the disputes online, by mail, or by phone. Keep copies of each and every communication to refer to later.
Follow Up
State or Federal Laws require the credit bureau to investigate all disputes within 30 days of receiving your dispute. During this period, the credit bureau will reach out to the debt collector for validation of the information.
When validation is provided by the agency, this will be reported to the credit bureau; otherwise, if an investigation shows that there are inaccuracies on the same entry, then either an entry would be deleted or updated.
How CreditSage Can Help
The dispute process is very tiresome and lengthy. CreditSage negotiates on your behalf to remove the errors reported by the Structured Settlement Debt Collector.
Negotiating With Structured Settlement Debt Collector
Consider a Pay-for-Delete Agreement
If the debt is valid, and in the event that you want to resolve it, you may consider a pay-for-delete agreement. This negotiation approach entails the offer to pay the debt in exchange for the entry's removal from your credit report.
While there is no guarantee that such payments will be accepted, some — but not most — agencies have agreed to such proposals.
Negotiate Settlement Terms
Put Down Everything in Writing
Always make sure all negotiations are in writing, as this will ensure there are no misunderstandings or problems.
Start at something lower than the balance, and should that fail, increase your offer as necessary. Get in writing the confirmation that the agency will delete the entry after payment is made before making any payments.
Be very careful with beginning debt collection. Very cautiously be careful with the very first contact to debt collection. Stay clear of providing any affirmative engagements or delaying admissions of existence to pay unless you are very certain.
This could inadvertently cause the Statute of Limitations to reset, which may create an extension of troubles dragged down further into your credit career.
Let CreditSage Strengthen You
Calling debt collectors is really scary. CreditSage will save you the agony. Their experienced professionals know how to pinpoint the importance of the debt negotiations and aim of getting you the possible settlements inclusive of the deletion of the Structured Settlement Debt Collector from your report.
Prevention of Further Problems and Protection from Verification
Be sure to keep checking your credit. A credit report in constant review would thus keep you informed and detect inaccuracies and other suspicious activities quite easily.
- Communicate With Creditors — Talk to the creditors before the debts go into collections. Many are willing to work out a repayment plan or a settlement arrangement.
- Keep All Your Documents — Hang onto all paper trails for all your financial dealings, agreements, and payments.
- Know Your Rights — Study your rights under the FDCPA and FCRA. They're founded against unfair practices and require that reporting of credit history be honest.
Seeking Professional Help - CreditSage's Expertise
In collaboration with CreditSage, Credit repair can be complex, but it does not have to be a journey alone.
CreditSage will challenge errors; negotiate settlements, collectors, and help you keep your credit history as clean as it can be in an attempt to take control of one's credit health and avoid any more inaccuracies.
The only right thing to do in the case of taking down the Structured Settlement Debt Collector is an appeal that might result in the removal of relevant information from a credit report. The entire process could take longer to appeal or resolve, as either false or bona fide debts could re-appear, preventing one from restoring their stalled financial position.
CreditSage will always offer professional help to make sure you do not have to worry or over anything.