How to Keep Collection Agencies From Sending Notices to Credit Bureaus

Many collection agencies make regular reports to the credit-reporting bureaus. When a collection agency reports your account to one of the three major bureaus (Experian, Equifax and TransUnion), evidence of the debt then appears on your credit report. Collection accounts that exceed $100 negatively affect your credit score. In turn, this can damage your ability to obtain new credit. Negotiating with a collection agency early on can help you prevent the account from ever appearing on your credit report and lowering your credit rating.

Instructions

1

Contact the collection agency as soon as you receive notice that you owe an outstanding debt. The Fair Debt Collection Practices Act notes that all debt collectors must provide consumers with 30 days to dispute collection accounts. While a collection agency may report the account to the credit bureaus during this period, most do not.

2

Negotiate payment with the collection agency contingent on its not reporting the debt to the credit bureaus. If you cannot afford a lump sum payment, you can request a payment plan or debt settlement.

3

Ask that the collection agency provide you with a statement, in writing, in which it agrees that it will not report your account provided you submit payment as agreed. This protects you if the company reports your debt in error.

4

Make your payment or payments as agreed. Missing even one payment can result in the collection agency reporting your account to the credit bureaus.