Collection agencies work with creditors to collect an unpaid balance. Collection agencies have information about accounts, as well as your personal information (name, address and Social Security number). With this information, agencies can send updates to the credit reporting bureaus and list negative information on your credit report. You can employ certain tactics to get bad information off your report and improve your credit rating.
Instructions
- 1
Inform them that you're already paid a debt. Get the collection agency's fax or mailing address and send them a copy of old or canceled checks showing that you paid off the balance in question. Tell them to remove the collection account or delinquency from your credit report.
2Deny the debt and ask the agency to remove the collection account from your report. An account that belongs to another person may appear as a collection or unpaid balance on your report. Upon finding this information, write a letter to the agency disputing the account and asking the company to verify the debt. To verify is to send written proof that you owe the funds. Mail your letter by Certified Mail and keep a copy for yourself.
3Ask the collection agency to remove bad information. Collection agencies want to collect as much on a debt as possible, and they don't want you to file bankruptcy because this means that they may never recover funds owed. To keep you out of bankruptcy, agencies may agree to delete negative information once you pay the debt. Call the agency to negotiate, and put everything in writing.
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