Dealing with Collection Agencies!

If you haven't paid your collection account(s) yet, negotiate with the collection agency. State that you plan to pay in full, and that you want them to agree to remove the item from your credit report. If you've paid, and the item remains on your report, go to the credit bureau and dispute the item that has been paid. It's a good chance that the collection agency has purged your record and therefore will NOT verify a dispute investigation from the credit bureau. If the credit bureau doesn't receive verification from the collection agency in thirty days, they are obligated by law to delete the item from your credit report.

Last resort is to settle on the debt. Make sure you write a restrictive endorsement on the front of the check:

"By cashing this check Payee agrees to accept this check in full payment of the account as agreed and agrees to remove all derogatory information from Remitter's Credit Reports."

Now you have a canceled photo of your check in your bank statement as proof incase the bureaus don't adjust your report accordingly. Also make sure to mention your account number in the memo section.

Debt settlement can be a huge help if you are in deep financial debt and already falling behind on payments. Answering the calls from collection agencies can push you over the edge. Go Debt Relief specializes in debt settlement. Learn more.