In every debt, there are always two parties involved. One is a creditor or the one who lends money, while the other is a debtor or borrows the money. More often than not, a problem arises when debt money is involved because, commonly, debtors won’t pay on time.
Creditors get agitated and frustrated when their debtors do not respond to their calls or repeated verbal reminders. And that is the reason why they seek the collection agencies’ help. They hire them to facilitate further the payment of the debt. But what is a collection agency? Simply put, a collection agency is someone who a creditor hires to help the latter collect the debt owed him.
So if you are the debtor, and you happen to forget to pay your creditor, don’t be surprised if a collecting agency repeatedly calls you. There could have been a possibility that your account was sent to a debt collector. As a consequence, the collection made by this debt collector appears on your credit report. It will indeed hurt your credit score since the collection may stay on your credit report for several years.
But who are these debt collectors? One of them is Financial Recovery Services. So if you happen to see its name on your credit report, you probably failed to pay your outstanding balance. Thus, you need to do something about it. But before that, be first aware of who Financial Recovery Services is.
Who is Financial Recovery Services?
Like any other debt collection agency located in Superior, Wisconsin, Financial Recovery Services’ function is to collect from various market segments.
Debt collection agencies, including Financial Recovery Services, have one quality in common: persistence. They will never stop until they get you to pay simply because it’s their commitment to the creditors who hire them. Like any other collecting agency, Financial Recovery Services will begin to write you a letter informing you of your debt. Phone calls will then follow it until you pay.
The tendency is that you will panic and worry. But to avoid feeling that way, here are how you deal with it:
How to Deal With it?
Know Your Rights
Every accusation thrown at you is daunting. But when you know your rights, you’ll stay calm and think properly. These accusations will only remain as such if you know how to overcome them. And you can overcome them by knowing what your rights are in the first place.
Thus, when Financial Recovery Services contact and aggressively require you to pay, know that you don’t have to. First, validate the collection. You have the right to see exactly how much you owe allegedly because maybe you’ve already paid it off, and your creditor just forgot.
Second, ask if Financial Recovery Services has already passed all the stages before calling you. Typically, it must have proof that it had already talked to the creditor. Otherwise, it cannot directly call you. You must know your rights to protect yourself from unreasonable or unscrupulous collections.
Have Your Debt Validated
This is very crucial. Having your debt validated is not only asking the collecting agency like Financial Recovery Services if you incurred unpaid debt. It means that you should ask the collecting agency if it truly got a hold of your credit report.
Sometimes it will still require you to pay for a debt that has long been settled, especially when seven years have already passed. Most debtors do not know that items generally disappear from your report after seven years from the date of last activity. Thus, if you won’t see the credit report, you’ll run the risk of paying what you already paid in the past.
Hire a Professional Credit Repair Company
It’s also an excellent idea to hire a professional credit repair service since what it does is to make these collections on your credit score go away. That’s what it’s paid for. If you genuinely have incurred an unpaid debt, a credit repair professional will fix it for you.
More importantly, it will even help you contest and challenge a wrongful item on your credit report and have it removed eventually. Click Here to know more about Financial Recovery Services and get more help with removing their name on your credit report.
Offer a Payment Plan
If you acknowledge the unpaid obligation, offering a payment plan implies a win-win situation. Your creditor will no longer have to spend a lot of money in hiring collecting agencies through the Financial Recovery Services because both of you can amicably settle. What you have to do is offer how much you can pay in installment, the period of payment, and a signed written agreement by both of you.
Document Everything In Writing
If you feel being harassed already or are threatened that a suit will be filed against you, you have to document everything a collecting agency says to you. This way, you’ll have enough proof to support your claims against the collecting agency. The courts respect written documents. That’s why you’ll never go wrong if you have them to back you up.
Incurring debts is not as bad as it appears to be. However, it can be a source of unnecessary stress if not addressed accordingly. Indeed, you’ll be one step ahead of the collecting agency if you know your remedies.