Deleting Collections From Credit Reports With the "One-Two Punch"

If you've hung around debt collection forums for any length of time, you've probably heard of the "one-two" punch. The "one-two" punch essentially consists of sending a validation letter to the collection agency and immediately following that validation up with a credit bureau dispute. This is supposed to result in the credit bureaus deleting collections from your credit report. Here's how it works:

How the One-Two Punch Deletes Collection Accounts

The Fair Debt Collection Practices Act notes that, once a debtor sends a debt validation request, the collection agency cannot legally validate the debt to any entity other than the consumer that requested the validation until after it has sent proper validation to the consumer. Thus, the collection agency cannot legally validate the debt to the credit bureaus until after it sends proper validation to the debtor.

The one-two punch rests heavily on time constraints. The hope here is that the collection agency won't be able to validate the debt to the credit bureaus within the 30 day time limit required by law. After the 30 days, the credit bureaus stop waiting for a response to the request and simply delete the collection tradeline from the debtor's credit report.

Yet another potential help is if the collection agency validates the debt to the credit bureaus without responding to the consumer's validation request. This gives the consumer the right to sue the collection agency. Upon notification that a lawsuit is pending, most collection agencies would rather delete the entry than duke it out in court.

Problems With This Deletion Tactic: Debt Validation Time Limit

There seems to be some serious misunderstanding regarding when you can send a debt validation letter to a collection agency. The FDCPA gives you 30 days to dispute the debt with the collector. Those 30 days start on the day you first became aware of the existence of the debt. Sure, you can claim you didn't receive the boatloads of letters the company sent to you asking for payment, but if the company can prove via recorded phone calls or evidence of certified mail that you were aware of the debt for more than 30 days prior to sending your validation request, it isn't legally bound to respond to that request.

So if you're going to try the one-two punch, do it within the first 30 days of being contacted by the collection agency, just to be safe.

Confusion Over "Proper" Debt Validation

Another aspect of the "one-two punch" hinges on the collection agency not providing the consumer with validation of the debt. Hunt around on the web for "proper" debt validation. What do you find? Probably a bunch of this:

"Proper validation constitutes the amount of the debt, the name of the account holder and his Social Security number, the name and address of the original creditor, proof that the collection agency has a contract with the original creditor giving it permisison to collect the debt..."

Blah, blah, blah. While we'd all love for this to be true, the FDCPA gives collection agencies a loophole by not stipulating what constitutes proper validation. Nothing. Nada. It's not there. Sure, there are FTC opinion statements, but those aren't fact or law. They're opinions. The truth is, the collection agency can send you a piece of paper with "IT'S YOURS DIRTBAG" scrawled across the front of it in red crayon and call it validation. While you may be able to nail them for harassment for that, they can still claim they considered it proper validation – leaving them free to legally validate your debt to the credit bureaus.

When the One-Two Punch Works, Watch Out for Reinsertion 

I've met people for whom the "one-two" punch has worked beautifully, so I'm not saying don't give it an honest effort. Be wary, however. If the collection agency isn't able to respond to the credit bureaus' validation request due to the fact that its actually adhering to federal law (many don't bother to follow the law) don't be surprised if the same collection account pops right back up on your credit report a couple of months after being deleted.

This is because the FDCPA give creditors the right to have previously deleted information reinserted if the creditor can prove to the credit bureaus that the information is correct and was deleted in error. Sadly, with collection agencies, this often happens as a result of the company sending the credit bureaus a certified letter stating something along the lines of, "That information you deleted was correct. Look, we have the guy's name and the amount he owes. It must be right. Reinsert this please."

And the demon reappears.

So, by all means, give the one-two punch a try. I'd love to know how it works out for you, but make sure to watch your credit report like a hawk for a few months afterward to ensure that the same old collection account doesn't pop up on your credit report after you thought you'd had it deleted.

Removing Collections That Aren't Yours From Your Credit Report

Removing Collection Accounts That Aren't Yours From Your Credit Report

Removing collections from your credit report that aren't yours is a little trickier than deleting old collection accounts. Many, many, many people claim that collection agency debts aren't theirs when, in fact, they are. Disputing a collection as "not mine" is the number one dispute the credit bureaus see, so don't expect to get very far there. Your goal is to convince the collection agency to delete the tradeline of its own volition.

The first thing you do is to write a letter to the company requesting the name and address of the original creditor for the account. You need that information before you begin.

Step One: Sending a Validation Request
This is nothing more than a formality. The collection agency cannot validate an account that isn't valid – but they will. Send a letter to the company, CRRR, requesting that it validate the account. Do not include any other information with your letter, such as "this account is not mine" etc. The collection agency will send you a printout containing the same basic information about the account that you see on your credit report. With any luck, some of that information is incorrect. You want this in writing. It will come in handy later.

Step Two: Calling the Collection Agency
Surprised? You should be. I'm normally the first birdie to sing a warning against ever calling a collection agency. In this case, however, it can really work to your benefit. So lets face the beast head-on, shall we?

When you call the collection agency, you'll have to go through an automated system to reach a collector. When the system asks you for personal information such as your Social Security number, just sit there. The system will not disconnect you. This isn't the same as calling the credit card company that really doesn't want to talk to you anyway and will disconnect you at the first opportunity. Collectors want to get you on the phone, and if the debt isn't yours, you don't want to give them any more information than they already have.

When you finally get a human being on the line, be polite. Explain your situation honestly, making sure to set yourself apart from the pack as much as possible. I recommend the following introduction:

"Hi, my name is ________. I noticed a tradeline on my credit report recently from your company requesting payment in the amount of _______. The account number for this account is _______. Would you like me to wait while you pull that up in your system?" 

This shows both professionalism and kindness. You're demonstrating those aspects first because you want them returned. It's a heck of a lot harder for a debt collector to start yelling at you about what a deadbeat you are when you start out the conversation on such a civil note. Let's continue..

"I know everyone calls and says this and its probably become so common that it makes you want to scream, (short chuckle) but this debt rightfully belongs to someone else. The name/Social Security number/address/etc. on the tradeline isn't mine. I am willing to do whatever is necessary to help straighten out the situation, both to help myself and to help your company pursue the correct debtor." 

You say, "I know everyone says this" to demonstrate that you do know they hear it all the time. By pointing out that you are aware that everybody claims this but in your case its true, you set yourself apart as believable. You chuckle to mark the unpleasant humor of the situation and to add an element of humanity – humanity that you hope will be returned – to the conversation. You also note how helping you also benefits the company to give the collector additional incentive to help you.

The first thing the collector will ask for is your Social Security number. Here's how you respond:

Collector: Can I get your Social Security number please? 
You: I mean you no disrespect and I want to get this situation resolved as much as you do, but try and understand my paranoia here about giving out information that can be used against me. After all, any information I give you can be used in an effort to collect the debt – even if those collection efforts are aimed at the wrong individual. 


Your goal is to get the collector to tell you who to call to resolve the situation. A special number of a top supervisor, perhaps. The name and address of the person in charge would also be helpful. Any information you can glean from the collector that most debtors don't have access to will help you resolve the situation and stay out of court. Try saying this:

"My goal in calling you today is to get this situation resolved as quickly as painlessly as possible for both of us. Who do I need to talk to within your company to accomplish that?" 

If the collector won't help you, call back and try again. Your odds of getting the same representative are low. Sooner or later, someone will tell you who to talk to. Do not let your voice betray any shred of frustration or anger. Unlike most customer service representatives, debt collectors aren't trained to be nice at all costs. If you bite, the debt collector will bite back and any chances you had of getting the information you want will go up in smoke.

Once you get an address or e-mail address of someone in a high-ranking position within the company (get the addresses of more than one, if possible. You want to send this letter to as many people as you can) send out a letter asking for help. I'm going to provide you with a sample you can tailor to your own situation. The italics in the letter are for your own clarity. Don't include those

Dear Mr./Mrs. ___________


My name is ____________. I am writing to you today with a situation you've probably encountered 1000 times, with only one or two cases out of that thousand being legitimate. I am one such legitimate case. The debt your company claims I owe isn't mine.


I discovered this debt on my credit report with an incorrect name/Social Security number/etc. I requested the name and address of the original creditor for the account and I have never held an account with _______ or I currently hold an account with _________ but it is up to date. I recently requested validation of the account and received a response containing incorrect information. This benefits me, since it proves that your company is pursuing the wrong individual for this debt. I am writing to you rather than simply moving forward with a credit bureau dispute and litigation because I am hoping we can resolve this outside of court.


I am willing to comply with any requests your company has that will prove my innocence in regards to this debt. Please understand, prior to receiving the validation response, I was hesitant to do so because I know that some collection agencies will simply replace the incorrect information with my information in an effort to collect the debt, not caring that they are pursuing the wrong person. I no longer have that fear because the validation I have in writing from your company contains the incorrect data you currently have on file and protects me in the event that data changes. It also serves as proof that the person you're looking for isn't me. Thus, exonerating me is not only beneficial to me, its also beneficial to your company since it frees you to pursue someone who will pay this debt.


Please contact me at (email address) so that we can discuss this matter further. 


Sincerely,
Your Name


I know how crazy this may sound to the die hard "Dispute-till-you-drop" camp, but I learned the hard way that collection agencies aren't all fire and brimstone. Higher-ups within the company don't depend on commission to pay their bills, and they're more likely to help you out of sheer human compassion. Given that few people anticipate this from collection agents, the trick works more than you'd think.

Once upon a time I had a client whose boyfriend had a collection debt on his credit report that was actually his nephew's debt. The two shared the same name and, being ignorant of the way the system normally works, he called the collection agency himself, explained the situation and asked for help. He got it. The collection agent who answered the phone directed him to another employee at the company who was willing to straighten out his file. In the end, my services weren't necessary and I was delighted by my client's boyfriend's success.

The point being, you might just get the help you're looking for if you ask for it.

If the Collection Agency is No Help Removing An Account That Isn't Yours

Just because the collection agency might help you, that doesn't mean its a certainty. Whether you're dealing with a genuine collection agency or a junk debt buyer makes a significant difference in whether or not you can get the negative report removed from your credit report with a few well-placed telephone calls and letters. Its much tougher to get a junk debt buyer to take you seriously because, if the account is old enough to have been sold to a junk debt buyer, then the debt collectors assume if the debt genuinely wasn't yours you would have already taken care of the problem. In addition, junk debt buyers have a lower successful collection rate that mainstream collectors because the debts they purchase are so much older. This makes them more gung-ho to collect from you, regardless of whether or not you can prove you legitimately don't owe the debt.

Time to play hardball.

Sending An Intent to Sue Letter to the Collection Agency

Remember when I mentioned that collection agencies don't want to go to court? Its normally not worth their time or the money it would cost to defend themselves from consumers – especially when they aren't certain just what evidence a consumer has against them until after the discovery period.

Step Three: Sending an Intent to Sue Letter to the Collection Agency
If that collection account on your credit report isn't yours, notify the collection agency of that fact via an intent-to-sue letter. Let the collection agency know, in no uncertain terms, that the entry is incorrect and thus in violation of the FCRA because you never owed the original debt. Don't provide the company with copies of any evidence you have against them. Don't provide anything. You don't want to inadvertently give collectors legal ammunition that can be manipulated and later used against you in court. Just write the letter and point out the following:

1. The account isn't yours and was placed on your credit file by mistake. 
2. You never had an account with the original creditor and you can prove it.
3. You can prove that the entry on your credit report contains information that indicates the debt is owed by someone other than you.
4. Reporting incorrect information to the credit bureaus is illegal.
5. You have the right to sue under the FCRA and you intend to do so unless the entry is immediately removed from your credit report. 

And then you wait. With any luck, one intent to sue letter will be enough to convince the collection agency that you mean business and it will delete its negative entry from your credit report.

If the Collection Agency Doesn't Fix Your Credit Report

If threatening to sue the collection agency isn't enough to set a fire under them and get the entry deleted from your credit report, its time to dispute the entry with the credit bureaus. Unfortunately, this is little more than a formality. The credit bureaus validation process is little more than contacting the collection agency with a, "Hey guys, is this correct? It is? Okay thanks." But you'll need to prove in court that the collector violated the FCRA knowingly. That means notifying the collector that the information is incorrect before you contest it with the credit bureaus. When the collection agency validates the information as correct, that proves that the company violated the FCRA by knowingly validating an incorrect entry.

And there's always a chance that the entry will get removed. You just never know. Its worth a shot. When the  credit bureaus validate the collection that isn't yours on your credit report, its time to take the fight to the courts and sue the collection agency. You could also try the "one-two punch" but I'll write more on that later. For the time being, I'm exhausted and this post is long enough as it is. There's so much information to include. *sigh* Ah well, such is the purpose of a blog. Bit by bit, we'll get there.

Removing Re-Aged Collection Accounts From Your Credit Report

Re-aged collections on your credit report can leave you getting turned down for loans and credit you actually qualify for simply because a collection agency is violating federal law. If you suspect that a collection agency is intentionally reporting the wrong dates to the credit bureaus in an effort to leave its black mark on your credit report for longer than the law allows, your first course of action should be to get a copy of your credit report from each credit bureau – Experian, Equifax and TransUnion.

Remember, federal law entitles you to one free credit report per year. If you order that free credit report from AnnualCreditReport.com, you won't have to deal with giving out your credit card number and then canceling any ridiculous subscriptions later on down the road. AnnualCreditReport.com is regulated by the FTC, and its the only place you should turn to for free credit reports.

Find Each Collection Account's Removal Date

Find the correct deletion date

Flip to the collection accounts section of each credit report. The error you're searching for is collection accounts that show up on your credit report for longer than the time limit allowed by the Fair Credit Reporting Act. The FCRA says that collection accounts must be deleted from your credit report 7 years from the date of first delinquency on the original account. The date of first delinquency is 180 days from the date of your very last payment to the original creditor.

Here's where things get tricky. Collection agencies go to great lengths to prevent you from knowing this date. It benefits them to have their negative entry hanging around on your credit file for as long as possible. Because of this, some collection agencies will go so far as to "re-age" their accounts – intentionally reporting incorrect dates to the credit bureaus to ensure that collections remain on your credit report for much longer than the law allows.

Thus, collection agencies will only report the date that the account was opened with their facility – not the date of first delinquency. It's up to you to match up the collection account with the original creditor's entry on your credit report. Most creditors charge off debts when they go 180 days with no payment. With few exceptions, the "charge-off" date listed on your credit report is the date of first delinquncy.

Once you've matched up the charge-off date with the right collection account, do the math for yourself to find out when the account is supposed to fall off your credit report. Don't depend on the credit bureau's "estimated removal date" to do the math for you. If your account has been illegally re-aged, this date will be incorrect. If you don't have long to wait before these accounts disappear from your credit report forever, its often easier and less stressful to just wait until they fall off on their own rather than trying to fight them off.

If No Original Creditor Matches the Collection Account on Your Credit Report...

Many of you will go through this little exercise and discover that you've got several collection accounts showing up on your credit report for which there is no original creditor to match them up with. This can occur for several reasons:

1. The original creditor was a credit card company. Credit card companies allow the charging of interest. Because the original contract includes this practice, any collection agency the credit card company sells the delinquent account to will also have this right. Thus, the charge-off amount won't match the collection amount because interest has continued to accrue since the account was charged off. 


2. For whatever reason, the original creditor's tradeline no longer appears on the same credit report that the collection agency's tradeline appears on. This happens sometimes. Don't panic. Just check your other two credit reports for the matching creditor. It may be there, even if the collection agency doesn't report that that particular credit bureau.


3. The account has been illegally re-aged. Under no circumstances should a collection account for a debt remain on your credit report after the original creditor's tradeline has aged off the report. The reporting period applies to both the original creditor and its collectors simultaneously. If no original creditor on any of your credit reports matches the collection account, there's a good chance the debt has been re-aged. 


4. The collection account isn't yours. Collection agencies frequently don't have the same wealth of information about you that original creditors do. Often all they have is a name and address. This can result in a collection agency adding their negative tradeline to the credit report of the person who most closely matches the information they have – in some cases, the wrong person. 

If no original creditor matches the collection agency's tradeline on your credit report, its time to find out who the original creditor is. The Fair Debt Collection Practices Act states that a collection agency must provide you with the name and address of the debt's original creditor upon request. So fire off a letter to the collection agency requesting exactly that. Don't forget to send your letter certified mail return receipt requested.

If the Collection Account is Too Old And Has Been Re-Aged

Collection accounts that show up on your credit report beyond the reporting period are the easiest to remove. Its always preferable to get the reporting company to remove the entry voluntarily, if possible, before filing a dispute with the credit bureaus. You want to fly under the radar with the credit bureaus. You don't want to make yourself noticeable in any way by filing frequent collection disputes – even if those disputes are legitimate.

Send a letter to the collection agency informing them that it has come to your attention that the company's tradeline appears on your credit report beyond the legal reporting period. Demand that the company immediately remove their tradeline to remain in compliance with federal law. If you're really feeling froggy, cite the statute – FCRA Section 605.

With any luck, the collection agency will simply fix your credit report to avoid any trouble. If the collection agency doesn't remove the entry after 30 days, send a second letter saying the same thing and giving the company 10 days to correct your credit report before you file suit against the collection agency for violating the FCRA and report the company to the Federal Trade Commission for illegally re-aging a collection account.

(You can report collection agencies for this here.)

If the collection agency still fails to comply, its only then that you should formally dispute the entry with the credit bureaus.

Disputing a Re-Aged Collection Account

Resist the temptation to file your dispute online, no matter how quick and accurate the credit bureau promises it will be. The online system is 100% computerized, and your goal is to reach a real person.

Write a letter (write it by hand, don't type it. You don't want it read and categorized by a computer – and yes, they can do that) to the credit bureau. Include the following information:

1. The fact that the debt in question has been re-aged.
2. The name of the original creditor, the date of first delinquency and the date the collection account should have been removed. If both the original creditor and the collection account remain on your credit report, you can dispute both simultaneously. If not, note that the credit bureau in question has already deleted the original creditor's tradeline in accordance with FCRA guidelines and that the collection account should have been removed at the same time. 
3. A copy of that credit bureau's file for you with the information in question highlighted. 
4. A request that the credit bureau immediately delete the information

With any luck, the person who gets your file will just delete the information immediately without trying to "verifiy" the entry with the collection agency like the computer system would do. Remember, the credit bureaus only have to verify information if the reporting company has supposedly made an error. In this case, you're claiming the error to be that of the credit bureaus – for not picking up on a re-aged debt. This gives the person reviewing your file more leeway.

Reviewers have an average of three to four minutes to spend on each file. The more you can back up your claim, the better off you are.


If the Credit Bureau Doesn't Delete the Entry

If the credit bureau doesn't delete the re-aged collection account from your credit report, its time to take the fight directly to the collection agency. Send the company a letter noting the following:

1. You recently requested the name and address of the original creditor from the collection agency and the date of first delinquency for that particular debt occurred more than 7 years ago. 
2. The credit bureaus deleted the original creditor's negative tradeline after 7 years and 180 days in compliance with the FCRA.  The collection account should have been removed at the same time.
3. You notified the credit bureaus of the discrepancy and the credit bureaus contacted the collection agency, which verified the dates were accurate when, in fact, they couldn't be if the original creditor for the account was accurate. 
4. The dates for the collection account were clearly re-aged – an illegal practice under the FCRA. 
5. The collection agency must immediately delete its tradeline from your credit report to remain in compliance with federal law. If it does not, you will report the collection agency to the Federal Trade Commission for re-aging, contact your attorney general and file a lawsuit against the company for violating federal credit reporting practices. 

Give the collection agency a time limit, say, 10 to 15 days and then either pull your credit reports again or sit back and wait for the email from your credit monitoring service letting you know that information on your credit report has changed. If the collection agency doesn't do anything, follow through with your threats. A well-placed call from your attorney general can result in quick deletion of a re-aged collection account from your credit report. If that doesn't do the trick, receiving a summons will almost always cause the offending tradeline to mysteriously vanish. After all, a collection agency is in the business of making money. What company wants to pay money to go to court to defend itself against a case it can't win?