Most of you have noticed that sometimes you get a call that you have to pay the debt even if you are not aware of this and it will reflect on your credit report. That time you get confused and also wonder how we can fix it. So, if you are also going through with such a thing then you must read our article as we will discuss what is the reason behind it and how you can remove Direct Recovery Services from your report. Let’s begin.
What are Direct Recovery Services?
Direct Recovery Services is basically an agency that collects debt and it was initiated in 2012. A debt collector calls you for collecting debts from you. The main function is to collect different kinds of debt and also give various services to companies such as:
- Fraud litigation.
- Credit bureau reporting.
- Pursuing and enforcing court judgments.
They usually talk to you through mail/calls and ask you to make a payment. It will show on your credit report and it will affect your credit score and you will not be able to get a loan.
Direct Recovery Services Collects for Whom?
Direct Recovery Services legit will not announce what kind of debt they gather to the public. But, many who have complained to the BBB about Direct Recovery Services claim that they have received calls regarding credit card & loan arrears.
Is Direct Recovery Services Scam?
Absolutely No, account direct recovery services is an agency that is made to collect a debt from the users. They are also part of the “Association of Credit and Collection Professionals”. Though Direct Recovery Services is a legit organization, you can see them in disputes. They have faced many legal actions for allegedly infringing consumer rights.
Additionally, scam artists may fake Direct Recovery Services employees in an effort to defraud you. This is why it’s crucial to confirm the legitimacy of any debts you’re contacted about before you send money, which you can do by contacting the people listed below.
How Can You End Direct Recovery Services from Calling You?
They mainly contact you through calls or mail. The goal behind calling you is to make pressure on you so that you pay them. Till the time you prove to them that you are not responsible for paying any amount, they will continue to poke you. In that case, you need to show them the contract.
Never try to ignore debt collectors or debt collectors, because they may sue you & even do your wages garnished. In order to deal with it, so that they won’t call, you need to send them a “Debt Validation Letter”.
Use of a Debt Validation Letter
It is the way of requesting them in a formal way that if you say we have to pay the amount you have to send me more proof of it. It should be sent in 30 days. Remember that you were supposed to receive a debt validation letter from Direct Recovery Services first, as required by law, verifying your debtor status.
Importance of Sending a Debt Validation Letter
There are 3 benefits of using a debt validation letter:
- It will help to prevent Direct Recovery Services from calling you: If you send this letter to an agency such as Direct Recovery Services then it says by law that you can’t contact the user until you show more proof.
- You’ll get more information about the Debt: There is no need to pay for the debt which is not known to you. If you force them to provide more information that can prove that you need to pay the debt collector legit. This way you can find out if it is a scam or not.
- You may effectively abandon the debt: If they are not able to show any proof then they have to remove it from the records.
Look Out for the Law of Limitations
These validation collections are a sign that shows the debt has gone through the law of limitations. It shows that they cannot sue you as it is a very old debt and it is called time-barred debt. You can simply tell them this letter and they won’t call you as it is written in the law.
The majority of debts have a “statute of limitations” that lasts between three & six years, but the actual duration varies depending on your place of residence and other variables. If the information you’re looking for isn’t available online, the best course of action is to visit the site of your state’s general & email them.
How to Remove Direct Recovery Services from Your Credit Report?
If you want to boost your credit score which is going down because of Direct Recovery Services. Then you can increase it in 3 ways:
1. Dispute the Debt with all 3 Credit Agencies
In case you know that the debt they are asking for is illegal then you can dispute with them how they have written in the credit report. If your debt is seven years old you can still create a dispute on that. It will create pressure and they have to remove it from your credit report. You can also send a letter to a credit agency if you want to dispute it for free and if they didn’t respond in between 30 to 45 days then they have to remove it.
2. Negotiate with Direct Recovery Services
If it is found that the debt is legal then you can’t remove it from Direct Recovery Services.
So, play smart and pay it off. After paying your debt you can boost your credit score despite it not being removed from the report.
But, if you want to remove it from your report then you have two choices:
- Goodwill Deletion: You can ask them to remove it from your credit report by sending a goodwill letter stating that you are sorry for what has happened.
- Pay for Delete: You should have convincing power so that you can say you have paid the debt and we can negotiate it by giving them pay for a delete letter template.
3. Hold on for Seven years Till the Direct Recovery Service Decline the Credit Report
If you fail to pay the debt on the first chance then it will show on your credit report for seven years.
How to Restrict Direct Recovery Services?
When they try to collect the debt then they follow the rules given in the “Fair Debt Collection Practices Act”. So, the debt collector harasses you by making unnecessary calls at any time. Representatives of Direct Recovery Services must also abide by the guidelines outlined in the “Telephone Consumer Protection Act”. It’s good to become aware of these rules so that, in the event that Direct Recovery Services commits an offense, you can hold them accountable.
How to Sue Direct Recovery Services?
You can sue them if you are able to prove that you have been harassed by them and you can take $1000 as compensation or for any damage under the “Fair Debt Collection Practices Act”. They will pay for “attorney fees & court costs”.
How Much Should You Pay for Direct Recovery Services?
You should only pay the amount that you really owe. If you are not able to pay because of your financial condition then you can take aid from a Non-Profit counselor.
We hope now you know that Direct Recovery Services is basically an agency that collects debt. Think about whether you have applied for a loan or not. If you have applied for a loan then you must see that your credit score should be good. Otherwise, they will not grant you a loan. So, you must know everything about it before taking action against it.
Frequently Asked Questions (FAQs)
Q1. What is the difference between recovery and collection?
Collection refers to collecting the debt from customers while recovery means getting the money back from the business or from creditors.
Q2. Is RMC a collection agency?
Yes, it is an agency that collects debts.
Q3. How to deal with a debt collector when you can’t pay?
- Be smart in communication.
- Try to negotiate.
- Get full-fledged information.
- Get everything in writing.