If you discovered a company on your credit report that you don’t recognize named Ability Recovery Services, you may have defaulted on a debt that is now with a credit collection agency.
ARS buys old debts from utility companies, telecom companies, healthcare facilities, and financial institutions. They buy debts these companies don’t feel they can collect on any longer because they are so past due.
If you’ve discovered ARS on your credit report, take these steps to remove it.
Validate the Debt
If you strongly feel that the collection is an error, ask for debt validation. It’s a simple strategy that forces ARS to prove you owe them money. If you don’t (they can’t prove it), they must drop the debt from your credit report and stop calling you.
Even if you owe it, though, take this step. It will weed out any errors or unfair reporting of your account on your credit report. If nothing else, it gives ARS 30 days to validate the debt and answer all the questions. If they don’t, they must remove the debt from your credit report, it’s the law.
Pay the Debt with a Pay for Delete Agreement
If ARS validates the debt and/or you know you owe it, don’t pay the full balance right off the bat. Paying the debt doesn’t erase it from your credit report, which means it still hurts your credit score and future lending ability.
Instead, ask for a pay for delete agreement. This means you agree to pay a certain amount and ARS agrees to delete the collection from your credit report. It doesn’t erase the late status from the original debt if it’s something that was reported on your credit report already, but a collection can hurt your credit score even worse.
If ARS agrees to a pay for delete, don’t agree verbally. Ask for the agreement in writing. Before you agree to anything, though, negotiate the settlement amount. ARS bought your debt for pennies on the dollar. They hope you’ll pay the full amount so they make a generous profit, but they often agree to a lesser amount.
Use a Credit Repair Agency
If dealing with Ability Recovery Services yourself feels too stressful or you buckle under the pressure when you talk to them, consider paying for credit repair.
Credit repair agencies do the same tasks we mentioned above, but they do for this a living. They are professionals and know exactly how to talk to the collection agencies on your behalf. They know your legal rights and will dispute any debts they find with errors and/or violate your rights.
Use a reputable credit repair agency – there are many legit companies, just as there are scams. Don’t fall for a scam, but find a company with a (A) Better Business Burau rating and good reviews from others.
Contacting Ability Recovery Services
To contact Ability Recovery Services yourself after finding them on your credit report, here’s how to best get a hold of them. Like we said before, all communication should be in writing so you avoid the he said/she said issue that wouldn’t hold up if you disputed the debt with the credit bureau.
Ability Recovery Services
284 Main St DuPont
How ARS Affects your Credit
Any collection on your credit report decreases your score significantly. The collection itself will sit on your credit report for 7 years if you don’t have it removed.
While it doesn’t hurt your credit report for that long, just the presence of a collection on your credit report can hurt your chances of securing future credit. Lenders don’t like to see that you defaulted on debt.
A collection means you let a debt go as long as 120+ days past due without working out an arrangement with the creditor. Most lenders won’t lend to you knowing this or if they do, they’ll charge excessive fees and high interest rates.
Don’t let Ability Recovery Services ruin your credit. Life happens and bills get paid late, especially in the face of COVID, but that doesn’t mean you need to let a collection hurt your credit score forever.
Instead, find ways to eliminate Ability Recovery Services from your credit report. Start with debt validation and disputing the debt if ARS can’t validate it. If you owe it, though, work out an arrangement with them that includes deleting it from your credit report.