If you defaulted on a student loan, you may see Action Financial Services on your credit report or you may receive phone calls from them. If you do, it means they’ve likely added a collection to your credit report and it could hurt your credit significantly.
The good news is there are ways to remove Action Financial Services from your credit report and it’s not as hard as you think.
Don’t Agree to Anything Verbally
Before you do anything, commit to communicating in writing with Action Financial Services. If you do talk on the phone, ask that anything that they agree to be put in writing. It’s the only way you have a guarantee that they’ll follow through on their promise, especially if they agree to remove the collection from your credit report.
If you aren’t comfortable talking to them over the phone (it can be intimidating), don’t be afraid to ask for all communication in writing.
Ask for Debt Validation
Before you pay anything, ask Action Financial Services to validate the debt. But, you have only 30 days to do this from the first time they contact you. It’s a small window of opportunity to write a letter requesting that they validate your debt.
Request validation in writing, asking for any of the following details:
- Account number
- Original account balance
- Current account balance
- Last payment date
- Name on the account
Ask for as many details as possible to increase your chances of them being unable to validate the debt. Action Financial Services has 30 days to respond to your request. If they don’t or they can’t validate the debt, they must remove the collection account from your credit report.
Ask for a Pay for Delete
If you missed the 30-day window or Action Financial Services validated the debt, you can ask for a pay for delete. There isn’t a time constraint on this one – you can request this at any point, but it’s best to do it as early as possible. As the collection gets older, they may be less willing to negotiate with you.
A pay for delete letter is an agreement to pay a negotiated amount (whatever you can afford), and in exchange Action Financial Services will delete the collection account from your credit report. They aren’t obligated to accept this, so make sure you’re polite in your request and that you leave room for negotiation on the amount you’ll pay if it’s not the full amount.
Again, get the proof in writing so if they don’t follow through, you can despite the debt with the credit bureaus.
Get Help from a Credit Repair Agency
If you aren’t up to the task of dealing with Action Financial Services (they can be tough) or you don’t understand all your options, consider hiring a credit repair agency.
A reputable agency will dispute the debt for you, and may even help you write a debt validation letter if they feel it’s not legit. They will also look for any discrepancies in what’s reported on the credit report. If it’s not accurate or unfair, the credit repair agency will work with Action Financial Services to remove it from your credit report since it violates the Fair Credit Reporting Act.
You’ll Have to Pay the Debt
Your student loan debt went to a collection agency for a reason – you probably couldn’t afford the payment, and that’s okay, but it doesn’t mean you get away without paying it. You’ll have to make good on the debt at some point.
The good news is that Action Financial Services bought the debt for pennies on the dollar. This leaves room for negotiation. That doesn’t mean they’ll be light in their tactics or automatically accept a lower settlement, though.
You’ll need your best negotiating powers (and manners) to get them to agree to your settlement. They may even go back and forth with you a bit until you reach an agreement.
It’s important to find ways to remove Action Financial Services from your credit report. Having the delinquent student loan account on your credit report causes enough damage. If you have a collection account too, it can be difficult to get any new credit or if you do, it won’t be at attractive rates or terms.
Use the steps above to remove Action Financial Services from your account and let your credit score recover from the damage late payments and collections cause it.