If you’re receiving phone calls from Allied Collection Services, you’ve probably defaulted on a debt and they’re trying to recover it. Allied Collection Services is a valid debt collection agency that buys old debts from creditors who can’t collect on it any longer.
Allied typically buys the debts for less than they’re worth, but they try to get the full amount plus interest and penalties from you. This is how they stay in business. Their business is completely legal, but it’s frustrating and expensive for you.
The good news is there are ways to remove Allied Collection Service from your credit report, which is the most important piece of this puzzle. While you must satisfy the debt or prove you don’t owe it, removing the tradeline from your credit report is most important.
Why Remove Allied Collection Service from your Credit Report?
You may wonder why you should go through the hassle of removing Allied Collection Service from your credit report. Isn’t it just another tradeline?
While it is a tradeline on your credit report, it’s a bad one. Collections hurt your credit score significantly. They also stay on your credit report for 7 years. This means any lender that pulls your credit in the next 7 years will see the collection, ask questions about it, and use it in their underwriting decision which may result in a declined application.
The good news is there are several ways to remove Allied Collection Service from your credit report.
Steps to Remove Allied Collection Service from your Credit Report
The steps to remove Allied Collection Service from your credit report start immediately. As soon as you hear from them or see them on your credit report, you must act.
- Validate the debt – You have 30 days from the date they first contact you to ask Allied Collection Service to validate the debt. You’re asking them to prove you owe the debt and that they have the right to collect it.
You’re also asking them to prove the details of the account. For example, do they have your name, account number, and debt details? Ask as many details as possible about the debt. If they can’t validate the debt (answer your questions), they must remove it from your credit report. This doesn’t mean you don’t owe the debt, but it won’t affect your credit score any longer.
- Dispute the debt – If you missed your chance to validate the debt, you can still dispute the same information but with the credit bureaus. You must know which credit bureau reported the debt (Trans Union, Equifax, or Experian). You can pull your free credit reports here.
To dispute a debt, write a letter to the credit bureau reporting it. Send the letter in the mail and request tracking so you know they received it. In your letter, include as many details as possible, regarding why you think the debt is invalid or unfair to be on your credit report.
The credit bureau has 30 days to respond to your request. If they can’t prove anything different than what you stated, they must remove it from your credit report.
- Arrange a pay-for-delete – If you can’t get Allied Collection Service off your credit report with the above steps, ask for a pay-for-delete. Most people will end up at this step anyway since you have to pay the debt even if they remove it from your credit report.
Before you pay it, negotiate a settlement amount. Remember they bought your debt for less than it’s worth, so you have room to negotiate. Go in with an amount lower than you can afford because they typically counteroffer what you suggest.
If you didn’t get Allied Collection Service off your credit report yet, include a provision that they delete the tradeline from your credit report after you satisfy the debt. Get this agreement in writing. If they don’t follow through on their agreement, you can dispute the debt using the agreement they sent you.
Removing Allied Collection Service from your credit report is important. It can drag your credit score down and make it hard to get credit in the future.
It takes some legwork, but the three steps above typically help. If it’s too overwhelming or you don’t have any luck, you can hire a reputable credit repair agency to help you remove the debt from your credit report too.