If you’ve defaulted on debts long enough that the creditor gave up on collecting from you, they may have gone to collections. If you pull your credit and find AR Resources Inc. on your credit report, they probably bought your debt and now want you to pay it.
While you’ll always owe your bills, unless they are sent in error, that doesn’t mean you have to leave AR Resources on your credit report. If you defaulted on a credit card or loan, the original creditor likely reported the delinquencies already, the collection only makes things worse.
Fortunately, it’s easier than you think to remove AR Resources from your credit report. Here’s how.
Make Sure the Collection is Legit
Errors happen and if you don’t make sure AR Resources reported your debt appropriately, they may be barking up the wrong tree. Before you do anything, validate the debt. Here’s how.
- Write AR Resources a letter requesting debt validation
- In the letter, ask them to prove the amount you owe, the original debt amount, the amount you owe, the date you defaulted, and any other information you want validated
- Give them 30 days to respond
If AR Resources doesn’t respond to your request within 30 days, they must remove it from your credit report. If they don’t, write to the credit bureau and dispute the debt (more on this below).
Dispute the Debt
If you can’t get anywhere with AR Resources, go directly to the credit bureau that’s reporting the debt. Check your TransUnion, Equifax, and Experian credit report. You get free access to all three reports weekly for now, so take advantage.
When you dispute the debt, write to the credit bureau and explain why you’re disputing it. If AR Resources didn’t respond to your debt validation request, there’s reason enough to dispute it. But, if over 30 days have passed since they reported to the credit bureau, you can’t validate the debt, but you can dispute any errors to the credit bureau including:
- Incorrect balance amounts
- Wrong dates (original date, defaulted dates, etc.)
- Misspelled names
- Wrong account numbers
Any information that’s incorrect, you can dispute. Do it in writing and wait 30 days – that’s how long the credit bureau has to respond.
Get a Payment Arrangement
Just because you defaulted on your debt and AR Resources is hassling you with phone calls and letters doesn’t mean you have to pay the full amount. You defaulted for a reason – typically that you couldn’t afford it.
AR Resources usually buys debts for less than they’re worth, so you have some negotiating room. Talk to them about a payment arrangement whether you offer a lump sum (they prefer this) or you make monthly payments.
The idea is to settle the debt for less than the full amount AND to ask for a pay-to-for-delete. This means you ask AR Resources to delete the debt from your credit report in exchange for your payment.
If they agree, ask them to send it to you in writing. You must prove that they agreed to it because without written proof, they may not hold up their end of the bargain. In other words, they may not delete the debt from your credit report. If you have written proof, you can dispute the debt with the credit bureau.
Give it 30 – 60 days before you dispute it, sometimes it takes a while to get the debt off your credit report. Don’t forget to follow up, though. You get free weekly access to your credit report and it doesn’t hurt your credit to pull your credit report often.
Don’t leave AR Resources on your credit report. First, make sure it’s legit. If they reported it in error, your job is easy. Get them to remove it by disputing it with the credit bureaus. If they refuse or you can’t handle the stress of dealing with them, hire a reputable credit repair agency to do it for you.
If it’s legit, work out an arrangement to pay the debt and have them delete it from your credit report. Either way, you delete the debt from your credit report and don’t risk hurting your chances of securing credit in the future for the next 7 years as that’s how long a collection remains on your credit report.