If you’ve reviewed your credit report recently and found Penn Credit Corp on there, you may think it’s a mistake since you’ve never done business with a company with that name. It may not be, though.
Penn Credit Corp is a collection agency that buys old debts from companies who can’t collect on the debt any longer. If you’ve discovered them on your credit report or they’ve contacted you, it’s important to know how to remove Penn Credit Corp from your credit report.
Use these easy steps to make it happen.
Validate the Debt
First, validate the debt. This means asking Penn Credit Corp if the debt is legit. Do this in writing and they have 30 days to respond. We recommend asking as many questions as possible in your validation letter so they have to validate as much information as possible.
If Penn Credit can’t validate the debt, they must remove it from your credit report. This doesn’t mean you don’t owe the debt, you still might. But, they legally cannot report it on your credit report unless they can prove behind a reasonable doubt that you owe the money.
You only have a 30-day window from the date of first contact from Penn Credit, so don’t delay or you’ll have to move onto the next steps.
You can write to Penn Credit Corp here:
Penn Credit Corp
2800 Commerce Drive
Harrisburg, PA 17110
Dispute the Debt
If Penn Credit validated the debt or you missed your window of opportunity, you can dispute the debt.
Disputing is done with the credit bureau that reports the debt, which is TransUnion, Experian, or Equifax. Like debt validation, send the dispute in writing (we don’t recommend disputing debts online).
In your letter state your reasons for disputing the debt. Whether Penn Credit made a mistake on your credit report or they can’t provide proof that the debt belongs to you, provide proof. The credit bureaus have 30 days to respond to your dispute. If they can’t validate the debt or prove otherwise, they must delete it Penn Credit Corp from your credit report.
Arrange a Pay-for-Delete
If Penn Credit validates everything and the credit bureaus won’t remove the tradeline from your credit report, ask Penn Credit for a pay-for-delete agreement.
Here’s how it works.
You work out a settlement with Penn Credit first. Figure out how much you can afford to pay in one lump sum as this will give you the most negotiating power. When you have a number, offer a lower amount because Penn Credit will likely counteroffer.
While you’re going back and forth with a financial figure, ask for a pay-for-delete agreement. This means whatever amount Penn Credit accepts as payment in full, they also agree to remove the tradeline from your credit report.
This does two things:
- Satisfies the debt, getting Penn Credit off your back
- Helps your credit score improve by removing the collection
Like all other agreements, get it in writing and only pay Penn Credit once you have the agreement in hand. If they don’t delete their tradeline from your credit report, you can dispute the debt with the credit bureaus supplying the written agreement and proof that you paid the debt.
Hire a Credit Repair Agency
If all else fails or you don’t want the pressure of dealing with Penn Credit yourself, you can hire a credit repair agency.
There are many reputable agencies available today. Do your research and make sure you’re working with a legit company so you fix your credit and not hurt it further.
Credit repair agencies can only do what you do – but they have more knowledge and experience, understanding what they can and should dispute to help fix your credit.
The faster you act to remove Penn Credit Corp from your credit report the easier it will be to remove it and the less damage it will do to your credit score. Penn Credit Corp professionals may not be the easiest to deal with (most collection agencies aren’t) but when you know your rights, you can get the answers you need.
If you can’t get the results you’re entitled to, enlist the help of a credit repair agency. Don’t let a collection agency take advantage of you or scare you into thinking you have no choice but to pay the full amount. You have rights and Penn Credit Corp must follow them.