Does your credit report show a tradeline from Resurgent Capital Services and you wonder how it got there? You don’t remember having a credit line with them, so why are they on your credit report?
You probably defaulted on a debt, and Resurgent Capital Services bought it. Now they will use tactics to get you to pay and they aren’t always nice. While Resurgent is a legit company, they are determined to get you to pay the debt (that’s how they stay in business). They’ll use tactics you may or may not approve of to get you to pay.
Before you buckle and do what they say, know your options.
Is the Debt Legit?
First, discover if the debt is legit. It probably is since Resurgent buys real debts, but there’s always the chance of error.
Here’s how to find out – write a debt validation letter. In your letter ask Resurgent Capital Services for proof of the debt, how they got your debt, and any of the following information:
- The debt’s original balance
- The loan origination date
- The current balance
- The date the debt was charged off
- Proof they can do business in your state
Resurgent has 30 days to respond to your letter. Send it to this address and if they don’t respond, you can dispute the debt with the credit bureaus by supplying proof of your debt validation letter:
55 Beattie Place, Ste 110
Greenville, SC 29601
If Resurgent can’t prove the debt, you may still owe it, but under the Fair Credit Reporting Act, they can’t have it on your credit report.
Arrange a Pay for Delete
If Resurgent validates the debt, you’ll have to satisfy it somehow. But, since they bought it for pennies on the dollar, you may be able to negotiate with them and pay a lower amount.
Since the debt went to collections, you probably can’t pay it in full or you wouldn’t be in this situation. Figure out what you can afford, whether it’s a lump sum or a payment arrangement, and work with Resurgent on a plan.
As a part of your negotiations, ask for a pay for delete. This agreement means once you pay the agreed amount in full, they’ll delete the account from your credit report.
This will help increase your credit score and make your credit history look better since there isn’t an outstanding or even a paid collection on it.
Get the Help of a Credit Repair Agency
If you don’t have any luck or don’t want to handle it yourself, consider hiring a credit repair agency. While they can’t do anything ‘illegal’ and most of what they do, you can do too, it helps to have their support.
The professionals will know what to look for on your credit report, and what they can dispute. For example, even a transposed account number or incorrect payment date is enough to dispute.
The credit repair agency will handle the back and forth with the collection agency for you. All you have to do is check your account status online and possibly talk to a representative from the credit repair agency if they have questions.
They’ll either help remove the item from your credit report or help you negotiate an affordable deal to satisfy the collection.
Why you Shouldn’t Ignore Resurgent Capital Services
It’s easy to avoid Resurgent Capital Services phone calls, emails, and letters, but you only hurt yourself. They typically report their accounts to the credit bureaus which could bring your score down as much as 100+ points.
Even if it doesn’t affect your credit score anymore, having a collection on your credit report is bad for future financing possibilities. Lenders either won’t lend you money or if they do, it will be at a much higher rate and/or worse terms.
Take the necessary steps to remove Resurgent Capital Services from your credit report when you discover they are on it. You may find out from a phone call or letter in the mail, or you may stumble on it when you check your credit report.
No matter how you find out, take the steps needed to remove it right away. Whether you dispute it and get it removed right away or you work out a deal to pay them an agreed upon amount and they delete it from your credit report, make it happen to protect your credit score and future chances of securing financing.