Debt

Steps To Remove Direct Recovery Services From Your Credit Report

If you’re getting calls from Direct Recovery Services, you probably defaulted on a debt and they bought it. You may ignore the calls or letters because you don’t know the name, so you assume it’s a scam. 

It’s probably not. They are calling about a legit debt you didn’t pay, and they want you to take care of it.

If you look at your credit report, you’ll likely see Direct Recovery Services on there too. That’s even worse than them calling you because now anyone who pulls your credit report will see the collection.

So how do you remove Direct Recovery Services from your credit report? Use these simple steps.

Get Proof of the Debt

First, before you do anything, even if you have the money to pay Direct Recovery Services, request debt validation.

Do this in writing and act quickly. You have only 30 days from the date they first contact you to request validation.

The Fair Debt Collections Practices Act allows you to ask for debt validation and if Direct Recovery Services can’t provide it, they must delete the tradeline from your credit report.

To request validation, send a letter requesting:

  • Proof of the account the collection is in reference to
  • Proof of the account number, balance, and name on the account
  • A listing of the latest payment amounts and dates
  • The original loan balance
  • The date the account was charged off
  • Proof Direct Recovery Services can do business in your state

Make a Payment

If DRS validates the debt, you have to pay them, but maybe not the full balance. You can still negotiate. DRS bought your debt for pennies on the dollar. They didn’t pay the full amount of what you owe to your creditor.

This leaves you room for negotiation. Negotiate the balance AND ask for a pay for delete. This means in exchange for your payment, you want the tradeline removed from the credit report. 

Do this in writing. Don’t negotiate over the phone or if you do, get the agreement in writing before you make any payments.

When you make a payment, only do so by check – do not give them access to your checking account by making a payment over the phone.

Get Help from a Credit Repair Agency

If you aren’t comfortable dealing with Direct Recovery Services yourself or you don’t have the time to deal with them, hire a credit repair agency.

A credit repair company can’t fix your credit for you, but they can use all the legal channels to make sure DRS is operating under the law and not trying to take advantage of you.

A credit repair agency can dispute the debt. This means disputing errors about the account with the credit bureau. It could be anything, like a misspelled name, wrong account number, or wrong balance. If DRS can’t prove the information they reported is correct, they must delete the account from your credit report.

A credit repair agency can also get DRS to stop calling and harassing you and may help you work out a pay for delete agreement.

How to Deal with Direct Recovery Services

Only deal with DRS in writing. Talking to them on the phone can feel threatening and they don’t have to stick to anything they agreed to if it’s not in writing.

Don’t let them threaten you, and make sure they operate under the law. If you are unsure about their tactics or don’t think what they tell you is true, secure the help of a credit repair agency.

If nothing else, get all agreements in writing, and if they don’t delete the account as they agreed, you can dispute it with the credit bureaus yourself.

Remove Direct Recovery Services from your Credit Report Fast

Don’t let Direct Recovery Services sit on your credit report for long. Figure out a way to work out the situation with them, starting with a validation of debt and dispute. If you’re stuck with the debt and everything they reported is accurate, work out a payment deal.

Don’t pay them until you have proof in writing that they’ll delete it from your credit report and if they don’t, which many past clients say they don’t, take it up with the credit bureau. Don’t ignore it, leaving DRS on your credit report will only hurt your credit and your chances of securing future credit.