Receivable Solutions On Your Credit Report?

Receivable Solutions: What You Need to Know

Receivable Solutions, LLC is a third-party collection agency based in Columbia, SC which opened their doors more than 20 years ago. Their Better Business Bureau rating is currently an A+, although Receivable Solutions is not BBB-accredited. There were 18 complaints filed against them  in the last three years, with billing and collections being the top issue category. They maintain multiple locations but will not post the names of the companies for whom they are working. They work with many different creditors.

If Receivable Solutions is showing up on your credit report, it means that either they bought a debt you owe ("purchased debt") or they’re servicing a debt for another creditor ("third-party collector"). Collection agencies come into play when original creditors (banks, loan companies, etc.) are no longer able or willing to collect on a debt. The agency may have bought your debt for pennies on the dollar (as little as 10 percent of the original value) but they will still expect you to pay the full amount.

You might first find out about a debt that’s been turned over to collections when Receivable Solutions calls your phone number or sends you a letter. If this is the first you’ve heard about a debt or its transfer into collections, it can be shocking. If the debt shows up on your credit report, it can adversely affect your credit score, and that, in turn, can affect your ability to qualify for loans, credit cards, or other financial opportunities. A collection account on your credit report can ding your  FICO score as much as 50 to 100 points, depending on other factors like your credit history. 

How Does Having Receivable Solutions on My Credit Report Impact My Credit Score?

A collections account on your credit report with Receivable Solutions will be highly damaging to your credit score. Worse yet, collections are considered a negative item, and negative items stay on your report for up to seven years from the date the first missed payment was reported. Paying the collection—even if you pay in full or settle the debt—will not remove this collection account from your credit report.

Paying off a collection account is demoralizing for many consumers because it doesn’t remove the account from a credit report: instead, the status of the account changes from "open" to "paid," but it does not go away. Even if the collection account is marked ‘paid’, creditors are likely to view it as a warning sign when making a determination about your creditworthiness. What’s worse, making a payment on an old account can restart the clock on how long it will remain on your credit report unless it’s handled carefully. 

The Challenges of Securing Loans with Collections

Many lenders, and particularly those offering the highest-ticket items such as mortgages or auto loans, might be unwilling to approve your application, as the existence of a collection, even a paid-off one, suggests that you encountered financial hardship or missed some payments in the past. This can translate to higher interest rates, smaller loan balances or outright denial, and can limit your financial opportunities for as long as the collection will appear on your report.

Because collections accounts stay on your credit report for such a long time, it’s a good idea to check your credit report regularly, and make sure that the paid status is reflected on all three of the major credit bureaus – Experian, TransUnion, and Equifax. Sometimes, paid accounts don’t get updated and you could be charged for a period of time after you paid your debt. This would mean that your credit score is taking the hit for no reason, so checking your credit report and disputing any errors is one of the best ways to protect your score.

How Can I Remove Receivable Solutions From My Credit Report?

Identifying Inaccuracies on Your Credit Report

It’s difficult, but not impossible, to get Receivable Solutions removed from your credit report. Be warned, however, it’s going to take lots of hard work and determination. One of the simplest steps you can take is to look over the reported data to see if it contains inaccuracies. A recent study by the US Public Interest Research Groups (PIRGs) discovered that nearly three out of four credit reports contain errors or inaccuracies. This means that there is a good chance that your report contains incorrect information that is dragging down your score.

Dispute Errors with the Credit Bureaus

Step one is to get a copy of your credit report from each of the three credit bureaus. You’ll then want to examine your report for errors regarding Receivable Solutions. The most common of these are incorrect amounts, incorrect payment status, and even debts for other people that were mistakenly added to your account instead.  If you see discrepancies, you can dispute the information directly with the credit bureau that furnished the data. Under the Fair Credit Reporting Act (FCRA), the collection agency must verify the debt within 30 days. If they don’t, or fail to offer reasonable proof of your debt, the entry can be removed from your report.

Contact Receivable Solutions Directly

The next step is to reach out to Receivable Solutions directly, perhaps challenging the debt on the grounds that it’s not yours. You have the right to request corroborating documents from Receivable Solutions that the debt is yours, and they must provide this to you in writing within 30 days. Verification can include account statements or contracts that show your connection to the debt.

Settling the Debt for Less

Another possibility is to try to settle the debt for less than the full amount due, a move that is often welcomed by debt collectors such as Receivable Solutions, especially if the collector bought the debt at a discount. This won’t cause the collection entry to drop from your credit report, but it will mark it as “settled” or “paid in full.” 

Negotiate a ‘Pay-for-Delete’ Settlement

If you are thinking about the second option then you should attempt to include a ‘pay-for-delete’ in your settlement contract that requires the agency to remove the collection from your credit report after payment. While not all collectors will agree to this, it is a fairly common practice. If you are able to strike such a deal, make sure you get it in writing before making payment as they will not consider a verbal agreement to be binding. 

Get Professional Help with a Credit Repair Company

If neither of those options work out, you can use a credit repair company, such as Credit Glory, to help you dispute inaccuracies and make deals with collection agencies. Sometimes, the company will even get collection accounts removed, even if you haven’t paid them.

What Are My Rights When Dealing With Receivable Solutions?

As always, if you have a delinquent account that’s been turned over to a collection agency, such as Receivable Solutions, your rights under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) must be recognized. The FDCPA protects consumers from abusive and outrageous conduct of debt collectors, while the FCRA promotes the accuracy of credit reporting and makes it easy to dispute any inaccurate information reported about you.

The FDCPA makes it illegal for Receivable Solutions to call you before 8 a.m. or after 9 p.m., or to contact you at work if you have informed them in writing that you are not allowed to receive such calls. If Receivable Solutions is harassing you, using abusive language, or threatening legal actions it cannot take, you can also file a complaint with the Consumer Financial Protection Bureau (CFPB).

Sending a Cease and Desist

One way to make the calls cease is to send a cease-and-desist letter, which legally requires Receivable Solutions to stop contacting you, but it does not eliminate the debt. If you believe that the debt isn’t yours or contains inaccuracies, you can dispute the entry with the credit bureaus to have it investigated which will cause Receivable Solutions to pause their collection attempts until the matter is resolved.

While rare, Receivable Solutions can sue you for the debt. If they win the lawsuit, the agency might garnish your wages or seize money from your bank account. State and federal law limit how much of your wages can be garnished though it is typically around  25 percent of your disposable earnings. If you are being sued by a collection agency, you should talk with a credit repair specialist or an attorney.

Should I Pay Off Receivable Solutions or Seek Professional Help?

For many consumers, negotiating with the seller or paying a credit repair company to do so are cheaper options than paying off the debt in full. Working with Receivable Solutions can be terrifying, but you can take measures to minimize the impact on your credit report. You might dispute the account, negotiate a pay-for-delete settlement, or hire a credit repair professional such as Credit Glory to remove the collection account altogether.

Armed with this knowledge of your rights under the FDCPA and FCRA, you are empowered to avoid abusive collection tactics and reclaim your financial future. The sooner you act, the better your chances of having Receivable Solutions removed from your credit profile and your life once and for all.