How Can I Get A Collection Removed From My Credit Reports?

First, how did the collection get there in the first place?  After a lender has made many attempts to get you to pay a bill that is past due and has not been successful, they may write it off and do nothing, turn it over to a collection agency, or sell it to the collection agency. When it is sold or turned over to collections, the collection agency reports the collection to the credit bureaus and it on the credit report.  Collection agencies have learned that reporting the information to the credit bureaus gives them more leverage to get the bill paid.

If the bill is legitimate, it can be hard to get it removed.  There are several ways to get a collection removed: dispute it, arrange for a “Pay for Delete Confirmation”, or request a good will deletion.

Do you have a collection account that you would like to remove? Click here to see your updated credit report and dispute, arrange for a “Pay for Delete” or a goodwill deletion request.

Dispute the bill

If this isn’t your bill or there is an error and the collection agency doesn’t have information to back up the bill, they have to remove it.  The dispute process can be long.  When you are contacted by a collector, you need to ask for the bill so you can review it.  If it is incorrect or not yours, you have 30 days to dispute it and request a debt validation.  In turn the collector has another 30 days to respond with documentation and proof that they are authorized to collect for the creditor.  If you both aren’t in agreement, you have 30 days to send a dispute letter.  After the agency receives this letter, they cannot contact you until their investigation is completed.

Pay for Delete Confirmation

If the bill is correct, you can’t dispute it.  You need to make arrangements with the collector to pay the bill. The collector may tell you that they will remove the collection from your credit report, if you pay the bill.  Make sure that you get that in writing.  You should ask them to mail you a “Pay for Delete Confirmation”, stating that the account will be removed from all three credit bureaus in exchange for a payment of an agreed upon amount.  Still, the credit bureaus frown upon these deals and have language in their agreements with collection agencies as well as the Credit Reporting Resource Guide that clearly directs their data furnisher to NOT remove items if they are accurate.

Goodwill deletion

After the account is paid, you can ask for a goodwill deletion. At this point you don’t have the leverage to get the deletion. You are just hoping they will do so.

Collections remain on your credit report for 7 years from the account originally became 180 days past due.  This is considered credit history and has a major impact on your credit score.  It impacts your report the most for two years and begins to lose impact after five years. The good news is that it isn’t on your report forever.

Do you have a collection account that you would like to remove? Click here to see your updated credit report and dispute, arrange for a “Pay for Delete” or a goodwill deletion request.

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.