A collection account on your credit report can significantly lower your credit score and make it difficult to obtain new credit. Fortunately, there are a few things you can do to (potentially) get a collection account deleted from your credit report.
Understand Your Rights
The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) provide protections for consumers. Under these laws, you have the right to dispute inaccurate or outdated information on your credit report. A collection account can remain on your credit report for up to seven years from the date of the original delinquency. However, if there are errors, you can challenge them.
How to Delete a Collection Account
1. Verify the Debt
Before taking any action, verify that the debt is accurate. Request a debt validation letter from the collection agency. This letter should detail the debt amount, the original creditor, and proof that the debt is yours and all of this should be in writing. If the collection agency cannot provide this information within a certain amount of time (usually 30 days), you can dispute the account with the credit bureaus.
2. Dispute Inaccurate Information
If you find inaccuracies, dispute the collection account with the credit bureaus—Experian, Equifax, and TransUnion. You can do this online, by phone, or by mail. Provide documentation that supports your claim. The credit bureaus have 30 days to investigate and respond to your dispute. If they find that the information is incorrect, or if the collection agency doesn’t respond, they must remove it from your credit report.
3. Negotiate a Pay-for-Delete Agreement
In some cases, you can negotiate with the collection agency to remove the account from your credit report in exchange for payment. This is known as a pay-for-delete agreement. Contact the collection agency and propose this arrangement. If they agree, get the agreement in writing before making any payment. Be aware that not all collection agencies will agree to this, but it is worth giving it a shot.
4. Request Goodwill Deletion
If you have already paid the collection account, you can request a goodwill deletion. Write a goodwill letter to the creditor or collection agency explaining why you fell behind on your payments and asking for the account to be removed as a gesture of goodwill. Emphasize any circumstances that contributed to the delinquency and your positive payment history since then. While there is no guarantee, some creditors may agree to remove the account.
5. Seek Professional Help
If you find the process overwhelming or are not getting results, consider seeking help from a credit repair company. These companies specialize in disputing inaccuracies and negotiating with creditors. However, be cautious and research the company thoroughly to avoid scams.
Monitor Your Credit Report
Regularly monitoring your credit report can help you catch and address issues promptly. You are entitled to a free credit report from each of the three major credit bureaus once every 12 months through AnnualCreditReport.com. Additionally, many financial institutions and services offer credit monitoring. It’s important to stay on top of things since once a collection account is on your credit, taking it off, especially if it’s recent, can be a headache.