A collection agency may just sound critical as to others it may seem. Well it does when it isn’t understood properly. This type of agency is actually designed specifically deliver excellent service and when lucky, affordable to businesses and reasonable enough to debtors. It offers a full service with a wide-range of solutions for various clients such as credit reporting, commercial accounts, skip tracing, estate filings, a secure client web portal, bankruptcy proof of claims filing, and account forwarding. So moving forward, let us find out more on the essentials and functions of a collection agency.

Why Do Debt Collection Agencies Have Access To Credit Reports?

Call limits can be requested from the collection agency once they have your debt. You can request not to call you at work, in the morning before going to work, and after 9 in the evening. However, with regards to your credit report, it will be a different story, totally.

Why do collection agencies have to see credit reports?

Technically speaking, there will be several types of business and organization that can access your credit card report and they don’t need your consent, at all, unlike an automobile insurance company estimating a quote, a lender looking to pre-authorize you for a credit card, and even a potential property-owner.  Another addition is, with the recent approval of the Fair Credit Reporting Act, debt collecting agencies can scan report for updated information to contact you, such as a new phone number or address. They can also check your most recent doings on your credit balance sheet or information because this will help the collector decide if you will be able to settle your financial commitments.

Will it have a detrimental effect on a credit score?

If you are applying for a loan and you asked a lender to pull your credit history, which in this case can be considered as a “hard pull,” this can briefly lower your credit score.  This often times happen when you apply for a new loan in a short time interval because this can bring you to a higher credit risk with your financial institution. Collection agencies like CTL Law are connected directly to financial contracts that will definitely ding your score temporarily, but not as bad as having an account in collection.

Is there a way to inhibit a debt collector from accessing a credit report?

In reality, you cannot put a halt on a collector from accessing your report, but what you can do is to make sure that it is a valid debt.  It is required by law that a pursuing debt collector can be provided access to any information that is related to your ability to make payments or not. This set of information could be the exact figures of the amount owed, financial institution that you owed it from, and the alternative ways on how you can authenticate or dispute the amount in question.

If you are planning to dispute a debt, you must do so in writing within 30 days from the time you initially received the information from the collection personnel. You can only then be contacted by the collection firm after you have received a written notification with regards to the debt. When a mistake was made by the collection firm, you can request that the pertinent dings and negative information on your credit report be taken out. 

Also, since you were pursued wrongfully, you can as well request the erroneous information be taken out of your report. Any wrong information that was placed under your account could be taken out following proper request. You can visit the Federal Trade Commission’s website for more information with regards to this matter.