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Associated Credit Services Collection Agency Debt Help

You vs. Associated Credit Services: A Guide to Handling Their Debt Collection

Debt, can be a heavy burden, weighing you down. But, take a deep breath, you’re not alone in this. Associated Credit Services (ACS) is a major debt collection agency that frequently goes after past-due debts. If they’ve come knocking, it’s understandable to feel overwhelmed or unsure of what to do next.This guide is here to help. We’ll walk through everything you need to know about ACS, your rights as a consumer, and practical steps to resolve the situation. Let’s dive in.

Who is Associated Credit Services?

Founded in 1969, ACS is one of the largest debt collectors in the U.S. They work on behalf of creditors like banks, credit card companies, utilities, and even universities to recover unpaid debts.When you fall behind on payments, your original creditor may eventually give up on collecting and sell your debt to an agency like ACS for pennies on the dollar. ACS then becomes the new owner of your debt and has the legal right to attempt to collect the full amount from you, plus interest and fees.

Understanding Your Rights

Before we get into dealing with ACS directly, it’s crucial you know your rights under the Fair Debt Collection Practices Act (FDCPA). This federal law prohibits debt collectors from using abusive, deceptive or unfair practices when trying to collect a debt.Some key protections include:

• Debt collectors cannot call you before 8am or after 9pm
• They cannot use profane language or threaten violence
• Debt collectors are prohibited from discussing your debt with others
• They must stop contacting you if you send a written request for verification of the debt

The FDCPA exists to protect consumers like you. If ACS oversteps any of these boundaries, you may have grounds to sue them. More on that later.

Verify the Debt is Legitimate

When ACS first contacts you about a debt, they are required by law to send a written debt validation notice within five days. This notice must include details like the creditor’s name, how much you owe, and statements about your rights to dispute the debt.It’s absolutely critical that you respond in writing to this notice requesting full verification and evidence that you actually owe the debt they are trying to collect. ACS must then provide documentation proving the debt is legitimate and the amount is accurate.Why is this so important? Debt collection agencies are notorious for errors. They may have incorrect information about the debt amount or be going after the wrong person entirely. By forcing them to validate first, you protect yourself from paying something you may not actually owe.Let’s look at an example:Samantha received a letter from ACS claiming she owed $7,500 on an old credit card debt. However, Samantha was certain she had paid off that card years ago. She sent ACS a debt validation letter within 30 days as required.ACS was unable to provide any documentation showing Samantha actually owed money. As a result, they had to terminate collection efforts against her. Verifying first saved Samantha from potentially paying thousands she didn’t owe.

Negotiating a Settlement

In many cases, ACS will be able to validate at least some portion of debt as legitimate. If that happens, you have a few options for dealing with it:

1. Pay Nothing
2. Pay the Full Amount
3. Settle for Less Than the Full Amount

Paying nothing is always riskier, as ACS could potentially take you to court to force you to pay. However, many debts are too old or lack sufficient documentation for them to successfully sue over.Paying the full amount owed gets it off your plate, but also means paying ACS’s high interest rates and fees on top of the original debt balance.Your best option is often negotiating to settle the debt for less than the full amount. Collection agencies like ACS are usually willing to accept a lump sum settlement for a percentage of what’s owed (30-60% is common) to close out the account quickly.For example, if ACS validated that you legitimately owed $5,000, you could negotiate to settle the debt for a one-time payment of $2,500 or $3,000. This saves you money over paying in full.The key is using the age and lack of documentation around the debt as leverage during negotiations. ACS would rather recover something than potentially get nothing if you don’t pay at all.Let’s look at a real scenario:Jose owed $8,000 to a credit card company that ACS had purchased. The debt was over 6 years old with limited documentation. ACS initially demanded the full $8,000.Jose’s attorney reviewed the details and drafted a settlement offer of $2,400 to ACS – just 30% of what they wanted. After some negotiation, ACS agreed to accept a $3,200 lump sum payment from Jose.By negotiating a settlement rather than paying the full amount, Jose saved $4,800 on his old debt. Not a bad outcome for being persistent!

Removing the Collection Account from Your Credit Report

Even if you settle or pay off an ACS debt, the negative collection account can remain on your credit report for up to 7 years from the original delinquency date. This makes it difficult to improve your credit scores and obtain new loans or credit cards.However, you may be able to negotiate with ACS to have the collection account completely removed from your credit reports as part of your settlement. This is huge, as it’s like making the debt disappear from your credit history.Collection agencies are not obligated to remove accurate reporting, so you’ll need leverage. Things like the debt’s age, amount of documentation, and ACS’s likelihood of success if taking you to court can help.For example, you could make ACS an offer:“I’ll pay 40% of the $10,000 owed as a $4,000 settlement, but only if you agree to remove the collection account from my credit reports afterward.”If ACS accepts, be sure to get the removal agreement in writing before making any payment. Then you can submit that agreement to the credit bureaus to have the negative item deleted.

Knowing When to Hire a Professional

For many dealing with debt collectors like ACS, hiring an experienced debt settlement attorney or company can be worthwhile. Professionals know all the laws and negotiation tactics to get you the best possible outcome.If the debt is very large, old, lacks documentation, or you’re being sued, it’s wise to have a professional on your side. The money they may save you by reducing or eliminating the debt can easily cover their fees.For example, Spodek Law Group has helped many clients successfully negotiate with ACS and get collection accounts removed from credit reports. We know ACS’s tendencies and leverage points to negotiate aggressively on your behalf.

Taking Them to Court (And Winning)

If ACS has violated your rights under the FDCPA through harassment or deceptive practices, you may be able to sue them directly in federal court. Potential violations include:

• Calling you after being sent a cease and desist letter
• Threatening actions they have no intention of taking
• Failing to identify themselves as debt collectors in communications

Winning an FDCPA lawsuit against ACS could mean they have to pay you $1,000 in statutory damages plus any actual damages you incurred, like lost wages, medical bills, etc. Your attorney’s fees and costs are also recoverable.For example, one consumer sued ACS after they repeatedly called her workplace until she was fired, despite her requesting they stop. The court awarded her $85,000 in damages plus legal fees.While FDCPA cases take time and effort, they can be very lucrative if ACS clearly violated the law. Having an experienced consumer law attorney is critical.