“However, with the right tools, you can easily deal with FedLoan Servicing and remove their report on your credit history.”
Unpaid debt can genuinely be a huge burden.
You would get calls and letters consistently encouraging you to pay off your obligations.
They annoy you with a flood of scary and harassing calls just to get you to pay your dues.
They are constant in their interests to the point that they would even call you at the wee hours of the night just to trouble you in the expectations you would pay them just to stop calling.
These third-party debt collectors will leave you drained and depleted making you ask the question of what to do.
One such organization that consistently gathers debt such as this is FedLoan Servicing.
So how should you respond?
On the off chance that you might get true serenity and peace of mind from these calls, we’ll teach you what you need to do to get FedLoan Servicing off your backs and taken out of credit report.
You’ll be astounded at how simple it is and how you will get the quiet life you’re looking for.
What is FedLoan Servicing?
FedLoan Servicing is a third-party debt collection agency.
They gather the dues owed by borrowers from other organizations and groups that couldn’t gather.
Regularly, organizations like FedLoan Servicing purchase the debt from companies at pennies to a dollar which they then proceed to collect from at a huge margin of profit.
At the point when a debt is sold, this typically brings about a charge off which impacts your FICO credit score by 100 and would show up on your record for around seven (7) years.
FedLoan Servicing will use any and all means to collect from you in any capacity conceivable and isn’t above doing questionable strategies to get you to pay.
This is why it’s so important to investigate first before you even begin to pay that debt off (if at all, necessary).
What Should I Do?
This is a wonderful question.
If you find yourself being harassed constantly, we’ll teach you how to remove FedLoan Servicing from your credit report so that you no longer have to deal with them again.
There are actually a few things that you can do to get that peace of mind which include:
- Everything Should Be In Writing
- Let FedLoan Servicing You Know Your Rights
- Ask Them to Prove the Debt
- Offer FedLoan Servicing a Deal
- Hire a Professional to Remove the Charge Off
We’ll explore each tip on how to remove FedLoan Servicing from your credit report so that you can be prepared.
Everything Should Be In Writing
Before you do anything else, we strongly advise that you communicate with the debt collector in writing as much as possible and ensure all correspondences be done via mail.
Why? Because FedLoan Servicing is under no obligation to honor any deals or agreements with them if there is no paper trail.
Even if you spoke it over the phone, you won’t be able to use it against them in the future.
This is why most often these debt collectors prefer to speak to you over the phone rather than in the mail.
To protect yourself, ensure that you get everything on the record especially any deals discussed.
If you do end up speaking to them over the phone, ask that everything talked about to be documented and sent via mail.
Let FedLoan Servicing You Know Your Rights
All debt collection agencies are subject to the Fair Debt Collection Practices Act (FDCPA).
This means that these companies have to still treat you fairly and honestly.
This is why it’s so important to let FedLoan Servicing know that you know your rights under that act so they are aware they can’t just behave in whatever way they want.
You should repeat these several times during your conversation.
In many cases, this causes agents from FedLoan Servicing to stop calling or at the very least treat you more respectfully.
Ask Them to Prove the Debt
Another tip on how to remove FedLoan Servicing from your credit report is by asking the company to prove that you have a debt.
Because they are buying debt from other sources, often the details they have are missing or inaccurate. In some cases, the debt may not even be yours.
If you have any doubts that the debt isn’t yours, you should send a debt validation letter as soon as possible.
In the event that FedLoan Servicing is unable to validate the debt, the company would need to stop collection attempts right away as mandated by the law.
They will also need to remove the entry from your credit report and restore your credit history and credit score.
You will need to act fast though.
They are only required by law to provide proof or investigate the debt’s accuracy within 30 days from the time they contact you.
If you ask after the 30-day deadline, they are no longer required by law to respond to your request.
If FedLoan Servicing responds to the debt validation letter, double-check the documents they sent.
It is completely possible that even the data or proof they sent is not enough to prove that you owe money.
If you find any problems with the debt, you can bring it up to FedLoan Servicing and you can report it to the three credit bureaus: Experian, Equifax, and TransUnion.
They will then have thirty days to begin an investigation from the time of the report.
Offer FedLoan Servicing a Deal
Now if you find that the debt is really yours and FedLoan Servicing is able to prove this, it’s time to move forward and negotiate a deal with the FedLoan Servicing.
But it’s important to note that you shouldn’t simply pay off the debt and only if they agree to remove the negative report on your account.
Since the company acquired your debt at often pennies to a dollar you owe, they will probably earn money with even just paying less than half of that debt.
Negotiate with FedLoan Servicing by offering to pay around 40% and move up as needed.
Also, when you do come to an agreement make sure to get an assurance in writing that they will remove your record from your credit report.
Do not send anything until they send it in writing.
Once you get that assurance in writing, send in a check to make a payment and wait for them to remove the charge off from the credit report.
Check-in after 30 days and demand that they remove the report as soon as possible.
If for whatever reason they do not remove the negative report on your credit history, then you can report them to Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB).
The Federal Trade Commission (FTC) may even levy fines against the debt collector for not following guidelines.
Hire a Professional to Remove the Charge Off
In the case that you don’t want to deal with FedLoan Servicing directly, you can actually go and hire a professional.
A professional from a credit repair company won’t do anything that you cannot do yourself but they do have experience.
As they regularly handle issues like this and have likely worked with FedLoan Servicing more than once, you can easily leave it to them to take care of the charge off.
FedLoan Servicing, like many other debt collection agencies, can be a hassle to deal with.
They can be relentless in pursuing you and the debt you owe.
However, with the right tools, you can easily deal with FedLoan Servicing and remove their report on your credit history.
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