Are you worried about a collection account reported by Covington Credit hurting your credit score? Don’t worry, you have options. In this blog post, we’ll go over how to remove a collection account reported by Covington Credit on your own or using the Cambio app!
What is Covington Credit?
Covington Credit is a financial services provider that offers short-term personal loans to those who might not qualify for other types of credit. If you default on your loan, Covington Credit may report your account to credit bureaus as a collection account, which can have a negative impact on your credit score.
1. Validate the Covington Credit Collection Account
According to the Fair Debt Collection Practices Act, you have the right to request written verification of any debt Covington Credit is reporting on your credit reports. Send a debt validation letter request via certified mail to Covington Credit requesting details on the alleged debt including the original creditor, amount of the debt, and validation that the debt is in fact yours. This request must be sent 30 days after receiving a notice of collection from Covington Credit. If you send this validation request and they cannot validate the debt, or do not respond within 30 days, they are required to remove the account from your credit report. Download your FREE Debt Validation Template.
2. Dispute the Account with the Credit Bureaus
The first step is to get a free copy of your credit report from AnnualCreditReport.com and make sure all the information is accurate. If you believe the collection account is inaccurate or unfair, you can dispute it with each of the three the credit bureaus: Experian, Equifax, and TransUnion. This process can take up to 30-45 days per bureau. Use this free collection dispute template to get started or download the Cambio app and we’ll do it for you.
Here are some best practices when sending a dispute letter to the credit bureaus:
– Only dispute items you believe are inaccurate.
– Send your dispute via mail.
– Add any copies of evidence that support your dispute. This could include receipts, police reports, etc.
3. Attempt a “Pay-to-Delete” with Covington Credit
Another option is negotiating “pay for delete” agreement if verification or disputes do not result in removal of the account. With a pay for delete, you agree to pay the debt in exchange for your creditor removing the account from your credit reports. Get the terms of the agreement in writing from Covington Credit. They must confirm that payment will result in deletion of the account. Send the payment as agreed. Finally, be sure to check your credit reports to confirm account is removed 30-45 days later. If it is not removed, you have the written agreement from your creditor as evidence to enforce the deletion. Download this free pay for delete letter template or download Cambio and we’ll negotiate for you!
Now, here are some best practices when negotiating a “Pay for delete” with a creditor:
– Only agree to payments you know you can afford
– Do not admit ownership of the debt
– Obtain a signed agreement letter from Covington Credit before making any payments. Otherwise they have no legal obligation to remove the debt upon payment.
Conclusion
Removing a collection account reported by Covington Credit can feel daunting. Cambio is here to help. Use the steps outlined above or download Cambio to get started today.
