- Who Is Allied Interstate (and What Do They Do)?
- How Badly Can an Allied Interstate Collection Hurt Your Credit Score?
- What to Do When Allied Interstate Contacts You
- How to Protect Yourself Against Their Harassments
- Ways to Remove Allied Interstate Collections From Your Credit Report
Who Is Allied Interstate (and What Do They Do)?
Allied Interstate is an aggressive collection agency known for purchasing old debts from other companies.
Chances are if you’re reading this, you have either received a collection letter or phone call from Allied Interstate, or you have recently pulled your credit report and found a negative entry with Allied Interstate listed as the creditor.
It’s likely that you don’t even recognize this company and may be wondering how they got your information and ended up on your credit report. There are two possible reasons for this:
- They are trying to collection on a debt that isn’t really yours.
- One of your old debts was sold to Allied Interstate and they are attempting to collect on it.
How Did Allied Interstate Get Ahold of One of Your Old Debts?
Allied Interstate probably purchased the debt from another company. As an example, let’s say you had a Home Depot credit card that went into collections. Home Depot may have attempted to collect on the debt for awhile, but after a certain amount of time, usually around a year, they wrote off the debt as a loss. At this point, in order to recoup some of their money, they sell it to a third party collection agency for pennies on the dollar. The third party, Allied Interstate in this case, now owns the debt and will begin the process of collecting on it.
How Badly Can an Allied Interstate Collection Hurt Your Credit Score?
When a collection entry shows up on your credit report, it can cause a significant drop in your credit score. In fact, if you had a decent credit score to begin with, your score could drop up to 100 points. Yes, from a single collection!
To make the situation even worse, the debt Allied Interstate is attempting to collect on might not even be yours. Collection agencies are notorious for obtaining inaccurate information about who owes on a debt and then trying to collect money from an innocent victim.
With this in mind, it’s very important that you begin the process of removing Allied Interstate from your credit report. This includes preventing them from attempting to collect on the debt.
What to Do When Allied Interstate Contacts You
One thing I tell my readers over and over again is to avoid communicating with debt collectors over the phone. The main reason I say this is because debt collectors are basically the bottom of the barrel when it comes to being honest. It’s their job to get you to pay and sadly it seems as though they’ll use just about any means possible.
Therefore, make it easy on yourself and just tell them that you’re not going to do any negotiations over the phone. Ask them to cease contacting you as they are required to do under the Fair Debt Collection Practices Act.
How to Protect Yourself Against Their Harassments
One thing you can do to prevent Allied Interstate (or any collection agency) from harassing you is to state that you know your rights under the Fair Debt Collection Practices Act. This law outlines all of the rules that debt collectors have to play by when attempting to collect on a debt.
The truth is that most collectors simply assume that you don’t know your rights and therefore freely step all over them. When you clearly state that you understand your rights, they will instantly become less aggressive.
Ways to Remove Allied Interstate Collections From Your Credit Report
Now let’s get into how to deal with the collection entry on your credit report and ways you can get it removed.
Start by writing Allied Interstate a letter which demands that they validate the debt. Debt validation is another right you have under the Fair Debt Collection Practices Act, and it basically requires debt collectors to provide proof that the debt they are attempting to collect is in fact yours. As I mentioned earlier, debt collectors often attempt to collect from the wrong person.
Once they receive your debt validation letter, they have 30 days to provide the documentation. If they are unable to provide the documentation, they must cease contacting you and remove the negative entry from your credit report. If you haven’t heard back from them in 30 days, be sure to follow up and demand that the entry is completely removed from your credit report.
Hire a Professional
If you’re the type of person who would rather not even have to deal with Allied Interstate, you should consider hiring a professional to remove the negative entry. For this I suggest you check out Lexington Law Credit Repair. They’ll take care of you. Check out their website.