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Collections

How To Remove Direct Recovery Services From Your Credit Report



Dealing with a debt collection agency usually isn’t a pleasant experience.

But if you’re being bombarded with calls or sent letters from Direct Recovery Services, it’s important to respond to their inquiries.

When you owe a debt to a collections agency, it can hurt your credit score for years.

Whether you forgot to pay a bill a few years ago or you think the agency is contacting you by mistake, there are a few strategies you should use to get DRS off your credit report for good.

What Is Direct Recovery Services?

Direct Recovery Services’ incessant methods might have you wondering whether or not it’s a legitimate operation or a scam.

However, Direct Recovery Services is an established agency that profits by collecting on debt for service providers. It’s also a member of the ACA, or the American Collectors Association.

In other words, it’s 100% legit.

Direct Recovery Services, LLC, Inc has been in business since 2015, with its headquarters in Two Harbors, Minnesota.

How Does Direct Recovery Services Work?

When payments aren’t made as expected, many service providers turn to third-party agencies like Direct Recovery Services to help.

Some agencies buy the debt for pennies on the dollar, keeping all of the profits they earn.

Others, like Direct Recovery Services, are contingency-based agencies that earn a percentage of the proceeds when they are successful at collecting a debt.

Medium by comparison to other agencies, Direct Recovery Services collects on both consumer and business debts.

When you owe a debt to a collections agency, they can call, mail, and message you until arrangements are made.

They’ll also appear on your credit report as a collection account. When that happens, your credit score can take a hard hit.

The account could remain on your report for as long as seven years, even when payments are made.

3 Ways to Remove Direct Recovery Services from Your Credit Report

While picking up the phone and paying Direct Recovery Services the amount you owe may seem like the quickest solution, it isn’t necessarily the best one.

Instead, consider one of the options below to guarantee that Direct Recovery Services stops calling, writing, and doing harm to your credit score.

1. Demand Validation from Direct Recovery Services

If you act quickly, you may be able to get Direct Recovery Services out of your hair with a simple debt validation request.

Under the Fair Debt Collection Practices Act, collection agencies are required to show sufficient evidence that you owe the debt they’re claiming, when you request it.

Oftentimes agencies don’t actually have the proof they need, in which case they must remove the collections account from your credit report.

If you think Direct Recovery Services is contacting you in error and you don’t actually owe anything, you should absolutely dispute the erroneous claim.

But even if you did miss a payment on an account, there’s a good chance DRS won’t be able to verify your debt.

Just note that you only have 30 days to dispute a debt once you’ve been notified by the collections agency.

As soon as you see a collections account on your report, you should draft a quick debt validation letter.

2. Make Direct Recovery Services a Payment

If Direct Recovery Services has been on your report for more than a month, or they were able to validate your debt after mailing in a request, you might want to consider a partial payment.

More often than not, agencies like Direct Recovery Services are willing to negotiate the terms of your debt since they will likely still profit from a partial payment.

For example, if you moved and canceled your cable service, forgetting to pay the final balance of $120, you might start negotiations at $60.

During this process, it’s more important than ever to communicate by mail. This makes the terms of your agreement crystal clear.

Your letters should clearly state that your payment will ensure the collection account is removed from your report.

After you’ve agreed on an amount and made a payment, your credit report should be amended to reflect the payment.

If the collections account is still present after 30 days, follow up with Direct Recovery to make sure it gets updated promptly.

Let a Credit Repair Company Assist You with DRS

You don’t have to confront Direct Recovery Resources on your own. Whether your financial situation is simple or complicated, working with a credit repair expert can help.

Credit repair companies can dispute your claims, stop the agency’s phone calls, and get them removed from your account ASAP.

One of the best credit repair companies we often recommend is Lexington Law.

Their experienced team will fight for quick and thoroughly documented results, helping you to get your credit score back on track.

If you’re looking for an affordable solution to having to deal with Direct Recovery Services directly, Lexington Law is an excellent choice.

Regardless of the approach you choose, don’t delay contacting Direct Recovery Services about your debt.

As stressful as the situation may seem, with one of the strategies above, you could be on the way to fixing your credit today.

How to Deal with Direct Recovery Services

Most collections agencies have a slew of complaints tied to their name, and Direct Recovery Services is no exception.

The agency has earned a score of “F” from the Better Business Bureau, where it is not accredited.

There have also been class-action lawsuits filed against DRS, along with complaints filed with the Consumer Financial Protection Bureau.

Common complaints against the agency include:

  • Failure to respond to debt validation requests
  • Inaccurate debt reporting
  • Harassing phone calls
  • Contacting family members over debt
  • Threatening illegal actions

Direct Recovery Service is allowed to contact you until payments are made, but they are required to follow certain practices under the Fair Debt Collection Practices Act.

For example, debt collectors cannot call you at unreasonable hours or pester you at work.

One of the first things you should do is read up on the FDCPA so you can inform DRS that you are aware of your rights and request that all of your communications take place by mail instead of over the phone.

Not only does this halt Direct Recovery Services’ frustrating phone calls, but it also ensures that your case is well documented.

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