Have you discovered a collections entry from Receivables Management Systems on your credit report?
Collection accounts can drop your credit score for up to seven years, limiting your access to credit now and in the future.
And, having debt in collections means you’re probably getting frequent phone calls and letters from the collection agency.
If you’re ready to stop Receivables Management System from contacting you while also getting its negative information off your credit report, then keep reading.
We’ll unpack the basics of debt collection, give you a little more insight into this collection agency, and list three strategies to help get this agency out of your life.
About Receivables Management Systems
Receivables Management Systems isn’t a recognizable name for consumers, but it is a legitimate collection agency that helps all sorts of creditors and financial service providers collect their accounts receivable.
RMS has been operating in the debt collection industry since 1991 with its headquarters in Midlothian near Richmond in Virginia.
RMS primarily collects on three types of debts:
- Consumer debt
- Commercial debt
- Healthcare debt
Here’s the agency’s mailing address:
PO Box 73810
North Chesterfield, VA 23235
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
How Receivables Management Systems Works
When you can’t afford to pay off a personal loan, credit card, or medical debt, the original lender may eventually send your account to a debt collector like Receivables Management Systems.
Collection agencies obtain your debts in one of two ways:
- They help your original creditor with its debt collections in exchange for a fee.
- They buy your debt from its original creditor for pennies on the dollar and then collect from you to turn a profit.
In either scenario, the collection agency then reports your delinquent account to one or all three of the major credit bureaus.
The resulting collection account will drop your credit score for up to seven years, regardless of whether you pay RMS or not.
If you don’t pay, you’ll also experience the hassle of regular phone calls, automated messages, and letters until you agree to make a payment.
3 Ways to Remove Receivables Management Systems from Your Credit Report
Receivables Management Systems will eventually age off your credit report. Each year, its impact on your score can decrease until it disappears entirely in about seven years.
In the meantime, your lower credit score can make life harder. You’ll pay higher interest rates on loans which can impede your buying power and cash flow.
You can also take some action to delete the collection account from your credit history while also stopping its collection services from contacting you.
Here are three methods that may work:
1. Ask RMS for Proof the Debt is Yours
Thanks to the Fair Debt Collection Practices Act (FDCPA), you have up to 30 days to dispute the validity of a consumer debt.
To exercise this right, send RMS a debt validation letter which simply asks it to provide you with the documentation proving the debt is legitimate.
Documentation could include information like your original loan provider’s name, your account number, and details on when the debt was issued.
Debt validation is obviously the way to go if RMS is contacting you by mistake about a debt you either paid off or a debt you never owed to begin with.
Credit reporting and invoicing errors happen, especially in the age of automation. That’s why the Fair Debt Collection Practices Act gives you the right to request debt validation.
But even if you know the debt is legit, you could still use this strategy to your advantage.
Third-party debt collection agencies like RMS don’t always have the evidence they need to prove the alleged debt is yours.
If they can’t provide proof in response to your request, the agency will have to ask the credit bureaus to delete the negative information about you.
This doesn’t mean you don’t owe the money; it simply means your credit report won’t show this debt because Receivables Management Systems can’t prove you owe it.
2. Pay a Negotiated Amount to Get the Entry Deleted
Debt validation is worth trying if you can contact the agency within 30 days; however, it isn’t your only option.
If you were too late to dispute your debt or if RMS proved you owed the money, consider paying off part of the debt in exchange for the agency deleting its negative credit entry from your credit history.
Keep in mind when you simply pay off a collections agency, it doesn’t help your credit.
Instead, you need to get the agency to agree (in writing) to have the collections account deleted from your report in exchange for your payment.
Some people can make this happen while paying only a fraction of their balance due to RMS.
Why? Because debt collectors are eager to close your account. Any amount you pay can pad their bottom line. They might settle for around half of what you owe.
Once you reach an agreement and you submit a payment that matches your terms, RMS should stop trying to collect the full amount and also delete its negative items from your credit reports.
If the agency doesn’t fulfill its side of the agreement after 30 days, check-in again and remind RMS of its pay-for-delete agreement. Since you got the deal in writing, you’ll be able to prove it exists.
So be sure to negotiate with the creditor on paper — or at least get a signed version of the agreement before paying — so they can’t dispute the arrangement later.
3. Use a Credit Repair Company
Disputing debts and negotiating payments is possible, but some credit issues are more challenging, and some people simply don’t have time to call and write letters about old debts.
If you have several collections entries claiming you owe thousands of dollars of debt, or if you have other complex credit problems resulting from identity theft, you may want to seek professional help.
Plenty of excellent credit repair companies could help you pinpoint your biggest credit issues and create a tailor-made strategy for improving your credit score.
They can handle the basics, like sending debt validation letters, but also more significant tasks, like helping you recover after bankruptcy.
No matter how big or small your credit problems are, a credit repair company can take the stress out of dealing with them, simplifying your life and improving your score along the way.
Take a look at our top picks for credit repair companies to get started.
Wherever you are in your credit repair journey, try out one of the strategies above to get collections off your credit report today.
Dealing with Receivables Management Systems
Debt collectors get a lot of heat for their aggressive collection attempts, inaccurate reporting, and inability to validate debts.
With medical debt some patients complain that debt collection agencies violate their HIPPA (patient privacy) rights; however, debt collectors, unlike health insurers, normally receive only account information and not diagnoses or treatment details.
These issues are at the center of most complaints filed with the Better Business Bureau (BBB) and the Consumer Financial Protection Bureau (CFPB).
An important law that many consumers are unaware of is the Fair Debt Collection Practices Act. (We discussed this briefly above.)
This law was created specifically to protect people like you from abusive collections attempts and faulty reporting.
Here are a few key protections granted by the FDCPA:
- Debt collectors cannot make calls before 8 a.m. or after 9 p.m. in your local time zone.
- Collection agencies may not disclose details regarding your debt to your loved ones, coworkers, or anyone else.
- At your request, agency workers may not call you while you’re at work.
- You may choose to stop an agency’s phone calls and communicate only through the mail.
The last provision mentioned above is crucial. If RMS ever tries to take legal action against you, it’s important to have postmarked documentation of all your conversations with them.
It will also provide you with the evidence you need to get the agency’s entry deleted from your credit report.