All About Commonwealth Financial Systems and How to Remove Them From Your Credit Report
Today, on Redhead Mom, I’m sharing a partnered guest post about commonwealth
financial systems and how to remove them from your credit report.
Perhaps, you are one of those people who have been contacted by Commonwealth Financial Systems about an unpaid bill, and now, it has been affecting your credit score. Thousands of consumers have already filed almost the same complaints over the years, and each one of them has one goal: remove this item from their credit report.
Events like this usually happen because you might have an overdue account, and your creditor decides to sell it to a collections agency such as Commonwealth Financials Systems, Inc. As you already know, having a collections account isn’t good for your credit score.
You can remove these collections from your credit report, but most of the time, you would have to wait for 7 years from the original delinquency date until it gets taken away. However, it is still possible to get rid of it before 7 years. This article will walk you through things you need to know about Commonwealth Financial Systems and how to deal with them.
Who Exactly Am I Dealing With?
First things first! Getting to know who you are dealing with can help you better understand and formulate strategies for approaching them.
The Commonwealth Financials Systems, Inc. is a third-party collections agency, and despite having questionable collection methods, it is a legitimate company based in Dickson City, Pennsylvania. Their services extend to a wide range of clients, including commercial, financial, government, retail, medical clients, even debt buyers.
This agency has garnered a bad reputation to many consumers mainly due to violations against their consumer rights. As reported in the Consumer Financial Protection Bureau’s complaint database, there are over 3,609 complaints against the company from 2018 to 2021.
Commonwealth Financial Systems would usually contact you to collect a debt (you may or may not owe) and are reflected in your credit report under the following names:
- cfsi collections
- comnwlth fin
- commonwealth collections
- commonwealth finance
- commonwealth financial
There are instances, though, that you might receive a false debt report from them, and this is where the problem starts. If the collection report is invalid, you have every right to dispute, and if they continue to observe practices against the law, you can hire professional help. Lexington Law could help you deal with them. Visit their website here: https://www.crediful.com/collection-agencies/commonwealth-financial-systems/
What Happens If I Don’t Deal With Them Immediately?
Generally, having a collection account will put your credit score in jeopardy. When this happens, many not-so-favorable things will occur, not to mention the higher interest rates you might have to pay, and worse, being denied insurance, home, car, or any kind of loans that you apply for.
In short, having them in your credit report does no good for your financial health, so it is better to deal with them immediately.
Steps on How to Remove Them From Your Credit Report
In some cases, collection agencies aren’t as careful about making sure they have the right person, so they might put someone else’s information in your credit report. Other times, it can be because of identity theft. These reasons are proof that you must not take these accounts for granted. Here’s how you can remove them from your credit report:
1. Be smart and gather important debt information.
First, you have to get as much information as possible to help you decipher if the debt is indeed yours. You can check and compare your credit report from your own account records, including information about the original creditor, how much the borrowed amount was, how old the debt is, and your payment history.
It is also important that you verify the account number, its status, and when the debt went delinquent.
2. Request for a debt validation report
Collectors have the obligation and are required by the law to submit you a written and detailed debt validation letter containing information about the debt you “allegedly” owe them. If they, in any way, violate the guidelines set and provided under the Fair Credit Reporting Act, you can be entitled to statutory damage for up to $1000.
Once you request for debt validation and they cannot provide satisfactory evidence, they should be able to remove the existing collections account from your credit report. You can dispute the account’s validity if it was put by mistake but only within 30 days from when the agency first contacted you.
3. Negotiate for a more affordable payment plan
If you already have confirmed that the debt is yours indeed, you can consider negotiating with the agency, as they often agree to a reduced payment. Just remember that if you ever decide to negotiate with them, always get it into writing to secure evidence that such an agreement was made. Once you settle this, you must see changes in your credit report.
4. Never forget to seek professional help.
When it comes to dealing with a collections agency, it can be frustrating and might put you in a stickier situation if you try to handle them independently. If they have contacted you, get help from the professionals because they are already trained to know what to do.
Working with professionals can increase the likelihood of removing your account in a smooth and easy process.
Collection accounts leave more damage than you could have expected, and you might regret it if you don’t address them early on. You don’t have to be afraid because, as a consumer, you are still protected by the law, and you can always get help from the experts of the field. As a piece of advice, don’t ignore; deal with them instead.