If you’ve recently noticed collections agencies appearing on your credit report, you’re not alone. Over 170 million people in the US have damaging collections on their credit history. And a common agency across many of them is AFNI Collections. However, don’t despair if you’ve seen this agency on your credit report. We’ll show you how to delete AFNI Collections from your credit report in 3 easy steps.
What is AFNI Collection Agency and How is It Hurting My Credit Score?
First of all, what is AFNI and why are they on my credit report? AFNI Debt Collections is a third-party debt collections agency that helps large companies track down old debt and reclaim payment. They essentially get back money that their clients had given up on ever being paid. Based in Illinois, AFNI has been around since the 1930s and they now have several call centers throughout the US.
If AFNI reports a collection account on your credit report, your credit score can significantly be reduced by up to 100 points. This negative impact can pose challenges when applying for credit cards and loans. To protect yourself, it is best to take steps to eliminate the adverse effects this agency’s reporting can have. By following the outlined steps below, you can remove AFNI from your credit history and strengthen your credit profile
Who Does AFNI Collect For?
AFNI collects debts for large businesses, like insurance, healthcare, utilities, telecom and retail companies. Companies like AT&T and DirectTV have called on them to go after former customers with unpaid debts.
Could AFNI Be a Scam?
If you have an old unpaid debt with one of the companies AFNI works with, they may have tried to contact you repeatedly, and their calls might be annoying. However, AFNI is an authorized debt collection agency in the US, with over 3000 employees. They are accredited with the Better Business Bureau and have an A+ rating. So although you may wish to not interact with them, AFNI is not a scam.
To find out if AFNI is registered to do business in your state, contact your state’s Attorney General office.
Delete AFNI from Your Credit in 3 Easy Steps
Step 1: Verify the debt
Step 1 is to verify the debt on your credit report is actually yours and that the amount is correct. It is the AFNI’s responsibility to prove you own the debt by responding in writing after you mail a written request to them. By law, they must respond within 5 days of first contact.
Send a debt validation letter to AFNI within 30 days of the firm contacting you, to this address:
AFNI Inc.
P.O. Box 3427
Bloomington, IL 61702-3427
Be sure to ask for a copy of the last billing statement sent by the original creditor as part of the debt validation process.
When you receive their response, carefully review the information provided. If you find any inaccuracies or discover information missing from the return letter, proceed with disputing the debt.
If AFNI is unable to validate the debt, they must remove it from your credit report within 30 days.
Step 2: Dispute
If AFNI confirms that you own the debt on your records, you have two options. First, you can begin an AFNI collections dispute within 30 days of hearing back from them. This means you claim the debt is not yours. AFNI will then have to produce proof that the debt belongs to you.
To dispute the debt, use this dispute letter template and send it by certified mail to each of the three credit bureaus.
You should also check the statute of limitations in your state. That is the time limit given for the debt to expire. After that time, the credit reporting agency has to remove a debt from your credit history. If you see the debt is past the statute of limitations, you can request the collection to be removed from your account.
Step 3: Pay to Delete
If you recognize that the debt is yours or if AFNI denies your dispute, you can arrange to make payments to settle the debt. But not before making an agreement with AFNI to remove the collections from your report after you have paid it.
What is an AFNI Settlement Offer?
To offer AFNI settlement of the debt, negotiate a payment amount that works for you. Remember, you do not need to offer to pay the full amount the collections agency claims is due. Get confirmation in writing that AFNI will remove the collections from your credit report within 30 days of full payment.
It is key that you don’t make any payments until you receive written confirmation from AFNI that states they will acknowledge the debt as fully paid, and remove any negative entries from your credit report. Once you have this agreement documented, then pay as you agreed.
For security, it is best to pay by check, so your record of the cashed check can serve as evidence of debt payment. Additionally, it is important to avoid granting AFNI or any debt collector access to your bank account for Automated Clearing House transfers.
Repairing your credit after AFNI Collections
Collection accounts on your credit report can also be one of the worst detriments to your credit. And since credit scores determine whether you can get approved for a credit card, loan, or a mortgage, it’s important to find out about any collections accounts affecting your report, and take action to remove them.
You have the power to take control of your credit and reach your financial goals. If AFNI has started collections against you, you can delete AFNI from your credit report in 3 easy steps we’ve outlined. These steps are critical to clear your credit report of the strike against you, and help restore your score.
