…And Improve Your Credit Score
Poor credit can put you in a bad position for many financial opportunities in life. It is harder to borrow money, and you pay more interest so any loan becomes more costly. You may have difficulty renting an apartment, and have to pay higher down payments to establish accounts for things like utilities. One common roadblock to making your credit better is now knowing how to work with debt collections agencies, such as Paramount Recovery Systems. But there is help to get past this roadblock. In this article, we will show you the top strategy to delete Paramount Recovery from your credit report and improve your credit score. Read on to learn action steps you can start taking today.
What is Paramount Recovery Systems?
First, understand that Paramount Recovery Systems is a debt collection agency that is based in Waco, TX. The company collects outstanding debts on behalf of creditors, when a creditor is not able to get a customer to pay. Debt collection agencies like Paramount Recovery act as intermediaries between creditors and consumers. They charge a fee based on the amount of debt they are able to recover.
Who Does Paramount Recovery Collect For?
Paramount Recovery Systems collects debts on behalf of various creditors, such as credit card companies, medical facilities, utility companies, banks, and other financial institutions. If you have an outstanding debt with any of these entities, you may find yourself contacted by Paramount Recovery regarding the debt collection process.
Is Paramount Recovery A Legitimate Debt Collection Agency?
Paramount Recovery Systems is a legitimate debt collection agency. And as a debt collector, they operate under the Fair Debt Collection Practices Act (FDCPA). This law protects consumers from unfair collection practices, like harassment, being contacted at inconvenient times, or being contacted at your place of work. All debt collectors must adhere to specific guidelines when communicating with debtors. If they do not abide by these guidelines in their contact with you, you may file a complaint.
Your Rights As A Consumer
The FDCPA outlines your rights when dealing with a debt collector, but here are a few key things to be informed of before you begin responding to communication from a debt collector:
You have the right to dispute the debt’s validity.
As a consumer, you can request written verification of the debt.
You can also cease communication with the debt collector.
All consumers have the right to be treated fairly and without harassment.
Does Paramount Recovery Hurt Your Credit?
Paramount Recovery Systems on your credit report can negatively impact your credit score, as any collections account will. Debt collection accounts are considered negative items and may stay on your credit report for up to seven years. This can make it challenging to get new credit or get approval for loans, and may result in higher interest rates.
How Can I Delete Paramount Recovery From My Credit Report?
It is possible to work with this debt collector to eventually remove Paramount Recovery from your credit report. With careful planning and determination, work through the steps and you can improve your credit score.
Here are the exact steps to follow:
1. Validate the Debt
Request a debt validation letter from Paramount Recovery, asking them to provide evidence that the debt is indeed yours and valid. Here is a debt validation template you can use to send the request by mail.
2. Dispute Inaccuracies
After you receive a response to the validation, you have 30 days to review the information and file a dispute. When you review the record they send after validation, look to see that the amount they claim you owe is what you have on record. Make sure the account information is correct and that you are the actual owner of the account. If you find any discrepancies, you can use this free template to file a dispute.
If you find any inaccuracies in the debt information reported on your credit report, send a dispute letter to the credit bureaus, Equifax, Experian and TransUnion. They will then investigate and potentially remove the item if you are able to prove your claim.
3. Negotiate A Settlement
Negotiating a settlement with Paramount Recovery may be a viable option if you can’t pay the full debt amount. A settlement means that you reach an agreement with the collection agency to accept a lump-sum payment that is less than the total debt. It is important to note that although you can aim for any amount, it is common to end up paying 60-75% of the total amount owed. What’s more, settled accounts may still appear as negative items on your credit report for a period of seven years.
When to Seek Help
There are times you may want to get help from an outside debt counselor. Consider seeking assistance from credit counseling services that can help you navigate the process of dealing with debt collection agencies and improving your credit score. Cambio is one helpful service that can guide you through the process of dealing with a debt collector.
Should I Pay For Delete With Paramount Recovery?
Paying for delete refers to an arrangement to pay the debt to the collector, and in exchange, the collection agency deletes the account. While this is an option, it’s not always effective. While some collection agencies may agree to the pay-for-delete agreement, others may refuse, since it goes against the credit bureaus’ guidelines. Therefore, this kind of agreement will only work in certain circumstances. It is worth exploring this option if you think the information the collector has regarding your account is wrong.
Taking Back Control of Your Financial Life
Dealing with debt collection agencies is challenging, especially for those with poor credit trying to improve their financial situation. But understanding your rights and the options available to you can empower you to change your circumstances. Take proactive steps. Make use of our top strategy to delete Paramount Recovery Systems from your credit report and improve your credit score, and you can gain control of your financial future. Work toward the goal of financial well-being by addressing your outstanding debts responsibly. Remember to stay informed, communicate clearly, and be persistent to navigate the debt collection process successfully.
