Collect America Collection Agency

Collect America Phone Number & Mailing Address

4340 S. Monaco, Second Floor

Denver, CO 80237

Phone: 303.296.3345, 800.478.5541 Web: http://www.collectamerica.com/

How to Use Debt Validation as a Weapon in Your Arsenal against Collect America

Collect America was founded in 1994 in Denver, Colorado. It’s a collection agency whose collection efforts rely heavily on technology for results, and they buy delinquent or non-performing debt from creditors. Their accounts include credit card debt, auto delinquency, consumer loans, bad checks and medical and commercial debt.

Using Debt Validation to Relieve a Collect America Debt and Improve Your Credit Score

If Collect America is chasing you about an alleged debt, you must understand that Collect America's Collection Agency accounts include credit card debt, auto delinquency, consumer loans, bad checks and medical and commercial debt. Collect America buys “distressed portfolios.”

In other words, Collect America is a “junk debt” buyer. Junk debt buyers purchase old debt from creditors or other collection agencies for pennies on the dollar – often costing these companies as little as 25 cents for each $100 in face value. Companies like Collect America make their money by attempting to collect more than they paid for the debt, and even if they are successful at recovering only a small fraction of the debt, they make a generous profit.

Don't Get Scammed! Avoid Collect America's Dirty Little Trick

When the statute of limitations has expired, as is often the case with old debt, Collect America may try to “re-activate” the accounts by pressuring the consumer to pay at least some small amount on the debt. In many cases, this can lead to aggressive and even illegal tactics. They could also reactivate an account by misreporting either the date of last activity on the account or a debt that was already discharged in bankruptcy. Collection agencies like Collect America might also report the same debt several times on your credit report, and you’ll see that the same amount appears under the original creditor’s name, that of any collection agency handling the account after that, AND as an entry by Collect America! This is a situation where you should pursue debt validation and know how to dispute items on your credit report.

The first step is to NEVER ACKNOWLEDGE the debt with Collect America until the collection agency validates the debt. Debt validation can be a useful tool in managing the negative effects to your credit report. Creditors usually send you a written notice within five days of their first phone communication with you, and this letter might already contain the debt collection notice. The key to disputing debt through debt validation is to dispute the debt in writing within 30 days. Any time after this, Collect America Collection Agency can assume the debt valid and collection efforts will continue.

You must therefore submit a debt validation letter quickly, in writing, and via certified mail, return receipt requested. In it you can dispute all or a portion of the debt and can request the name of the creditor who contracted the debt collector or sold the debt. The collection agency must provide proof that it is the owner of the debt or has been assigned the debt, and must also furnish documentation from the original creditor, not merely a statement with an amount owed. Now, the advantages of debt validation: IF THE DEBT COLLECTOR CANNOT VERIFY THE DEBT WITHIN 30 DAYS, THEY MAY NOT CONTINUE TRYING TO COLLECT THE DEBT AND THEY MAY NOT LIST A COLLECT AMERICA COLLECTION ON YOUR CREDIT REPORT! If they do list the collection item on your credit report, you can send a copy of your debt validation letter to the credit bureaus and get the account removed from your credit report.

Just remember, when dealing with junk debt collectors, they have nothing to lose – but you do. Collect America doesn’t care about alienating a creditor’s former customers, just collecting on the accounts they now “own.” Debt validation can be an important tool for consumers who are being harassed by junk debt collection agencies, and may be something to keep in mind if Collect America contacts you.