How to eliminate ARS debts?

If ARS has contacted you, or if your credit score has dropped after a company entry appeared on your report, it is important that you contact them to resolve the situation. When it comes to removing ARS debt from your credit report, some strategies are more effective than others.

Read on to learn what ARS is and the best way to deal with the collection agency and repair your credit score.

How to eliminate Ars debts

What exactly is ARS?

ARS, what does it mean? Account Resolution Services, is a third-party debt collection agency that buys old debt from other creditors, primarily medical debts. How does ARS make money? Well, by paying less than the nominal value of the debts and then collecting them.

Unlike other collection agencies, ARS is small and less well known, but don’t be fooled, their collection services are no different than other collectors, and if you’re involved with them in any way, you should take them seriously. .

How does ARS work?

As we have mentioned, the company makes money by buying old debts from hospitals. So if you owe a hospital money and haven’t paid it, the billing department may have sold your debt to the company.

To be precise, ARS pays only a fraction of the nominal value of the debts. That is, if you owed $10,000, ARS could have paid as little as $800. What’s the trick? That if ARS can get you to pay even half of your original $10,000 bill, then it will have made money on a more or less small investment.

Therefore, the agency is motivated to make you pay. After all, if they have your debt then they also have your contact information, and they won’t be afraid to use it. They will call you, send you texts, emails, and even letters. They will do everything possible for you to meet your financial commitment.

What can I do to remove ARS debt from my credit report?

If ARS claims you owe money and it’s true, there are more negative repercussions than being constantly called. For example, an entry from a collection agency can wreak havoc on your credit score. Fortunately, it is possible to eliminate debts of ARS from your report, whether you owe the money or not, and here we are going to explain the options you have.

1. Send ARS a debt validation letter

Sometimes collection agencies don’t have substantial documentation from the company they bought the debt from. In other cases, the debt may have been assigned to you by mistake. Therefore, the Fair Debt Collection Practices Act, requires that if you send a debt validation letter, the collection agency, in this case ARS, proves that it is true that you owe money.

A basic validation letter can clear things up, and could lead to the cancellation of your debt and removal from your credit report. The key to this strategy is to submit the letter within 30 days of the first time ARS contacts you. If more than a month has passed, you are no longer entitled to this.

2. Negotiate a payment plan with ARS

If your debt is legitimate, it’s time to negotiate with ARS.

The collection agency has acquired your debt for much less than what you really owe. Since any amount you pay will increase the agency’s bottom line profit, you can use the situation to your advantage. In this sense, it offers to pay a third of what you owe.

ARS can be declined, but it will likely offset the offer, so you could end up paying only half of what you originally owed and still pay off your debt.

Before you pay a dime, negotiate and get the agreement in writing. Otherwise, if you make a deal, say over the phone, and then pay, the company might not honor the deal.

Once you have obtained a written agreement, make the payments and make sure, 30 days later, that the information on your report is updated. If not, contact ARS using the agreement you had reached.

3. Hire the services of a credit repair company

If you don’t know how, or are intimidated by the idea of ​​writing debt validation letters and dealing with ARS, you have the option of hiring the services of a credit repair company to deal with ARS on your behalf. Credit repair companies make disputing debt, negotiating with creditors, and fixing your credit score a piece of cake.

Quick guide to dealing with ARS

ARS has racked up hundreds of complaints with the Better Business Bureau and the Consumer Financial Protection Bureau. The BBB has also given the agency an “F” rating. Several of the complaints about the company have to do with the company not responding to debt validation requests. Other complaints cite flawed reporting.

Under the Fair Debt Collection Practices Act, consumers are protected from the above issues, along with disrespectful practices like calling you outside of business hours. Consequently, it is important to let ARS know that you are aware of your rights under the Act and to document all of your interactions in writing.

Therefore, we recommend that you do the following when dealing with ARS.

  • Write checks. They may look a bit old fashioned, but they provide a built-in paper trail. If you don’t have checks, you can get a money order at a local grocery store or post office. In this case, be sure to keep your copy. If you pay online, make sure it’s only after you’ve received a written agreement from ARS.
  • Negotiate, if possible. As we have explained throughout this article, ARS wants to make money. If you can pay half of what you owe, propose this as a solution to your situation. Make sure your payment is contingent on ARS removing negative items from your credit reports.
  • Give simple answers. You don’t have to explain yourself to a debt collector. If you can’t make the requested payment, say so. You do not need to justify your personal financial situation to anyone.
  • Don’t make things worse. For some people, just receiving a phone call from ARS or another debt collection agency causes them to panic. They want the situation resolved at any cost, so they may be tempted to make desperate decisions like transferring the debt to a high-interest credit card. Our recommendation: Don’t do it. Analyze the situation and weigh what your options are, but don’t make hasty decisions. In the end, it can cost you a lot.

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