Ability Recovery Services is a collection agency that appears on credit reports when they are attempting to collect an unpaid debt on behalf of an original creditor. If you see Ability Recovery Services listed on your credit report, it means they have been hired to collect a debt that you allegedly owe.
Why does Ability Recovery Services show up on credit reports?
There are a few reasons why Ability Recovery Services may show up on your credit report:
- You fell behind on paying a debt like a credit card, medical bill, utility bill, etc.
- The original creditor hired Ability Recovery Services to collect the unpaid debt.
- Ability Recovery Services reported the collection account to the credit bureaus (Experian, Equifax, and TransUnion).
This is standard practice for collection agencies – reporting unpaid debts to the credit bureaus allows them to apply additional pressure to get consumers to pay. A collection account on your credit report indicates you have an outstanding debt in collections, which can negatively impact your credit score.
How do collection accounts impact your credit?
Collection accounts can significantly drag down your credit score. According to FICO, a collection can reduce your credit score by up to 110 points. Specifically:
- The age of the collection matters – newer collections hurt more
- Your overall payment history on other accounts
- How many other collections or negative items you have
- Your total debt load
In addition to damaging your credit score, having a collection account on your report makes you look like a higher credit risk to future lenders. This can make it harder to get approved for loans, credit cards, mortgages, apartments, and other services.
How long do collections stay on your credit report?
Unpaid collections can stay on your credit report for up to 7 years from the date the account first became delinquent. This is true even if you pay off the collection account – it will still show as a closed collection account. Here are some scenarios:
- If you never pay the debt, the collection stays for 7 years from the date of your first missed payment to the original creditor.
- If you pay the collection agency in full or settle for less, it remains for 7 years from the first missed payment date.
- If you pay or settle the debt, the collection account will be updated to show a $0 balance owed.
The only way to remove a collection account before 7 years is to utilize credit repair strategies to try and get it deleted. This involves disputing the validity of the collection with the credit bureaus. If the collection agency cannot verify the debt as accurate, the credit bureaus may remove it from your reports.
Steps to remove Ability Recovery Services from your credit report
If you want to try removing Ability Recovery Services from your credit reports, here are some steps to take:
- Request credit reports from Equifax, Experian and TransUnion to examine the collection entry.
- Review the details – make sure your personal information and the debt details are accurate.
- Draft dispute letters to each credit bureau stating you are disputing the Accuracy of the collection account.
- Highlight any inaccuracies with your personal data or the debt details.
- Send the dispute letters to each credit bureau via certified mail.
- The credit bureaus must investigate the dispute within 30-45 days.
- If Ability Recovery cannot verify the debt, the entry could be removed from your credit reports.
- You may need to repeat this process 1-2 times before the collection is removed.
Disputing collections directly with the collection agency and negotiating a pay-for-delete agreement are other options. With a pay-for-delete, the agency agrees to remove the collection tradeline from your credit reports in exchange for payment of the debt. Make sure any agreement is received in writing first before paying anything.
How to avoid collections from Ability Recovery Services
To avoid having Ability Recovery Services collections end up on your credit report in the future:
- Pay all bills and debts owed on time – set up autopay or payment reminders if needed.
- Contact creditors immediately if you are having trouble making payments due to financial hardship or temporary issues.
- Ask for reduced payment plans or alternate payment arrangements if possible.
- Prioritize paying debts that appear closest to being turned over to collections first.
- Maintain an emergency fund to help cover essential expenses during financial difficulties or job loss.
- Monitor your credit regularly so you find out about collections sooner.
Taking proactive steps to communicate with creditors early on can help prevent unpaid debts from ever being assigned to Ability Recovery Services for collections in the first place.
Should you pay Ability Recovery Services or negotiate?
If Ability Recovery Services is attempting to collect a legitimate unpaid debt from you, it’s usually recommended to pay it or negotiate a reduced settlement. Ignoring Ability Recovery Services will just allow fees and interest to accumulate, driving the balance even higher over time. However, before paying consider these key tips:
- Make sure the debt is within the statute of limitations – you can lookup state time limits.
- Research your state laws – some prohibit collectors from adding huge fees.
- Confirm you are within the 30-day validation period – collectors must provide written validation of debts if requested within 30 days of the initial notice.
- Negotiate – offer 25-50% less to settle the account, get any deal in writing before sending payment.
- Ask Ability Recovery Services to remove the tradeline upon payment – this is not guaranteed but it’s possible with a pay-for-delete agreement.
If the debt is older than your state’s statute of limitations or you think the amount Ability Recovery Services is seeking is incorrectly inflated, consult with legal counsel about your options.
Sample dispute letter to send to credit bureaus
Here is an example dispute letter you can send to Equifax, Experian and TransUnion if you want to contest a collection account from Ability Recovery Services:
To Whom It May Concern:
I am writing to dispute an item on my credit report that I believe to be inaccurate. The item is a collection account from Ability Recovery Services.
The details of the disputed account are as follows:
Account #: [insert account number listed on credit report]
Original Creditor: [name listed on credit report]
Amount: [amount listed on credit report]
Date Opened: [date opened listed on credit report]I am disputing the accuracy of this account with Ability Recovery Services because [explain reason, ex. you already paid the debt, account does not belong to you, the dates or amount reported are wrong, etc.].
Please initiate an investigation into this disputed item immediately. Please remove the Ability Recovery Services tradeline from my credit report if they cannot verify this account.
Thank you,
[Your name]
Be sure to include copies of any supporting documents with your dispute letter, such as proof of payment if applicable. Send the letter to each credit bureau’s dispute address via certified mail so you have delivery confirmation. This provides important documentation if the bureaus do not properly investigate your dispute.
What if Ability Recovery Services violates debt collection laws?
Debt collectors like Ability Recovery Services must follow federal and state debt collection laws including the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, collectors cannot:
- Use threats of violence or harm
- Publish your name as someone who refuses to pay debts (defamation)
- Use obscene or profane language
- Make repeated annoying phone calls
- Misrepresent the amount you owe
- Falsely claim to be attorneys or government representatives
- Claim you will be arrested or jailed if you cannot pay
If Ability Recovery Services violates your rights or engages in any illegal harassment tactics, you can take these steps:
- Send a written cease and desist letter demanding they stop contacting you.
- Report them to the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) for violations.
- Consult with an attorney about suing Ability Recovery Services for breaking the law.
- Report them to your state attorney general’s office – they oversee in-state debt collectors.
Suing or reporting Ability Recovery Services for FDCPA violations can potentially lead to civil penalties of up to $1,000 per incident. This provides motivation for consumers to hold them accountable to lawful debt collection conduct.
Should you worry about Ability Recovery Services suing you?
In most cases, you do not need to worry about Ability Recovery Services suing you over an unpaid debt they are trying to collect. Here are some key reasons why:
- Lawsuits are expensive – most debts are under $500 which makes suing highly unprofitable.
- Judgments require Ability Recovery Services to prove the debt – If they lack evidence, the case gets dismissed.
- State statute of limitations may prevent lawsuits from proceeding over older debts.
- If sued, you can raise affirmative defenses due to violations of lending and debt collection laws.
- Ability Recovery Services receives initial payments when debts are placed so they already made money.
That said, larger debts over $2,000 – $5,000 or more do increase the odds of getting sued. If Ability Recovery Services sues you, make sure to consult an attorney and respond to the lawsuit by the stated deadline to avoid an automatic judgment against you.
Key takeaways
- Ability Recovery Services is a collections agency that appears on credit reports when attempting to recover unpaid debts.
- Collection accounts can significantly lower credit scores and make it harder to get approved for loans and credit.
- Collections can stay on credit reports for up to 7 years from the first date of delinquency.
- Disputing collections with the credit bureaus or negotiating pay-for-delete agreements can sometimes remove negative items.
- Consumers should understand their rights under federal and state debt collection laws.
Conclusion
Having Ability Recovery Services on your credit report indicates you have an account in collections that could be damaging your credit standing. Take steps to validate any disputed debts and know your legal rights when dealing with collectors. With persistence, you may be able to remove Ability Recovery Services trade lines or settle accounts in a manner that helps begin rebuilding your credit over time.