Have you seen it on your recent credit report? If yes, there is something that you need to know about this agency.
First, it is a debt collection agency. Equally important, this agency has bought your debt from your previous creditor.
That brings us to our million-dollar question. Who does the company collect for?
1. About the Diversified Recovery Bureau
Since this is a debt collection agency, it will purchase debt from various creditors who have most likely tired of pursuing their debtors. This practice is popularly referred to as charge-off.
The debt collection agency usually demands payment via phone or email upon buying the debts. It also makes a collections account appear on one’s credit report. Consequently, your credit score suffers, thus making it hard for you to get other loan approvals.
2. Clients Diversified Recovery Bureau Collect For
It is hard, if not impossible, to pinpoint the people the debt collection agency collects for. After all, its range of creditors is relatively wide. Besides, the agency never makes this information available to the public. Therefore, the constant changes and the secrecy can make it hard to tell who exactly it collects for.
Nevertheless, it collects for different creditors, including credit card companies and lenders. They fall in various industries, such as education and healthcare.
3. Various Ways of Dealing
It is no secret that if Diversified Recovery Bureau appears on your credit report, your credit score is also adversely affected. Therefore, you need to deal with it, and your options include the following;
3.1. Pay Diversified Recovery Bureau Off
It is the most obvious approach since paying the debt collection agency warrants it to delete the debt from your credit record. However, before you pay the debt off, there are things you should know about its impact on your credit score. It won’t be doing the magic you seek on your credit score.
Since it is already in collections, it doesn’t completely remove the record from your credit report. On the contrary, its status becomes paid instead of the earlier unpaid status. Equally important, that record stays on your credit report for up to 7 years. In other words, your credit score will never be the same for quite a long time despite paying off.
3.2. Negotiate with the Diversified Recovery Bureau
Given that paying the debt off isn’t doing as much as you would like, it makes sense to consider negotiation. It could help you pay less than you could have paid the actual debt. Proceed accordingly once you negotiate with the debt collection agency and reach a fair settlement.
The results may not be as impressive, but the deal is undeniably better. Besides, the record will go away after years, but its price will be relatively fair. Having someone good in negotiation will help you get a great deal.
3.3. Remove Diversified Recovery Bureau from Your Credit Report
This option is the best, although it often relies on technicalities. Besides, it would help if you met certain conditions to qualify for this removal. Some of the requirements include the following;
- Errored information on the account
- Fraudulent information on the account
- Incorrect information on the account
Equally important is that the account’s incorrect, fraudulent, or errored information must be unresolvable within a reasonable time. If you deal with the Diversified Recovery Bureau on these grounds, the record will completely disappear from your credit report.
4. Can Diversified Recovery Bureau Sue You or Garnish Your Wages?
There are chances of the Diversified Recovery Bureau suing you, but one must admit that they are quite slim. After all, federal and state laws limit the wage garnishment issue. The same applies to bank garnishments. Therefore, one can say that such outcomes are often exceptions and not typical outcomes.
Nevertheless, since it is possible, you should stay prepared. Finding a good lawyer who can help if the debt collection agency sues is advisable.
5. What Are Your Rights When Dealing with Diversified Recovery Bureau?
Having a bad debt doesn’t mean that you don’t deserve to be treated with dignity. After all, you have the Fair Debt Collection Practises Act that’s here to protect you. From keeping track of debt collection agencies to penalizing them upon violating debt recovery guidelines, rest assured that your rights are well protected.
Here’s a summary worth paying attention to as it guides you on what the debt collection agency can’t do.
- Reporting that debt to any credit bureau
- Failure to reply promptly regarding a debt validation letter
- Sue you for an inaccurate debt
- Threatening to harden your life or arresting you
- Use of abusive or profane language when attempting to recover its debt from you.
If any of these rights are violated, you can report to several parties, including the Fair Trade Commission, which has an online platform, the office of the attorney general of your state, BBB, and CFPB.
Did you know you can also compel the Diversified Recovery Bureau to validate your debt? It is obliged by law to disclose the following information to you.
- The amount of the debt in question
- Your initial creditor’s name
- Information regarding additional fees and their breakdown
- Your treatment dates
- Its debt collection license number from your state authorities
- Debt’s age concerning the statute of limitations of your state
- Proof that it is the current owner of your debt
All you need to do is send a Debt Validation Letter.
6. Conclusion
You are now aware of the reason the Diversification Recovery Bureau keeps calling you. If you do not know the debt, do not hesitate to send the debt validation letter. If it exists, use the abovementioned techniques to escape that situation. Removal is the best for the sake of your credit score. Regardless, ensure the debt collection agency doesn’t violate your rights.
Last Updated on by Ananya_Sreen
