ERC Debt Collections: What You Should Know

Who is Enhanced Recovery Comapny (ERC), why are they on your credit report, and how do you deal with that moving forward? Collection accounts like ERC can be a nightmare when it comes to your credit and knowing where to being can be tasking. Let us answer your questions and give you some guidance.

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No one enjoys calls from the Enhanced Recovery Company (ERC). These conversations can be stressful and have you worried about what you should not say to debt collectors. But if you’re sure that they don’t have a legitimate debt to hold over you, then you can easily make these communications stop, especially if they’re already violating the FDCPA or Fair Debt Collection Practices Act in Florida –in that case, you can even file a lawsuit against them. 

However, if you do have unpaid dues, it’s best to make negotiations and reach a settlement as these collections can damage your credit score. After that, you should search for a company like The Phenix Group (just book a free consultation or Google “credit repair near me”) that can help you fix your standing and get you back on good financial terms.

What Is ERC?

ERC, also known as Enhanced Recovery Company (or Enhanced Resource Centers, among several other names), is a third-party debt collector that works at the behest of companies or banks to collect an overdue or past-due debt. If ERC is contacting you,  they’ve purchased one of your defaulted debts and are going to exhaust every way to get you to pay.

How ERC Works

When a company or bank gives up on collecting unpaid bills from some accounts, they sell these debts to a collection agency like the ERC. These debt collectors buy these debts for a much lower price, then attempt to get the full amount due from the debtor, which allows them to make a profit. 

How to Deal With ERC Collections

Getting a call from the ERC can be scary, but it’s important to stay calm and collected so that you can communicate without a hitch. Remember that you can also opt not to answer the call until you’re ready.

Here are some tips to help you deal with ERC Collections:

Know Your Rights

Debt collections are regulated under the FDCPA (and further by the Florida Consumer Collection Practices Act or FCCPA, locally), which affords you certain rights to protect you from unfair, fraudulent, and abusive collection practices. Keep these in mind so that you can recognize if the ERC is violating any laws, in which case you can file a complaint against them or even take them to court.

Verify the Debt

In many cases, debt collection agencies like the ERC aren’t aware if a debt has already been settled or are chasing a debt that’s beyond the statute of limitations. This is why you must verify the debt before admitting it’s yours or making a settlement agreement.

Keep a Record

Keep a record of every phone call, message, or email that you’ve received from the ERC. These help you keep track of any details, agreements, or discrepancies that you could use later on if you’re making a settlement, disputing a debt, or filing a lawsuit.

How to Remove ERC Collections From Your Credit Report

An ERC Collections account can hammer on your credit score, so you must deal with them immediately to get your standing back up. Here are the steps you can take to remove them:

Validate the Debt

Under the FDCPA, you can demand evidence to validate the debt being collected from you by the ERC. Because they’re not the original creditor, they might not have the documentation to verify the debt and the amount owed. In that case, they may have to drop its charge, remove the account from your credit score, and stop contacting you.

To request validation, just send a letter within thirty days of hearing from the ERC.

Dispute the Debt

If you know that you don’t owe a debt that the ERC is attempting to collect, you can dispute the debt to the three major consumer credit bureaus. They’ll investigate, and the ERC will have to report any inaccuracies.

Make a Payment

If your debt is legitimate, consider paying for it, even just partially. You can even negotiate to pay lower than the amount due as the ERC has likely purchased your debt for a lower amount–so, even if you don’t pay in full, they’ll make a profit. If you’re negotiating, remember to document any agreements on paper to keep the ERC accountable.

Get Help From a Credit Repair Company

Getting off the ERC’s tail can require a lot of time and effort—not to mention that you have to repair your credit score afterward should their accounts leave any damage on your credit report. It’s best to seek help from professionals like those at The Phenix Group to help you minimize any damage to your credit score and work on repairing it to get you back in good standing. Book a free consultation today to get started!

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