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How to Remove Acei Debt Collection From your Credit Report

Last updated 07/03/2024 by

Silas Bamigbola

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Fact checked by

Summary:
American Collections Enterprise, Inc. (ACEI), also known as AMCollect, is a debt collection agency that may impact your credit score negatively if they report a collection account. This article delves into their operations, how they affect your credit, and strategies for handling them effectively. Learn how to potentially remove their accounts from your credit report and protect your financial health.

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Understanding American Collections Enterprise, Inc.

American Collections Enterprise, Inc. (ACEI) is a debt collection agency that deals with outstanding debts from various creditors. These agencies buy debts for a fraction of the original amount or work on behalf of other companies to collect debts. Their main objective is to recover as much of the owed money as possible, often employing persistent communication methods like phone calls and letters. Unfortunately, their presence on your credit report can significantly impact your credit score, making it essential to understand their operations and how to deal with them.

How American Collections Enterprise, Inc. works

Debt collection agencies like ACEI purchase debts from original creditors, such as credit card companies or loan providers, usually at a heavily discounted rate. This transaction occurs when the original creditor considers the debt uncollectible, often termed a “charge-off.” By acquiring these debts, ACEI gains the right to pursue repayment from the debtor. They may also work as a third-party agency, collecting debts on behalf of other companies.

Pro Tip

If ACEI contacts you, request a debt validation letter to ensure the debt is legitimate and accurately reported.

The impact of American Collections Enterprise, Inc. on your credit score

A collection account from ACEI on your credit report can severely damage your credit score. Collections accounts are considered major derogatory marks, significantly lowering your creditworthiness in the eyes of lenders. The extent of the impact depends on various factors, including the amount owed, the time since the debt was first reported, and your overall credit history.

Removing American Collections Enterprise, Inc. from your credit report

Removing a collection account from your credit report can be challenging but is possible under certain circumstances. If any information on the account is incorrect, you can dispute it with the credit bureaus. According to a U.S. Public Interest Research Groups (PIRGs) study, 79% of credit reports contain mistakes or serious errors. Therefore, it’s crucial to review your credit report regularly and challenge any inaccuracies.

Steps to dispute inaccurate information

  1. Request a copy of your credit report from all three major credit bureaus: Experian, Equifax, and TransUnion.
  2. Identify any errors related to the ACEI account.
  3. Submit a dispute to the credit bureaus, providing evidence to support your claim.
  4. Wait for the credit bureaus to investigate and respond, typically within 30 days.
If the credit bureaus find the information to be inaccurate, they will remove or correct the account on your credit report. It’s essential to follow up and ensure the changes are reflected on all your credit reports.

Dealing with American Collections Enterprise, Inc.

Should you pay the debt?

Paying off a debt in collections may seem like the best option, but it doesn’t necessarily remove the account from your credit report. Instead, the status will change from “unpaid” to “paid,” but the collection account can remain on your report for up to seven years from the date of the first delinquency. This continued presence can still negatively affect your credit score.

Negotiating a settlement

Negotiating a settlement with ACEI can sometimes be beneficial. This process involves agreeing to pay a portion of the debt in exchange for the collection agency marking the account as “settled” or “paid.” However, be aware that the account will still be visible on your credit report, albeit with a different status. In some cases, you may negotiate a “pay for delete” agreement, where the agency agrees to remove the account from your report upon payment. These agreements are not guaranteed and may require persistence and negotiation skills.

Request all correspondence in writing

Ensuring that all communications with ACEI are documented is crucial. This provides a record of all interactions and helps protect your rights. Requesting all correspondence in writing can help you keep track of their claims and any agreements made.
American Collections Enterprise, Inc. contact information
205 S Whiting St Ste 500, Alexandria, VA 22304-3632
PO Box 30096, Alexandria, VA 22310
Ph# +1 703-253-7000

How to file a complaint against American Collections Enterprise, Inc.

If you believe that ACEI has violated your rights or engaged in unfair practices, you can file a complaint against them. The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) are two agencies that handle complaints against debt collectors.
  1. Visit the CFPB’s website at consumerfinance.gov/complaint and follow the instructions to file a complaint.
  2. Visit the FTC’s website at ftccomplaintassistant.gov to file a complaint online.
  3. Provide as much detail as possible, including dates, times, and any documentation of your interactions with ACEI.

Understanding your credit report

Your credit report is a detailed record of your credit history, including any collections accounts. Understanding how to read your credit report can help you identify and address any issues promptly. Regularly reviewing your credit report is a good practice to ensure its accuracy.

How to obtain your credit report

You are entitled to a free credit report from each of the three major credit bureaus once a year. You can request your credit report through AnnualCreditReport.com. Reviewing your report regularly can help you catch and dispute errors quickly.

Strategies to rebuild your credit

After dealing with a collections account, it’s important to focus on rebuilding your credit. This involves maintaining good credit habits and addressing any negative marks on your report. Here are some strategies to help you improve your credit score.

Establishing positive credit history

  • Pay your bills on time: Consistently making on-time payments is one of the most significant factors in improving your credit score.
  • Keep credit card balances low: High balances relative to your credit limit can negatively affect your score.
  • Consider a secured credit card: If you have trouble qualifying for a traditional credit card, a secured credit card can help you build positive credit history.

Legal resources and assistance

If you find yourself overwhelmed by dealing with debt collectors or if you believe your rights have been violated, seeking legal assistance can be beneficial. Consumer protection attorneys specialize in debt collection laws and can provide guidance and representation.

Finding a consumer protection attorney

You can find consumer protection attorneys through state bar associations or legal aid organizations. Many attorneys offer free consultations to discuss your case and determine the best course of action.

Frequently asked questions

1. What is American Collections Enterprise, Inc.?

American Collections Enterprise, Inc. (ACEI), also known as AMCollect, is a debt collection agency that purchases debts from original creditors or works on behalf of other companies to collect outstanding debts. Their primary goal is to recover as much of the owed money as possible through various communication methods.

How does American Collections Enterprise, Inc. affect my credit score?

Having a collection account from ACEI on your credit report can significantly lower your credit score. Collections accounts are viewed as major derogatory marks and can reduce your creditworthiness in the eyes of lenders.

Can I remove American Collections Enterprise, Inc. from my credit report?

Yes, it is possible to remove ACEI from your credit report if the information is incorrect or inaccurate. You can dispute the account with the credit bureaus, and if they find the information to be erroneous, they will remove or correct the account.

Should I pay the debt to American Collections Enterprise, Inc.?

Paying the debt does not necessarily remove the account from your credit report. It will change the status from “unpaid” to “paid,” but the collection account can remain on your report for up to seven years from the date of first delinquency. It’s crucial to consider all options, including negotiating a settlement or a “pay for delete” agreement.

How can I contact American Collections Enterprise, Inc.?

You can contact ACEI at their headquarters located at 205 S Whiting St Ste 500, Alexandria, VA 22304-3632. You can also reach them by phone at +1 703-253-7000 or via email at cs@payacei.com.

What are my rights when dealing with American Collections Enterprise, Inc.?

As a consumer, you have rights under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). These laws protect you from abusive, unfair, or deceptive practices by debt collectors and allow you to dispute inaccurate information on your credit report.

Key takeaways

  • American Collections Enterprise, Inc. (ACEI) is a legitimate debt collection agency that can impact your credit score negatively.
  • You have the right to dispute any inaccurate information on your credit report.
  • Negotiating a settlement or “pay for delete” agreement may help, but these are not guaranteed.
  • Understand your rights under the FDCPA and FCRA to protect yourself from unfair practices.
  • Maintaining good credit habits can help prevent future debt collection issues.

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