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How to Remove AllianceOne From your Credit Report

Last updated 07/03/2024 by

Silas Bamigbola

Edited by

Fact checked by

Summary:
AllianceOne is a debt collection agency that may report a collection account on your credit report. This can negatively impact your credit score. This article explores who AllianceOne collects for, how it affects your credit, and strategies to remove them from your report.
AllianceOne is a prominent debt collection agency known for purchasing and collecting debts from various creditors. If you have encountered their name on your credit report, it likely indicates that they are attempting to collect a debt from you. This article will provide an in-depth understanding of AllianceOne, its impact on your credit score, and the steps you can take to handle this situation effectively.

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Who does AllianceOne collect for?

AllianceOne collects debts for a wide array of creditors. These can include credit card companies, loan providers, and other financial institutions that have sold off their delinquent accounts. Typically, these original creditors sell the debt to AllianceOne for a fraction of the original amount, allowing AllianceOne to profit from collecting the full amount owed.

Types of debts collected by AllianceOne

  • Credit card debt: Many credit card companies offload delinquent accounts to agencies like AllianceOne.
  • Personal loans: Unpaid personal loans are another common type of debt collected.
  • Medical bills: Healthcare providers often sell overdue medical bills to collection agencies.
  • Utilities: Unpaid utility bills can also be handed over to AllianceOne for collection.

How AllianceOne acquires debts

AllianceOne purchases debts from original creditors, often paying only a small percentage of the total amount owed. This allows them to potentially make a significant profit by collecting the full debt from the debtor.

Does AllianceOne hurt my credit score?

Yes, having a collection account from AllianceOne on your credit report can significantly harm your credit score. Collection accounts are viewed negatively by credit scoring models, and they can remain on your credit report for up to seven years from the date of the first delinquency.

Impact on credit score

  • Immediate drop: The presence of a collection account can cause an immediate drop in your credit score.
  • Long-term effects: The account can remain for seven years, affecting your ability to get approved for loans and other credit.

Why collections hurt your credit score

Collections indicate that you failed to pay a debt as agreed, which is a red flag for lenders. This risk factor lowers your creditworthiness in the eyes of creditors.

How do I remove AllianceOne from my credit report?

Removing AllianceOne from your credit report is possible but can be challenging. Here are the steps you can take to improve your chances of success:

Dispute inaccurate information

If there are errors or inaccuracies in the account details reported by AllianceOne, you can dispute these with the credit bureaus. According to the U.S. Public Interest Research Group (PIRG), a significant percentage of credit reports contain errors, so it’s worth reviewing your report carefully.

Steps to dispute a collection account

  • Request a copy of your credit report from the three major credit bureaus: Experian, Equifax, and TransUnion.
  • Review the report for any inaccuracies related to the AllianceOne account.
  • Submit a dispute to the credit bureau reporting the inaccurate information, providing any evidence that supports your claim.
  • Follow up with the credit bureau to ensure the error is corrected or the account is removed.

Pro tip

Always request all correspondence from AllianceOne in writing. This helps you keep accurate records and can be useful if you need to dispute any claims.

Negotiate a settlement

If the information is accurate, you might consider negotiating a settlement with AllianceOne. In some cases, you can agree to pay a portion of the debt in exchange for having the account marked as “paid” or even removed from your credit report.

Steps to negotiate a settlement

  • Contact AllianceOne to discuss the debt and your ability to pay.
  • Propose a settlement amount that is less than the full amount owed.
  • Request a written agreement stating the terms of the settlement and the removal of the account from your credit report upon payment.
  • Make the payment as agreed and follow up to ensure the account is updated on your credit report.

Pro tip

Before negotiating a settlement, review your financial situation to determine how much you can afford to pay. This will help you make a realistic offer.

Request all correspondence in writing

Ensure a documented record of communications with AllianceOne by requesting written correspondence. Contact AllianceOne at the following address:
AllianceOne contact information
6565 Kimball Drive, Suite 200
Gig Harbor, WA 98335
(800) 456-8838

How to file a complaint against AllianceOne

If you believe AllianceOne has violated your rights under the Fair Debt Collection Practices Act (FDCPA) or engaged in unethical practices, you can file a complaint with the appropriate authorities:
  • Consumer Financial Protection Bureau (CFPB): Visit the CFPB’s website and submit a complaint online.
  • Federal Trade Commission (FTC): File a complaint with the FTC if you believe AllianceOne is engaging in unfair practices.
  • State Attorney General’s Office: Contact your state Attorney General to report any violations of state laws by AllianceOne.
Keep copies of all your communications and records when filing a complaint.

Understanding your rights under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) provides protections against abusive debt collection practices. Knowing your rights can help you handle interactions with AllianceOne more effectively:
  • Right to dispute: You have the right to dispute any debt that you believe is inaccurate.
  • Right to validation: AllianceOne must provide verification of the debt upon your request.
  • Protection from harassment: AllianceOne cannot use abusive language or tactics to collect a debt.

Steps to take after paying off a debt

After settling a debt with AllianceOne, it is crucial to take certain steps to ensure your credit report is updated accurately:
  • Request a confirmation letter: Obtain a letter from AllianceOne confirming the debt has been paid.
  • Monitor your credit report: Check your credit report to ensure the account status is updated to “paid.”
  • Dispute inaccuracies: If the account is not updated correctly, dispute the inaccuracy with the credit bureaus.

How to handle harassment from AllianceOne

If you experience harassment from AllianceOne, there are steps you can take to protect yourself:
  • Document everything: Keep a record of all communications, including dates, times, and the nature of the contact.
  • Send a cease and desist letter: You can request AllianceOne to stop contacting you by sending a formal cease and desist letter.
  • Seek legal help: If harassment continues, consider consulting with a lawyer who specializes in consumer rights.

Frequently asked questions

Is AllianceOne a debt collection agency?

Yes, AllianceOne is a debt collection agency. They buy debt from a number of different creditors that have given up on trying to collect the amount themselves (sometimes referred to as a “charge-off”).

Should I pay for delete with AllianceOne?

Paying off AllianceOne to have credit bureaus delete it from your report seems ideal. However, paying a debt in collections changes your credit report status from ‘unpaid’ to ‘paid’. The result? Your collections still appear on your report for 7 years (from the date of first delinquency). This means your credit is still affected.

Should I negotiate a settlement with AllianceOne?

Settling your debt with AllianceOne may help your score, but it may also hurt your score. The answer depends on many variables. You may also not have to pay at all, and if any issues with the account exist you may have it removed altogether (and never have to hear from them again).

Is AllianceOne legit, fake or a scam?

AllianceOne is a legitimate company. They are not a fake company or a scam. But, they may spam call and harass you.

Why does AllianceOne keep calling me?

AllianceOne continues to call and attempt to collect a debt. The best thing you can do is ignore their calls and speak with a company that can help you get it removed.

Will AllianceOne try suing or garnishing my wages?

It’s very unlikely that AllianceOne decides to sue. In rare cases, it may happen, but it is not the norm. State and federal laws have limits or ‘exemptions’ that apply to bank and wage garnishments. We strongly recommend giving us a call to determine the likelihood of a lawsuit, but also steps you can take to get this collection removed.

Does AllianceOne accept a goodwill letter to remove my collection/charge-off?

AllianceOne does not accept goodwill letters to remove collection accounts or charge-offs in our experience, and this is typical. Most collection agencies do not.

Key takeaways

  • AllianceOne is a debt collection agency that can impact your credit score.
  • Disputing inaccuracies on your credit report can help remove AllianceOne.
  • Negotiating a settlement may help, but ensure you get agreements in writing.
  • Understand your rights under the FDCPA and FCRA when dealing with debt collectors.

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