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How to Remove KLS Financial Services, Inc. from Your Credit Report

Last updated 06/27/2024 by

Silas Bamigbola

Edited by

Fact checked by

Summary:
KLS Financial Services is a debt collection agency that often buys debt from original creditors or is hired to collect on their behalf. Understanding how they operate, the impact on your credit report, and your rights can help you navigate interactions with them effectively.
KLS Financial Services is a name that often appears on credit reports, causing concern for many individuals. As a debt collection agency, they either purchase debts from original creditors or are contracted to collect on their behalf. This article aims to provide a comprehensive understanding of KLS Financial Services, their impact on your credit, and the options available to you.

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Who KLS Financial Services collect for

KLS Financial Services collects for a variety of lending companies, known as creditors. These creditors can include credit card companies, loan providers, and other financial institutions. The specific creditors that KLS Financial Services collects for can change over time, as they may acquire new debts or contracts with different companies. Typically, collection agencies do not publicly disclose the names of the creditors they work with.

How KLS Financial Services affect your credit score

Having a collection account from KLS Financial Services on your credit report can significantly impact your credit score. Collections accounts are considered derogatory marks and can lower your score, affecting your ability to obtain loans, credit cards, and other financial products. The presence of a collections account indicates to lenders that you have had difficulty managing your debts, making you a higher-risk borrower.

Pro Tip

Regularly check your credit report for any errors or inaccuracies. Disputing incorrect information can help improve your credit score.

Steps to dispute errors on your credit report

  • Obtain a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion).
  • Review the report for any inaccuracies related to the KLS Financial Services account.
  • Gather evidence to support your dispute, such as payment records or correspondence with the original creditor.
  • Submit a dispute to each credit bureau, including a detailed explanation and supporting documents.
  • Follow up with the credit bureaus to ensure the dispute is resolved.

Pro Tip

Before agreeing to pay for delete, get the agreement in writing to ensure the account will be removed from your credit report.

Steps to negotiate a settlement

  • Determine how much you can afford to pay as a lump sum or in installments.
  • Contact KLS Financial Services to discuss a settlement offer.
  • Negotiate the terms, including the amount to be paid and the removal of the account from your credit report.
  • Get the settlement agreement in writing before making any payments.
  • Make the agreed-upon payment and ensure the account is updated on your credit report.

Pro Tip

When negotiating a settlement, be polite and firm. Collection agencies may be more willing to work with you if you maintain a respectful tone.

Your rights under the Fair Debt Collection Practices Act (FDCPA)

  • You have the right to request verification of the debt.
  • Debt collectors must provide information about the debt, including the amount owed and the original creditor.
  • Debt collectors cannot harass or threaten you.
  • You can request that debt collectors stop contacting you.

Request all correspondence in writing

Ensuring that all communications with KLS Financial Services are in writing can help you keep a documented record of all interactions. This documentation can be crucial if you need to dispute any claims or seek legal advice. To request written correspondence, contact KLS Financial Services at the following address:
KLS Financial Services contact information
991 Aviation Parkway, Suite 500, Morrisville, NC 27560
+1 833-447-3557

How to file a complaint against them

If you believe KLS Financial Services has violated your rights under the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA), you have the option to file a complaint. Here’s how you can do it:
  • Consumer Financial Protection Bureau (CFPB): Submit a complaint online at consumerfinance.gov/complaint or call them at +1 855-411-2372.
  • Federal Trade Commission (FTC): File a complaint online at ftc.gov/complaint or call them at +1 877-382-4357.
  • State Attorney General’s Office: Contact your state’s Attorney General to file a complaint. You can find contact information for your state’s office at naag.org.

Understanding your debt collection rights

Knowing your rights when dealing with debt collectors like KLS Financial Services is crucial. The Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) provide protections against abusive and unfair collection practices. These laws grant you the right to dispute debts, request validation, and protect against harassment.

Steps to validate a debt

When contacted by KLS Financial Services, you have the right to request validation of the debt. This means asking the collection agency to provide proof that the debt is yours and that the amount is accurate. Here are the steps to follow:
  • Send a written request for debt validation within 30 days of their initial contact.
  • Wait for KLS Financial Services to provide documentation proving the debt.
  • Review the provided documents carefully for any discrepancies or errors.
  • If the debt cannot be validated, it must be removed from your credit report.

Impact of debt settlement on your credit

Settling a debt with KLS Financial Services can impact your credit score. While it may help resolve the debt and stop further collection activities, it can also result in a negative mark on your credit report. The account may be updated to reflect a settled status, which can signal to lenders that you did not repay the full amount owed. This can lower your credit score temporarily, although the impact lessens over time as the settled account ages.

Pro Tip

Consider consulting with a financial advisor or credit counselor before deciding on debt settlement to understand the potential impact on your financial situation.

How to avoid debt collection scams

Debt collection scams are unfortunately common, and it’s essential to protect yourself from fraudulent practices. Here are some tips to avoid debt collection scams:
  • Verify the legitimacy of the debt collector by asking for their contact information and researching the company online.
  • Do not provide personal or financial information over the phone or email unless you have verified the identity of the debt collector.
  • Request written validation of the debt and review it carefully for accuracy.
  • Report any suspicious or fraudulent activities to the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).

Conclusion

Dealing with KLS Financial Services can be challenging, but understanding your rights and options is crucial. Whether you choose to dispute the debt, negotiate a settlement, or seek professional help, knowing how to navigate interactions with debt collectors can help protect your financial future. Remember to stay informed, assert your rights under federal laws, and seek assistance if you believe your rights have been violated.

Frequently asked questions

What should I do if I find a KLS Financial Services account on my credit report?

If you find a KLS Financial Services account on your credit report, first verify the accuracy of the debt. You can request debt validation from KLS Financial Services within 30 days of their initial contact. If the debt is incorrect, you can dispute it with the credit bureaus to have it removed.

How can I contact KLS Financial Services for debt validation or settlement?

You can contact KLS Financial Services at their headquarters: 991 Aviation Parkway, Suite 500, Morrisville, NC 27560. Their phone number is +1 833-447-3557. It is advisable to request all correspondence in writing for documentation purposes.

Can KLS Financial Services remove an account from my credit report if I pay off the debt?

While paying off the debt can change its status from ‘unpaid’ to ‘paid,’ it does not guarantee the removal of the account from your credit report. Some collection agencies may agree to a pay-for-delete arrangement, but it is important to get this agreement in writing before making any payments.

What are my rights when dealing with KLS Financial Services?

Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request verification of the debt, be free from harassment or threats, and request that the debt collector stop contacting you. The Fair Credit Reporting Act (FCRA) also allows you to dispute inaccurate information on your credit report.

How long will a KLS Financial Services collection account stay on my credit report?

A collection account from KLS Financial Services can remain on your credit report for up to seven years from the date of first delinquency. Even if you pay off the debt, the account can still negatively impact your credit score until it is removed.

What can I do if KLS Financial Services violates my rights?

If KLS Financial Services violates your rights under the FDCPA or FCRA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint, the Federal Trade Commission (FTC) at ftc.gov/complaint, or your state’s Attorney General’s office via naag.org.

Key takeaways

  • Verify any debt collection claims before taking action.
  • Know your rights under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA).
  • Consider seeking professional assistance if dealing with debt collectors becomes overwhelming.

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