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How to Remove Preferred CMS from Your Credit Report

Last updated 07/09/2024 by

Silas Bamigbola

Edited by

Fact checked by

Summary:
Facing interactions with debt collectors such as Preferred CMS can be overwhelming and frustrating. If you have overdue bills, Preferred CMS might appear on your credit report as the entity tasked with recovering the debt. Fortunately, there are actions you can take to manage these interactions and protect your rights. This detailed guide explores how Preferred CMS affects your credit score, offers methods for disputing and removing the account, explains your legal rights, provides negotiation strategies, and outlines steps to secure your financial well-being.

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What is Preferred CMS?

Preferred CMS is a debt collection agency that reports collection accounts on your credit report. In some cases, this means they purchased the debt from the original creditor, such as a credit card or loan company. Usually, this means they paid pennies on the dollar to buy this debt. In other cases, they may not own the debt themselves, instead being paid to collect on behalf of another company.

How does Preferred CMS affect your credit score?

Having a collection account from Preferred CMS on your credit report can significantly harm your credit score. This negative mark indicates that you have past-due debts that have been handed over to collections, reflecting a history of financial difficulty or non-payment. Additionally, collections can remain on your credit report for up to seven years, continuously impacting your score during that period.

Steps to remove Preferred CMS from your credit report

Verify the debt

Before taking any action, verify that the debt belongs to you and that the amount is accurate. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request a debt validation letter from Preferred CMS. This letter should include details about the debt, such as the original creditor, the amount owed, and any relevant account information.

Dispute inaccurate information

If you find any inaccuracies in the debt validation letter or your credit report, you can dispute the information with the credit bureaus. The Fair Credit Reporting Act (FCRA) gives you the right to challenge any incorrect or unverifiable information on your credit report. Submit a dispute to the credit bureaus (Experian, Equifax, and TransUnion) with supporting documentation to prove the errors.

Negotiate a pay-for-delete agreement

A pay-for-delete agreement involves negotiating with Preferred CMS to remove the collections account from your credit report in exchange for payment. While not all debt collectors agree to this, it is worth attempting. Ensure you get the agreement in writing before making any payments.

Seek professional help

If you are struggling to manage the dispute process or negotiate with Preferred CMS, consider seeking help from a credit repair company. These professionals can analyze your credit report, identify errors, and negotiate with creditors on your behalf.

Pro tip

Dispute any inaccuracies in writing and send your dispute to the credit bureaus via certified mail to ensure it is tracked and received.

Your rights when dealing with Preferred CMS

You have the right to dispute any debt that Preferred CMS is trying to collect. Preferred CMS is governed by the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). These acts provide significant protection and power to you if you know how to use them.

Request all correspondence in writing

Ensure a documented record of communications with Preferred CMS by requesting written correspondence. Contact Preferred CMS at the following address:
Preferred CMS contact information
8875 Hidden River Pkwy, Suite 100, Tampa, FL 33637
+1 813-251-0802

Filing a complaint against Preferred CMS

If you believe Preferred CMS has violated your rights under the FDCPA or FCRA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s Attorney General’s office.

Filing a complaint

  1. Consumer Financial Protection Bureau (CFPB): File a complaint online here or by calling 1-855-411-2372.
  2. State’s Attorney General: File a complaint with your state’s Attorney General’s office. Contact information can typically be found on their official website.
  3. Federal Trade Commission (FTC): File a complaint online here.

Documenting your complaint

When filing a complaint, provide as much detail as possible, including the name of the debt collector, the date and time of the alleged violation, and any supporting documentation such as letters, emails, or phone records.

Following up on your complaint

After filing your complaint, follow up with the relevant agency to ensure your case is being handled. Keep records of all communications and updates related to your complaint. If you do not receive a satisfactory resolution, you may need to consult with a consumer protection attorney to explore further legal action.

Pro tip

You can request that a debt collector stop contacting you under the FDCPA. This request does not mean you are free from owing the debt or that the company can’t take legal action against you, but it does alleviate the stress of constant calls.

Understanding your credit report

It is crucial to regularly review your credit report to ensure all the information is accurate. This includes checking for any accounts reported by Preferred CMS. You can obtain a free credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) annually at www.annualcreditreport.com.

Steps to dispute a debt with Preferred CMS

When disputing a debt with Preferred CMS, follow these steps:
  1. Request a debt validation letter to verify the debt details.
  2. Gather evidence supporting your dispute, such as payment records or correspondence.
  3. Submit a written dispute to Preferred CMS and the credit bureaus, including all supporting documentation.
  4. Follow up to ensure your dispute is being processed and resolved.

How to prevent future debt collections

To avoid future debt collection issues, consider the following tips:
  • Pay your bills on time and manage your debts responsibly.
  • Monitor your credit report regularly for any inaccuracies or signs of identity theft.
  • Create a budget to keep track of your income and expenses, ensuring you live within your means.

Conclusion

Dealing with Preferred CMS and other debt collectors can be challenging, but understanding your rights and the steps you can take to remove negative marks from your credit report is crucial. By verifying the debt, disputing inaccuracies, and considering options like pay-for-delete agreements, you can work towards improving your credit score. If you need help, don’t hesitate to reach out to credit repair professionals who can guide you through the process and help you achieve a positive resolution.

Frequently asked questions

How long does a collection account stay on my credit report?

A collection account can remain on your credit report for up to seven years from the date of the first delinquency.

Can paying off a collection account improve my credit score?

Paying off a collection account may improve your credit score slightly, but the negative mark will still remain on your report for up to seven years. Negotiating a pay-for-delete agreement can be more beneficial if you can get the debt collector to agree.

What should I do if Preferred CMS violates my rights?

If you believe that Preferred CMS has violated your rights under the FDCPA or FCRA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or seek legal advice to explore your options for recourse.

Can I remove a collection account by disputing it?

Yes, if the information on the collection account is inaccurate, unverifiable, or fraudulent, you can dispute it with the credit bureaus to have it removed from your credit report.

How can I prevent future collection accounts on my credit report?

To prevent future collection accounts, manage your debts responsibly, make timely payments, and monitor your credit report regularly for any inaccuracies or signs of identity theft.

Key takeaways

  • Preferred CMS is a legitimate debt collection agency that can significantly impact your credit score.
  • You have the right to request debt validation and dispute any inaccuracies in your credit report.
  • Negotiating a pay-for-delete agreement can potentially remove the negative mark from your credit report.
  • Seek professional help if you need assistance managing disputes or negotiating with debt collectors.
  • Understanding your rights under the FDCPA and FCRA can help you protect yourself from unfair collection practices.

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