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Guide to Removing Receivable Management Services From Your Credit Report

Last updated 07/10/2024 by

Bamigbola Paul

Edited by

Fact checked by

Summary:
Receivable Management Services (RMS) is a debt collector that can impact your credit score. This guide explains their practices, how they affect your credit report, and steps to handle them effectively.
Receivable Management Services LLC (RMS) is a debt collection agency known for purchasing and collecting debt on behalf of original creditors. If you have a collection account from RMS on your credit report, it can negatively affect your credit score and hinder your financial opportunities. This article delves into who Receivable Management Services collects for, how they operate, and the best strategies for dealing with them.

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Who Receivable Management Services collect for

Receivable Management Services collects debts for various lending companies, including credit card companies, loan providers, and other financial institutions. They often purchase debts from these creditors at a fraction of the original amount, sometimes as low as 10% of the debt’s face value. By acquiring these debts, RMS attempts to collect the full amount from the debtor, making a profit on the difference.

How RMS acquires debt

RMS typically purchases debts that have been charged off by the original creditors. A charge-off occurs when a creditor deems the debt unlikely to be collected and writes it off as a loss. This doesn’t mean the debt is forgiven; instead, it is sold to collection agencies like RMS, which then attempt to recover the amount owed.

RMS and credit reports

When RMS takes over a debt, they report it to the credit bureaus. This results in a collections account appearing on your credit report, which can severely impact your credit score. Collection accounts are considered derogatory marks and can remain on your report for up to seven years from the date of first delinquency.

Does Receivable Management Services hurt my credit score?

Impact of collection accounts

Any derogatory mark on your credit report can significantly impact your credit score, and a collection account is no exception. The presence of a collections account indicates that you have defaulted on a debt, which creditors view as a sign of financial irresponsibility. This can lower your credit score and make it challenging to obtain loans, credit cards, or even housing.

Statute of limitations

The impact of a collection account on your credit score diminishes over time, but it remains a negative mark until it is removed. The statute of limitations for collections accounts varies by state, typically ranging from three to six years. During this period, RMS can pursue legal action to collect the debt.

Pro tip

Regularly monitoring your credit report can help you spot and address collection accounts quickly, minimizing their impact on your credit score.

How to remove Receivable Management Services from your credit report

Disputing incorrect information

If any information on the RMS account is incorrect, you have the right to dispute it. According to a study by the U.S. Public Interest Research Group (PIRG), 79% of credit reports contain mistakes or serious errors. Disputing inaccuracies can lead to the removal of the collection account from your report.

Steps to dispute

  1. Obtain your credit report: Get a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion).
  2. Identify errors: Review the RMS account details for any inaccuracies, such as incorrect balance, dates, or account numbers.
  3. File a dispute: Contact the credit bureaus to file a dispute. Provide documentation to support your claim, such as payment records or correspondence with RMS.
  4. Follow up: Monitor the status of your dispute and follow up with the credit bureaus if necessary. If the dispute is successful, the erroneous information will be corrected or removed.

Working with credit specialists

If you’re unsure how to proceed, consider working with a credit specialist. These professionals can help you navigate the dispute process and increase the likelihood of a successful outcome.

Pro tip

Keep copies of all correspondence and documentation related to your dispute. This can be valuable if you need to escalate your claim.

Request all correspondence in writing

Ensure a documented record of communications with Receivable Management Services by requesting written correspondence. Contact Receivable Management Services at the following address:
Receivable Management Services contact information
7350 Tilghman St Ste 300, Allentown, PA 18106-9012
Ph# (888) 807-2576

How to file a complaint against Receivable Management Services

If you believe Receivable Management Services has violated your rights or engaged in unethical practices, you can file a complaint with the appropriate authorities. Here’s how:
  1. Contact the Consumer Financial Protection Bureau (CFPB): File a complaint online at consumerfinance.gov/complaint.
  2. Reach out to your State Attorney General’s Office: Each state has an office that handles consumer complaints against businesses. You can find your state’s Attorney General’s contact information here.

Should you pay for delete with Receivable Management Services?

Understanding pay for delete

Pay for delete is a negotiation strategy where you agree to pay the debt in exchange for the collection agency removing the account from your credit report. While this sounds ideal, there are a few caveats to consider.

Effectiveness and risks

  • Impact on credit report: Even if RMS agrees to delete the account, there’s no guarantee the credit bureaus will comply. Additionally, paying the debt changes its status from ‘unpaid’ to ‘paid,’ but the account remains on your report for seven years.
  • Legal issues: Pay for delete agreements are not legally binding. RMS could accept your payment without removing the account, leaving you with little recourse.
  • Cost: You may end up paying a significant portion of the debt, which could strain your finances without providing the desired credit score improvement.

Steps to negotiate a settlement

  1. Evaluate your finances: Determine how much you can afford to pay.
  2. Contact RMS: Initiate negotiations by contacting RMS and proposing a settlement amount.
  3. Get it in writing: Ensure that any settlement agreement is documented in writing.
  4. Make payment: Follow through with the agreed payment and request a confirmation of the account status update.

Pro tip

When negotiating a settlement, aim to settle for less than 50% of the debt’s value. This can provide significant savings while resolving the debt.

Is Receivable Management Services legit, fake, or a scam?

Receivable Management Services LLC is a legitimate debt collection agency. They are not a scam, but they may engage in persistent collection practices that can feel overwhelming. Understanding your rights and how to deal with them can help you manage these interactions effectively.

Rights under the FDCPA and FCRA

The Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) govern the activities of debt collectors like RMS. These laws provide you with several rights, including:
  • Right to dispute: You can dispute the debt if you believe it is incorrect.
  • Right to validation: RMS must provide proof of the debt if you request it.
  • Right to cease communication: You can request RMS to stop contacting you.

Why does Receivable Management Services keep calling me?

RMS continues to call and attempt to collect a debt until it is resolved. Ignoring their calls is not recommended. Instead, take proactive steps to address the debt, whether through dispute, settlement, or seeking professional help.

Handling collection calls

  1. Stay calm: Keep your composure during calls.
  2. Document everything: Record dates, times, and details of each call.
  3. Know your rights: Inform RMS of your rights under the FDCPA and FCRA.
  4. Seek help: If the calls become harassing, consider speaking with a consumer rights attorney.

Pro tip

Sending a cease and desist letter can legally require RMS to stop contacting you. However, this won’t erase the debt, and RMS can still pursue legal action.

Conclusion

Receivable Management Services plays a significant role in the debt collection industry, impacting individuals’ credit scores and financial well-being. Understanding their practices, your rights, and how to effectively manage debts can empower you to navigate these challenges successfully. Whether you’re disputing inaccuracies, negotiating a settlement, or seeking professional assistance, taking proactive steps can lead to a resolution that improves your financial health.

Frequently asked questions

How does Receivable Management Services impact my credit score?

Receivable Management Services (RMS) can significantly impact your credit score if they report a collection account. This can lower your score and make it harder to obtain credit in the future.

Can I negotiate with Receivable Management Services to settle my debt?

Yes, negotiating a settlement with RMS is possible. You may be able to settle the debt for less than the full amount owed, but it’s essential to get any agreement in writing before making payment.

What rights do I have when dealing with Receivable Management Services?

Under the Fair Debt Collection Practices Act (FDCPA), you have rights such as the right to dispute the debt, request validation of the debt, and request that RMS cease communication with you.

How can I remove Receivable Management Services from my credit report?

To remove RMS from your credit report, you can dispute any inaccuracies in the account information. If successful, the collection account may be removed, improving your credit score.

What should I do if I believe Receivable Management Services is harassing me?

If you feel harassed by RMS, document all communication attempts and consider filing a complaint with the Consumer Financial Protection Bureau (CFPB) or seeking legal advice.

Does paying off a collection account improve my credit score?

Paying off a collection account can positively impact your credit score over time, although the account may still remain on your credit report for up to seven years.

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