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⁠Guide to Removing Receivables Management Systems From Your Credit Report

Last updated 07/10/2024 by

Bamigbola Paul

Edited by

Fact checked by

Summary:
Understanding Receivables Management Systems (RMS) is crucial for businesses and individuals dealing with debt collection. This guide covers everything from what RMS is, how it affects your credit score, and how to handle interactions with this debt collection agency. Learn strategies for removing RMS from your credit report and protect your financial health.
Receivables Management Systems (RMS) is a debt collection agency that can significantly impact your credit report and overall financial health. Whether they are collecting on behalf of another company or have purchased your debt, dealing with RMS can be challenging. This article provides a detailed look at RMS, how they operate, and practical steps you can take to manage and potentially remove their collection accounts from your credit report.

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What is Receivables Management Systems?

Receivables Management Systems is a debt collection agency that either purchases debts from original creditors or collects on behalf of them. They deal with various types of debt, including credit cards, loans, and medical bills. Their primary goal is to recover funds that are overdue, and they often acquire these debts at a fraction of the original amount owed.

How Receivables Management Systems operate

RMS operates by either buying delinquent debts from original creditors or being hired to collect debts on their behalf. They use various methods to contact debtors, including phone calls, letters, and emails. When RMS appears on your credit report, it indicates that they are attempting to collect a debt from you, which can have a negative impact on your credit score.

Impact on credit score

Any collection account can severely impact your credit score, and RMS is no exception. A collection account from RMS can stay on your credit report for up to seven years, making it difficult to obtain new credit, loans, or even employment in some cases. It’s crucial to address these accounts promptly to mitigate their impact.

Pro Tip

Always verify the debt before making any payments. Request validation from RMS to ensure the debt is yours and the amount is accurate.

How to remove Receivables Management Systems from your credit report

Removing RMS from your credit report can be challenging but not impossible. Here are some steps you can take:

Dispute inaccurate information

If there is any incorrect or outdated information on the collection account, you have the right to dispute it. Under the Fair Credit Reporting Act (FCRA), credit bureaus must investigate and correct any errors within 30 days.

Debt validation request

Send a debt validation letter to RMS within 30 days of their initial contact. This letter should request verification of the debt, including the original creditor’s information and the amount owed. If RMS cannot provide this information, they must remove the account from your credit report.

Negotiate a settlement

If the debt is valid, you might consider negotiating a settlement. Offer to pay a portion of the debt in exchange for RMS removing the collection account from your credit report. Ensure you get this agreement in writing before making any payments.

Pay-for-delete agreement

A pay-for-delete agreement involves paying off the debt in full or a negotiated amount in exchange for RMS removing the negative entry from your credit report. While not all debt collectors agree to this, it’s worth attempting.

Pro Tip

Always get any agreements with debt collectors in writing. This protects you if there are any discrepancies in the future.

Request all correspondence in writing

When dealing with Receivables Management Systems, it’s essential to have a documented record of all communications. This can protect you if there are any discrepancies or disputes in the future. Always request that all correspondence be conducted in writing. This ensures you have physical records of all interactions, which can be useful for your records and any potential disputes.
Receivables Management Systems contact information
1807 Huguenot Rd Ste 118, Midlothian, VA 23113
Ph# +1 804-353-9300

How to file a complaint against Receivables Management Systems

If you believe that RMS has violated your rights under the Fair Debt Collection Practices Act (FDCPA) or engaged in unfair practices, you have the option to file a complaint. Here’s how you can do it:
  1. Consumer Financial Protection Bureau (CFPB): The CFPB handles complaints against debt collectors. You can submit your complaint online through their website.
  2. Federal Trade Commission (FTC): The FTC also manages complaints regarding unfair debt collection practices. You can file a complaint on their website.
  3. State Attorney General’s Office: Each state has an Attorney General’s office that handles consumer complaints. Visit your state’s official website for instructions on filing a complaint.

Know your rights under the FDCPA and FCRA

Understanding your rights under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) is crucial when dealing with debt collectors. These laws provide you with protections against harassment and unfair practices. Familiarize yourself with these acts to ensure RMS adheres to the legal standards.

Steps to verify the debt

Before making any payments or agreements, it’s important to verify that the debt is legitimate. You can request a debt validation letter from RMS, which should include details about the original creditor, the amount owed, and any supporting documentation. This step ensures you are not paying a debt that is incorrect or fraudulent.

What to do if Receivables Management Systems violates your rights

If RMS violates your rights under the FDCPA or FCRA, you have several options for recourse. Document all incidents of harassment or unfair practices. You may be able to sue for damages in state or federal court. Additionally, reporting the violations to the CFPB or FTC can initiate investigations into RMS’s practices.

Pro Tip

Keep records of all communications with RMS, including letters, emails, and phone calls. This documentation can be crucial if you need to dispute the debt.

Conclusion

Dealing with Receivables Management Systems can be challenging, but understanding your rights and options can help you manage and potentially remove their collection accounts from your credit report. By disputing inaccuracies, requesting debt validation, and negotiating settlements, you can protect your financial health and improve your credit score. Always keep detailed records of all interactions and seek professional advice if needed.

Frequently asked questions

Does Receivables Management Systems hurt my credit score?

Yes, any collection account, including one from RMS, can significantly lower your credit score. The impact can last up to seven years from the date of the original delinquency.

Is Receivables Management Systems a debt collection agency?

Yes, RMS is a legitimate debt collection agency. They either purchase debts from original creditors or are hired to collect on behalf of these creditors.

Should I pay for delete with Receivables Management Systems?

While paying off the debt can change its status to ‘paid’, it won’t remove the account from your credit report unless you negotiate a pay-for-delete agreement.

Can I negotiate a settlement with Receivables Management Systems?

Yes, negotiating a settlement is possible. It can potentially reduce the amount you owe and improve your credit score if handled correctly.

Is Receivables Management Systems legit, fake, or a scam?

RMS is a legitimate company, but their tactics can sometimes be aggressive. It’s important to verify any debt they claim you owe and understand your rights.

Why does Receivables Management Systems keep calling me?

RMS will continue to contact you until the debt is paid or settled. It’s essential to address the situation promptly to avoid continued harassment.

Will Receivables Management Systems try suing or garnishing my wages?

While it’s uncommon, RMS may pursue legal action. Understanding your state and federal rights can help you protect your wages and assets.

Does Receivables Management Systems accept goodwill letters?

Typically, RMS does not accept goodwill letters. Most collection agencies do not, but it’s always worth a try if you have a compelling reason.

Who does Receivables Management Systems collect for?

RMS collects for various lenders and creditors. The specific clients they work for can change frequently.

Key takeaways

  • Receivables Management Systems (RMS) is a debt collection agency that can negatively impact your credit score.
  • Disputing inaccurate information and requesting debt validation are effective strategies to manage RMS accounts.
  • Negotiating settlements or pay-for-delete agreements can potentially remove RMS from your credit report.
  • Understand your rights under the FDCPA and FCRA to protect yourself from unfair debt collection practices.
  • Keep thorough records of all communications with RMS for future reference.

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