Capital Recovery Service is a Debt Collection Company That Can Put a Big Dent In Your Credit Score For a Long Time – Unless You Take Action To Protect Yourself
The debt collection agency Capital Recovery Service is located in Fairfax, Virginia. Like most debt collectors, Capital Recovery Service will purchase just about any kind of past due debt, from medical bills and consumer credit cards to utility and cell phone accounts.
Once Capital Recovery Service has paid the original creditor, they own the exclusive right to collect on the debts.In my experience, it’s always best to pay off the original creditor BEFORE the account goes into collections.
You may push that creditor to the limit, but be sure to keep working with them so that they know you do intend to repay your debt.
If your account does get sold to a debt collector, get ready for some serious problems. Debt collectors use a number of unpleasant tactics to secure repayment, all of which are designed to maximize their own profits, rather than get you out of a sticky financial situation.
The first step debt collectors take is to make initial contact. They may do this over the phone, but they must also send an official collection notice. The collection notice will let you know the specifics about the debt they are attempting to collect–the name on the account, the original lender, and the amount.
If any of this information seems incorrect to you, now is the time to act! You can send a debt validation letter, either using a form letter or one written specifically for you by your lawyer.
You only have 30 days from the time you receive your first collection notice to send the letter and initiate the debt validation process. Be sure to send the letter via certified mail so that you can prove it was received by the debt collector within the 30 day time frame.
Debt collectors like Capital Recovery Services really hope that you don’t know about debt validation. They much prefer ignorant clients over informed ones.
Simply informing them of an error on your account isn’t enough–you need to take advantage of your legal right to initiate the debt validation process. Doing so is really the only way to get the debt collectors to take you seriously.
If you fail to get your complaints heard, the debt collectors will press on with their usual routine collection procedures, regardless of whether or not the debt is truly valid.
A favorite debt collection tactic is never-ending phone calls. Agents will call you night and day, sometimes more than once, in an effort to wear you down and basically annoy you into paying. They may also be rude, disrespectful, or even angry, in an effort to make a play on your emotions.
They want you to feel humiliated and guilty so that you will pay quickly.
Some debt collectors take an opposite approach and actually try to ingratiate themselves with you. They will chat you up and pretend to be your friend. Then they will offer a payment plan that is in your “best interests,” or pretend to cut you some slack by discounting the amount of your balance.
In both cases, be aware that the debt collector is not really looking out for you. Payment plans are often loaded with interest and fees, and a “discounted” balance still leaves plenty of room for the debt collector to profit.
If you still don’t pay, the next step is credit damage. Debt collectors will report your debts as collection items or charge offs to the credit bureaus. These black marks will remain on your credit history for years, and each one can depress your credit score up to 100 points. Debt collectors know how important good credit is to you, and they are hoping that you will panic when you see your credit being ruined and finally decide to pay them.
If you are able to resist the phone calls and credit damage, debt collectors may move on to taking legal action against you. This is rare, but if your debt is valuable enough to them they may decide to take you to court and win a credit judgment against you.
Once a credit judgment has been won, the debt collector can also request the right to take certain legal actions against you in order to secure repayment. These actions can include seizing your assets and auctioning them off for cash, placing a lien on your home and forcing you to sell it, and garnishing your wages.