How does AFNI Collections Affect Your Credit Report?
The item AFNI Collections that appears on your credit report needs your attention. It can dent your credit score. Learn what to do with it.
What is AFNI Collections’ impact on credit score?
The first point is to improve your understanding of the collections. The company operates as a debt collection agency. What this means is companies contact and hire it to help collect debts that clients owe them. If you see it on your report, chances are that you owe one or two debts that you are yet to clear. For that reason, anybody looking at your report would know that you don’t repay your debts on time, as you should. The fact that it remains in your report for up to seven years should also worry you.
When do lenders hire AFNI Collections?
Lenders often hire a collection agency after making multiple attempts to encourage you to repay your debts without success. Lenders will never get in touch with AFNI before the due date for settling your debts has arrived. They only do that when the debt is past its due date. According to lenders, it’s cheaper to outsource debt collection to an agency instead of dedicating some of its staff to chase you all over the place. It is costly to them. Lenders will always report you to the credit bureau first, which in itself has a negative effect on your scores.
How does AFNI work?
Your lender will call AFNI only as the last resort. Once the call goes through, the debt collector will kick off a series of action plans to recover or collect the debt on behalf of the client. They will do all that while adhering to what is known in the industry as the statute of limitations. The statute comes into play when the collector starts to re-age the debt. Here, they attempt to re-date the debt. They adjust the two most important dates associated with the debt – the date it first occurred and the date when the original creditor initially charged it off.
Without taking these measures, the collector hopes to extend the statute of limitations associated with your debt. If the statute has already expired with your debt, you would not be liable to repay it. In fact, the lender may have no option other than writing it off as bad debt. You can always challenge AFNI to show that you really owe the debt and prove that statute of limitations is in play where your case is concerned. You need to understand the Fair Debt Collections Practices Debt to challenge the agency in this manner.
What can you do once AFNI contacts you?
The fact that AFNI contacts you doesn’t mean that you’re out of options on what to do next. Do not be in rush to settle the debt. Get a few things clear first. The most important thing to do at this point is to ask the collector to prove or validate that you truly own what they claim. Whatever is transpiring could be a simple case of mistaken identity. It’s not upon AFNI Collections to prove that a mistake happened. They are only too happy to receive your money if you agree to pay and unwilling to challenge them.
You can always send them the Expired SOL Notification Letter. Prove that you’re informed about the whole situation. If the agency is unable to validate that the debt is yours, the law requires them to stop contacting or harassing you. They may or may not respond to your request for debt validation. In that case, you would have to get in touch with State Attorney General to file a report. They should respond to your verification request first before contacting you about the debt any more. Otherwise, they would be guilty of violating the law.
Can you sue the collection company?
The law allows you to sue the collection company if you believe that they’re treating you unfairly. Contact a lawyer who is familiar with such matters too. Let the attorney know all the facts of the case from the start. Most importantly, show this legal expert all the measures you have taken since the agency contact you to attempt to collect what they believe you owe. Find a lawyer with a good record of challenging items that appear on the credit report yet are inaccurate and unfairly reported. Credit reports are known for containing errors.
The fact that you received communication from AFNI Collections – or any other agency – doesn’t mean that you should quake in your boots and do as they ask. Otherwise, your banking account would suffer as you deduct money to repay debts that either has been overtaken by events or you didn’t owe in the first place. Once this issue is cleared, avoid incurring more debts. Pay all your debts on time. Get in touch with Credit Karma too to access your credit reports and scores at no cost and see if they contain strange items.