When faced with the burden of unpaid collections, individuals often seek the assistance of credit repair agencies like Lexington Law to help improve their credit scores. A common question many have is whether Lexington Law can indeed remove unpaid collections from their credit reports. Let’s delve into the services provided by Lexington Law, the legal landscape, and the realistic outcomes you can expect.
Understanding Lexington Law’s Services
Lexington Law is a well-known credit repair company that has been in operation since the early 1990s. The firm employs attorneys and paralegals who specialize in credit repair services, including disputing inaccuracies on credit reports. Lexington Law works on behalf of its clients to challenge negative items that they believe may be inaccurate, unfair, or unverifiable.
How Does the Process Work?
The process begins when Lexington Law conducts an initial review of the client’s credit report from the three major credit bureaus—Experian, TransUnion, and Equifax. After identifying negative items, they draft and send dispute letters to challenge these items under various consumer protection laws, such as the Fair Credit Reporting Act (FCRA).
Can Lexington Law Remove Unpaid Collections?
The straightforward answer is that no agency, including Lexington Law, can guarantee the removal of unpaid collections that are accurate and verifiable. If a collection account is valid, it can remain on the credit report for up to seven years from the date of the first delinquency that led to the collection, even if the debt remains unpaid.
However, if there are any inaccuracies in how the collection has been reported, or if the debt collector cannot adequately verify the debt’s details, Lexington Law can potentially help have the item removed. This could occur through disputes that challenge the veracity, fairness, or full substantiation of the claim by the collector.
What Are the Limits?
Credit repair agencies operate within the confines of the law. They can assist in removing inaccuracies or disputable entries but cannot remove legitimate and verified debts. Lexington Law emphasizes that their goal is to ensure that your credit report reflects accurate and fair information.
Success Rates
Lexington Law has had successes where inaccuracies are found and disputed effectively, leading to the removal of items from credit reports. They provide clients with an ongoing service, updating them on the status of disputes and changes to their credit reports.
While Lexington Law can be effective in managing your credit repair process, it’s crucial to have realistic expectations. They can challenge and potentially remove inaccuracies or unverifiable negative items, but legitimate and verified unpaid collections will likely remain on your credit report until they age off. It’s always advisable to deal with debt by making arrangements to pay it off and consulting with professionals who can provide personalized advice tailored to your financial situation.
How to Work Effectively with Lexington Law
For those considering working with Lexington Law or any credit repair service, understanding how to effectively engage with the service can enhance your chances of improving your credit score. Here are some steps to follow:
Provide Accurate Information
When you sign up with Lexington Law, be as thorough and accurate as possible with the information you provide. This includes all details of your financial transactions and any disputes you have regarding your credit report. The more information the firm has, the better they can serve you.
Set Realistic Expectations
Understand that some items, especially those that are accurate and verified, may not be removable. Lexington Law works within the legal boundaries to challenge inaccuracies but cannot legally remove debts that are rightfully yours and correctly reported.
Stay Engaged in the Process
Credit repair is not a “set it and forget it” service. Stay engaged by monitoring your credit report, keeping track of what has been disputed, and understanding the responses from creditors. Lexington Law usually provides clients with tools and dashboards to track their case status.
Understand the Costs
Credit repair services are not free. Lexington Law charges a monthly fee, which varies depending on the level of service you choose. Be sure you understand the fees involved and weigh them against the potential benefit to your credit score.
Be Patient
Credit repair can be a lengthy process. It might take several months to see changes in your credit report, as bureaus typically have up to 30 days to respond to a dispute, and some disputes may require multiple rounds of correspondence.
Alternatives to Credit Repair Agencies
While agencies like Lexington Law offer valuable services, there are also steps you can take independently to address your credit issues:
Dispute Inaccuracies Yourself: You have the right to dispute any inaccuracies directly with the credit bureaus.
Each bureau has an online process where you can file disputes.
Pay for Delete Agreements: If a debt is valid but you haven’t paid it yet, some creditors may agree to remove the collection from your credit report upon receipt of payment. This is not guaranteed and depends largely on the creditor’s policies.
Goodwill Letters: If you have paid off a debt but it still appears as a negative mark, you can write a goodwill letter to the creditor asking them to remove the negative item out of goodwill.
Credit Counseling: Non-profit credit counseling agencies can provide advice and help you manage your debt, potentially improving your credit score.
In conclusion, while Lexington Law can aid in disputing and potentially removing erroneous or unverifiable collections from your credit report, it is important to approach this process with clear eyes and realistic expectations. For verified debts, the best approach is often to negotiate directly with creditors to resolve the debts. Engaging with a credit repair service like Lexington Law can be part of a comprehensive approach to managing and ultimately improving your credit health.
