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How To Remove Ability Recovery Services From Your Credit Report

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Tens of millions of Americans have collections-stage debt.

So if you’ve come across a collections entry on your credit report, you’re far from being alone.

One unfamiliar name you may encounter on your report is Ability Recovery Services.

While finding a collections entry on your report can be stressful, ARS’s calls, letters, and damaging effects on your credit score are simple to stop. You just have to know how to confront the agency.

In the guide below, we’ll break down everything you need to know about Ability Recovery Services so you can improve your credit ASAP.

What Is Ability Recovery Services?

You don’t have to worry about ARS’s legitimacy. Ability Recovery Services, LLC, is a bona fide debt collections agency that has been operating since 2011.

Though the agency is headquartered in Pennsylvania, they collect on consumer debt nationwide.

ARS collects on debts for several types of businesses, including:

  • Telecommunications services
  • Higher education loans
  • Utility bills
  • Healthcare debt
  • Debt from financial institutions

You can contact ARS at their mailing address below:

284 Main St
Dupont, Pennsylvania 18641

How Ability Recovery Services Works

Curious about the debt collection process? Here’s how it works.

When you fall behind on credit card or loan payments, or you fail to pay your service providers, they can turn your debt over to a collections agency like ARS.

These agencies are either paid to help out with collecting your debt or buy it outright from the lender or provider.

Either way, the credit bureaus will be notified, resulting in a collections entry being placed on your credit report.

This type of entry can negatively affect the payment history component of your credit report, which can bring down your score for seven years, even if a payment is made.

Until you pay ARS or reach an agreement, they can continue to call you and send letters requesting payment.

Read on to learn what it takes not just to stop ARS’s calls, but to get them completely removed from your credit report.

3 Ways to Remove Ability Recovery Services from Your Credit Report

Ability Recovery Services may have lowered your credit score, but it doesn’t have to stay that way.

If you’re ready to get the collections entry removed from your credit report, read on for a few pointers.

1. Request Debt Validation

Your first instinct may be to just pay Ability Recovery Services, but it won’t take the entry off your credit report.

Before you even consider paying ARS, you should ask to see some proof.

The Fair Debt Collection Practices Act grants you the right to ask for evidence within 30 days of being contacted by the agency.

If you submit a debt validation letter in that timeframe, the agency is obligated to provide you with documentation proving that the debt is actually yours, including important details about the original lender or provider and your account information.

Unless ARS can furnish the documentation it needs to move forward, they’ll have to drop the debt, contact the credit bureaus, and stop contacting you.

This is a solid strategy if you don’t owe money to ARS, but also if you do as there’s a chance your account info could’ve gotten lost in the shuffle.

2. Set Up a Pay-for-delete Agreement

If it’s been over 30 days since ARS began contacting you or your debt was validated, it’s time to settle up.

While just paying the agency won’t help your credit, getting ARS to agree to have it deleted in exchange for a payment will.

Once again, it is vital that you communicate in writing so that the agreement is upheld.

More likely than not, debt collectors will settle for a payment that amounts to only a fraction of what you owe.

This is especially true on older account balances. For example, you might walk away only paying $30 of the $60 you owe on your old cable bill.

After making your payment, you should monitor your credit report to ensure that it is updated accordingly.

3. Get Help from a Credit Repair Company

If you need help confronting Ability Recovery Services, a credit repair company can get the job done.

They could save you hours and the stress of having to deal with a debt collector on your own.

We recommend looking into one of our highest ranked credit repair companies.

These companies are experts at getting negative entries off your credit report, and they come with excellent customer service and affordable services.

Whether you’re buried in debt and don’t know how to start recovering or you simply don’t feel like dealing with a single debt collector, getting assistance from a credit repair company may be right for you.

You could see a quick improvement to your credit score and get the tools you need to maintain a great score in the long run.

Dealing with Ability Recovery Services

Debt collectors like ARS frequently receive complaints about the same types of problems.

Many issues revolve around:

  • Reporting: Whether due to an error or identity fraud, faulty reporting can be responsible for a collections entry.
  • Harassment: People also complain about debt collectors’ methods, which can sometimes be too aggressive or threatening.
  • Debt validation: Other complaints cite debt collectors’ failure to validate debts upon request.

You can find complaints on Ability Recovery Services’ BBB profile or the Consumer Financial Protection Bureau website.

In light of the grievances above, you should brush up on the Fair Debt Collection Practices Act.

It protects consumers like you, making sure that debt collectors use ethical practices when they deal with you.

Among other restrictions, it limits the hours during which agency representatives can contact you and prohibits them from threatening to take illegal actions against you.

Moreover, you can stop ARS’s calls completely. The wisest course of action when you are dealing with a debt collector is to only correspond with them in writing.

With all of your communications in writing, you should have an easier time disputing your debt or negotiating a payment.

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Are Sallie Mae Student Loans Federal or Private?

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When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances

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Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit

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Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

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