Receiving an unverified collection account from Aargon Agency on your credit report can feel like getting a sentence without a trial.
If you believe you owe the money, you may assume that it’s your job to prove that you don’t owe the debt. In fact, this is exactly what the debt collection agencies hope you’ll do.
In truth, debt collectors must validate the debt before the debt has any legal bearing. Aargon Agency, like any other debt collection agency, must verify debts they’re collecting and reporting, according to the Fair Debt Collection Practices Act (FDCPA). Once you understand this fact, you can begin to take the steps necessary to remove Aargon Agency from your credit report.
In this article, we’ll explore how you can turn the tables and remove Aargon Agency from your credit report.
Aargon Agency Information
Aargon Agency, Inc. is a debt collection agency with its main office in Las Vegas, NV. The company was founded in 1996 and collects various types of debt, including medical bills, utility bills, and consumer debt. Here is their contact information:
Address: 8668 Spring Mountain Road, Suite 110, Las Vegas, NV 89117Phone: 1-800-326-7118 (main toll-free), 1-800-280-1183 (consumer line)Years in Business: Over 25 (incorporated February 6, 1996)Contact Email: info@aargon.com
The agency has a total of six locations throughout North America, with offices in Las Vegas, Honolulu, Tampa, Denver, Indianapolis, and Saint Peters, MO. According to their website, Aargon is licensed in 46 states and is regulated by the Nevada Financial Institutions Division. Aargon has several corporate affiliates, including Total Credit Recovery, TheMedicalBill.com, and Aargon Funding, Inc.
History of Aargon Agency
According to the Consumer Financial Protection Bureau (CFPB), there have been over 650 complaints filed against Aargon Agency in its complaint database. Of those complaints, around 93% were related to debt collection problems. The top reasons for complaints were attempts to collect debt that consumers claimed they didn’t owe, failure to respond to requests for validation of the debt, and reporting credit information that was unverified without prior notice to the consumer.
In April 2020, the Connecticut Department of Banking issued a Consent Order to Aargon Agency after it found that the agency operated as a consumer collection agency in the state of Connecticut without a license between October 2007 and June 2018.
This means that for 11 years, Aargon was collecting debts in the state of Connecticut without the proper licensure to do so, resulting in a civil penalty and reimbursements to affected consumers.
According to a consumer law firm, over 120 federal court lawsuits have been filed against Aargon Agency for alleged violations of consumer rights.
In one such case, Earnhart v. Aargon Agency, the plaintiff alleged that Aargon violated federal law by sending a collection letter that falsely claimed the amount of the debt could increase, in an effort to coerce the consumer into making an immediate payment while discouraging them from requesting debt validation.
Unverified Debt
The Presumption of Accuracy
When you receive a collection account on your credit report, it’s presumed to be accurate. This means that the credit reporting agencies don’t verify whether or not the information is correct before adding it to your report. Instead, once the negative mark is on your report, it immediately begins affecting your credit score, whether or not it’s actually accurate.
In fact, studies have shown that many credit reports contain errors. According to a study conducted by U.S. Public Interest Research Groups, nearly 79% of credit reports contain errors or serious errors. This means that nearly 8 out of 10 credit reports contain information that may or may not be accurate.
This presumption of accuracy is actually a presumption of guilt. When a debt collector like Aargon Agency reports a collection account to the credit reporting agencies, it will show up on your report and immediately affect your credit score, regardless of whether or not the agency can prove that you owe the debt.
Urgency and Fear
Debt collection agencies often rely on urgency and fear to get consumers to pay up. They may call and leave threatening messages, send letters claiming that you owe a debt that you don’t recognize, or even threaten to sue you or damage your credit score.
However, the reality is that these tactics are just that — tactics. Debt collection agencies operate on volume and thin profit margins, which means that in order to stay in business, they need to successfully collect as many debts as possible in as short a time as possible.
Your Legal Rights
The Fair Debt Collection Practices Act (FDCPA)
If you believe you’ve been a victim of unfair or deceptive practices from a debt collector, you have legal recourse under the FDCPA. This federal law was enacted to protect consumers from abusive debt collection practices.
Under the FDCPA, you have the right to request that a debt collector validate any debt they’re trying to collect from you within 30 days of initial contact. Upon your request for validation, the debt collection agency must suspend all collection activities until they provide verification of the debt.
Many consumers aren’t aware that requesting debt validation isn’t just a matter of the debt collector sending a copy of a bill or statement. In order to validate a debt, the collector must prove that the debt is yours, that the amount is accurate, and that they have the right to collect the debt.
In many cases, when consumers request debt validation, collection agencies aren’t able to provide it, which can result in the removal of the collection account from your credit report.
Additionally, the FDCPA prohibits debt collectors from engaging in harassment, making false statements, or using unfair practices to attempt to collect a debt. Of the over 120 federal lawsuits filed against Aargon Agency, many of them were the result of allegations of violating these provisions of the FDCPA.
The Fair Credit Reporting Act (FCRA)
Another important federal law that can help you remove collection accounts from your credit report is the FCRA. This law regulates credit reporting agencies and those who provide information to them.
Under the FCRA, information on your credit report must be accurate and verifiable. If you dispute an item on your credit report, the credit reporting agency must investigate and verify the information. If the item can’t be verified within a reasonable amount of time (usually around 30 days), it must be removed from your credit report.
The good news here is that you don’t have to prove that the debt is invalid in order to have it removed from your credit report. Instead, the burden is on the credit reporting agency and the debt collector to prove that the information is accurate. If they can’t do so, the account should be deleted from your report.
One consumer filed a complaint with the Better Business Bureau (BBB), stating that they filed a lawsuit against Aargon Agency for violating the FDCPA and FCRA. According to the complaint, Aargon reported a disputed debt to the credit reporting agencies while a lawsuit was pending, which the consumer called a “blatant violation of federal law.”
The Problem with Paying
The Myth of Paying Off Your Debt
If you’ve received a collection account on your credit report, you may assume that paying off the debt is the best course of action. However, this is one of the biggest myths in credit repair.
When you pay a collection account, you’re not removing the account from your credit report — you’re simply changing the status of the account from “unpaid” to “paid.” Unfortunately, this means that the paid collection can remain on your credit report for up to seven years from the original delinquency date.
In fact, paying a collection account can actually reset the clock on the account, causing the negative mark to remain on your credit report for longer than if you had left it alone. Since the negative effect of a collection account on your credit score comes primarily from the presence of the account itself (and not the status of the account), it doesn’t usually make sense to pay a collection unless you have a pay-for-delete agreement with the collector.
Even in the case of a pay-for-delete agreement, you’ll usually need the guidance of a credit repair expert to ensure that the agreement is properly negotiated and legally enforceable.
What Makes a Successful Dispute?
In order to have a collection account removed from your credit report, you’ll need to dispute the account with the credit reporting agency. You can dispute accounts that are inaccurate, erroneous, fraudulent, or unverifiable within a reasonable amount of time.
This can include accounts that don’t belong to you, debts with incorrect balances or late payment dates, or accounts with missing documentation.
One thing that makes disputing collection accounts a bit easier is that debt collection agencies don’t make public which original creditors they’re collecting debt from, and this information changes regularly as debt is bought and sold. This lack of transparency can work in your favor when disputing a debt, since broken chains of documentation may mean that the collector can’t verify the account.
In one complaint filed with the Consumer Financial Protection Bureau, a consumer stated that representatives from Aargon Agency refused to provide her with the original creditor’s name, balance, or date of delinquency unless she paid for a new copy of her credit report. In some cases, failure to verify may provide grounds for a successful dispute under federal law.
Strategies for Removal
Strategic Silence
When dealing with a debt collector, anything you say can and will be used against you. This means that when you’re communicating with a debt collector, you should be strategic about what you say and when you say it.
While you shouldn’t be rude or dishonest, it’s a good idea to limit your communication with debt collectors to written communication only. Phone calls can be high-pressure and emotional, while written communication provides you with time to consider your response and creates a paper trail.
In fact, many experts recommend communicating only through certified mail sent directly to the debt collection agency. This ensures that you have documentation of your communication and prevents many of the high-pressure tactics that debt collectors use during phone calls.
When to Hire a Professional
The process of repairing your credit can be complex and time-consuming. While you can attempt to repair your own credit, the reality is that navigating federal regulations, drafting effective dispute letters, and communicating with the credit reporting agencies can be overwhelming.
Credit repair experts work with these issues every day and understand the nuances of the process. They can help you identify the strategies that will work best for your specific situation and ensure that your legal rights are protected throughout the process.
If you’re facing a situation with Aargon Agency or any other debt collector, don’t hesitate to take action. While it’s unlikely that a debt collector will sue you, the longer you wait to address the issue, the more damage it can do to your credit report and financial well-being.
The Bottom Line
Receiving an unverified collection account from Aargon Agency on your credit report doesn’t have to be a permanent issue. With Aargon’s history of consumer complaints, regulatory actions, and federal lawsuits, many of the debts they’re attempting to collect may not survive a legitimate challenge.
The burden of proof is on the debt collector, not on you. Under federal law, debt collectors must verify the debts they’re reporting and collecting. If they can’t meet that burden, the account should be removed from your credit report.
The key is to take action with the right strategy and support. While understanding your rights under federal law is the first step, enforcing those rights can be tricky. Don’t be afraid to seek out help if you need it.
Take the Next Step
If Aargon Agency is reporting an unverified collection account on your credit report, you have options. At FightCollections.com, we provide expert credit repair services to help consumers challenge debt collectors and dispute inaccurate information on their credit reports.
Our team of experts understands the tactics that companies like Aargon Agency use and knows how to combat them effectively. We work to identify inaccuracies, challenge unverifiable debt, and secure removal of collection accounts that don’t meet federal standards.
Contact FightCollections.com today for a free consultation. Our team will review your credit report, evaluate your situation, and develop a customized plan to address the issue and improve your credit. You don’t have to face Aargon Agency alone.
