Does ARS National Services have a legitimate claim on a collection account on your credit report? How do you know when to dispute and when to take responsibility for an account?
In this article, you will find out how to identify red flags that may indicate errors, inaccuracies, or accounts that simply can’t be verified. You will learn how to take immediate action to protect your credit.
Who Is ARS National Services?
ARS National Services, Inc., located at 500 La Terraza Blvd Ste 330, Escondido, CA 92025-3875, has been in business for 38 years. They were incorporated on November 20, 1987. Their contact information includes the following phone numbers: (800) 665-3140, (888) 888-7080, and (760) 735-2700. Their website is arsnational.com and their payment portal is payars.com.
ARS works as a contingency debt collection agency, collecting debts for original creditors and debt buyers. Their list of clients includes big-name financial institutions such as Citibank, Chase, Capital One, and Bank of America. They are known to collect on credit card accounts, consumer loans, auto loans, healthcare accounts, student loans, and utility bills.
Complaints and Legal History
ARS National Services has over 550 federal lawsuits against them, with the majority of those alleging FDCPA violations. Based on CFPB complaint data, they ranked number 227 out of 2,458 debt collection agencies, placing them in the top 10 percent of complained-about collectors.
The top complaints filed against ARS include trying to collect a debt not owed, failing to validate or provide proof of debt, and making improper third-party contact.
ARS maintains an A+ rating from the Better Business Bureau (BBB). However, their customer review rating is just 1.09 out of 5 stars. Such a discrepancy between a company’s rating and their customer review rating is cause for concern when it comes to any account they report on your credit.
Red Flags to Look for on Your Credit Report
According to a U.S. PIRG study, 79 percent of credit reports contain errors or serious errors. If you have an ARS National Services collection on your report, it’s time to review the account details for any red flags.
Check the Balance
Look at the balance. If it’s higher than you would expect, it could be due to fees or interest that have been added. Or, it could simply be an error. If you don’t recognize the balance, this is your first red flag.
Verify the Original Creditor
Next, check the original creditor name. ARS works with many banks and lenders. If you don’t recognize the original creditor name, this could be a mixed credit file error, mistaken identity, or even identity theft.
Confirm the Account Number
Check to see if the account number is one that you recognize. In some cases, debt collectors may contact the wrong person altogether, especially if you have a common name or if you’ve been assigned a recycled phone number. One BBB reviewer reported that ARS called them almost daily because they were calling for someone who previously had the same phone number.
Review Key Dates
Dates and timelines can tell you a lot about whether something is wrong with a collection account. The date of first delinquency tells you when the clock started ticking for the seven-year reporting period. If the date of first delinquency is incorrect or if the account has been re-aged, this is a reporting violation.
Look at the original account opened date. Does this date fall within a period of time when you would have had the account? If not, this could be an error that points to the collector targeting the wrong consumer or working with corrupted data.
What is the collection account opened date? If a debt has been sold and resold, dates can get confusing. Each time a debt changes hands, there is an opportunity for errors that affect you.
Why You Should Not Call ARS National Services
ARS National Services is no stranger to allegations of violating your rights under the Fair Debt Collection Practices Act (FDCPA). If you see a collection from this company on your report, your first instinct may be to call them and clear up the issue. However, if you aren’t prepared, you could be giving up more than you should.
ARS National Services knows far more about debt collection than you do. Not only do they understand the industry and how it operates, but they also know how to use tactics that will get you to pay. They know how to create a sense of urgency and fear that will motivate you to pay them.
When you call a debt collector, you are at a disadvantage. Anything you say can be documented and later used against you. Something as simple as, “Yes, that was me,” can be construed as an admission of the debt.
ARS was the defendant in the Koby v. ARS National Services class action. In that case, roughly four million people received voicemail messages that failed to identify the caller as an employee or representative of ARS, failed to state that the caller was calling from a debt collection company, and failed to state that the purpose of the call was to collect a debt. ARS left voicemails for millions of people without properly disclosing the required information. When you call them, it is likely that the representative on the other end of the line is trained to get as much information out of you as possible.
Why You Should Not Pay a Collection Without Investigating First
Paying a collection account may seem like the best way to deal with it, but it may not be. When you pay a collection, the account status is updated to “paid collection.” That account will still remain on your credit report for the full seven years. Paying can create a paper trail that acknowledges the debt.
In some states, paying a debt can restart the clock on the statute of limitations. Before you pay, you should determine whether the debt is valid, whether the balance is correct, and whether you have other options available to you.
Your Right to Debt Validation
Under the FDCPA, you have the right to request debt validation from a debt collector. This right isn’t just about verifying a debt. It’s a way to challenge the collector and force them to prove that the debt is valid and yours. When you request debt validation, you can demand documentation that shows the debt is valid, that the balance is accurate, and that the collector has the right to collect it.
Many collectors buy and sell debts without getting the full documentation. The original contract may be missing. The payment history might not be complete. There might not be a chain of title document showing ownership history.
The CFPB’s complaint database shows that failure to validate or provide proof of debt is one of the top complaints against ARS. This could mean that the company doesn’t have the documentation it needs for some of its accounts.
If a debt collector can’t validate a debt, they must stop trying to collect it. They also can’t report information to the credit bureaus if they can’t verify it. The FCRA has credit reporting accuracy and dispute rules that require credit bureaus to delete information they can’t verify within a reasonable amount of time.
This is why it’s better to dispute before you pay. You force the debt collector to show proof before you decide what to do about payment. You maintain the upper hand.
Why Professional Help Matters
Knowing how to identify potential errors and violations in collection accounts is the first step toward using your consumer rights. But, how do you use them effectively?
ARS National Services has a history of allegations of illegal collection activities. When a credit repair company gets involved, the debt collector knows that you are a consumer who will hold them accountable for their actions.
ARS doesn’t have a history of working with consumers or addressing their complaints in good faith. A simple review of their BBB complaints shows a pattern of violations and illegal activities. Here are just a few:
ARS continued to call from different phone numbers even after the consumer requested that they stop calling.
ARS calls and calls and harasses me and my family.
ARS will not validate the debt and is trying to collect for a debt that is not mine.
Having professional representation means having someone in your corner who understands the FDCPA and FCRA. Your credit repair specialist knows exactly what your rights are and how to enforce them. They know how to fill out dispute forms properly and meet deadlines. They also know how to document violations, which is essential if you have to file a claim against the collector.
Over 550 federal lawsuits have been filed against ARS. The company is violating the law, and consumers are taking action.
Let Your Credit Repair Company Handle Communication
Sometimes, the most powerful thing you can do is say nothing at all. While you are disputing debts and working to clear up errors on your credit report, the worst thing you can do is engage directly with a debt collector. Let your credit repair company handle all communication for you.
Take Action Now
ARS National Services may have a collection account on your credit report, but that doesn’t mean you should panic. Look for red flags such as unfamiliar account details, suspicious dates, and other inconsistencies. These could all point to errors that make the account disputable.
Over 550 federal lawsuits and a top 10 percent ranking for CFPB complaints tell you that something is wrong with the way this company operates. Those “somethings” are your opportunity to clear up your credit report and ensure it’s accurate.
Remember, collections can be removed from your credit report if they are inaccurate, erroneous, fraudulent, or unverifiable within a reasonable period. You don’t have to accept an inaccurate reporting. You have rights, and you can enforce them.
If you have an ARS National Services collection on your report, don’t call them and don’t make a payment. Not until you’ve talked to the professionals at FightCollections.com. Our team specializes in disputing collection accounts and identifying violations that can result in removal.
Contact us today for a free review of your credit report. We’ll take a look at the ARS National Services account on your report, help you identify potential red flags, and talk to you about your options for moving forward. Your credit report is too important to ignore.
