Receiving a collection account on your credit report can be gut-wrenching. The embarrassment, then panic as to what this is going to do to your credit score. If you see TekCollect on your credit report, don’t panic. You aren’t alone and there is hope.
A collection account on your credit report can render you helpless, not knowing whether to pay it, ignore it, or dispute it. This is what the collection agency is counting on. Knowing who they are and what your options are can put the power back in your hands.
Who is TekCollect?
TekCollect Inc. is a third-party debt collection agency that was founded in 2001 and is based in Columbus, Ohio. Here is their contact information:
Contact Information:
871 Park St Columbus, OH 43215-1441
PO Box 1269 Columbus, OH 43216
Phone: (866) 652-6500 (toll-free) or (614) 489-8800 (local)
Fax: (855) 673-4206
NMLS Collection Agency Number: 1012712
TekCollect is a legitimate debt collection agency and not a scam. However, just because they are legitimate doesn’t mean they are playing by the rules and the debt they are collecting is accurate. They collect debts for various original creditors, especially in the healthcare, veterinary, and dental industries.
What the Record Says about This Collector
While TekCollect is a legitimate agency, their record tells a different story. They have an A+ rating and are accredited with the Better Business Bureau (BBB), however, their customer review rating is only 1.0 out of 5 stars and their Google rating is 1.2 out of 5 stars.
In May 2020, the Connecticut Banking Commissioner entered into a Consent Order with TekCollect. The order resulted in a $50,000 civil penalty for collecting debts from Connecticut residents without being licensed between August 2013 and 2019. The order also stated that TekCollect entered into a conspiracy with another collection agency to provide collection services under a different name and failed to disclose this information to the Department of Banking.
According to Federal Court records, there have been at least 7 lawsuits filed against TekCollect for violating the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA). The lawsuits include harassing phone calls, failure to provide debt validation, and making autodialed calls without consumers’ consent.
In the last 3 years, the BBB has received 89 complaints. 45 of those complaints were in the last year alone. All but 10 of those complaints were regarding billing and collection issues.
Why Paying TekCollect May Not Be the Best Option
The Payment Paradox
When you receive a collection account on your credit report, your initial reaction may be to pay the collection agency and make it go away. Unfortunately, paying the debt may not be the best option for you.
When you pay a collection account, it will be updated on your credit report to show it as a paid collection. Unfortunately, it will still remain on your credit report for up to 7 years from the original delinquency date.
In recent years, the difference between having a paid collection and an unpaid collection on your credit report has significantly decreased. Many people pay a collection only to find that their credit score didn’t improve much because the collection is still on their credit report. This is why it’s better to dispute it first.
Collection agencies purchase debts from original creditors for mere pennies on the dollar or work on a contingency basis. Because of this, many collection agencies are willing to settle debts for less than the full balance. If you pay the full amount without verifying the debt and validating the balance, you may end up paying more than you owe on a debt that could have potentially been deleted from your credit report altogether.
The Error Epidemic in Credit Reporting
Mistakes on credit reports are more common than you think. According to a study done by U.S. Public Interest Research Groups, 79% of credit reports contain some type of error or inaccuracy. Some of those inaccuracies can be minor and others can be severe.
When original creditors sell debts to a collection agency, documentation can sometimes get lost or corrupted during the transition. TekCollect may be attempting to collect a debt from you that you’ve already paid, a debt that is past the statute of limitations, or a debt that isn’t yours at all. Unless you request validation of the debt, you have no way of knowing if the information they are using is accurate.
The burden of proof is on the collection agency, not you. Under the FDCPA, collection agencies are required to validate disputed debts. Many consumers have been able to delete collection accounts because the collection agency is unable to provide adequate documentation to prove the debt is valid and the credit report information is accurate.
What TekCollect Consumers Are Actually Experiencing
Patterns in Consumer Complaints
BBB has received 89 complaints regarding TekCollect in the past 3 years. Of those complaints, 79 of them have been about billing and collection issues, which accounts for 89% of all complaints.
Many consumers have complained that TekCollect fails to properly validate disputed debts and attempts to continue collecting on them anyway.
One recent BBB reviewer wrote, “This company has shown zero willingness to investigate or validate debt. There [sic] practices are misleading, damaging and harmful to consumers.”
Many consumers have reported requesting validation and instead receiving collection calls. Other complaints surround credit reporting issues such as reporting the same account twice and reporting disputed accounts without investigating.
The SmileDirectClub Fallout
In recent months, several complaints have been filed against TekCollect for attempting to collect debts related to SmileDirectClub, the at-home clear aligner company that filed for bankruptcy in December 2023 after shutting down all operations.
Consumers claim they are being asked to pay for treatments they never received because the company went out of business before they could fulfill their end of the contract.
One recent BBB complaint reads: “Tek collect is trying to collect money from me because I stopped paying smile direct club because they went bankrupt and didn’t complete the agreed upon treatment. They breached their contract so therefore I don’t owe them money. They added it to my credit report and I asked them to take it off and the lady yelled at me and hung up.”
While it’s unclear whether these consumers actually owe the debt, it appears as though the original creditor, SmileDirectClub, breached their own contract by failing to provide the agreed-upon services. In many cases, this can be a legitimate defense against collection attempts.
Despite this, consumers are reporting that representatives from TekCollect are disregarding their concerns and continuing to attempt to collect the debts, even going as far as placing the debts on their credit reports.
Information is Your Defense
Collection agencies have all the information on their side. They know the debt in question, they know the laws governing collections, and they know how to push the buttons that will make you pay. The only way to change this is to make sure all the information is coming from them in the early going, and none is going the other way.
You need everything in writing before you agree to make a payment or share any financial data. A collection agent’s verbal assurance of anything is meaningless, and will likely be contradicted by what actually happens with your account. Any debt settlement agreement, any payment plan, any agreement to have an account removed from your credit report must be in writing before you make a move.
Be careful what you say in any communication. Debt collection representatives are trained to get information from you that can help their case. If you confirm identifying information, admit the debt is yours, or disclose your financial situation, you’ve given them something they didn’t have before. Your refusal to engage on these points isn’t rude, it’s strategic.
Understanding the Debt Collector’s Mindset
Debt collectors use the weapons of urgency and fear. They may say a lawsuit is coming, or your wages will be garnished, or you’ll be shamed in public. These tactics play on your natural instinct to defer to authority and accept what it says at face value. If you recognize the tactic for what it is, you can respond logically instead of emotionally.
One reviewer on Google described an experience with TekCollect: “Absolutely rude! Harassing calls all day long from some poor guy who is stuck behind a desk making phone calls collecting on phony debts. I was highly offended by a debt collector from TekCollect. I was told to be an adult and even threatened with the quote ‘we know who you are.’”
This is classic intimidation designed to get you to make a payment today, without carefully evaluating whether you owe the money.
The reality is, debt collectors almost never follow through on veiled threats, and many of those threats are illegal if made overtly. Taking a deep breath and evaluating your situation typically results in a better outcome than reacting to their urgency.
Your Dispute Rights
Federal Laws on Your Side
The Fair Debt Collection Practices Act and the Fair Credit Reporting Act are federal laws that offer considerable protections for consumers dealing with debt collection agencies. Among other things, you have the right to request validation of any debt a collector says you owe. Once you’ve made this request in writing, the collector cannot continue collections efforts until providing the validation.
The credit reporting agencies also are required to investigate any disputes you make regarding collection accounts. If the collection agency cannot validate the disputed information within 30 days, the credit reporting agency must delete or modify the disputed item. Inaccurate, unverifiable, fraudulent or erroneous collections accounts often can be deleted through this process.
TekCollect has a history of regulatory infractions and federal lawsuits that suggest it may not always adhere to these requirements. The Connecticut enforcement action determined the company engaged in deceptive practices, and the pattern of consumer complaints about failure to validate suggests it continues to have issues in this area.
The Importance of Professional Help
Trying to navigate the dispute process on your own puts you at a disadvantage with a company that does this for a living.
Credit repair specialists know the “magic words” that can force a collection agency or credit reporting agency to take action. They know the type of documentation that supports an effective dispute. They know the follow-up necessary to keep the pressure on collectors and credit reporting agencies to respond appropriately.
When consumers try to handle disputes on their own, they often make procedural mistakes that weaken their case, or accept outcomes they didn’t have to accept. That’s what collection agencies are counting on. They know most consumers won’t go the distance in a dispute process, and won’t recognize when their rights have been violated.
If a credit repair company is working on your behalf, the collection agency knows you recognize your rights and intend to use them to the fullest extent possible. This in itself can achieve a better outcome than individual efforts, regardless of the merits of the debt in question.
Empowering Your Next Move
Taking Back Control of Your Credit
The embarrassment and apprehension you feel when dealing with a collection account is real, but it doesn’t have to control your response. TekCollect, like any debt collection agency, exists in a world where consumers have more power than they realize. The question is whether you’ll use it, or give it away by paying without questions.
Keep in mind that any collection account on your credit report is an allegation, not a fact. That allegation must be accurate. It must be properly documented. It must be legally collectable. If TekCollect cannot prove all three, you have a reason to have the account removed. Its history of regulatory infractions and pattern of consumer complaints suggests it may not always be able to prove all three.
Approaching the situation with a “dispute first” strategy protects you from paying a debt that may not be legitimate, while preserving your options if the debt is legitimate and properly reported on your credit file. There’s no risk in verifying before paying. There is risk in paying before verifying.
Get Started Today
If you have a TekCollect account on your credit report, the worst thing you can do is nothing. The next worst thing you can do is make a payment without understanding what you’re paying and whether you’re obligated to pay it. The best thing you can do is find professionals who do this sort of thing every day.
FightCollections.com specializes in helping consumers push back on debt collection agencies through targeted disputes and credit report corrections. We understand the games agencies like TekCollect play, and we understand how to play back within the rules.
Don’t let a collection account dictate your financial future.
Contact us today for a free consultation, and learn how we can help you dispute this account and get TekCollect off your credit report.
Your credit report belongs to you. It’s time to take it back.
