Paying debts, while at the same time, maintaining a good credit score is everyone’s goal, but what if you see something on your credit report that makes your heart sink? What if you find a TrueAccord collection account?
The first thing that you might want to do is to call them, talk to them, negotiate, or pay the debt so you can get rid of it. But wait. Before you do anything, you have to keep in mind that TrueAccord must show that you owe the debt. It is not your responsibility to show that you do not owe the debt. In other words, the burden of proof is on TrueAccord.
Once you internalize that fact, you will be able to approach the situation differently. According to a study done by U.S. PIRGs, 79% of credit reports contain errors or other problems. This should already make you skeptical about the debt that TrueAccord is charging you. It is possible that the debt is not yours, that it has already prescribed, or that it is not accurate.
Who is TrueAccord?
TrueAccord Corp. describes itself as a “digital-first debt collection agency.” The company was established in 2013 and is currently based in Lenexa, Kansas. TrueAccord specializes in using machine learning and automation to contact debtors via email and digital communications instead of using phone calls like most collection agencies.
TrueAccord is a subsidiary of One True Holding Company, which operates under the name TrueML Technologies. The holding company has reportedly received about 78 million in venture capital investments from Khosla Ventures, PayPal Ventures, American Express Ventures, and other investors.
What the Record Says About TrueAccord
The company positions itself as technologically advanced and empathetic in its communications. However, their record shows something different.
TrueAccord has been forced to pay a total of 582,400 in fines to three different states for their role in attempting to collect debts from tribal loans that carried interest rates between 500 and 900 percent. A settlement with the Colorado Attorney General’s office involved nearly 29,000 consumers who were targeted for debts that violated the state’s usury laws from the outset.
In Connecticut, regulators found the company had engaged in practices that included collecting debts on small-dollar loans from unlicensed tribal lenders and commingling operating and trust accounts.
The consumer review website Google gives TrueAccord a 4.6-star rating, but on independent review sites such as Trustpilot, the company averages 1.9 stars with 100 percent of reviewers assigning one-star ratings.
On the Better Business Bureau (BBB) site, TrueAccord has had 361 complaints over a three-year period, with only 32.7 percent of those complaints resolved to the satisfaction of the consumer.
Why You Should Rarely Pay a Collection Agency First
Most consumers’ initial reaction to finding a collection on their report is to pay the debt to get it off their report. This instinct almost invariably works against the consumer. To understand why, let’s first consider how credit reporting works.
The Truth About Paying a Collection Agency
Paying a collection does not remove it from your report. Instead, it changes the status of the item from “unpaid collection” to “paid collection.” The item remains on your report for the full seven years beginning on the date you first became delinquent. In some cases, making a payment can also reinitiate the statute of limitations on the debt.
Collection agencies rely on the emotional response a person experiences when they find a collection notice on their report. Most people will just pay it to make it go away. TrueAccord’s digital, online platform for collections seems to be designed to create a very easy path to making a payment before you have time to think twice about whether you actually owe the debt.
One consumer reviewer explained how they signed up for a payment plan with TrueAccord and made several hundred-dollar payments over the course of a few months only to find the balance had not decreased by even a single cent. When the consumer asked representatives where their payments had gone, no one would give them an answer.
What Paying a Debt Actually Does
Paying a debt accomplishes one thing: It enriches the collection agency. It does not improve your credit score. It does not confirm the debt was valid. It does not ensure that your credit report will be accurately reported going forward.
The Fair Credit Reporting Act says a collection can remain on your credit report for seven years from the date you first became delinquent on the debt. Whether the item is marked as paid or unpaid, if it is a collection account from six years ago, it still shows future lenders that you sent a debt to collections. To avoid the negative effects of the item, you must remove it entirely from your report.
How to Flip the Burden and Put TrueAccord on Trial Instead
Now we will discuss how you can change the burden to TrueAccord instead of you having to prove that you don’t owe the debt. You can flip the script and make TrueAccord prove every detail of the debt they claim you owe.
The 30-Day Validation Period
Under the FDCPA, you have the right to request validation of the debt within 30 days of the initial contact from the collection agency. When you make this request, the collector must provide documentation to prove that: You owe the debt. The amount of the debt is correct. The collector has the right to collect the debt.
TrueAccord’s history with consumers shows a recurring failure to validate debts. On the BBB site, 84.5 percent of complaints against TrueAccord concern billing and collections issues. This includes debts claimed to be owed, amounts not correct, and wrong consumer contacted. Several reviewers discuss requesting validation and either being ignored or refused.
One consumer stated that when they called TrueAccord to validate the debt, a representative informed them that they did not pass authentication even though the consumer provided the information TrueAccord requested. The consumer stated that they were unable to obtain any information about the debt over the phone or via email.
Another consumer reported that TrueAccord contacted them to collect a 13-year-old debt the consumer could not possibly have incurred.
The Lack of Documentation
Debt collection agencies, including TrueAccord, typically buy debts. When the original creditor sells a debt to a collection agency, some of the documentation may not be transferred. If the debt is sold multiple times, more documentation is lost with each transfer. By the time TrueAccord attempts to collect from you, the company may have nothing more than your name, the amount you supposedly owe, and your contact information.
This lack of documentation works in your favor if you know how to use it to your advantage. If you dispute the debt on your credit report, the credit reporting agency must investigate the matter within 30 days.
Part of the investigation requires the collector to verify the debt. Since TrueAccord may not have the documentation to prove the debt within the allotted time, the credit reporting agency will remove the item from your report if the collector fails to respond.
The 30-day window for investigation works in consumers’ favor because the information imbalance typically works in favor of the collector is reversed when the collector is required to provide documentation to prove the debt.
The Problem with Computer Algorithms
TrueAccord uses a machine learning computer algorithm to match data points and attempt to collect debts on a mass scale. While this process may make TrueAccord very efficient at sending collection notices, it also means the process is prone to errors.
When the Computer Gets It Wrong
Many consumers report attempts to collect debts that belong to someone else. One reviewer stated that she received emails from TrueAccord about someone else’s TrueAccord account because the emails were tied to her email address. She said a computer algorithm must have matched her email address to the debt.
Another consumer, a senior citizen, reported that TrueAccord attempted to collect a debt that he could not have incurred.
Since TrueAccord attempts to collect debts digitally, the algorithms do not catch these errors and may continue to send collection notices. One consumer reported receiving 46 emails attempting to collect a debt that resulted from identity theft. The consumer stated that TrueAccord acknowledged the debt did not belong to her, yet the company continued to send collection notices.
Collecting on Time-Barred Debt
Some consumers stated that TrueAccord attempted to collect debts that were 10 to 20 or more years old. One reviewer warned others that TrueAccord purchases data to attempt to collect on debts that are beyond the statute of limitations. The company is hoping that one percent of the people who received the email will pay something on a debt that is a decade or more old.
While attempting to collect a time-barred debt is not illegal, in some states, making a payment on such a debt can revive the statute of limitations. This is yet another reason why paying a collection agency first is a mistake that can have serious consequences: It can turn a debt the collector cannot legally collect into one that they can.
How a Professional Advocate Helps Your Case
Hiring a professional credit repair advocate will change how you interact with a collection agency like TrueAccord. Once a collection agency realizes it is dealing with a professional advocate instead of an individual consumer, the entire tenor of the interaction changes.
The Information Imbalance
Most collection agencies count on consumers not understanding their rights or how the collection process works. The collector knows that the typical consumer does not know how to properly dispute a debt or what documentation to request from the collector.
A professional credit repair advocate understands exactly what information a collector must provide to validate a debt and the proper way to file a dispute to ensure the fastest and most effective resolution.
Additionally, professional credit repair companies serving as your advocate signals to the collector that you are serious about your case. Companies like TrueAccord understand that consumers who hire professional help are much more likely to file complaints and pursue legal action if their rights are violated, so they are likely to be less aggressive and more willing to resolve the matter.
The Power of Remaining Silent
One of the most important things you can do when dealing with a collection agency is remaining silent. When you speak directly with a collector, anything you say can and will be used against you. If you acknowledge that you owe the debt or make a partial payment, you can actually strengthen the collector’s case against you.
Additionally, if you provide personal or financial information to the collector, you may inadvertently provide them with information they can use to pursue you.
When you work with a professional credit repair advocate, you do not communicate directly with the collection agency. Instead, your advocate files disputes and communicates with the credit reporting agencies on your behalf. You also maintain a paper trail of all communications so you can prove your interactions with the collector if necessary.
Removing a Collection Account from Your Report
You can get a collection account removed from your report if the information is inaccurate, incorrect, fraudulent, or if the collector cannot verify the information within the required time. Given TrueAccord’s history of attempting to collect the wrong consumer, an incorrect amount, or debts that were illegal when they originated, it is possible that many of the debts TrueAccord attempts to collect can be removed from consumer credit reports.
How to Determine if You Can Remove the Account
The first step to removing the account is to understand what exactly TrueAccord is reporting on your credit report and whether any of that information can be disputed.
Is the correct amount showing on the account? Is the date of first delinquency accurate? Did you even incur this debt or could this be a case of mistaken identity or fraud?
Of TrueAccord’s 361 BBB complaints, only 32.7 percent were resolved to the customer’s satisfaction. Additionally, the company has a history of attempting to collect illegal tribal lending debts, a practice that affected tens of thousands of consumers.
These two pieces of information alone suggest that many of the accounts TrueAccord is attempting to collect contain information that can be disputed.
How to Remove the Account
Once you understand what information is being reported and whether it can be disputed, the next step is to take action. You must file a dispute with the credit reporting agencies, and then the agencies must investigate. As part of the investigation, the collector must verify the information. If the collector cannot verify within the required 30 days, the agency must remove the item from your report.
This process requires documentation and the ability to follow up. If you do not properly complete a dispute, the credit reporting agency may deny it, and future disputes may become more difficult. This is where a professional credit repair company can provide the most value.
How to Get Help from FightCollections.com
At FightCollections.com, we help consumers deal with debt collection agencies like TrueAccord. Our team understands the dispute process and how to identify errors and inaccuracies in collection accounts. We also understand how to work with the credit reporting agencies and their process for investigating consumer disputes.
Do not let a debt collection account from TrueAccord ruin your credit and wreak havoc on your financial future. Contact us at FightCollections.com today to arrange a free consultation to discuss your options for getting a TrueAccord collection removed from your report.
The burden is on TrueAccord to prove its case against you. Let us help you make it do just that.
