If AR Services is contacting you about a debt, you're probably feeling overwhelmed and maybe even confused. The good news is that you have rights, and there are proven strategies to handle this situation. Whether the debt is yours or not, understanding who AR Services is and how to respond can save you time, money, and stress.
In this guide, we'll break down everything you need to know about AR Services, why they might be calling you, and the steps you can take to protect yourself and potentially win against AR Services.
Who is AR Services
AR Services refers to several different debt collection companies that use similar names, which can make it confusing to know exactly which company is contacting you. The most common companies operating under this name include AR Resources, Inc. and AR Solutions.
AR Services is a subsidiary of Healthcare Management, an organization that is owned and governed by 20 rural hospitals and healthcare organizations in Colorado and Utah and provides services to over 250 customers. They also work with their sister company, A-1 Collection Agency, to provide extended business services.
These companies typically specialize in collecting different types of consumer debts including credit card bills, medical debts, personal loans, and other past-due accounts. Like most debt collectors, they often purchase these debts from original creditors for pennies on the dollar after the accounts have been charged off.
The debt collection industry operates by buying large portfolios of charged-off debt, sometimes years after the original debt was incurred. This means AR Services might contact you about a debt that's several years old, from a creditor you might not even remember.
Is AR Services Legitimate
Yes, AR Services appears to be a legitimate debt collection agency. However, being legitimate doesn't mean they're free from issues or complaints.
Some consumers report positive interactions, while others detail negative ones. For instance, some people have reported receiving calls regarding debts they don't recognize, leading them to suspect a potential scam or error.
Common complaints about AR Services and similar debt collectors include demanding payment for debts that were already paid, contacting consumers after being told to stop, attempting to collect incorrect amounts, and using aggressive or inappropriate language during collection attempts.
It's worth noting that even legitimate debt collectors can make mistakes. The debt-buying business involves purchasing large batches of debt information, and errors are unfortunately common. This is why verification is so important before you make any payments.
AR Services Customer Reviews and Experiences
While AR Services may be legitimate, consumer experiences vary widely. Many people report feeling harassed or pressured by their collection tactics. Others have successfully negotiated settlements or disputed debts that weren't theirs.
The key takeaway is that just because a debt collector is legitimate doesn't mean you should take their word for everything. You still need to verify the debt and understand your rights.
Why is AR Services Calling
AR Services is likely contacting you because they believe you owe money on a past-due account. This could be from various types of debts such as credit cards, medical bills, personal loans, or other consumer debts that were charged off by the original creditor.
Here's how it typically works. When you fall behind on payments, your original creditor (like a credit card company or hospital) will try to collect the debt for several months. If they're unsuccessful, they may charge off the debt and sell it to a debt collection agency like AR Services.
Once AR Services purchases your debt, they have the legal right to contact you and attempt to collect the full amount plus any applicable fees and interest. However, this doesn't mean they always have accurate information about your debt.
Common reasons why AR Services might be calling include past-due credit card payments, unpaid medical bills, defaulted personal loans, charged-off bank accounts, or old utility bills. Sometimes they might even be calling about someone else's debt due to mixed-up information or identity confusion.
If you're receiving calls but don't recognize the debt, don't panic. This happens more often than you might think, and you have legal rights to verify the debt before you pay anything.
Does AR Services Show on Credit Report and What's the Impact
Yes, if AR Services is legitimately collecting a debt you owe, it will likely appear on your credit report. This can have a significant negative impact on your credit score.
Collection accounts typically cause your credit score to drop by 50 to 100 points or more, depending on your current credit profile. The newer the collection account, the more damage it tends to cause. However, the impact lessens over time.
Here's what you need to know about how collections affect your credit:
Collection accounts remain on your credit report for seven years from the date the original debt first became delinquent. Even if you pay the collection in full, it will still show on your credit report for the full seven-year period, though some newer credit scoring models give less weight to paid collections.
The presence of a collection account signals to future lenders that you've had trouble managing debt in the past. This can make it harder to qualify for new credit cards, loans, mortgages, or even rental housing.
However, not all collection attempts result in credit reporting. Some debt collectors, especially those collecting medical debt, may not report to credit bureaus immediately. This gives you time to resolve the issue before it impacts your credit.
If you successfully dispute a debt and prove it's not yours, the collection account should be removed from your credit report entirely. This is one reason why verification is so important.
Tips for Removal and Dealing with AR Services
If AR Services is contacting you, here are the steps you should take to protect yourself and potentially get the debt removed from your credit report.
Send a Debt Verification Letter
Your first step should always be to request debt verification. By law, debt collectors must provide you with a debt validation letter within five days of their first contact. This letter should include the amount of the debt, the original creditor's name, and a statement of your rights.
If you haven't received this letter, request it immediately. Then, send your own debt verification letter asking for detailed proof that you owe the debt. Ask for documentation showing the original account information, payment history, and proof that AR Services has the legal right to collect the debt.
You have 30 days from when you receive the debt validation letter to dispute the debt in writing. During this time, AR Services cannot continue collection activities until they provide verification.
Document Everything
Keep detailed records of all communication with AR Services. This includes phone calls (note the date, time, and what was discussed), letters, and any other contact. Save all voicemails and take screenshots of any text messages.
This documentation can be crucial if you need to file a complaint or defend yourself against a lawsuit. It also helps you track whether AR Services is following debt collection laws.
Know Your Rights Under the FDCPA
The Fair Debt Collection Practices Act gives you important protections against abusive debt collection practices. AR Services cannot harass you, call at unreasonable hours, contact you at work if you've told them not to, or use deceptive practices.
If they violate these rules, you can file complaints with the Consumer Financial Protection Bureau and your state attorney general's office. You may also be able to sue them for damages.
Consider Negotiating a Settlement
If the debt is legitimate and you can't pay the full amount, negotiating a settlement is often your best option. Since debt collectors typically purchase debts for a fraction of the original amount, they can often accept less than what you owe and still make a profit.
Start by offering 25-30% of the debt amount and be prepared to negotiate. Get any settlement agreement in writing before making payment, and make sure it states that the debt will be considered paid in full.
Dispute Inaccurate Information
If AR Services cannot verify the debt or if you believe the information is incorrect, dispute it with the debt collector and the credit bureaus. Many collection accounts are removed after successful disputes, especially when the debt collector cannot provide adequate documentation.
Professional Help Options
If you're struggling to handle AR Services on your own, consider getting professional help. Credit repair companies can assist with disputing inaccurate information and negotiating with debt collectors.
At ASAP Credit Repair, we've helped thousands of clients successfully dispute collection accounts and improve their credit scores. Our experienced team knows how to communicate with debt collectors like AR Services and can often achieve better results than consumers can on their own.
We understand the stress and confusion that comes with dealing with debt collectors, and we're here to help you navigate this challenging situation. Our proven strategies can help you remove inaccurate collections from your credit report and develop a plan to rebuild your financial future.
What Not to Do When AR Services Contacts You
Avoiding common mistakes can save you from making your situation worse. Never ignore AR Services completely, as this can lead to lawsuits and wage garnishment. Don't provide personal information like your Social Security number or bank account details until you've verified the debt.
Avoid making promises you can't keep or agreeing to payment plans you can't afford. Don't let them pressure you into making immediate payments over the phone, and never give them electronic access to your bank account.
Most importantly, don't assume the debt is yours just because they say it is. Always verify first.
Understanding Your Legal Protection
Federal and state laws provide significant protection against abusive debt collection practices. The FDCPA prohibits debt collectors from using deceptive, abusive, or unfair practices when collecting debts.
AR Services must follow specific rules about when they can contact you, what they can say, and how they can attempt to collect the debt. They cannot threaten you with arrest, claim you'll go to jail for unpaid debt, or lie about the consequences of not paying.
If they violate these laws, you have the right to sue them for up to $1,000 in damages plus attorney fees. Even one violation can result in compensation for you.
When AR Services Might Sue
Debt collectors like AR Services may file lawsuits to obtain court judgments that allow them to garnish wages or freeze bank accounts. However, lawsuits are expensive and time-consuming, so they typically only sue when the debt amount is significant enough to justify the legal costs.
Factors that increase your likelihood of being sued include higher debt amounts (usually over $1,000), recent debts, and living in states with favorable collection laws. They're less likely to sue on very old debts or when you're actively working with them to resolve the matter.
If you do get sued, don't panic. You have the right to respond to the lawsuit and defend yourself. Many people successfully defend against debt collection lawsuits, especially when the debt collector cannot provide adequate documentation proving the debt.
Building Your Defense Strategy
Whether you're dealing with AR Services through phone calls or facing a potential lawsuit, having a solid strategy is essential. Start by gathering all documentation related to the original debt, including payment records, account statements, and correspondence with the original creditor.
Create a timeline of events showing when the debt was incurred, when payments stopped, and when AR Services first contacted you. This information can be valuable in negotiations or legal proceedings.
If you believe the debt isn't yours, gather evidence to support your position. This might include proof of identity theft, documentation showing you paid the debt, or evidence that the statute of limitations has expired.
The Settlement Process
If you decide to settle with AR Services, approach the negotiation strategically. Remember that they likely purchased your debt for a small fraction of its original value, giving you significant negotiating power.
Start with a low offer and be prepared for them to counter. Don't accept their first offer, as there's usually room for further negotiation. Most importantly, get everything in writing before you make any payment.
A good settlement agreement should state that the debt will be considered paid in full, that no additional amounts will be owed, and that AR Services will report the account as settled to the credit bureaus.
The Impact on Your Financial Future
Dealing with AR Services effectively can have long-term benefits for your financial health. Successfully disputing an invalid debt removes a negative mark from your credit report, potentially improving your credit score significantly.
Even if you end up settling a legitimate debt, resolving the matter prevents further damage to your credit and stops the accumulation of additional fees and interest. It also gives you peace of mind and allows you to focus on rebuilding your financial stability.
The key is to take action rather than avoiding the situation. Debt collectors don't give up easily, and unresolved debts tend to grow larger over time due to interest and fees.
You Can Win Against AR Services
Remember that debt collectors like AR Services are businesses trying to make a profit. They often purchase debts for very small amounts and are frequently willing to negotiate reasonable settlements. Many consumers successfully resolve their debt collection issues without paying the full amount originally owed.
Your success depends on understanding your rights, documenting everything, and taking proactive steps to verify and address the debt. Whether that means disputing an invalid debt, negotiating a settlement, or seeking professional help, you have options.
Don't let AR Services intimidate you into making hasty decisions. Take your time, gather information, and make informed choices about how to handle your situation.
The most important thing to remember is that you're not powerless in this situation. With the right approach and knowledge of your rights, you can effectively deal with AR Services and move forward with your financial life.
If you're feeling overwhelmed by the debt collection process or need help improving your credit after dealing with collectors, consider reaching out to ASAP Credit Repair. Our experienced team can help you navigate these challenging situations and work toward a brighter financial future.