Who Is Fco Collections
Fco Collections is a third-party debt collection agency that purchases delinquent accounts from original creditors and attempts to collect on those debts. Like many debt collection companies, Fco Collections operates by buying portfolios of charged-off accounts at a fraction of their original value and then pursuing collection efforts to recover the full amount owed.
The company typically handles various types of consumer debt including credit cards, personal loans, medical bills, and other unsecured debts. Fco Collections may contact you through phone calls, letters, or other communication methods in an attempt to collect on what they believe you owe.
As a debt collection agency, Fco Collections must comply with federal and state debt collection laws, including the Fair Debt Collection Practices Act (FDCPA), which governs how debt collectors can communicate with consumers and what practices are prohibited.
Why Is Fco Collections Calling
Fco Collections is likely contacting you because they believe you owe money on a delinquent account that has been sold to them by an original creditor. This could happen for several reasons:
- Your original creditor charged off an unpaid account and sold it to Fco Collections
- Another debt collection agency previously owned the debt and sold it to Fco Collections
- There may be an error in their records, and you may not actually owe the debt
- The debt could be past the statute of limitations but they're still attempting collection
- You may be a victim of identity theft and the debt isn't legitimately yours
It's important to note that just because Fco Collections is contacting you doesn't necessarily mean you owe the debt or that they have the legal right to collect it.
What Type of Debt Fco Collections Collect
Fco Collections typically purchases and attempts to collect on various types of unsecured consumer debts, including:
- Credit card debts
- Personal loans
- Medical bills and healthcare-related debts
- Utility bills
- Cell phone and telecommunications bills
- Bank overdrafts and fees
- Retail store credit accounts
- Other unsecured consumer debts
These debts are usually accounts that have been charged off by the original creditor, meaning the creditor has written off the debt as a loss and sold it to a collection agency like Fco Collections.
Fco Collections Credit Score Impact
Having a collection account from Fco Collections appear on your credit report can cause significant damage to your credit score.
Collection accounts can lower your score by 50-100 points or more, making it difficult to qualify for loans, credit cards, apartments, or even employment. The negative impact remains on your credit report for up to seven years from the original delinquency date, even if you pay the debt in full. This is why it's crucial to dispute questionable collections rather than simply paying them - successful disputes can result in complete removal from your credit report.
Contacted by Fco Collections? Challenge the Debt with Proper Disputes
If you've been contacted by Fco Collections, it is extremely important to take action and properly dispute the debt rather than ignore their communications. At ASAP Credit Repair USA, we specialize in helping consumers challenge questionable debts through proper dispute procedures.
One of the most common mistakes people make when contacted by a debt collection company is failing to respond or simply hoping the collector will go away. Whether you actually owe the debt or believe you were contacted by mistake, you need to take action to protect your rights and credit report.
The reason responding is so important is because failing to dispute questionable debts can result in negative marks remaining on your credit report, continued collection efforts, and potentially even a lawsuit if the debt is significant enough.
Many debt collection companies like Fco Collections are counting on you not taking action to dispute the debt.
Make Fco Collections Prove You Actually Owe the Alleged Debt
There is a very good chance the debt claimed by Fco Collections has been packaged, sold and resold before they purchased it and started trying to collect from you. As a result, a key strategy for challenging their collection efforts is requesting that they provide proper validation of the debt.
Under the Fair Debt Collection Practices Act, you have the right to request debt validation, which requires the collector to provide:
- Proof that you actually owe the debt
- The original creditor's name
- The amount owed
- Verification that they have the legal right to collect on the debt
In many instances, debt collection companies like Fco Collections only have limited documentation and may not be able to properly validate the debt when challenged through proper dispute procedures.
Verify the Debt is Within the Statute of Limitations
Many debt collection companies assume most people will not actually challenge their collection efforts, so they may attempt to collect on debts that are legally uncollectable. Keep in mind that if the applicable statute of limitations has expired, the debt collector may be legally prohibited from collecting on the debt or reporting it to credit bureaus.
In most states, debt collectors only have a finite amount of time to legally enforce collection of an alleged delinquent debt. The statute of limitations varies by state and type of debt, typically ranging from 3-6 years for most consumer debts.
If it turns out that the statute of limitations has expired, this can be a powerful tool in disputing the debt and having it removed from your credit report.
File Complaints Against Debt Collectors Who Violate the Law
In addition to disputing the validity of the debt itself, you also have the option to file complaints against Fco Collections if they violate debt collection laws. Debt collectors must follow strict rules under the Fair Debt Collection Practices Act (FDCPA).
Common violations include:
- Calling before 8:00 AM or after 9:00 PM
- Using abusive, profane, or threatening language
- Calling your workplace after being told not to
- Discussing your debt with third parties
- Misrepresenting the amount owed or their authority to collect
- Continuing to contact you after receiving a written cease and desist letter
Violations of the FDCPA can result in the debt being removed from your credit report and potentially statutory damages up to $1,000.
How to beat Fco Collections
Since we have been talking about FCO Collections, we recently helped a client named Sarah who was being contacted by Fco Collections for a $2,800 credit card debt she didn't recognize.
Sarah was certain she had never opened an account with the original creditor. Through our debt validation process, we requested that Fco Collections provide proof of the original signed agreement and account statements. After 45 days, they were unable to provide adequate documentation to validate the debt.
As a result, we successfully had the collection account removed from Sarah's credit report, improving her credit score by 67 points. This case demonstrates why it's crucial to challenge debt collectors rather than assume they have the right to collect . Many times they simply don't have the proper documentation to prove you owe what they claim.
Take Action Now
Don't let Fco Collections negatively impact your credit report without a fight. Contact ASAP Credit Repair USA today to learn how we can help you properly dispute questionable debts and protect your credit score.