If you’ve recently checked your credit report and noticed a collection account from Cedars Business Services, you’re not alone. For many, this name appears out of the blue, sparking confusion and anxiety.
So, let’s break down exactly who Cedars Business Services is and why their presence on your credit report is so significant.
Finally, we’ll also share experts on how to remove Cedars Business Services from your credit report.
Who is Cedars Business Services?
Cedars Business Services is a debt collection agency founded in 1997 and headquartered in Calabasas, California. Their primary business is to collect overdue debts on behalf of creditors, think unpaid medical bills, credit card balances, or other delinquent accounts. If a company gives up trying to collect what you owe, they may sell your debt to Cedars, who then attempts to recover the money.
Cedars prides itself on a “People First” approach, emphasizing ethical standards, transparency, and respectful communication with consumers. They claim to adhere strictly to industry regulations and is a member of a leading trade group for collection agencies. While some consumers report professional interactions, others have expressed concerns about their collection tactics. This mixed reputation is not uncommon in the debt collection world.
Key Facts:
- Industry: Debt Collection
- Founded: 1997
- Location: Calabasas, CA
- Reputation: Legitimate, but consumer experiences vary.
Why Is Cedars Business Services on My Credit Report?
When you see Cedars Business Services on your credit report, it means they are reporting a debt you allegedly owe. This typically happens after your original creditor (like a hospital or credit card company) sells your unpaid account to them. Once this happens, Cedars can report the collection to the major credit bureaus, Equifax, Experian, and TransUnion, resulting in a negative mark on your credit report.
“When Cedars Business Services purchases your debt, they will report it to the credit bureaus, leading to a negative entry on your credit report. This can significantly lower your credit score and impact your ability to secure loans or other financial approvals.”
Impact:
A collection account can drop your credit score by dozens of points and remains on your report for up to seven years, even if you pay it off. This can make it much harder to get approved for loans, credit cards, or even a rental apartment.
Is Cedars Business Services a Scam?
No, Cedars Business Services is not a scam. They are a real, licensed collection agency and a member of ACA International, which means they are expected to follow industry standards and consumer protection laws. However, as with many debt collectors, consumer experiences can vary, some people report professional interactions, while others have concerns about aggressive tactics.
How Can I Verify if The Debt Cedars Reports Is Mine or Inaccurate
To verify if the debt Cedars Business Services reports is truly yours or inaccurate, follow these expert-backed steps:
1. Check Your Credit Report
- Get a free copy of your credit report from all three major bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com.
- Locate the Cedars Business Services entry and review details such as the amount owed, the original creditor, and the date of delinquency.
- Look for errors, incorrect amounts, unfamiliar debts, or wrong dates are all red flags.
2. Request Debt Validation
- Send a debt verification letter to Cedars Business Services. This is your legal right under the Fair Debt Collection Practices Act (FDCPA).
- In your letter, request that Cedars provide:
- Proof that the debt is yours (such as an account statement or contract)
- The name of the original creditor
- Documentation that they are authorized to collect this debt
- Do this within 30 days of their first contact for maximum legal protection.
“When you receive a notice from Cedar Business Services, send them a debt verification letter. This will mean they have to verify all details of your debt or stop further attempts at collection.”
3. Review the Validation Response
- If Cedars provides adequate documentation showing the debt is yours, review it for accuracy.
- If they cannot validate the debt or the information is incorrect, they must stop collection efforts and remove the entry from your credit report.
4. Dispute Inaccuracies
- If you find any errors or if Cedars fails to validate the debt, dispute the entry with each credit bureau reporting it.
- Provide supporting documentation, such as payment records or identity theft reports, to strengthen your case.
5. Know Your Rights
- Debt collectors must not harass you or provide false information.
- You can request in writing that they stop contacting you, though they may still pursue collection through legal means.
6. Seek Professional Help if Needed
- If the process feels overwhelming, consider consulting a credit repair professional or legal advisor, especially if you suspect identity theft or persistent errors
Summary Table: How to Verify a Cedars Business Services Debt
Key tip: Always keep copies of all correspondence and never ignore debt notices, prompt action is crucial for protecting your credit and your rights
How to Remove Cedars Business Services from Your Credit Report
Now, let’s dive into the actionable steps you can take to try to remove Cedars Business Services from your credit report. This process isn’t always straightforward, but knowing your rights and options can make a big difference.
1. Get Your Credit Report and Review the Details
Start by obtaining your credit report from all three major bureaus (Equifax, Experian, TransUnion). You’re entitled to a free report from each bureau once a year at AnnualCreditReport.com.
- Look for the Cedars Business Services entry. Note the account number, date opened, and the reported balance.
- Check for errors. Is the debt amount correct? Does the account actually belong to you? Is the date of delinquency accurate?
“A significant percentage of credit reports contain errors, so verifying the accuracy of such entries is essential.”
2. Validate the Debt
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request validation of the debt within 30 days of first contact. This means Cedars must provide evidence that you owe the debt and that they have the legal right to collect it.
How to do this:
- Send a debt validation letter to Cedars Business Services. Request that they provide documentation proving the debt is yours and that they’re authorized to collect.
- Keep all communication in writing and save copies for your records.
If Cedars cannot validate the debt, they must stop collection efforts and remove the entry from your credit report.
“If you dispute the notice and Cedars Business Services can't verify it, it could be removed from your credit report.”
3. Dispute Inaccurate or Unverifiable Information
If you find any inaccuracies, or if Cedars fails to validate the debt, file a dispute with the credit bureaus. You can do this online, by mail, or by phone, but written disputes are best for documentation.
Steps:
- Gather evidence: Include any documentation that supports your claim (e.g., payment records, correspondence, proof of identity theft).
- Submit your dispute: Clearly state why the information is incorrect or unverifiable.
- Wait for investigation: The credit bureau has 30 days to investigate and respond.
If the bureau finds your dispute valid, they must remove or correct the entry.
“If there are inaccuracies or errors in the collection account you really want to dispute them with the credit bureaus provide any supporting documentation or evidence to support.”
4. Negotiate a Settlement or “Pay for Delete”
If the debt is valid and you can pay, consider negotiating a settlement or a “pay for delete” agreement. This means you offer to pay the debt (sometimes for less than the full amount) in exchange for Cedars removing the collection from your credit report.
Important:
- Get everything in writing before you pay. If Cedars agrees to remove the entry, make sure you have written confirmation.
- “Pay for delete” is not guaranteed. Many agencies, including Cedars, may refuse, as the practice is discouraged by credit bureaus and not required by law.
“While the Fair Credit Reporting Act doesn’t prohibit it, it does discourage altering accurate reporting, making collection agencies hesitant to agree to such arrangements.”
Even if you pay, the collection may remain on your report, but it will be marked as “paid,” which is slightly better than “unpaid” in the eyes of some lenders.
5. Monitor Your Credit Report
After taking action, monitor your credit report to ensure the changes are reflected. If Cedars agreed to remove the entry or if you won a dispute, the collection should disappear within 30-60 days.
If the entry remains, follow up with the credit bureau and provide proof of your agreement or dispute outcome. One effective way to monitor your credit report regularly is to use a free credit analysis service, which helps you track changes, spot inaccuracies early, and stay informed about your credit status throughout the dispute process.
6. File Complaints If Necessary
If Cedars violates your rights, such as failing to validate the debt, reporting inaccurate information, or using abusive tactics, file complaints with:
- The Consumer Financial Protection Bureau (CFPB)
- The Federal Trade Commission (FTC)
- Your state Attorney General’s office
“File a complaint with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB) and your state Attorney General’s office saying that your rights under the FDCPA have been violated.”
Frequently Asked Questions
Will Paying Cedars Business Services Remove the Collection from My Credit Report?
No. Paying the debt will change the status from “unpaid” to “paid,” but the collection account can remain for up to seven years from the date of the original delinquency. The only way to remove it early is through a successful dispute or a rare “pay for delete” agreement.
Is Cedars Business Services a Scam?
No. Cedars is a legitimate debt collection agency, but you should always verify debts before paying, as errors and mistaken identity are common in the collections industry.
How Much Does a Collection Account Hurt My Credit?
A collection account can lower your credit score by 50 to 100 points or more, depending on your overall credit profile and the age of the debt. The impact lessens over time but can still affect your ability to get loans, credit cards, or favorable interest rates for years.
What If the Debt Isn’t Mine?
If the debt isn’t yours, dispute it immediately with both Cedars and the credit bureaus. Provide any evidence you have (e.g., proof of payment, identity theft report). If the collector can’t prove the debt is yours, it must be removed.
Real-World Advice from Credit Experts
Credit repair experts and consumer advocates stress the importance of knowing your rights:
“You have the right to dispute any information on your credit report that you believe is inaccurate, incomplete, or unverifiable. The burden is on the creditor or collector to prove the debt is valid.” , National Consumer Law Center
Asap Credit Repair, a leading credit repair firm, advises:
“If you dispute the notice and Cedars Business Services can’t verify it, it could be removed from your credit report.”
Pro Tips for Dealing with Cedars Business Services
- Never ignore collection notices. Ignoring them won’t make them go away and could lead to legal action.
- Communicate in writing. This creates a paper trail and protects your rights.
- Don’t give collectors access to your bank accounts. Pay by money order or other traceable means, never by direct debit.
- Consult a credit repair professional if you’re overwhelmed or unsure how to proceed.
Conclusion: Taking Control of Your Credit
Dealing with Cedars Business Services (or any collection agency) can feel intimidating, but knowledge is power. By understanding who they are, why they’re on your credit report, and the steps you can take to remove them, you’re already ahead of the game.
Remember to:
- Validate the debt.
- Dispute inaccuracies.
- Negotiate if necessary.
- Monitor your credit.
- Know your rights.
With persistence and the right approach, you can protect your credit and move forward with confidence.
Disclaimer: This article is intended for general informational purposes only and does not aim to portray any company mentioned, including Cedars Business Services, in a negative light. The information provided is based on publicly available sources and consumer experiences, and should not be considered legal or financial advice. Always consult a qualified professional for advice specific to your situation.
Related Story:
Cedar Financial and Credit Score Impact: Complete Guide to Debt Collection Recovery
Budgeting for Homeowners: Managing Expenses and Credit
745 Credit Score: Why It’s Good, What You Can Get, and How to Keep It