Discovering an unfamiliar name like "TrueAccord Corp" on your credit report can be alarming. Many people feel confused and anxious when they see collection accounts they don't recognize.
This guide will help you understand what TrueAccord Corp is.
Why they might be on your credit report, and what steps you can take to address the situation.
What Is TrueAccord Corp?
TrueAccord or TrueAccord Corp is a legitimate debt collection agency founded in 2013 and headquartered in San Francisco, California. Unlike traditional collection agencies that rely heavily on phone calls, TrueAccord uses digital communication methods like email and text messages to contact consumers about unpaid debts.
The company serves as a third-party debt collector for many major businesses across various industries, including:
- Banking and financial services
- Retail companies
- Telecommunications providers
- Education lenders
- Healthcare organizations
According to the Better Business Bureau, TrueAccord has been accredited since 2014 and maintains an A+ rating, indicating their commitment to resolving consumer complaints and following ethical business practices.
Why Is TrueAccord Corp on Your Credit Report?
If TrueAccord appears on your credit report, it typically means that an original creditor has transferred or sold your unpaid debt to TrueAccord for collection. This usually happens after an account has been delinquent for several months.
For example, if you have an unpaid credit card bill from a major bank, after about 3-6 months of non-payment, the bank might assign that debt to TrueAccord to handle the collection process.
According to a study by the Consumer Financial Protection Bureau (CFPB), approximately 28% of Americans with credit reports have at least one collection account listed. This means that encountering a collection agency like TrueAccord on your credit report is not uncommon.
How TrueAccord Affects Your Credit Score
A collection account from TrueAccord can significantly impact your credit score. According to FICO, a collection account can cause your credit score to drop by 50-100 points depending on your previous credit history.
Collection accounts, including those from TrueAccord, typically remain on your credit report for seven years from the date of the first missed payment that led to the delinquency. Even if you eventually pay the debt, the collection account will still appear on your credit report as "paid" rather than being removed entirely.
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Common Reasons TrueAccord Corp Might Contact You
TrueAccord collects various types of consumer debt. Some common reasons they might appear on your credit report include:
1. Unpaid Credit Card Debt
Credit card companies often sell delinquent accounts to collection agencies. If you've fallen behind on payments, your credit card issuer might transfer your debt to TrueAccord.
2. Outstanding Personal Loans
Missed payments on personal loans from banks or online lenders can result in the debt being sent to collections.
3. Retail Store Credit Accounts
If you have store-specific credit cards with unpaid balances, these accounts may be transferred to TrueAccord.
4. Utility Bills or Telecommunications Debts
Unpaid phone, internet, or utility bills that have gone to collections might appear under TrueAccord on your credit report.
5. Medical Debts
Although less common for TrueAccord specifically, some medical debts can end up with collection agencies if left unpaid.
Is TrueAccord Legitimate or a Scam?
TrueAccord is a legitimate, licensed debt collection company. However, many consumers question its legitimacy due to its digital-first approach, which differs from traditional collection methods.
Key indicators that confirm TrueAccord's legitimacy include:
- They are registered with the Federal Trade Commission (FTC)
- They comply with the Fair Debt Collection Practices Act (FDCPA)
- They maintain licenses in states that require debt collectors to be licensed
- They have verifiable business information and a physical headquarters
According to the Consumer Financial Protection Bureau's complaint database, TrueAccord receives fewer complaints than many traditional collection agencies, with most concerns related to communication methods rather than legitimacy issues.
👉 For example, When you get an unexpected email that says you owe money, with a link to pay online—no phone call, no paper letter, just a digital notice. If you've never heard of TrueAccord, it can feel suspicious or even like a phishing attempt. But this is actually their standard process. They're designed to communicate primarily through email and text, which is legal and efficient, but also catches people off guard—especially if they're used to more traditional collection calls.
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What Happens If You Ignore TrueAccord?
Ignoring communications from TrueAccord won't make the debt disappear. In fact, avoiding the situation could lead to several negative consequences:
- Continued negative impact on your credit score: The collection account will remain on your credit report for seven years.
- Potential legal action: While TrueAccord focuses on digital collection methods rather than litigation, they retain the right to pursue legal action for unpaid debts, which could result in wage garnishment or bank account levies in some states.
- Increased collection efforts: You may receive more frequent communications through various channels.
- Growing debt: Depending on the terms of the original debt, interest and fees may continue to accumulate.
A study by the National Foundation for Credit Counseling found that 43% of Americans who ignored debt collection notices experienced worsening financial situations within six months.
Related Content: The Debt Collection Process Explained: What Happens When You Don’t Pay?
Why Am I Getting Texts or Emails from TrueAccord?
TrueAccord's business model centers around digital communications rather than traditional phone calls. This approach aims to make the debt collection process less confrontational and more convenient for consumers.
If you're receiving texts, emails, or communications through their online portal, it indicates that TrueAccord Corp has been assigned to collect a debt you allegedly owe.
According to TrueAccord's own data, their digital-first approach results in higher consumer satisfaction rates than traditional collection methods, with approximately 20% of their customers choosing to engage through text messages.
Steps to Take When TrueAccord Appears on Your Credit Report
If you discover TrueAccord on your credit report, here's a step-by-step approach to addressing the situation:
1. Verify the Debt is Yours
The first and most crucial step is to confirm that you actually owe the debt. Request debt validation by writing to TrueAccord within 30 days of their first contact with you.
Under the Fair Debt Collection Practices Act (FDCPA), TrueAccord must provide:
- The amount of the debt
- The name of the original creditor
- Documentation proving you owe the debt
According to the Federal Trade Commission, approximately 13% of consumers who request debt validation discover errors in the reported information.
2. Check the Statute of Limitations
Each state has a statute of limitations on debt collection, typically ranging from 3 to 10 years. This represents the time period during which a creditor can sue you for an unpaid debt.
If the debt is older than your state's statute of limitations, TrueAccord cannot legally sue you for payment, though they can still attempt to collect.
3. Dispute Inaccurate Information
If you believe the debt is not yours or the information is incorrect, you have the right to dispute it with both TrueAccord and the credit bureaus.
To dispute with credit bureaus:
- Submit a dispute online through Equifax, Experian, or TransUnion
- Include any supporting documentation
- Clearly explain why you believe the information is inaccurate
According to the Consumer Financial Protection Bureau, credit bureaus must investigate disputes within 30 days and remove information that cannot be verified.
4. Negotiate a Settlement
If the debt is valid, consider negotiating a settlement with TrueAccord. Many collection agencies purchase debts for pennies on the dollar, giving them flexibility to accept less than the full amount.
Tips for negotiation:
- Start by offering 30% of the total amount due
- Get any settlement agreement in writing before making payment
- Request that they report the account as "paid in full" rather than "settled"
A 2022 report by the American Fair Credit Council found that consumers who successfully negotiated debt settlements saved an average of 50% on their original debt amounts.
5. Set Up a Payment Plan
If you cannot afford to pay the debt in full or negotiate a settlement, TrueAccord typically offers payment plans. Their digital platform makes it easy to set up automated payments that fit your budget.
When establishing a payment plan:
- Only commit to payments you can consistently make
- Get the terms in writing
- Understand how the payments will be reported to credit bureaus
6. Request Pay-for-Delete (Optional)
While not always successful, you can request that TrueAccord remove the collection account from your credit report in exchange for payment. This agreement, known as "pay-for-delete," is not guaranteed, but some consumers report success with this approach.
If pursuing this option:
- Make the request in writing
- Specify that payment is contingent upon removal from all credit reports
- Obtain written confirmation before making payment
Example: Sarah's Experience with TrueAccord
Sarah, a 34-year-old teacher, discovered TrueAccord on her credit report when applying for a mortgage. She had forgotten about an old retail store credit card with a $450 balance that went unpaid after she moved and stopped receiving statements.
Initially panicked, Sarah followed these steps:
- She verified the debt through TrueAccord's online portal
- She recognized the original creditor and acknowledged the debt was legitimate
- She negotiated a settlement of $300 (about 67% of the original debt)
- She requested and received written confirmation of the settlement agreement
- After payment, she monitored her credit report to ensure it was updated to "paid"
While the collection account remained on her credit report, the "paid" status improved her credit score by approximately 30 points over the following three months, allowing her to qualify for a better mortgage rate.
Protecting Your Rights When Dealing with TrueAccord
The Fair Debt Collection Practices Act (FDCPA) provides important protections when dealing with collection agencies like TrueAccord:
- They cannot call before 8 a.m. or after 9 p.m.
- They cannot use harassment, threats, or abusive language
- They must honor written requests to cease communication
- They cannot discuss your debt with others except your spouse or attorney
- They must provide accurate information about the debt
If you believe TrueAccord has violated these rights, you can file a complaint with:
- The Consumer Financial Protection Bureau (CFPB)
- Your state's attorney general's office
- The Federal Trade Commission (FTC)
According to data from the CFPB, consumers who file complaints about debt collection practices receive responses from companies in approximately 97% of cases, often resulting in explanation, non-monetary relief, or monetary compensation.
Recommended Read: Top 9 Consumer Rights Against Debt Collectors
The Bottom Line: Taking Control of the Situation
Finding TrueAccord Corp on your credit report can be stressful, but taking prompt action is the best approach. Whether the debt is valid or not, understanding your rights and options allows you to address the situation proactively.
Remember that having a collection account on your credit report is not uncommon. According to Experian, approximately one in four consumers has at least one collection account on their credit report.
By following the steps outlined in this guide, you can work toward resolving the debt, improving your credit score, and moving forward with better financial health. Taking action today can help you avoid more serious consequences and put you back in control of your financial future.
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Frequently Asked Questions About TrueAccord Corp
Who does TrueAccord collect for?
TrueAccord collects debts for a wide range of companies across industries including banking, retail, telecommunications, education, and healthcare. Some of their known clients include major credit card companies, online lenders, and subscription service providers.
Is TrueAccord a legitimate collection agency?
Yes, TrueAccord is a legitimate debt collection agency founded in 2013. They are accredited by the Better Business Bureau with an A+ rating and are registered with appropriate regulatory bodies. They comply with federal laws governing debt collection practices.
Why am I getting texts from TrueAccord?
TrueAccord primarily uses digital communication methods like text and email rather than traditional phone calls. If you're receiving texts from them, it likely means they're attempting to collect a debt that has been assigned to them by an original creditor.
What happens if I ignore TrueAccord?
Ignoring TrueAccord won't make the debt disappear. The collection account will continue to affect your credit score, and in some cases, they may escalate to legal action. It's better to address the situation directly, even if you dispute the debt or need to negotiate payment terms.