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Are you getting phone calls from a company called Allied Interstate? If so, there’s a collection in your name, and it’s lowering your credit score.
An Allied Interstate collection can bring your credit score down 100 points if you aren’t careful. It’s important to know how to remove Allied Interstate from your credit report and how to get them off your back.
Check out my tips below and start right away.
Who is Allied Interstate?
Allied Interstate is a debt collection agency. If you receive phone calls from them or found them on your credit report, chances are you defaulted on a debt, and they now own it.
This happens all the time. Debt collection companies buy debts for pennies on the dollar and then try to collect the full amount from you, the consumer.
Allied Interstate is no exception – they are an aggressive debt collector that will pull out all the stops to get you to pay your collection in full.
Is Allied Interstate a Legitimate Company?
While they are aggressive, they are a legitimate company. They collect for big names like eBay, Capital One, and DirecTV. If you see them on your credit report or get 10 phone calls a day from them, it’s not good.
They won’t stop until they get what they want, but the good news is with the right steps, you can beat them at their own game and have Allied Interstate removed from your credit report.
How to Remove Allied Interstate (4 Proven Ways)
1. Get Help from a Professional
It may seem crazy to spend money when you already owe a company money, but it’s worth it. The collection Allied Interstate put on your credit report may cost you as much as 100 points. That’s a huge hit and can affect you for many years.
Technically, the Allied Interstate debt will sit on your credit report for 7 years unless you do something about it, like hiring a credit repair company.
The best credit repair companies do what you can do – dispute the debt with the credit bureaus, but they take it a step further. Everything they do is legal (at least reputable companies), but they know what to look for.
If you dispute a debt, you’d probably do so if your account number was wrong or the balance was incorrect.
2. Request Debt Validation
When you first hear from Allied Interstate, it will be either a phone call or a written letter.
After that first communication, you have 30 days to ask for debt validation. In other words, you ask Allied Interstate to prove that the debt is legit and belongs to you.
All consumers have the right to ask for debt validation, and the collection agency can’t do anything until they validate your debt. Send Allied Interstate an official debt validation letter requesting information about the debt.
Allied Interstate is known to not respond to these letters, and that’s okay. Be aggressive. If they don’t respond within 30 days, write to them again. Make sure you send all correspondence via certified mail so you can prove receipt.
If they still don’t respond, you can request that the credit bureaus remove the collection from your report due to lack of validation.
And if that does not work, you can also file a complaint with the Consumer Financial Protection Bureau (CFPB).
3. Negotiate a Settlement
If Allied Interstate validates the debt and you don’t have anything to dispute, negotiate a settlement. Remember, they bought the debt for pennies on the dollar of what you owe.
For example, if you owe $2,000, they didn’t pay nearly $2,000 to get the debt. They are hoping that you’ll pay the full $2,000 though, so they can make a nice profit.
Negotiate a settlement that’s less than what you owe. Before you do, think about what you can afford. Are you considering a lump sum payment or a payment arrangement? This makes a difference.
If you make a lump-sum payment, you’ll have more negotiating power. Collection agencies usually accept a lower amount knowing they’ll get the money at once.
If you need a payment arrangement, you may pay a little more, but still, be aggressive in your tactics. Remember, you’re working with a bold collection agency here.
4. Ask for Goodwill Deletion
If the collection was a complete oversight or a one-time deal and you usually pay your bills on time, ask for a goodwill deletion.
This isn’t anything formal, you are just asking for the creditor to cut you a deal this one time. If you have excellent credit and haven’t missed a payment before, they may oblige. It depends on the reason.
Ask for the goodwill deletion in writing but be cordial. Don’t place blame or make excuses. If something extraordinary happened that made you unable to pay your bill for that time, explain it, but otherwise keep it brief.
Ask the creditor to delete the collection information in exchange for payment based. Mention your good payment history and your good credit score to help move things along.
Allied Interstate Consumer Complaints
Allied Interstate has a lot of complaints. Most consumers complain about the lack of debt validation.
Like I said earlier, they typically ignore debt validation requests unless you get as aggressive as they are. Know that if you’re dealing with Allied Interstate that you’ll likely need help.
Allied Interstate Contact Information
- Mailing Address: Allied Interstate, P.O. Box 19312, Minneapolis, MN 55419
- Phone Number: 800-811-4214
Frequently Asked Questions
Can You Remove Allied Interstate Collection Accounts?
You can remove Allied Interstate collections from your credit report with the right steps. If you don’t, it will sit there for 7 years. It doesn’t affect your credit score the entire time, but the first 2 years are brutal on your credit score.
If losing 100 points on your credit score does not sound appealing, you’ll see why you need to remove Allied Interstate from your credit report using one of the methods above.
Just to reiterate, the best course of action is to hire a credit repair company. They know how to remove a collections account, rebuild your credit, and more. It is a win-win all around.
Should I Negotiate a Settlement of Pay Allied Interstate?
If you have to pay Allied Interstate, negotiate a settlement. Like I said before, they bought your debt for a mere fraction of its value. Don’t pay them more than they deserve.
But make sure you do everything in writing. It’s easy to get excited on the phone when the rep says he’ll cut you a deal, but unless it’s in writing, there is no deal.
Make it official and ensure that the terms match what you agreed on. No matter how much you agree to pay, have in writing that Allied Interstate agrees to report the collection ‘paid in full’ otherwise you’ll have a partially paid collection on your credit report, which doesn’t bode well with future lenders.
If you negotiate a settlement, only pay by check. Don’t share your checking account information with Allied Interstate.
Send a check via certified mail and keep a copy of it as well as the canceled check and the written agreement to accept the payment as payment in full.
If you have to go to the credit bureau to dispute how Allied Interstate reports the information, you need plenty of proof.
Will Allied Interstate Sue Me or File a Lawsuit?
Allied Interstate could sue you or file a lawsuit. It’s rare, but it’s not impossible. If you ignore their attempts to collect the debt, they may take further action.
This isn’t a chance you want to take. A lawsuit is time-consuming and expensive.
If they manage to get a judgment on your credit report, you’re in an even worse position as a judgment can cost you 150 points on your credit score and force you to lose your reputation with future lenders.
Can Allied Interstate Garnish My Wages?
Like a lawsuit, Allied Interstate rarely garnishes wages, but it’s a possibility. Don’t take that chance.
Rather than ignoring the debt, take the steps above to validate, dispute, or at the very least, negotiate a settlement.
If they garnish your wages, not only do you lose some of your income, but your ‘dirty laundry’ is brought to your employer’s attention which probably isn’t something you want.
Bottom Line: Allied Interstate Collection Account
If Allied Interstate is on your credit report, act quickly. Start by requesting debt validation and keep pushing until you get it. If they do not respond or you need help getting them off your credit report, get a credit repair company to help you or repair your credit yourself.
Allied Interstate is aggressive and doesn’t always follow the rules, which may be reason enough to dispute the collection and remove this negative item off your credit report.
Remember, as soon as Allied Interstate is off your credit report, you can begin to improve your credit score.