A common negative entry that many consumers may find on their credit reports is AFNI. Though it can be confusing at first, it’s important to note that AFNI regularly purchases the rights to a wide range of consumer debt types. In our article, we will be explaining what AFNI on credit report is and offer four ways to help you get it removed from your credit report.
General Information about AFNI on Credit Report
The most important thing to remember about AFNI on credit report is that you should not panic. Though you may not recognize the entry, it’s entirely possible for the debt to be valid from another source that you have completely forgotten about in the past.
AFNI is a company that is based in the midwest. The organization has been around since 1936. The company regularly purchases aged debts from a wide range of creditors. These target companies include cell phone carriers, cable providers, as well as hospitals and other medical institutions.
The Company Purchases Old Debts at a Discount
By purchasing these debts, the company is then able to pursue the person who owed the money originally to the company. They make their money by purchasing the debt at a discounted rate from the original company and seeking to collect as much of the original amount as possible from the consumer.
Unfortunately, AFNI is frequently accused of practicing unfair debt collection practices by consumers all the time. Complaints range from collecting debts that were already paid in full to debts that were not listed for the correct person.
Fortunately, correcting errors with AFNI on credit report is fairly easy. Let’s see the 4 steps that get you to remove the AFNI on credit report easily.
1) Validate the Debt
The first way to remove AFNI on credit report is to validate the debt. Due to the way the company operates, they often purchase consumer debts in bulk from several larger companies. As a result of this practice, they often are missing important details that are specific to each person’s debt entry.
Due to specific laws in the Fair Credit Reporting Act, consumers are allowed to request validation of their debt from a creditor before paying it. You can do this by sending something called a debt validation letter to AFNI. If you have been in contact with an AFNI phone rep, you can ask them for the appropriate mailing address.
AFNI will have to respond with copies of your original agreement from the creditor or company that they bought the debt from. If they are unable to provide the appropriate information to you, they must remove the negative remark from your credit report and cease all collection efforts in the future.
2) Understand the Statute of Limitations
Different types of debt can be collected for different amounts of time. In the case of most consumer debt, the standard is typically around seven years. After this point, the collection of the debt is no longer enforceable. As a result, negative entries must be removed from your credit account.
However, it’s important to note that any agreement you set up with AFNI can restart the clock on the statute of limitations. The same goes for the previous company that handled the debt originally. The statute of limitations is based on the last agreed upon payment arrangement that you had with the collecting company.
In the event that AFNI is trying to collect on a debt that is past the limitation period, kindly inform the agent that you are requesting that the negative mark be removed due to passing the statute of limitation collection period.
They will be obligated to remove the mark from your credit report in a timely manner. Otherwise, they have to prove that you are still in an authorized collection period.
3) Settle The Debt
In the event that you have successfully verified the debt and ensured that it is still valid, settling the debt may be the best way to pay the account off. It’s important to note that this process does not remove the AFNI entry from your credit report. Instead, the account will show as paid off and it will eventually drop off your credit report as the account continues to age.
The reason settling can work with collection agencies like AFNI is that they buy the original debt at a massively discounted rate. You can take advantage of this and save on your total debt payment by agreeing to settle for a specific lump sum amount. In return, AFNI will receive your payment all at once and clear your account with them.
4) Set up a Payment Plan
In the event that you cannot afford a lump sum payment, you can always set up a payment plan with AFNI. Just like with the settling option discussed above, it’s important always to remember to negotiate first. AFNI did not pay full price for your debt and will often agree to a smaller amount.
It’s important to remember to ask for a copy of your payment plan in writing. This should detail the total amount you are agreeing to pay each month as well as the total account balance that you were able to negotiate earlier.
Retain a copy of this agreement for your records and make all of your payments on time. Once your debt is fully paid, ask for a confirmation letter from the company showing the debt has been satisfied. Make sure the status of the account is updated on your credit file.
Drawing to a Close
Though it may be unsettling to discover AFNI on credit report, rest assured in knowing that there are multiple ways to remove it quickly and efficiently. Just remember to follow the steps outlined in our guide and always to request a copy of any deal you make in writing from the company. If you have successfully removed AFNI from your credit report, please tell us how you did it in the comments section.