Enterprise Collections on Your Credit Report? Fight Back and Win

If you check your credit and see Enterprise Collections listed there, also known as Enterprise Recovery, it’s likely having a significant and negative effect on your credit score. So how can you get this company off your credit and stop their calls? There are options available to you, and a consumer protection attorney can help.

What Is Enterprise Collections?

Enterprise Recovery Systems is known by several other names. One is Enterprise Recovery Systems and the other is Alltran. This company could be listed as any of these names on your credit report. Regardless of the name listed, this company is a debt collection agency. 

The company works as a third-party debt collector, meaning that debts originate first with another company. When that company doesn’t believe it can collect the past-due debt, it will either outsource debt collection to a third party like Enterprise Collections or sell the debt.

Who Does Enterprise Collections Collect For?

Enterprise Collections works in several industries. The company collects for colleges and universities, private lenders, and they’ve collected for the Federal Department of Education.

Why Is Enterprise Collections Calling Me?

If you’re getting calls from Enterprise Collections, they believe you owe a debt and are trying to recover it.

Is Enterprise Collections a Scam?

Enterprise Collections isn’t a scam. They’re a legitimate commercial debt collection agency.

What Happens If You Have a Debt Sent to Collections?

Having debt sent to a company like Enterprise Collections can be stressful for consumers. They often don’t know the best way to handle the situation. If you try to handle it directly without the help of a consumer protection attorney, you might inadvertently restart the statute of limitations or make the situation worse.

You could also think that if you pay the debt, whether or not you legitimately owe it, it will be taken off your credit report. Unfortunately, there’s no guarantee this will happen, which is why working with a consumer protection attorney can be so important to protect your rights.

When a debt is sent to collections, typically, the company that takes it over will start sending you letters or calling you. They’re trying to get back whatever you owe, and then if a company like Enterprise Collections is successful, they get paid a percentage of the amount they recover.

If you have a debt in collections, it can seriously affect you financially. 

First, around 35% of your credit score is based on your payment history. Having a debt in collections indicates that you don’t make on-time, agreed-upon payments, which can lead to a big drop in your score. If you have an account in collections, it can also stay on your credit report for as long as seven years unless you do something about it.

When you have an account listed with Enterprise Collections, it can make it harder for you to get new credit cards, take out loans or even rent a home. This is because lenders, financial companies, landlords, and even employers will check consumers’ credit reports to see if they’re reliable borrowers or renters. 

When you have something listed as being in collections, anyone checking your credit could potentially think you aren’t going to make payments to them on time.

It's also possible in certain situations for debt collection agencies to take serious legal actions, including suing you. If a debt collector sues you and wins, they can get a judgment against you, allowing them to take money directly from your bank account or garnish your wages.

Disputing a Debt with Enterprise Collections

People tend to be surprised by how often debt collectors have wrong information on file or that wrong information is listed on their credit reports. The potential for wrong information on credit reports with the three major bureaus is one of the reasons it’s critical to take advantage of your free annual credit reports and check them for errors.

There are a lot of reasons for wrong information. Enterprise Collections could have done skip tracing to fill in identity gaps when they were handed a debt from an original creditor. The skip-tracing process relies on imprecise methods for verifying identities, and the debt collector often gets it wrong. 

If you ignore their calls and don’t work with a consumer protection attorney to submit a dispute, Enterprise Collections can end up reporting that wrong information to one or more of the credit bureaus.

There are also situations where identities are mixed up on actual credit reports, especially if people have similar names or their Social Security numbers are close. There could be mistakes on your credit report because of wrong payment dates or balance information, or old debts might be reported as new.

Regardless of the specifics, the Fair Credit Reporting Act provides the legal right to dispute any wrong information. Within 30 days of the submission of a dispute, companies like Enterprise Collections are legally required to investigate and update or correct the wrong information.

While a consumer can submit their dispute, what tends to happen is the debt collection agency ignores it, so the problem never gets fixed. 

The negative account continues to affect you financially. Working with a consumer protection attorney shows debt collectors you’re serious about your dispute and protecting your FCRA rights.

Consumers also have rights because of the Fair Debt Collection Practices Act or the FDCPA. Under this law, debt collectors are seriously limited in what they can say and do when trying to collect. Debt collectors can’t use threats, harassment, or deception to collect money, and they can’t call you before 8 in the morning or after 9 in the evening. 

A debt collector has to be transparent about why they’re contacting you from start to finish.

Fair Credit Can Help

If you’re tired of dealing with the negative effects of a collections account with Enterprise Collections, Fair Credit can help. We’re FCRA consumer protection attorneys specializing in helping consumers effectively deal with debt collection agencies. Contact us to learn more or for a free case review so you can move forward.