Key 2 Recovery on Your Credit Report? Fight Back and Win

Have you checked your credit and been caught off guard by the name Key 2 Recovery, sometimes also written as Key2Recovery? If so, you’re probably wondering what this company is, if you’re being scammed, and how to get it off your credit report. There are options available to you when dealing with Key 2 recovery.

What Is Key 2 Recovery?

Key 2 Recovery is a third-party debt collection company. Other companies will come to Key 2 Recovery and hire them to collect on their behalf. Key 2 Recovery isn’t an original creditor, which is why the name is unfamiliar to consumers.

Is Key 2 Recovery Legitimate?    

Key 2 Recovery is not a scam—it’s a legitimate debt collection company with offices in Hamilton, OH. The Better Business Bureau accredits Key 2 Recovery, but numerous consumer complaints exist against the company.

Some of these complaints focus on being unable to get in touch with anyone at the company who can provide help, and even more, people say that they found Key 2 Recovery listed on their credit report, but it’s not their debt. Some consumers say they’ve been unable to get this company to provide them with any information about the original debt, and even when they dispute it, it remains on their credit report. 

Also, some people feel that the debt Key 2 Recovery is trying to collect the result of fraud or identity theft.

Even more specific complaints are all too common in debt collection, where consumers say that they’ve explained the company has the wrong person. The name is the same, but in many instances, the social security number is different. According to consumer allegations, after something like this happens with a case of mistaken identity, the company has said it will take them off their call lists, but they don’t follow through.

Another issue is that some consumers say while they owe money that Key 2 Recovery is calling about, the amounts and payment dates are wrong. For example, many people say there’s no reason for their debt to be considered delinquent and in collections because they’ve consistently made on-time payments.

Why Is Key 2 Recovery Calling Me?

If Key 2 Recovery is calling you, they believe you owe a debt, but you might not. 

Who Does Key 2 Recovery Collect For?

This third-party debt collector focuses on student loan debt, especially from for-profit schools like South College, but many others, including state universities. If someone stops making payments on their student loans, they can go into default and be sent to or sold to a debt collector, leading to significant negative consequences. 

Key 2 Recovery collects other debts that originate with schools, universities, and educational institutions along with student loan debt. For example, fees could be owed, or tuition not be covered by a loan that Key 2 Recovery is attempting to collect.

If you have student loans that go to collections, you’ve potentially defaulted on them. A federal student loan will be considered in default if you haven’t paid in 270 days. Private student loan rules vary; sometimes, these will be considered in default even after just one missed payment.

If a student loan debt goes into collections, something called acceleration can happen, meaning that the balance is immediately due.

When student loans are in collections, there can be major financial repercussions, including garnishing of your wages and income tax refunds, depending on the type of loan. When a person’s student loans are in default, it can mean that they’re assessed collection fees in addition to the loan itself. The fees vary depending on the loan holder but can be as much as 40% of the balance outstanding.

Once student loans go to collections, the person could be ineligible for loan deferment, lose their subsidized interest benefits, and no longer be eligible for federal financial aid.

Plus, any defaulted account in collections can appear on credit reports for up to seven years.

When you have a collections account of any kind on your credit report, it can cause a major decline in your score. Thirty-five percent of your credit score is estimated to be based on your payment history.

What Debt Collectors Can’t Say and Do

Many people don’t realize that whether there’s been a mistake or they legitimately owe a debt, collection agencies are prohibited by federal law from saying and doing certain things. According to the Fair Debt Collection Practices Act, a debt collector can’t use harassment, profanity, or threats as part of trying to collect money. They can’t lie, for example, saying that you will get arrested for non-payment or misrepresent who they are and why they’re calling. If you tell a collection agency to stop calling you at work, they have to comply.

Debt collectors are not supposed to call at purposely inconvenient times or back-to-back.

How to Get Key 2 Recovery Off Your Credit Report

If you have Key 2 Recovery listed on your credit report, it’s important to deal with the situation proactively. Otherwise, you will be blocked regarding your ability to get new accounts and move forward financially. Whenever someone checks your credit, they’ll see that you have a collections account listed there, and your score will also be lower.

The Fair Credit Reporting Act is another federal law with consumer protections related to how your credit information is collected, maintained, reported, and accessed. Because of this law, if someone checks your credit and takes an adverse action because of it, they have to let you know.

It also allowed consumers to dispute anything on their credit file that isn’t correct, is due to fraud, or shouldn’t be there for any other reason. If you work with a consumer protection attorney, they can submit a dispute to Key 2 Recovery on your behalf and take steps to get them off your credit report.

Fair Credit Can Help

If you want help dealing with Key 2 Recovery and want to stop their calls and get their name off your credit report, contact Fair Credit. We’re FCRA consumer protection attorneys who can help, and we can get you started with a free case review.