4 Easy Steps to Remove IC Systems From Your Credit Report

Debt is a major problem in the US. This isn’t just saying it is an unfortunate fact for some people in the US, no, almost every adult in the US today has some form of debt. In fact, the statistic for people in debt in America is around 80% of the population and the average amount of debt an American has is about $90,000.

That is a major and shocking number. Most people cannot help this either, they have to get loans in order to live. Unfortunately, this has left room for debt collection agencies to become lucrative businesses. One of the most prominent of these debt collection agencies is the IC systems. If you have been contacted by them, you probably know of the hassle they cause the average working person, even if you are working to pay off your debt.

So, what can you do? How can you remove them from your credit reports? Well, there are 4 steps in order to get the IC systems off of your credit report.

Also read: How to Do Bookkeeping 

What are IC Systems?

IC systems are a debt collection business that collect debts for other businesses where there are overdue accounts. The industries they collect for are pretty varied, but they mainly focus on businesses that work in healthcare, dental, utilities, communication, and government sectors.

The name of the company can confuse people, because they assume that the ‘IC system’ is just a method of collecting debt for an established authority. This is not the case, and make no mistake, this company is a private enterprise. They are not law enforcement or government officials; they are a private company and are restricted in what they can legally do.

Another thing to note is that they are referred to by IC systems and IC system a lot by different people, but they are the exact same company. If they are showing up on your credit report, prepare for a headache.

Also read: How to Pay Employees of Small Businesses 

What to Do If IC Systems Try to Make You Pay a Debt:

First thing to do is: don’t panic! Seriously, we know it looks grim, but try to relax. IC systems are also known for being quite pushy and intimidating, but don’t let that tactic work. You have your own rights, and you need to enforce them. However, that does not mean you should ignore the situation, as IC systems won’t.

There are four steps you need to take once you are contacted. They are as follows:

1). Prepare Your Knowledge of The Law

This is the most important step. The law states the rights of those in debt and the right of those collecting debts. This is no longer the 1900s and your rights in this situation are protected by the law, therefore remember these key points of the law when dealing with IC systems (or any debt collection agency):

- You cannot be contacted by a debt collector before 8am or after 9pm.

- Your place of work cannot be contacted by a debt collector.

- If you are represented by a lawyer, the debt collector must communicate through your lawyer.

- Your friends or family cannot be contacted by a debt collector or told about your debts from the collector.

- You cannot be threatened with physical harm, reputational damage, or your property cannot be threatened by the debt collector (and they can’t use profane language.

- The debt collector must identify themselves and their company to you, and they cannot claim to be law enforcement or other governmental officials.

- You cannot be threatened with the seizure of assets or imprisonment by the debt collector.

If the debt collector handling your case violates any of the above rules, then report them either to the FTC, the CFPB, or your state’s attorney general and give them an account of exactly what happened.

Also read: Open a Business Bank Account

2). Demand the IC System Prove the Debt is Real

Thanks to rampant and unregulated collectors, the rules surrounding debt collection in the US changed in 2021. Now, debt collectors must send you a notice of the debt within the first 5 days of contacting you.

An authentic and valid Notice of Debt must contain a valid date that validates the debt. This can be one of five things:

- The charge-off date.

- The last statement or invoice date provided by the creditor to the consumer.

- The last payment on the debt date.

- The transaction that caused the debt date.

- The date of the judgment, if the debt went to court.

These dates are important, as they will tell you how long the statute of limitations is on your date and when it will disappear from your report.

The Notice of the debt must also contain a litany of other information that is about the debt itself.

- The name and mailing address of the debt collector.

- The name and mailing address of the consumer.

- If it is a financial product (like a loan) that relates to the debt, then the notice must contain the creditor’s name to which the debt was owed at the time of the valid date.

- The account number tied to the debt.

- The creditor’s name to which the debt is currently owed.

- The debt’s total amount (including an itemized list of interest, payments made, additional fees, and any other charges.

The Notice of the debt has to have a statement either contained within or alongside it, telling you your rights (under the Fair Debt Collection Practices Act) and that you have the right to dispute the debt within 30 days of receiving the letter.

If any of these things are missing in the Notice of Debt, or it is incomplete, then it is invalid, and the debt isn’t collectible.

There may also be a form that is returnable to the company provided with the notice. It will allow you to dispute the debt and choose three reasons for doing so:

- The debt is not mine.

- The debt amount is incorrect.

- Other (additional information must be supplied.

Side Note: Always Dispute the Debt.

As a quick aside, always dispute the debt if it is from a collection company. You have 30 days to do this and, if you don’t, then the debt is considered valid, even if it isn’t yours.

Send IC systems (or the debt collection agency) a letter by certified mail (so it is provable that you did it) and ask for:

- Documentation that proves you owe the debt.

- The statute of limitations on the debt.

- Whether this particular agency is legally licensed to collect debt in your state.

- A copy of the billing statement last sent by the original creditor.

Even if you think or know the debt is your own, that doesn’t mean they know that. The onus is on them to prove that you owe the debt and if they can’t, they can’t collect the debt or report it to the appropriate credit bureaus. It costs you nothing to do and may clear your debt completely.

Also, always check the statute of limitations of the debt against those in your state. If it has expired, you can’t pay off the debt.

Also read: Marketing in Business 

3). What to do if it Isn't Your Debt

If the debt isn’t yours or the debt collection agency can’t prove it is your debt, you need to send a demand letter to the collection agency informing them that they have a false claim and that they need to remove your name from the debt.

You then need to contact the three credit bureaus: Experian, Equifax, and TransUnion, and ask them to correct your credit report. If IC systems drag their heels or refuse to acknowledge that the debt isn’t yours without proof, then you need to contact these three credit bureaus directly and ask them to dispute the debt.

They are legally obligated to investigate this dispute within 30 days and if the creditor or creditors can’t prove it is yours, they must delete the debt from their systems.

4) What to Do if it is Your Debt

Unfortunately, if it is conclusively proven that the debt is yours, then you are going to have to start paying. Of course, if you have the cash, then just paying the debt off entirely is the easiest thing to do.

However, debt collection agencies have two weaknesses that can be exploited to reduce your debt: the first is that they work on commission and the second is that they often work on debts that are years old.

This means they are anxious to get the debt settled quickly, so they can be paid and so the statute of limitations doesn’t run out, denying them a paycheck. As such, debt collection agencies are very open to negotiation, and you should make a starting offer of paying off 50% of the debt.

This will not be the total you pay, but you will probably end up with less than 80% of the debt paid off by you.

If none of these work in paying off the debt or getting the agency off your back, then you need to speak to a credit lawyer. Having them handle it may be the best way to go, but can be quite dear. However, they will get the job done.

Also read: How To Make Business Cards

Conclusion

As you can see, it is possible to dispute the IC systems from your credit reports. Although they are a nuisance, it is important to know how to deal with them. The best way to handle or deal with these IC systems is to keep a cool head, don’t ignore them, and remember the facts of the matter.

If you haven't got the most efficient way to produce pay stubs for your employees, check out the pay stub maker today. It is so easy and convenient!