How to Remove Covington Credit from Your Credit Report
If you have an old debt hanging over your head, you may begin to hear from a debt collector called Covington Credit.
Covington Credit is a third-party collector that collects payments from you on behalf of the original creditor or as the new-owner of the debt.
Not only are they a pain to deal with, but they can also wreak havoc on your credit score as reported by the three main credit reporting bureaus: Experian, Equifax, and Transunion.
This impacts any future personal finance decisions you may need to make in the future, such as credit card applications or any other loan applications.
In order to collect payments on your debt, Covington Credit must first open up a collections account on your credit report.
A collections account can remain on your credit report for up to seven years which we mentioned can negatively impact your credit even after you pay the debt.
Future lenders can also see this account and make loan decisions based on the fact that you’ve had a debt move to collections.
In short, it looks really bad if you’ve not fulfilled your obligation to pay a debt. Most creditors will be unwilling to risk their money by lending it to you.
It is best to remove collection accounts from your credit report as quickly as you can.
If you are unsure about how to remove negative marks from your credit report, you are not alone.
It is a daunting process, but thousands of people are successful in cleaning up their credit reports each year.
To learn more about Covington Credit and how to remove them from your credit report, check out our in-depth guide below.
Steps to Remove Covington Credit from Your Credit Report
These are the essential steps to take to get rid of Covington Credit on your credit report for good:
- Request a Goodwill Deletion
- Validate the Debt
- Pay for Delete
- Work with a Professional
Request a Goodwill Deletion
If you’ve already paid off the debt, you may be thinking that you blew your shot at deleting Covington Credit’s entry. This is not the case at all.
In fact, you may have an easier time than someone that hasn’t paid their debt. You can have your collection entry deleted by requesting a goodwill deletion.
A goodwill deletion is when Covington Credit agrees to stop reporting your debt out of generosity.
Again, this is really only going to be an option if the debt is paid off and you have not had any late payments since then.
They will usually help people out and agree to something like this if you have a good reason for being late on your payments, such as experiencing a medical emergency or a layoff.
The best way to request a goodwill deletion is to write Covington Credit a letter explaining to them why the debt went to collections and also why you would like the collection entry removed.
Some common reasons that people use are trying to qualify for a mortgage or having a baby on the way.
Always remember to be sincere and polite in your letter. If you write an entitled and demanding letter, Covington Credit will likely ignore your request.
Validate the Debt
If Covington Credit denies a goodwill deletion or if you haven’t paid the debt, the next option is to try to get the entry deleted on a technicality.
You can do this by asking Covington Credit to validate the debt and look for any inaccuracies in reporting.
It isn’t uncommon for information to get lost when it goes from the original creditor to the debt collector.
Sometimes the debt collector, in this case, Covington Credit, has the wrong creditor name or even debt amount.
It is possible that the debt doesn’t even belong to you. That’s why it’s important to request that Covington Credit verify the information associated with the debt.
To request that Covington Credit verify the debt, you need to write a debt validation letter.
This is essentially a letter that formally requests that Covington Credit verify specific pieces of information such as the name on the debt, the total amount, and the date of debt acquisition.
I would advise you to send the letter through certified mail, leaving a legal paper trail to follow.
It is important that you don’t wait to send this letter as most companies have a 30-day verification policy. If you wait more than 30 days, Covington Credit may not acknowledge your request.
Once Covington Credit receives your letter, they should return with various documents meant to prove that the debt belongs to you.
Go through each document carefully and make note of any information that seems off.
If you find anything that does not match the information that you have regarding the debt, you can file a dispute with the three major credit bureaus.
If they find that Covington Credit indeed has incorrect information, they will delete the entry from your report. This can get you out of having to pay the debt altogether.
Make a Pay-For-Delete Agreement
If you are unable to delete the entry due to inaccurate reporting, your next step would be to make a pay-for-delete agreement with Covington Credit.
A pay-for-delete settlement is a relatively straightforward concept. It is essentially where you agree to pay Covington Credit for the debt in exchange for them to delete their entry off of your credit report.
This can be a difficult deal to strike with debt collectors, but they will allow it if they are desperate for payment.
Start by offering to pay Covington Credit half of the total amount of the debt. They will likely push back on this, so you will need to negotiate with them until both parties come to an agreement.
Once you settle on an amount, have Covington Credit send you a written agreement stating the terms of the agreement clearly. Make your first payment to them only after you have received this and are satisfied that it clarifies the settlement.
After you make your first payment, wait thirty days, and then check your credit report.
By this time, Covington Credit should have removed their entry from your credit report. If they haven’t, reach back out to them and remind them of your agreement.
Get a Free Copy of Your Credit Report
Work with a Professional
Negotiating with debt collectors is difficult, and you may find that you aren’t getting anywhere with Covington Credit.
If this is the case, you may benefit from the services of a credit repair company or even a law firm.
A credit repair company helps remove any negative marks from your credit reporting by communicating and negotiating with Covington Credit directly.
They understand the ins and outs of the debt collection industry and can often make much more headway than you are able to on your own.
However, it is important to work with a reputable company because many companies can be ineffective.
If you are interested in working with a credit repair company, I recommend working with Sky Blue.
Sky Blue has been successful in removing Covington Credit from their customers’ credit reports, and they can help you clean up your credit report and help you improve your credit score along the way.
What is Covington Credit?
Originally founded in 2002, the United States-based Covington Credit is a small debt collection agency and subsidiary of Southern Management Corporation (a small consumer loan finance company).
They collect on behalf of a variety of industries including health care, utility providers, telecommunication services, and government agencies as well as offer personal loans as part of their financial services.
Covington Credit has relatively few complaints filed against them given their brief history, but they are still unpleasant to deal with.
They have two complaints filed against them with the Consumer Financial Protection Bureau (CFPB) and roughly 100 complaints with the Better Business Bureau (BBB.org).
These complaints mainly have to do with harassment, inaccurate reporting, and failing to validate debt information all of which is in direct violation of the Fair Debt Collection Practices Act or (FDCPA).
Covington Credit Contact Information
Here is their current contact information:
- Address: 3128 Forest Ln STE 315, Dallas, Texas 75234-7761
- Phone Number: (864) 233-9033
- Website: https://www.mymoneytogo.com/covington-credit/
- Other locations in Tennessee, Alabama, Georgia, Oklahoma, and Texas
Dealing With Covington Credit
No one wants to deal with debt collectors, but there is a proper way to handle them.
When you take the correct steps, you can minimize their impact on your credit score and blood pressure.
By taking care of Covington Credit early, you can get back on track to improve your credit score.
We have tons of articles with ways to improve your credit score and overall financial habits.
Be sure to check out some of our most popular articles for tips, tricks, and guides that can help you achieve your financial goals.
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