If you have debt, perhaps a medical bill or a credit card bill, you may have heard of AR Resources, a receivables management company that operates as a collection agency hired by the original creditor. In order to remind you of your financial obligation in every way possible, AR Resources must first open an account for your credit report through the credit bureaus.
Debt collection entries on your credit report hurt your credit score and affect it for up to seven years after the debt is paid off. Prospective lenders will use this information to determine your creditworthiness in administering credit and credit approval decisions. The best way to repair and prevent further damage to your credit score is to remove the negative entry from your credit report as soon as possible.
What are AR resources?
AR Resources is a US-based debt collection company founded in 2002 in Blue Bell, Pennsylvania with offices in Jacksonville, Florida. It is a reputable company that provides accounts receivable solutions, pre-collection programs, and bad debt collections to various industries including banking, healthcare, real estate management, and small businesses. The majority of its clients are healthcare providers and educational loan providers.
Since 2002, people have filed 625 complaints against AR Resources with the Consumer Financial Protection Bureau and 144 with the Better Business Bureau (BBB.org). These range from harassment to inaccurate reporting and failure to validate debt, all of which are violations of the Fair Collection Practices Act. Several of the complainants have also filed lawsuits against AR Resources in the state of Connecticut.
If AR Resources has treated you unfairly, you can also file a complaint with the Federal Trade Commission.
Steps to remove AR resources from your credit report
If you want to stop AR Resources from communicating with you and get them to remove the collection from your credit report, follow these steps:
- Request a grace wipe
- seek debt validation
- Enter into a pay-for-delete agreement
- Hire a professional
Request a grace wipe
If you have already paid the balance of your debt, you may be eligible for a grace cancellation from AR Resources. In this process, a collection agency agrees to delete a negative entry from your credit report as a gesture of goodwill. Ensuring a goodwill wipe will likely work if you’ve already paid off the debt and have an otherwise clean credit report.
To request removal of goodwill, you can write a letter to AR Resources describing your financial condition, disclosing what caused the late payments, and why you want the listing removed. Common reasons for applying for a goodwill wipe are to apply for a mortgage loan or a new car.
Regardless of the situation, you should be honest and polite. Remember, AR Resources is doing you a favor if they decide to honor your request. They’re more likely to do this if the tone of your letter is sincere and apologetic.
seek debt validation
Another way to remove a collections entry from your credit report is to identify inaccuracies in your credit file. You can do this by requesting a debt validation from AR Resources. It is not uncommon for account information to be lost or misinterpreted in transit from the original creditor to the collection agency. Sometimes the debt in question may not even belong to you.
If this is the case, you can have the inaccurate entry removed from your credit report by submitting a debt verification letter to AR Resources within 30 days of initial contact. You then have to contest the entry with the three major credit bureaus.
Once AR Resources responds with information about your debt, carefully review all documentation and look for any discrepancies. If you spot any, contact the credit bureaus and file a dispute. This should be enough to remove the listing and you may not have to pay the debt.
Enter into a pay-for-delete agreement
If you find no inaccuracies, the next step is to negotiate a pay-for-delete agreement. That means you agree to make payments on the debt, and AR Resources agrees to stop reporting the debt to the major credit bureaus. Occasionally, the debt collector is willing to settle for less than the amount owed in order to get some of their money back. You could start with an offer to pay half the total amount and negotiate from there.
Once you have reached a suitable agreement, ask AR Resources to send it to you in writing. Upon receipt, confirm that the agreement is correct. Then make your first payment as agreed. Check your credit report 30 days after payment to see if it still has AR resources, and if so, contact them and remind them of your agreement.
Hire a professional
AR Resources is a tough nut to crack. If you’re stuck with the company on your own, consider working with a reputable credit repair company. These organizations can help you clean up your credit report and improve your credit score, saving you the trouble of dealing directly with collection agencies.
AR Resources contact information:
Main office address:
- 1777 Sentinel Pkwy W
- Blue Bell, PA 19422
- PO Box 1056
- Blue Bell, PA 19422
Dealing with AR Resources Inc.
Nobody likes dealing with collection agencies. But you have to deal with the situation quickly so that collection doesn’t damage your credit rating for years. The best way to get your credit score back on track and one step closer to your financial goals is to completely remove AR Resources from your credit report. If you’re trying to rebuild your credit score, read our article on ways to improve your credit score.