What Is Southwest Credit Systems and Why Is It on My Credit Report?

FT Contributor
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Southwest Credit is a verified debt collection agency and may appear on your credit report as SW Credit Systems, SWC Group LP, or Southwest Credit. Creditors work through a third-party debt collection agency, such as Southwest Credit, to retrieve payment on a past-due bill or loan.  

Collections agencies will either buy your debt from the creditor or work with the creditor to retrieve the payment. Creditors may also hire multiple collection agencies that split the debt, resulting in numerous negative marks on your credit score from each separate agency.

If you see Southwest Credit on your credit report, it’s because you’ve fallen behind on payments. There’s also a possibility that the creditor or collection agency has made a mistake. This article will guide you through the process of removing a debt agency from your credit report.

What to Do if You See Southwest Credit Systems on Your Credit Report

Dealing with a debt collection agency is a time-sensitive matter. Suppose the agency is unable to contact you or doesn’t receive payment. In that case, they will continue to call, leave negative marks on your credit score, and initiate repossession of your property in order to pay off the debt.  

In this section, we’ll discuss what you need to do when contacted by Southwest Credit.

Verify That It Is Legitimate

Your first step should be to verify that the claim is legitimate. Debt collection agencies may make various mistakes that can lead to a false claim. Causes of a false claim include:

  • Identity theft;
  • Mixed credit files;
  • Incorrect information.  

In some cases, Southwest Credit might not have received all the correct information regarding your file.

For example, if you recently declared bankruptcy and included your debt in the bankruptcy, Southwest Credit can’t collect further payment. To resolve this, send a Notice of Discharge or a copy of your bankruptcy filing to the agency’s office.

To ensure all information is correct, you will need to request debt validation by writing a debt validation letter. After receiving the letter, the agencies will send a notarized statement from the original debt holder, or they will remove the mistake from your account.  

You should also review a current copy of your credit report and check for any errors within Southwest Credit’s claim. If there is an error, you can dispute the collection. You should complete all disputes within 30 days of Southwest Credit’s initial contact.

Pay It Off

If all information is correct, you should pay off the debt as soon as possible. Failing to pay collections may cause you to experience several consequences. The debt collection agency can:

  • Increase your interest rate;
  • Report to credit bureaus and decrease your credit score;
  • Sell your debt to another collection agency;
  • Call multiple times each day;
  • Sue you for the amount owed.

If you can’t pay off your debt right away, you can negotiate payment options with Southwest Credit. They may be able to create repayment terms with the original creditor and identify repayment options that work for your budget.  

After you’ve paid off your debt with the collection agency, avoid gathering more debt than you can afford. If you’re nervous that one of your creditors might call a collection agency, begin practicing the debt snowball method, which is a simple way to pay off debts with less stress.  

Speak With a Credit Counselor

Contacting a credit counselor can help restore your credit after dealing with Southwest Credit. Your credit score is likely to suffer if your account is sent to collections; the negative mark can remain on your credit history for up to seven years.  

A credit counselor will help you create a prepayment plan for current and future debts and teach you ways to improve your credit score. Credit counseling is best for those looking to establish better credit habits and improve their credit score over time.

How to Remove Southwest Credit Systems From Your Credit Report

Having Southwest Credit on your account may limit you from getting a mortgage or auto loan because creditors will see your account as a risk. Collection agencies remain on your credit history for seven years, limiting your loan and interest rate options.  

There are three main ways you can remove collections from your credit report

Goodwill Deletion  

Asking for a goodwill deletion is an option if you’ve already paid the collections agency and you were easy to work with. In this case, the collections agency may remove the account as an act of “goodwill.”  

To get a goodwill deletion, send a letter to Southwest Credit and explain that the account is preventing you from getting a loan. If your case went well, the agency might remove the account.

Dispute Inaccuracies

Credit bureaus must remove accounts and entries that contain incorrect information. You can dispute a claim if you see any misspellings, misprints, or inaccuracies on the account.

If you find a discrepancy, the bureaus must remove the account from your credit history (not including the late payments related to the account). Credit repair companies can help you find mistakes and dispute accounts.

Pay for a Deletion

Your third option is to pay Southwest Credit to remove the account if you haven’t paid off the account already. To do this, you will need to send a letter to the agency and negotiate payment in exchange for deletion.  

Will Southwest Credit Systems Sue Me?

It’s unlikely that Southwest Credit will sue because of an unpaid account. Several steps need to happen before a collection agency resorts to suing.  

Before suing, Southwest Credit will likely sell your account to a different collections agency. If you’re unresponsive to the second agency and send in a cease-and-desist letter, the agency may sue you because they are no longer legally allowed to contact you.

As long as you’re responsive and don’t prevent the agencies from contacting you by sending a cease-and-desist letter, you’re unlikely to be sued.


Image Source: https://depositphotos.com/

 

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