If there’s a collection account on your credit report from a company called CACH LLC, or you’re getting contacted by another known as Resurgent Capital Services, they’re really two sides of the same operation.
But it can be confusing because you won’t know exactly who you’re dealing with.
The reality is that you’ll be dealing with both, and that’s what can make dealing with CACH LLC especially complicated.
But if you have a collection account from CACH LLC, you’ll need to deal with it, since it won’t just go away on its own.
And if you let it linger too long, the collection can turn into a judgment, which may result in your wages being garnished.
We’ve prepared this article to help you deal with a collection account from CACH LLC.
Read the entire article before doing anything, and decide if you want to go the do-it-yourself route at all.
If not, you may be better served by hiring a professional to get the job done for you.
Is CACH LLC Legit?
Based in Greenville, South Carolina, CACH LLC began operations in 2005. They represent lenders, including those providing both credit cards and installment loans.
However, they’re not a typical collection agency. In fact, they’re not technically a collection agency at all.
Instead, they buy collection accounts from original lenders, and become the owners of the debt.
Put another way, the original lender is no longer in the picture. The core creditor is now CACH LLC.
This is where dealing with CACH LLC gets complicated. When they purchase a collection account from an original lender, the debt is outsourced to a company called Resurgent Capital Services.
So, while CACH LLC moves into the creditor position, collection efforts will be made by Resurgent Capital Services.
Even if a collection account shows on your credit report as being from CACH LLC, Resurgent will be the company you’ll be dealing with on the front end.
This arrangement can complicate dealing with CACH LLC, mainly because that’s not who you’ll be dealing with.
Their website is very simple and instructs visitors to direct all inquiries to Resurgent. So, while you’ll owe CACH LLC, you’ll really be dealing with Resurgent.
CACH LLC has a Better Business Bureau rating of “A+”, the highest rating on a scale running from A+ to F.
The company has been BBB accredited since 2017 and has had only 29 complaints in the past three years, which is low for a collection agency.
But the BBB profile of the company indicates it is a legitimate collection agency.
How to Deal with CACH LLC
Before doing anything specific to deal with CACH LLC, there are four rules you need to be aware of in dealing with any collection agency:
1. Don’t deal by phone
Collection agencies love contacting debtors by phone. Not only does it give them easy and very frequent access, but it also provides an opportunity to trap the debtor.
Trap the debtor? Exactly. Also, keep in mind that anything a collection agency loves to do is exactly the thing you should completely avoid.
When confronted by an aggressive collection agent, a consumer will frequently do just about anything to get rid of him or her.
That includes providing information that will make it easier for the collection agency to prove the debt is legitimate.
It can also lead to promises to make payment, which we’ll cover under Rule #3. Either situation can happen easily on a phone call with a skilled collection agent.
Also, be aware that phone calls with collection agencies are typically recorded. No, that’s not being done for training purposes – it’s being done to gather evidence that could be used against you in a lawsuit.
That’s why it has to stop.
You have a right to demand all communications be handled in writing, and that’s exactly what you should require on the first phone call with the agency.
Make sure your first phone call with the agency is also your last.
2. Only communicate in writing
Written correspondence is something of an equalizer between a collection agent and a consumer. It limits the scope of the discussion to only essential points.
It also reduces the possibility the collection agency will make threats that will violate federal law and invalidate the debt.
That’s precisely why you need to insist all communication be handled in writing.
When you do deal with the agency, make sure your letters are concise and to the point. Request information from the agency, but don’t provide any to them.
Any letters you send to the agency should be sent by certified mail, return receipt requested. This will provide you with evidence that your letters were both sent and received.
The combination of letters from the agency and sent by you will provide an important paper trail if you’re threatened with a lawsuit.
3. Don’t make promises
This is almost certainly the most important rule in dealing with any collection agency. They’ll often try to get you to make a promise to send a payment.
And if you don’t, your failure to do so can be used as evidence against you in a lawsuit. This will be the case whether you have made the promise in a phone call or letter.
Never promise to send a payment, or even imply you’ll be sending one, unless you fully intend to follow through.
4. Know your rights
You have rights under the Fair Debt Collection Practices Act (FDCPA) to help protect you from collection agency abuses.
Read over the Debt Collection FAQs provided by the Federal Trade Commission (FTC) to learn about these protections.
Just knowing your rights under federal law will give you an advantage if a collection agency starts getting ugly.
Get Professional Help to Deal with CACH LLC
If all else fails, or you don’t feel ready to take on CACH LLC, get professional help.
Use a good credit repair company instead.
They know how to settle accounts for less than the full amount owed, and also how to improve your credit report.
However, if AWA Collections threatens you with legal action, you may need to hire a credit attorney.
Lexington Law specializes in credit law and may keep the case from ever making it to court.
Specific Strategies for Dealing with CACH LLC
Demand CACH LLC Provide a Debt Validation Letter
Most likely, you’ll be making this demand of Resurgent Capital Services, but the core information will come from CACH LLC.
You’ll do this by demanding what is known as a debt validation letter.
The letter must provide complete information on the debt, including the name of the original creditor, the date the account went into collection, the amount of the debt, and information that clearly connects you to the obligation.
The collection agency is legally required to provide you with this letter, since it represents proof of the legitimacy of the debt.
If they don’t provide the letter, or if it’s incomplete, you’ll have the right to demand they halt further collection efforts and delete the information from your credit report.
That’s not quite as easy as it sounds, and we’ll go into deeper detail going forward.
Request a Goodwill Deletion
If you’ve paid a collection in full but the entry is still appearing on your credit report, you can request a goodwill deletion.
That’s where you’ll be asking the collection agency to eliminate the negative information as an act of goodwill, which is the reason why it’s called a goodwill deletion.
This will only work on a paid account, and you’ll need to provide an explanation that the debt went into collection due to circumstances beyond your control.
That can include an extended illness, a divorce, a job loss lasting for months, or anything similar.
You’ll present this information in your request for deletion in a goodwill letter. Your request will be stronger if you also include any documentation that will support your claim of extenuating circumstances.
There’s no guarantee the request will be granted, but it’s always worth asking.
Since the creditor or collection agency will have been paid in full, they may delete the account from your credit report as an act of goodwill.
Offer a “Pay-for-Delete” Agreement
This is a more complicated strategy and similarly not guaranteed to work, but it may be worth trying anyway.
In essence, you’ll be asking the collection agency to delete the collection account from your credit reports in exchange for full payment of the debt owed.
It’s almost certain you’ll need to pay the full amount of the debt, as a collection agency is highly unlikely to delete a collection account from your credit report in exchange for anything less.
The process will start by you sending what’s known as a pay-for-delete letter. In that letter, you’ll be asking CACH/Resurgent if they will delete the collection account from your credit report in exchange for you making full payment of the debt.
If they do agree, make sure to get their acceptance in writing. But even if you do, there’s no guarantee they’ll delete the collection from your credit report.
They may accept your payment and later refuse to make the changes with the credit bureaus.
If that turns out to be the case, there won’t be anything you can do about it. You’ll have no legal recourse – even if it’s been agreed to in writing – because pay-for-delete arrangements are not legally enforceable.
A creditor is legally required to show a collection account as paid, if in fact it has been. But under their agreements with the credit bureaus the negative entry is required to remain intact.
Still, pay-for-delete may be worth requesting – just understand that the outcome is never guaranteed.
Demand Deletion of the Account if CACH LLC Can’t Verify the Debt
You’ll be in luck if CACH/Resurgent either fails to provide the debt validation letter, or if comes back incomplete.
This often happens, either because the collection agency is attempting to collect a debt that has already been paid, or it’s a case of mistaken identity.
You can then legally demand they delete the collection account from your credit report and halt all further collection efforts.
If they don’t, you can dispute the account with all three credit bureaus – Experian, Equifax and TransUnion – who will be required to investigate your claim within 30 days of receipt.
If the collection agency is unable to validate the debt, the credit bureaus will remove the collection from your credit reports.
Unfortunately, that doesn’t guarantee the collection agency will stop pursuing you for the debt. Some agencies will continue their collection efforts even if they don’t have full validation.
They may even transfer the debt to another collection agency, which means you’ll be starting all over.
That’s why dealing with collection agencies is far from easy.
Settle the Debt with CACH LLC for Less than the Full Amount Owed
If the collection agency fully validates the debt, or if you know that you legitimately owe it, the best way to deal with it is usually to settle it for less than the full amount owed.
This will enable you to save money, since you won’t need to pay the full amount. Unfortunately, it won’t make the collection account disappeared from your credit report.
The only thing the collection agency will do is show the collection account has been paid. But a paid collection is better for your credit score than an open collection.
You’ll get the benefit of getting the debt settled, and having at least a small bump up in your credit score.
Settling a collection account for less is hardly an easy process. You’ll need to be prepared to negotiate, which is not a natural ability for most consumers.
HOW TO NEGOTIATE A SETTLEMENT
But if you go this route, start by making a lowball offer. Offer one-third to one-half the full amount owed.
The collection agency will counter with a higher amount, and you’ll go back and forth until a mutually agreeable amount is reached.
Once that happens, insist the collection agency confirms your agreement in writing, acknowledging that they will accept the agreed-upon reduced payment as full settlement of the entire amount owed, and that they’ll report the paid status to all three credit bureaus.
Only then should you send any money to the collection agency. If you send money without getting the letter, the collection agency can accept the partial payment, but continue to pursue you for the full amount owed.
The letter will also provide you with evidence of payment from the collection agency.
If they fail to report the paid status to the credit bureaus, you can send a copy of a letter to the credit bureaus, and they’ll make the change.
If you’d like to get more information on dealing with collection agencies, check out our article How to Remove Collections From Your Credit Report, for more information.