How to deal with Alltran Financial

Alltran Financial is an established debt collection agency in the United States. They have been in business since 1987 and operate across the United States. They act as agents for original creditors and debt buyers. 

Just like dealing with any debt collector, be prepared. Verify that you owe the debt, that the company does not harass you, and that you have the right tools to settle your debt.

What is Alltran Financial? Are they real or a scam?

Alltran Financial is not a scam. It is a real debt collection agency. They act as agents for creditors and aggressively pursue collections for original lenders and also for debt buyers.  They represent major credit card and retail card companies. Alltran is active in healthcare, financial services, government, and higher education industries. They have over 2,200 employees and operate in all of the United States. Alltran operates several facilities throughout the United States including Sartell, MN; Gaithersburg, MD; Woodridge, IL; Bryan, TX, Tulsa OK, and Houston, TX.

Alltran Financial also goes by Alltran, or Alltran Financial LP. In 2016 United Recovery Systems (URS) changed its name to Alltran. Other telephone numbers that they use are 800-735-2989 or 800-568-0399.

Do you owe Alltran Financial money?

You may not be familiar with Alltran Financial until they contact you about a debt. Alltran represents many original and third-party creditors.  Your credit may show the name of the original creditor or debt buyer. Because they do not own the debt, their name may not show up on the credit report except as an inquiry.

However, there are various reasons that you may not owe the original creditor or the current owner of the debt money. For example, the debt may not belong to you, the statute of limitations expired, or you already paid off the debt.

Step 1 - Validate your debt.

If Alltran contacts you to collect a debt - validate it. Once contacted, you have 30 days to validate the debt, so act quickly. The best method is to send a registered letter. Before you proceed with the collection agency, always validate the debt.

Alltran is required to validate the debt. If you don’t receive proper validation, then send a notice of insufficient validations. If the collection agency cannot validate the debt, it has no legal basis to collect it.

>>Learn more: Follow the steps described in the Bills.com debt validation article to preserve your rights under the FDCPA.

Step 2 - Check to see if the Statute of Limitations (SOL) is valid.

State laws set the time that a creditor can sue you and collect on the debt. The rules are complex and not easy to understand. In the case that Alltran Financial is an agent for an original creditor, generally, once the SOL expires, it can still pursue a lawsuit. However, if the debt belongs to a third party, then once the SOL expires, it cannot pursue a lawsuit. 

Even if you think that the SOL expired, the creditor may have a different opinion on the expiration date and pursue a lawsuit against you. It is always wise to respond to a lawsuit. In the case of an expired SOL, you must answer any summons and claim an affirmative defense.

Even if they don't pursue a lawsuit, the debt collection agency has the right to contact and get you to pay or negotiate a settlement. 

>> Learn more: Learn more about states' laws regarding statute of limitations.

Stop Alltran Financial LP from debt collection harassment.

The Fair Debt Collection Practices Act strictly regulates debt collection agencies like Alltran. Even so, many consumers complain about overly aggressive and illegal collection tactics.

Here are some of the actions that they are forbidden to do:

• Use the Telephone to Annoy or Harass
• Use Abusive or Threatening Language
• Contact a Consumer at Work
• Call at an unreasonable time such as before 8:00 AM or after 9:00 PM
• Threaten Arrest
• Seek Unjustifiable Amounts
• Contact a relative, friend, or colleague who doesn’t own the debt

If you believe Alltran violated your rights under the FDCPA, consult with a consumer rights attorney in your area. Discuss possibly filing a lawsuit against the collection agency; not only could a lawsuit result in the cancellation of your debt, but you could be awarded damages.

Learn how to negotiate your debt with Alltran Financial

Alltran is interested in closing accounts as soon as possible. If they represent the original creditor, they will look for a payment plan and hope to get you back on track. However, suppose you are suffering financial hardship. In that case, it might be possible to negotiate a large settlement, especially if done with a third-party debt buyer who purchases debts for pennies on the dollars.

It is possible to do negotiations on your own. However, dealing with an aggressive debt collector, especially with aggressive lawyers, is stressful. It takes a significant amount of time and effort. It is helpful if you convince them that you are in a hardship. Here are three tips:

• Be calm, clear, and convincing.
• Be persistent.
• Send a debt negotiation letter.

If you are in financial hardship and have a large debt, consider using a professional debt negotiation company. A professional can reach a negotiated settlement with your debt collection agency quickly. Reputable debt settlement companies have large teams of negotiators, vast databases, and sophisticated tools. They know what range original creditors and collection agencies have accepted for payments in the past.

Complaints and lawsuits about Alltran Financial

Alltran has complaints registered in the BBB and the Consumer Finance Protection Bureau (CFPB) like most collection agencies.

While Alltran Financial is not a scam, the BBB does have this warning on their website:

"Misuse of BBB Name and/or Logo: Although this company is not an Accredited Business of the Better Business Bureau, they advertise to be an Accredited Business in their company website. The BBB has asked this practice cease. The BBB is seeking legal assistance to protect its name and trademark.".

The CFPB has complaints about collecting a debt that the consumer didn’t owe, harassment, and impersonating an attorney, law enforcement, or government official. The complaints themselves are not proof of illegal or improper activities, although an excellent source to learn about how consumers perceive the interactions and problems they have with the debt collection agencies.

Here is a couple of example of complaints from the CFPB website:

Attempts to collect debt not owe - Debt is not yours " Alltran sent me a debt collection notice yet I do not owe the debt. I have asked them to provide both verification and validation ( attached letter ) and not response has been received which leads me to believe that they do not have any supporting documentation in the form of a original agreement".

Communication tactics - You told them to stop contacting you, but they keep trying "was contact around the XXXX of XX/XX/2021 by all tran who provided me an address and I stated that I no longer lived there and they said they sent a letter there disclosing my business to somebody else that's not a friend or family then he demanded my new mailing address which I provided to him in agreement that he would send proof that I owed the debt along bills sent from Arizona state and there was nothing of that sort included in the letter just a piece of paper stating they received the account in there office and that letter was dated XX/XX/XXXX of XXXX the debt collector XXXX XXXX with alltran education financial called me on XX/XX/2021 and kept asking me what my plans were after I told him multiple times that I no longer wish to communicate over the phone and I only wished to receive written documentation thru the mail and I was forced to hang up because he would not respect my rights".

Deal with an Alltran Financial lawsuit

Although Alltran has the right to pursue a lawsuit in some circumstances, they cannot make empty threats to sue you when making a collection call. Depending on the events, they, or the debt owner, might start a lawsuit and pursue obtaining a public judgment leading to liens on personal property, wage garnishments, or bank levies. 

If a lawsuit is filed against you, consult with a lawyer in your state with consumer law experience. You must file an answer to their summons and complaint or risk losing the lawsuit by default. Ignoring a summons will not make it go away, so take action to respond to the lawsuit.

Can you remove Alltran from your credit report?

Alltran may appear as an inquiry on your credit report.  Because they do not purchase debt, their name should not appear as the owner of any account identified on your credit report.

Most accurate negative tradelines remain on your credit report for seven years from the delinquency date. Bankruptcies stay for ten years, and judgments can stay for even longer if the creditor renews them.

You can remove inaccurate data from your credit report. It is possible to file a dispute with the Credit Reporting Agencies and remove the negative items from your credit report.

>> Learn more: Learn how to dispute a credit report.