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ERC Debt Collection: Who and Why Are They On My Credit Report?

Updated: Aug 29

Table of Contents:

Who exactly are the ERC Collectors?

What exactly are the ERC Debt Collectors?

Can ERC Debt Collectors threaten to serve you?

How can you get rid of ERC collections from your credit report?

Conclusion: What to do if you see an account that you don't recognize on your credit reports?


ERC debt collections is a firm that specializes in debt collection. You may owe money on a prior utility bill, bank account, or school loan if you notice Enhanced Recovery Company LLC on your credit reports and aren't sure why.

ERC debt collections

Who exactly are the ERC Collectors?


ERC is a debt collecting firm that works with companies in the telecommunications, utilities, banking, and student loan industries. ERC was formerly known as Enhanced Recovery Corp. and was formed in 1999. The headquarters of ERC is in Jacksonville, Florida.


Since 2013, ERC has been the subject of 6,229 complaints to the Consumer Financial Protection Bureau (CFPB), a government organization tasked with safeguarding customers from unfair, fraudulent, and abusive debt collection tactics.


ERC is accused by consumers of engaging in the following unlawful debt collection practices:


  • Trying to collect a debt that the customer does not owe

  • Attempting to collect a debt that has already been paid

  • Trying to order more than is owing and

  • Refusing to verify or give evidence of a debt.


One customer responded to an ERC collection notice via certified mail, asking for confirmation of the debt. Despite ERC's refusal to give proof of the debt, the customer was contacted by phone.


Consumers can ask a creditor or debt collector to submit proof of debt under the Federal Debt Collection Practices Act (FDCPA). The creditor or debt collector must submit a notification, known as the G-Notice, within five (5) days after the initial contact. After that, a customer has thirty (30) days to challenge a debt and obtain evidence of it.


The customer filed a complaint with the Consumer Financial Protection Bureau, and the case was satisfactorily settled in his favor.



ERC debt collections

What exactly are the ERC Debt Collectors?

ERC Debt Collections, also known as Enhanced Recovery Company or Enhanced Resource Centers, is a company that collects debts on behalf of other firms or institutions.


You may have noticed ERC Collections mentioned on an account charged off and then gone to collections. Even if Enhanced Recovery Company has contacted you about an account, you may not see the firm on your credit reports.

Receiving a call from ERC collections and you don't recognize them from your credit reports might be for a variety of reasons, both legitimate and not. So, regardless of the scenario, the first thing you should do after being approached by a debt collector is double-checked that the debt is yours and that the debt collector has the authority to collect it.


Dealing with a debt collector may be unpleasant and scary, and the additional layer of uncertainty regarding whether or not a debt collection firm is legitimate adds to the anxiety. But don't let that stop you from speaking out for your rights under the FDCPA when it comes to debt collection.


Request written documentation from the debt collector to establish whether the debt is valid. The debt collector's details, the amount you owe plus any additional costs, the debt's scope, and the original creditor's name must all be included.



ERC debt collections

Can ERC Debt Collectors threaten to serve you?


Debt collection calls can add to the stress of having financial difficulties. When harassing, threatening, or intimidating calls are made, the situation can quickly escalate – especially if you are unaware of your rights.


Government officials enacted the Fair Debt Collection Practices Act (FDCPA) to protect customers from illegal, unfair, or abusive debt collection methods. On June 23, 2014, the FTC and the State of New York filed a joint complaint against National Check Registry for allegedly violating the Fair Debt Collection Practices Act (FDCPA) by allegedly using outrageous and intimidating tactics to get people to pay debts immediately — often debts that were in dispute.


National Check Registry is accused of accusing individuals of check fraud or other crimes and threatening them with lawsuits, garnishments, arrest, or jail if they don't pay. According to the FTC and the State of New York, National Check Registry allegedly informed customers they had to pay within 12 - 24 hours to avoid being pursued by a local court system or law enforcement agency. The company would frequently educate a client's family, friends, and coworkers that the individual had committed a crime or was facing legal action.

These were, in reality, hollow threats. According to the lawsuit, National Check Registry has no jurisdiction to initiate arrests or seek any criminal penalties for failing to pay these debts.

Know your rights if you're facing debt collection. Debt collectors are prohibited from performing the following unlawful tactics under the FDCPA:

  • Call me between the hours of 8 a.m. and 9 p.m.

  • harass you or anyone else they contact regarding you

  • lie about the amount you owe

  • contact you at work if you've notified them orally or in writing that your employer doesn't accept such calls in the workplace

  • Try to recover a debt from you through fraudulent means. They might not, for example:

— falsely claim to be law enforcement officers

— claim that if you don't pay your debt, you'll be arrested

— threaten to seize, garnish, attach, or sell your property or wages — unless they're allowed by law to do so and intend to do so

— offer anybody, including a credit reporting bureau, inaccurate credit information about you


It is common practice for collectors to refrain from contacting third parties more than once. A debt collector is typically not authorized to discuss your debt with anybody other than you, your spouse, or your attorney unless to acquire location information on you.

If you believe a debt collector has violated your rights, submit a complaint with the FTC.



ERC debt collections

How can you get rid of Enhanced Recovery Company from your credit report?

If you believe you do not owe a bill that Enhanced Recovery Company LLC is attempting to collect, you should dispute the debt with the three major consumer credit bureaus.

The credit bureaus are required to investigate once you submit an official dispute. They'll also submit any information you provide to a debt collection agency, which is obligated to report any inaccuracies to all three credit bureaus.


Remember that you may only have 30 days to reply to a debt collector's initial contact requesting essential debt information, so you must move quickly.

If you need more assistance, the Consumer Financial Protection Bureau provides tools, including letter templates, that you may use to deal with frequent debt collection problems.

Conclusion:

What to Do If You See An Account That You Don't Recognize on Your Credit Reports?


It might be a rude awakening to learn that you have a collection account. However, there are actions you may take to restore your credit. If the debt is accurate, the negative mark will be removed from your credit reports after 7 years plus 6 months from the day you missed your first payment.


You'll want to keep a careful check on your credit if the debt isn't real. It's a great idea to check your credit reports frequently to help identify potential identity theft and other errors early. Annualcreditreport.com provides free credit reports regularly.

However, if you happen to see inaccurate negative items on your credit report we recommend you give Elite Credit Solutions of Michigan a call at (248) 657-4113 or books an appointment here.

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