How to Settle Debt With ARC Collections: Your Action Plan
When ARC Collections contacts you about a debt, request validation and review all documentation carefully. You can negotiate a settlement for less than you owe, often 40-60% of the balance. If they sue you, respond with an Answer within the deadline to avoid a default judgment.
Answer Your LawsuitAccounts Receivable Consultants (ARC) is a legitimate debt collection agency. They’ve been in business for over 20 years.
ARC specializes in collecting delinquent medical debt. They work with hospitals and healthcare organizations.
Respond to ARC Collections Lawsuit in Minutes
Don't let ARC Collections win a default judgment against you. Answer your lawsuit before the deadline and start negotiating a settlement today.
Start Your AnswerYou have rights when dealing with ARC Collections. You can validate the debt, negotiate a settlement, and protect yourself from unfair practices.
What Is ARC Collections?
ARC Collections is a Wisconsin-based debt collection company. They’ve operated for decades collecting medical and other consumer debts.
Contact Information for ARC Collections
- Phone: 414-427-7820
- Address: 10712 W. Grange Avenue, Hales Corners, WI 53130
- Email: info@accountsreceivableconsultants.com
- Website: https://accts.net/Home.html
Who Does ARC Collections Collect For?
ARC Collections focuses primarily on medical debt. They collect on behalf of hospitals and health-related organizations.
Medical debt often catches consumers off guard. You may not realize you owe money until ARC contacts you.
ARC Collections Reviews and Reputation
ARC Collections has mixed reviews online. You can find feedback on Google Reviews and the Better Business Bureau.
The reviews aren’t all positive. Some consumers report aggressive collection tactics and poor communication.
Don’t let negative reviews discourage you from resolving your debt. Many collectors will negotiate when you take proactive steps.
What to Do When ARC Collections Contacts You
ARC often gets paid on contingency. They receive a percentage of what they collect.
This payment structure motivates aggressive collection efforts. Don’t be intimidated by their tactics.
Step 1: Request Everything in Writing
Phone calls can miss important details. Written communication provides evidence if mistakes occur.
Ask ARC to send all information via mail or email.
Step 2: Send a Debt Validation Letter
You have the right to validate any debt. A debt validation letter requests proof that you owe the money.
The collector must provide the original creditor’s name, the amount owed, and proof you’re responsible.
Step 3: Dispute Any Discrepancies
Compare ARC’s information with your records. Look for incorrect amounts, wrong dates, or debts you don’t recognize.
If you find errors, dispute the debt with the three credit bureaus.
Step 4: Ask for Detailed Information
Request documentation about any questionable charges. ARC must provide evidence supporting their claim.
They can’t legally collect if they can’t validate the debt.
Step 5: Negotiate a Lower Settlement Amount
Once you confirm the debt is valid, you can negotiate. Collectors often accept less than the full balance.
They’d rather receive partial payment than nothing at all.
Step 6: Request a Pay-for-Delete Agreement
Ask ARC to remove the negative mark from your credit report. They should do this once you pay the settled amount.
Get this agreement in writing before you pay anything.
How to Negotiate a Debt Settlement With ARC Collections
Debt settlement can save you money. ARC Collections may accept 40-60% of your original balance.
Follow these steps to negotiate effectively:
Assess Your Financial Situation
Calculate what you can realistically afford to pay. Consider your living expenses, other debts, and available savings.
Be honest about your financial capacity. Don’t promise payments you can’t make.
Make Your Settlement Offer
Start with a lower offer than you’re willing to pay. You can offer 30-40% of the balance.
Send your offer in a settlement letter. Include your reasons for the reduced amount.
Prepare for Back-and-Forth Negotiations
ARC will likely counter your initial offer. They may propose 70-80% of the original debt.
You can counter their counter-offer. Work toward a middle ground you both accept.
Get the Agreement in Writing
Never pay without a written settlement agreement. The document should specify the settlement amount and payment terms.
It should also confirm that payment satisfies the debt completely.
Our partner Solo makes it easy to negotiate and settle your debt with collectors like ARC.
How to Respond If ARC Collections Sues You
Debt collectors sue when negotiations fail. Ignoring a lawsuit is the worst mistake you can make.
ARC will file for a default judgment if you don’t respond. The court will likely grant it.
A judgment allows wage garnishment, bank account levies, and property liens.
File an Answer to the Lawsuit
You typically have 14-30 days to respond. Check your summons for the exact deadline.
Your Answer should respond to each allegation. Admit what’s true, deny what’s false, and claim lack of knowledge when appropriate.
Include any affirmative defenses you have. Common defenses include statute of limitations and lack of proof.
Consider a Motion to Compel Arbitration
Check if your original credit agreement had an arbitration clause. Many credit card agreements include them.
A motion to compel arbitration forces the case out of court. Arbitration is often less intimidating than a courtroom.
Gather Your Evidence
Collect all relevant documents before your court date. Include receipts, account statements, and correspondence with ARC.
Keep your debt validation letter and ARC’s response. These documents prove what you requested and received.
Prepare for Your Court Date
Think carefully before answering questions in court. Don’t admit to anything you’re not certain about.
Keep your answers brief and factual. Don’t volunteer extra information.
Settle the Debt Even After Being Sued
You can negotiate a settlement at any point. Even after a lawsuit is filed, ARC may accept less.
Settling saves both parties time and legal expenses. Reach out to discuss payment options.
Our partner Solo helps you respond to debt lawsuits and negotiate settlements with collectors.
Know Your Rights Under the FDCPA
The Fair Debt Collection Practices Act protects you from abusive collection practices. ARC Collections must follow these federal rules.
Collectors can’t call before 8 AM or after 9 PM. They can’t contact you at work if you tell them not to.
They can’t threaten you with arrest or violence. They can’t use profane language or harass you.
If ARC violates the FDCPA, you can sue them. You may recover damages and attorney fees.
When to Consider Other Debt Relief Options
Sometimes negotiating with collectors isn’t enough. You may need more comprehensive debt relief.
Credit Counseling and Debt Management Plans
Credit counseling agencies can help you manage multiple debts. They negotiate with all your creditors at once.
A debt management plan consolidates your payments into one monthly amount. The agency distributes funds to your creditors.
Bankruptcy Protection
Bankruptcy may be your best option if debts are overwhelming. Chapter 7 can discharge most unsecured debts in months.
Chapter 13 creates a repayment plan over three to five years. You keep your assets while catching up on payments.
Bankruptcy stops collection calls, lawsuits, and wage garnishments immediately. The automatic stay protects you from creditor actions.
Protect Your Credit While Dealing With ARC
Debt collection impacts your credit score. A collection account can remain on your report for seven years.
Negotiate a pay-for-delete agreement whenever possible. ARC should remove the negative mark after you pay.
Even without pay-for-delete, settling is better than leaving debt unresolved. Paid collections look better than unpaid ones.
After resolving your debt, focus on rebuilding your credit. Make all future payments on time.