Dealing with debt can be challenging. Given the rising costs, people across the country find it difficult to live debt-free. If you’re one of them, know that you’re not alone. However, this leads to bad credit and records from debt collectors like Southwest Credit Systems in their credit reports.
While improving credit takes time, you don’t want to delay dealing with Southwest Credit Systems. The earlier you remove it, the better for your credit record, as this lets you access better financial products like new loans and other credit lines.
To help you get started, we looked at official Southwest Credit Systems sources, reviewed regulations, and searched for stories of people who successfully removed Southwest Credit Systems from their credit reports.
We’ve also discovered the MOST common misconception about negative items on your credit report that prevent most people from improving their credit—don’t skip anything!
What is Southwest Credit Systems?
Headquartered in Carrollton, Texas, Southwest Credit Systems, LP is a legitimate debt collection agency and not a scam. It services government agencies, educational institutions, cable companies, property management companies, etc.
Unfortunately, as a collection agency, Southwest Credit Systems appears on your credit report. It uses a variety of names, including the following:
- Southwest Credit
- SW Credit Systems
- SWC Group LP
Regardless of whether you pay, a collection agency’s presence on your report can damage your credit score.
What you can do to remove Southwest Credit Systems from your credit report
If you have defaulted on your payments, your account goes into collections. Southwest Credit Systems will contact you via phone, email, or mail. The company’s representatives will continue to urge you until you pay. So, should you contact or pay Southwest Credit Systems, LP?
It’s important to remember never to disregard debt collectors, but it's better to engage with them strategically before paying to get the best deal possible.
In many cases, you have the chance to prove that the debt doesn’t belong to you, especially if you’re an identity theft victim. For many others, reaching an agreement with them could be the ideal citation.
If you want to remove Southwest Credit Systems from your credit report successfully, here’s what to do:
1. Write a debt verification letter
A debt verification letter is a formal request compelling a debt collector to provide additional proof of a debt. We recommend that you send it within 30 days of their initial contact.
Remember that Southwest Credit Systems should have first initiated contact by sending you a debt validation letter proving you owe the debt, as required by law.
What exactly can a debt verification do? Let’s take a look at the three benefits:
Debt Verification Benefits
1. Southwest Credit Systems can’t contact you during the period
Sending a debt verification letter means that debt collection agencies like SW Credit Systems can no longer contact you, as dictated by law. Until they can prove that you own the debt, you’ll be free from the constant pressure.
2. You’ll learn more about the debt
You may have existing loans, but how sure are you that the debt Southwest Credit Systems wants to collect is yours? That said, never pay a debt that seems unfamiliar.
Asking for documentation and further proof allows you to learn more about the debt, ensuring that it’s legitimate.
3. You get the chance to disown the debt
If Southwest Credit Systems fails to provide additional documents and proof of the debt, it must delete it from your credit reports.
2. Be aware of the statute of limitations
More often than not, people receive verification materials showing that the statute of limitations on the debt has expired.
The statute of limitations pertains to a legal limit that dictates that debt is too old to be inadmissible in court—meaning that debt collection agencies like Southwest Credit Systems can’t sue you.
Debts like this are called time-barred debts, so you can write to the agency and request it to stop contacting you (email, phone, or mail). Legally, they need to comply.
Debts usually have a statute of limitations of three to six years, but this still depends on which state you live in. You may contact your state attorney general’s office to clarify.
3. Dispute the debt with all three credit bureaus
If you have reason to believe that the debt reflected on your credit report (as reported by Southwest Credit Systems) isn’t accurate, make sure to dispute it with all three credit bureaus immediately by sending a credit dispute letter.
These three bureaus, Experian, TransUnion, and Equifax, will hear you out, especially if you’ve already paid the debt or it belongs to someone else.
You’re also allowed to dispute debt more than seven years old from the date of your first missed payment. Under the law, SW Credit should already remove them from your credit report.
4. Negotiate a settlement
If a debt verification or credit dispute does not work, contact Southwest Credit Systems to negotiate. You can ask for a pay-for-delete agreement, where you can propose that once you pay for the debt, the company will have to delete the debt record from your credit report.
The first thing you need to do is to reach out, of course, and then talk to a debt collector. You can offer to pay half the debt, but they have to remove the record on your credit report in return.
You may expect to go back and forth until you reach a good compromise, but make sure to get the agreement in writing. You’ll want to hold the company accountable, and if it refuses to confirm it through a document, don’t comply.
If you receive an agreement, pay for the agreed costs and check your credit report after 30 days. Southwest Credit Systems should delete the entry from your credit report.
If it fails to do so, reach out again—this time looping in the three credit reporting bureaus and letting them know about your written agreement.
5. Work with a credit repair company
If you don’t want to engage with Southwest Credit Systems directly, you can opt to hire a credit repair company.
These companies can remove the entry for you, as they exist to help clients remove inaccurate information from their credit reports, including incorrect spellings, fraudulent entries, and obsolete records.
While a credit repair company can help improve your credit score, remember that scammers are everywhere—make sure to research thoroughly and only work with a reputable company.
IMPORTANT: Most people don’t know that negative information on credit reports has a set expiry term. Usually, it’s seven years. Because of this, you can just wait for the set term to remove negative items like Southwest Credit collections.
Can Southwest Credit Systems sue you or garnish your wages?
Yes, but Southwest Credit Systems is extremely unlikely to sue. Although it happens in some circumstances, you don’t have to worry about facing the court. Under state and federal law, bank and wage garnishments remain subject to limits or exemptions.
Can you sue Southwest Credit Systems for harassment?
You most definitely can sue if Southwest Credit Systems keeps calling to harass you, but it’s best to collect evidence before filing complaints.
You can keep a log of phone calls, emails, and letters that sound threatening. It’s also important that you ask for the help of a lawyer.
What are your rights when dealing with Southwest Credit Systems?
Debt collectors in the United States must follow strict regulations set by the Fair Debt Collection Practices Act (FDCPA). They legally can’t use “abusive or deceptive” methods to collect a debt, even if the person owns it.
It’s also important to remember that as a consumer, the FDCPA protects you from collection agencies by granting the following rights:
- Collection agencies like Southwest Credit Systems are required by federal law to report accurate and complete information on credit reports. Anything less will be considered a violation of said law.
- You have the legal right to ask for debt validation through a debt validation letter. Southwest Credit Systems will have to provide evidence within 30 days to prove that you own the debt with the correct amount.
- You should never be subjected to threats or harassment, including repetitive calls, offensive language, or publicly sharing your name as a debtor.
- Southwest Credit Systems must clearly state its purpose for contacting you, both in writing and orally.
- As a debt collection agency, it has no right to have you arrested or threaten you with legal action—especially if they have no intentions of pursuing either.
Southwest Credit Systems contact information
If you need to contact Southwest Credit Systems’ customer service for any reason, here are its details:
- For mail: 4120 International Pkwy Ste 1100, Carrollton, TX 75007-1958
- For phone calls: (972) 300-1700; Toll free: 800-462-3808
- For fax: (972) 3004701
Conclusion
You may owe a debt, but this doesn’t mean you should be subjected to pressure or harassment in any form. You also deserve the chance to boost your credit score, especially when a debt collection agency is involved.
It may be stressful to deal with Southwest Credit Systems, but remember that there are solutions to remove it from your credit report and that you have rights. It won’t be easy, but the effort will be well worth it.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
