Free Call: 1-800-728-5285

Get a Free Debt & Credit Analysis

Menu

Debt Resolution

How to reach Zwicker & Associates

Settling Debt with Full Circle Financial Services, LLC

,

Here’s the Deal:

  • Full Circle Financial Services, LLC is a legitimate debt collection agency, but don’t let your guard down- legitimate companies still break laws and stack up a long list of complaints
  • Debt collection agencies are hired by credit card companies and debt buyers to recover past-due balances from debtors
  • Settle with Full Circle Financial Services, LLC on your own or let our debt relief law firm lead the way
GET A FREE CONSULTATION

Full Circle Financial Services, LLC is a legitimate debt collection agency, but don’t let your guard down- a legitimate company can still break laws and stack up a long list of complaints. If you have debt with Full Circle Financial Services, LLC and can’t pay it in full, you can settle your debt for less than the full balance owed. First, you need to make sure the collector is legit, then you can strike a deal on your terms.

In this article, you’ll learn what happens when you don’t pay Full Circle Financial Services, LLC and when its time to call a debt settlement attorney.

Full Circle Financial Services, LLC is a Debt Collection Agency

If you’re receiving calls and letters from Full Circle Financial Services, LLC, they’re probably contacting you about unpaid credit card debt, personal loans, or other past-due bills.

If you don’t Pay Full Circle Financial Services, LLC…

When you owe credit card debt and are being contacted by a collection agency, it’s important to take action and create a plan to pay the debt.

If you don’t pay Full Circle Financial Services, LLC (or any debt collection agency) they’re generally left with the following options. A collection agency may:

  • Continue calling, sending letters, and reporting to the credit bureaus,
  • send it back to their client (the original creditor or debt buyer that hired them), 
  • suggest the account to a debt collection law firm to consider filing a debt collection lawsuit, or 
  • hold the account for future collection.

While some of these outcomes may not seem too bad, it’s important to keep in mind that not paying off a debt may hold you back from achieving financial goals, such as buying a home or vehicle. Not only that, but a debt collection lawsuit can lead to wage garnishment, bank levy, property liens, and more.

You can settle with Full Circle Financial Services, LLC yourself or let our debt relief law firm lead the way. We’ll help you understand your options, resolve your debt and move on with your financial future. Either way, since the risk of debt can range from pesky calls to wage garnishment and seized property, it’s crucial to have a plan to deal with the debt.

GET A FREE CONSULTATION

How To Contact Full Circle Financial Services, LLC (and not a scammer)

The following information is subject to change and should be confirmed by visiting their website directly. Full Circle Financial Services, LLC presently lists its contact information as follows:

Address:

444 Highway 96 East
P.O. Box 64378
St. Paul MN 55164-0378

Phone Numbers:

800-279-7244

866-628-7811

FAQ’s: Settling Debt with Full Circle Financial Services, LLC

Is Full Circle Financial Services, LLC Legit?

Yes, but don’t let your guard down. The FDCPA sets the rules, and debt collectors still break them.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act is a federal law that regulates the collection of consumer debt by debt collectors. A debt collector cannot call too early or late, use profanity, share false information, and more. 

Is Full Circle Financial Services, LLC a law firm?

No, it is not a law firm and cannot file a debt collection lawsuit without retaining an outside attorney.

Can I settle with debt collection agencies myself?

Yes, you can settle debt yourself, but it’s important to be aware of the risks.

Can a debt relief law firm help?

Yes. Our debt relief law firm can pursue settlements and payment plans with Full Circle Financial Services, LLC. We may also request debt validation, stop collection calls, minimize wage garnishment risk, sue debt collectors, and defend debt collection lawsuits if necessary.

Will debt settlement show up on a credit report?

Debts settled with Full Circle Financial Services, LLC may appear on your credit report with phrases like “Settled in Full” or “Settled for less than full amount owed.”

Talking to debt collector

Schedule a Free Debt Consultation with National Legal Center

Rather talk another time? Complete this form to schedule your free consultation.

Woman going over paperwork at home

Settling Debt with D&A Services, LLC

,

Here’s the Deal:

  • If you’re receiving calls and letters from D&A Services, LLC, they’re probably contacting you about credit card debt, personal loans, or other past-due bills
  • Delinquent debt may hold you back from achieving financial goals, like buying a home or car, or lead to wage garnishment, bank levy, property liens, and more
  • Settle with D&A Services, LLC on your own or let our debt relief law firm lead the way
GET A FREE CONSULTATION

D&A Services, LLC is a legitimate debt collection agency, but don’t let your guard down- a legitimate company can still break laws and stack up a long list of complaints. In this article, you’ll learn what happens when you don’t pay D&A Services, LLC and when its time to call a debt settlement attorney.

Couple looking at computer - Senior Debt

D&A Services, LLC is a Debt Collection Agency

If you’re receiving calls and letters from D&A Services, LLC, they’re probably contacting you about unpaid credit card debt, personal loans, or other past-due bills.

If you don’t Pay D&A Services, LLC…

When you owe credit card debt and are being contacted by a collection agency, it’s important to take action and create a plan to pay the debt.

If you don’t pay D&A Services, LLC (or any debt collection agency) they’re generally left with the following options. A collection agency may:

  • Continue calling, sending letters, and reporting to the credit bureaus,
  • send it back to their client (the original creditor or debt buyer that hired them), 
  • suggest the account to a debt collection law firm to consider filing a debt collection lawsuit, or 
  • hold the account for future collection

Reviewing Debt Collector LEtter

While some of these outcomes may not seem too bad, it’s important to keep in mind that not paying off a debt may hold you back from achieving financial goals, such as buying a home or vehicle. Not only that, but a debt collection lawsuit can lead to wage garnishment, bank levy, property liens, and more.

You can settle with D&A Services, LLC yourself or let our debt relief law firm lead the way. We’ll help you understand your options, resolve your debt and move on with your financial future. Either way, since the risk of debt can range from pesky calls to wage garnishment and seized property, it’s crucial to have a plan to deal with the debt.

GET A FREE CONSULTATION

How To Contact D&A Services, LLC (and not a scammer)

The following information is subject to change and should be confirmed by visiting their website directly. D&A Services, LLC presently lists its contact information as follows:

Address:

1400 E. Touhy, Suite G2
Des Plaines, IL 60018Phone:

Phone Numbers:

(877) 314-4308

Notes:

D&A Services allows debtors (that’s you) to make an offer to settle debt online. D&A Services also advertises a Hardship Program, though it is not clear if this is a formal internal program or if it is simply another effort to convince the debtor to contact them.

FAQ’s: Settling Debt with D&A Services, LLC

Is D&A Services, LLC legit?

Yes, but don’t let your guard down. The Fair Debt Collection Practices Act sets the rules, and debt collectors still break them.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act is a federal law that regulates the collection of consumer debt by debt collectors. A debt collector cannot call too early or late, use profanity, share false information, and more. 

Is D&A Services, LLC a law firm?

No, they are not a law firm and cannot file a debt collection lawsuit without retaining an outside attorney.

Can I settle with debt collection agencies myself?

Yes, you can settle debt yourself, but it’s important to be aware of the risks.

How can a debt relief law firm help?

Our debt relief law firm can negotiate settlements and payment plans with D&A Services, LLC. We may also request debt validation, stop collection calls, minimize wage garnishment risk, sue debt collectors, and defend debt collection lawsuits if necessary.

Will debt settlement show up on a credit report?

Debts settled with D&A Services, LLC may appear on your credit report with phrases like “Settled in Full” or “Settled for less than full amount owed.”

Schedule a Free Debt Consultation with National Legal Center

Rather talk another time? Complete this form to schedule your free consultation.

Woman writing check Settling Debt Writing Check

Settling Debt with Credit Control LLC

,

Here’s the Deal:

  • Credit Control LLC is a legitimate debt collection agency, but don’t let your guard down- legitimate companies still break laws and stack up a long list of complaints
  • Debt collection agencies are hired by credit card companies and debt buyers to recover past-due balances from debtors
  • Settle with Credit Control LLC on your own or let our debt relief law firm lead the way
GET A FREE CONSULTATION

Credit Control LLC is a legitimate debt collection agency, but don’t let your guard down- a legitimate company can still break laws and stack up a long list of complaints. If you have debt with Credit Control LLC and can’t pay it in full, you can settle your debt for less than the full balance owed. First, you need to make sure the collector is legit, then you can strike a deal on your terms.

In this article, you’ll learn how to settle debt with Credit Control LLC on your own and when its time to call a debt settlement attorney.

Settling Debt with Portfolio Recovery Associates, LLC

Credit Control LLC is a Debt Collection Agency

If you’re receiving calls and letters from Credit Control LLC, they’re probably contacting you about unpaid credit card debt, personal loans, or other past-due bills.

If you don’t Pay Credit Control LLC…

When you owe credit card debt and are being contacted by a collection agency, it’s important to take action and create a plan to pay the debt.

If you don’t pay Credit Control LLC (or any debt collection agency) they’re generally left with the following options. A collection agency may:

  • Continue calling, sending letters, and reporting to the credit bureaus,
  • send it back to their client (the original creditor or debt buyer that hired them), 
  • suggest the account to a debt collection law firm to consider filing a debt collection lawsuit, or  hold the account for future collection.

While some of these outcomes may not seem too bad, it’s important to keep in mind that not paying off a debt may hold you back from achieving financial goals, such as buying a home or vehicle. Not only that, but a debt collection lawsuit can lead to wage garnishment, bank levy, property liens, and more.

You can settle with Credit Control LLC yourself or let our debt relief law firm lead the way. We’ll help you understand your options, resolve your debt and move on with your financial future. Either way, since the risk of debt can range from pesky calls to wage garnishment and seized property, it’s crucial to have a plan to deal with the debt.

GET A FREE CONSULTATION

How To Contact Credit Control LLC (and not a scammer)

The following information is subject to change and should be confirmed by visiting their website directly. Credit Control LLC presently lists its contact information as follows:

Address:

3300 Rider Trail S. Suite 500

Earth City, MO 6304

Phone Numbers:

1-888-365-7145

FAQ’s: Settling Debt with Credit Control LLC

Is Credit Control LLC Legit?

Yes, but don’t let your guard down. The FDCPA sets the rules, and debt collectors still break them.

Is Credit Control, LLC a law firm?

No, it is not a law firm and cannot file a debt collection lawsuit without retaining an outside attorney.

What is the Fair Debt Collection Practices Act?

The FDCPA is a federal law that regulates the collection of consumer debt by debt collectors. A debt collector cannot call too early or late, use profanity, share false information, and more. 

Can I settle with debt collection agencies myself?

Yes, you can settle debt yourself, but it’s important to be aware of the risks.

How can a debt relief law firm help?

Our debt relief law firm can negotiate settlements and payment plans with Credit Control LLC. We may also request debt validation, stop collection calls, minimize wage garnishment risk, sue debt collectors, and defend debt collection lawsuits if necessary.

Will debt settlement show up on a credit report?

Debts settled with Credit Control LLC may appear on your credit report with phrases like “Settled in Full” or “Settled for less than full amount owed.”

Schedule a Free Debt Consultation with National Legal Center

Rather talk another time? Complete this form to schedule your free consultation.

Couple looking at computer - Senior Debt

Cost of Living Adjustment 2023 (COLA)

,

If you receive social security benefits, you know inflation made things especially difficult this year. Fortunately, the Social Security Administration took note and announced the highest Cost-of-Living-Adjustment increase in 30 years.

What is the Cost of Living Adjustment in 2023?

Social Security recipients and Supplemental Security Income recipients will receive an 8.7% increase to their social security benefits in 2023.(1)

How is the Cost of Living Adjustment Decided?

The Social Security Administration conducts a review of the cost of living and the consumer price index in the third quarter of every year. The cost of living can be thought of as how much money the average person needs to meet a standard quality of life. The consumer price index is how much the price of goods fluctuates over time.

Because of the extreme inflation of 2022, social security beneficiaries will receive a significantly higher Cost of Living Adjustment in 2023 than usual.

2023 Cost of Living Adjustment (COLA)

How To Calculate your 2023 Social Security Benefits

To calculate your 2023 social security benefits, take your 2022 monthly benefit amount and multiply it by 8.7%. Next, add this number to the amount you were receiving in 2022. The resulting number is about how much you will receive monthly in 2023.

Example:

If your monthly payment in 2022 was $1,000:

$1,000 x 8.7% = $87

$1,000 + $87 = $1,087

In this case, your estimated monthly payment for 2023 will be around $1,087.

While this is the largest increase in 30 years, social security analysts and economists monitoring the cost of living agree that inflation hasn’t gone away. Continued inflation can quickly offset the COLA increase.

When Social Security Benefits Aren’t Enough

Although a COLA increase will help people receiving Social Security or Supplemental Security Income benefits, a high cost of living has made it increasingly difficult to survive on a fixed income.

If you can’t meet your expenses or are delaying buying medicine and other essentials, a historically high annual COLA benefit increase may not bring the relief you need.

When social security isn’t enough and you’re close to the earnings limit, there are special debt strategies only available for people on a fixed income.

Debt is Different on a Fixed Income

When you rely on SSI or SSDI and can’t meet your monthly payments and expenses, you can’t “just go and get a job.” Earning an income may cause you to hit the earnings limit and lose your social security benefits.

The Real Cost of Senior Debt

Approximately 1 in 4 adults over 65:(2)

  • withhold food, utilities, clothing, or medication
  • don’t have $500 in savings for emergencies
  • are on the verge of bankruptcy

What do seniors do when they can’t keep up with monthly payments and meet their expenses? Skip meals, cut pills, and feel helpless.

It is not acceptable for high credit card and debt payments to put seniors in such a situation.

How SSI Beneficiaries Can Get Out of Debt

Did you know that federal laws protect social security and other forms of fixed income?

Our attorneys use consumer protection laws to protect your fixed income and assets from creditors and debt collectors. The result? We safely and effectively lower your monthly debt payments.

If you’re on a fixed income, you don’t have to be burdened with unaffordable debt payments or an expensive and stressful bankruptcy. Those might be the right options for you, but they aren’t the only options. Explore options with a simple, direct conversation with our U.S. based legal team by calling 1-800-728-5285.

Schedule a Free Debt Consultation with National Legal Center

Rather talk another time? Complete this form to schedule your free consultation.

 

Social Security Administration Announced 2023 COLA

In the third quarter of 2022, the Social Security Administration announced the 2023 COLA increase of 8.7%. Additionally, they provided guidance on how to create an account with SSA.gov.

Sources

  1. Social Security Administration. “Cost-of-Living-Adjustments” retrieved 12/19/2022 from https://www.ssa.gov/oact/cola/colaseries.html
  2. National Council on Aging. “Get the Facts on Senior Debt” retrieved 12/19/2022 from https://www.ncoa.org/article/get-the-facts-on-senior-debt

credit card lawsuit, debt collection lawsuit, unpaid credit card debt

I’m Facing a Credit Card Lawsuit. Now What?

, ,

When you learn that you’re facing a credit card lawsuit, your next steps are crucial.

The debt settlement attorneys at National Legal Center are ready to help. First, you need to know what is happening and what your options are. In this article, we’ll review quite a bit of information related to debt collection lawsuits. These are usually filed by credit card companies and debt buyers who are attempting to recover unpaid debts.

Follow these quick-links to jump to a pertinent section. Or read through for a thorough understanding of the entire process.

  1. Why a credit card company would sue you
  2. How a debt collection lawsuit works
  3. Why you shouldn’t ignore a summons
  4. Legal options that may be available to you
  5. Possible outcomes of being sued for an unpaid credit card debt
  6. How the debt relief attorneys at National Legal Center can help

Why Would a Credit Card Company Sue Someone?

You may be wondering why a credit card company would sue you. Creditors can file lawsuits for various reasons. However, we’ll be focusing on the most likely reason a credit card company would sue a consumer: unpaid credit card debt.

The credit card company could file a credit card lawsuit if you break the terms of the contract.

Lawsuits due to unpaid credit card payments are essentially the result of a breach of contract. Sometimes these claims are filed as an Account Stated action or an estopel claim, but at the root of it, these are the creditor suing for money over a debt.

Your contract with your credit card companies outlines a specific set of terms and conditions. You agree to follow these terms when you sign up for credit with the credit card company. You make charges on your credit card which means you now owe the debt. Breaching this contract means not following the terms outlined in the credit card agreement. Specifically, failing to make your monthly payment.

Now, you aren’t likely to be sued for missing one credit card payment. Sure, it’ll affect your credit score if it goes more than 30 days late, but creditors are not expected to file a lawsuit for unpaid debts after a short period. However, long-term credit card delinquency can lead a credit card company to file a case due to the breach of contract.

what to expect from a credit card lawsuit

Steps in a Debt Collection Lawsuit

  1. You miss several monthly payments on a credit card debt.
  2. Your account goes through a charge-off process with the original creditor.
  3. The current creditor places the account with a debt collection law firm (or sells it to a debt buyer, who does the same).
  4. That creditor or collection firm files a debt collection lawsuit with the courts.
  5. A sheriff or process server delivers a written notice, usually called a summons, to you in person, posted at your home, or notice is mailed to you.
  6. The summons lists a timeframe of how long you have to respond, often 30 days or less.
  7. If you were served and do not respond at all, a default judgment will likely be entered against you.
  8. After service if you respond to the summons the court will likely schedule a hearing.
  9. Once a judgment enters, the collector can pursue post-judgment collection. This may include potentially garnishing wages, putting a lien against real estate, or taking money from your bank account depending on your state and financial situation.

Let’s assume you do NOT want this lawsuit to lead to wage garnishment, liens against your home, and dealing with bank account levies. If this is the case, you don’t want to ignore the summons. There may be times when allowing a default judgment to enter IS your best strategy. A knowledgeable attorney who is familiar with your situation and state laws can help you understand when, and why, that might be appropriate.

Let’s take a look at the two preferred options: having your day in court to defend yourself or settling the debt.

Don’t Ignore a Credit Card Debt Summons Unless You Know Your Risks

The credit card company has filed a debt collection lawsuit, and you have received a court summons. Now it’s time to defend yourself against the suit. As soon as you receive the summons, act quickly! Your number one priority should be to retain an attorney.

Contact National Legal Center at 800-728-5285. Our Case Analysts are experienced in debt collection lawsuits and are glad to provide consumers with a free consultation. Our debt relief attorneys can help you understand your rights and assist you in any debt settlement negotiations you might have.

debt collection lawsuit

Legal Options For Handling a Credit Card Lawsuit

If you’ve received a summons, you have several options to deal with the matter. The best approach will always depend on your particular circumstances. Let’s look at several proven strategies to dealing with a debt collection lawsuit.

File an answer to the lawsuit

After speaking with a debt settlement attorney, you may decide it is appropriate to file an answer to the lawsuit. An answer is a formal written response that contests the suit.

You may be able to file an answer without retaining an attorney by completing forms available through the court or online and filing them yourself in court. Given that this is a serious legal matter, though, we do encourage retaining an attorney.

If you choose to file the answer, it is crucial to meet the deadlines as outlined by the court. Failing to do so can result in a default judgment against you.

Once you’ve filed your response, you will likely have a court hearing scheduled. In addition, this also buys you more time to work with the debt collector. You may be able to arrange a payment plan, settle credit card debt, or consider other legal advice your attorney may provide.

Negotiate a settlement with a debt collector

settle a credit card lawsuit

Whether you choose to file an answer to the lawsuit or not, you may have the option to negotiate a settlement. This is where you repay a portion of the debt owed.

It is best to consult with an attorney experienced in debt collection lawsuits. They can deal with the debt collectors and help ensure that any credit card debt settlement agreement you reach is fair and meets your needs.

A debt settlement plan with the law firm that has filed the lawsuit can help you pay the account without further legal action. The best deals are usually paid with a lump sum payment of money.

The good news is that our firm is very familiar with this process. We explore putting a payment plan in place if your attorney feels is your best option. Or, you may save money each month to work toward a settlement in the future while minimizing your risk along the way.

There are many options to deal with lawsuits for unpaid debt. Once you’ve retained our firm and established an attorney-client relationship, we’ll assess your situation to determine the best approach.

Minimize your risks

When you are facing a lawsuit, you may not have any spectacular options available.

You may not have enough money in your bank account to offer a reasonable settlement. You may be dealing with an overly aggressive credit card company or debt collector who won’t consider an affordable payment plan.

In situations like this, you may want to buy yourself some more time and minimize your risks.

When a judgment is entered, a credit card company or law firm may enforce the judgment in a few ways. Not all of these are available in all states. It helps to check with an attorney licensed to practice law in your state. The most common ways they’ll attempt to enforce the judgment are:

  • wage garnishment
  • bank account levy
  • the seizure of personal assets
  • liens against real estate

When you work with the legal team at National Legal Center, we’ll help you understand your risks. We want to protect you and your assets whenever possible.

By understanding your risks, you may be able to identify ways to minimize them.

File bankruptcy

Sometimes, credit card debt settlement or a payment plan is not possible, and you cannot minimize your risks to the point of feeling comfortable. When this is the case, you may want to consider filing bankruptcy.

Chapter 7 and 13 of the federal bankruptcy code are available for credit cards and other unsecured debts, like medical bills.

To file for protection, you will should work with an attorney to navigate the process of bankruptcy court.

There are complex court rules that you’ll need to follow. Once you’ve paid your legal fees, your attorney will notify the debt collector or law firm that filed the lawsuit that court rules protect you once you’ve filed bankruptcy. They’ll also inform any other debt collection agency or creditor that is in the picture as appropriate.

Know your rights

defending a credit card summons

When you are facing legal action for unsecured debt, it’s essential to understand your rights. Suppose a debt collector violated federal law or the statute of limitations has passed. In that case, you may have a solid affirmative defense.

Let’s take a look at some of your rights as a consumer.

Fair Debt Collection Practices Act (FDCPA)

This federal law intendeds to protect consumers from harassment and abusive debt collection practices. The FDCPA requires debt collectors to adhere to a minimum standard of business practices.

There are many ways that collection agencies may have violated the FDCPA, including:

False statements: Debt collectors may not falsely represent the amount you owe. They cannot claim they can or will take actions that they are not able to take to collect from you.

Harassment: The FDCPA prohibits debt collection agencies from harassment, including using threats of violence or intimidation to get you to pay what you owe.

Unfair practices: Collection agencies are prohibited from engaging in unfair practices like contacting you at unreasonable times (before 8 AM or after 9 PM), or telling others that you have unpaid debt.

If a debt collector violates the FDCPA, they could be liable for damages of up to $1,000, and attorney’s fees. In some cases, making a counter-claim against them under the FDCPA may prompt them to ask that the court dismisses the suit.

Even if this doesn’t prompt the debt collector to dismiss the suit, it may prompt them to accept a reasonable payment plan or a settlement on the account.

Statute of Limitations

Depending on how long it has been since the account fell behind, the plaintiff may not be allowed to bring a claim against you.

For some types of debt, there is a time limit the creditor has to file a lawsuit which is called the “statute of limitations.” This is often 4-6 years from when your account became overdue, depending on the state. If this timeframe has passed, you may have an affirmative defense stating that they can no longer pursue legal action against you in court for money owed under state law. It is best to speak with your attorney to determine the correct statute of limitation that applies in your state and the specific type of debt you have.

Talk to an attorney.

If you’ve been sued for credit card debt by Midland Credit Management, Portfolio Recovery Associates, or any other creditor or debt buyer, you may have many options. Knowing your credit card rights can help you deal with legal action by creditors and credit card collection agencies. If you’re not sure where to start or what to do next, it’s best to consult an attorney who specializes in credit card law as soon as possible.

That’s where the experienced professionals at National Legal Center come in.

What is National Legal Center?

When facing a debt collection lawsuit, you need an attorney who knows what you’re up against. National Legal Center is a multistate consumer rights law firm that has helped thousands of consumers deal with lawsuits by credit collection agencies and creditors.

Our knowledge and experience can guide you through debt collection lawsuits. If you would our assistance, call us today at 1-800-728-5285 for a free confidential consultation.

We’ll help you understand what a collection agency can and cannot do, how the lawsuit affects your credit report and credit score, what to expect from the credit card companies, and much more.

Why can you trust National Legal Center?

We are debt relief attorneys.

As debt relief attorneys, we have seen first-hand how credit cards can quickly spiral out of control. We know what it takes to help you find credit card debt relief. And most importantly, we know how to deal with credit card lawsuits brought by creditors against our clients.

National Legal Center is an accredited member of the Better Business Bureau. We presently maintain an A+ rating, and we welcome you to check out the reviews our clients have left for us with the BBB.

Here’s what our clients have to say about us:

best debt settlement attorney, top debt relief attorney, debt settlement attorney, debt relief attorney

best debt settlement attorney, top debt relief attorney, debt settlement attorney, debt relief attorney

best debt settlement attorney, top debt relief attorney, debt settlement attorney, debt relief attorney



You can be our next success story.

Complete this form to get started today.

Debt Professionals

Debt Relief Scams Are Back. Financial Professionals Can Save the Day.

,

Key Highlights

  • Debt settlement and credit counseling companies have seen a 20% increase in organic web traffic in the past six months
  • For-profit debt relief sales representatives are incentivized to sell their solution… even if it doesn’t solve the consumer’s problem
  • Financial professionals can help their clients find real solutions for their financial troubles and spot dangerous  debt relief scams

Discover how financial pro's are teaming up with NLC to help consumers overcome investment-stopping debt

 

Recession Signals from The Debt Relief Industry

The industry has been relatively quiet since those regulations were imposed and the economy settled down…until now. From calls from figureheads like Jamie Dimon of Chase Bank to more tangible economic indicators, economic turmoil has people’s attention. And opportunity looms large for the debt relief industry.

Debt settlement companies and the businesses that support them are beginning to pop up again, just like they did during the last financial crisis. I’ve been in the debt relief space since 2008, and old names are popping up left and right- some with a grin, others with a cringe.

Not only are old players coming back into the mix, but data suggests the industry may be poised for a boom, too. Looking solely at direct website traffic (which does not come from pay-per-click ads) gathered from data analytics platform SEMRush, some major debt settlement and credit counseling companies appear to have seen a 15-20% increase in their organic web traffic in the past six months.


Also, Google search volume for several key phrases related to our industry-phrases such as debt relief, debt relief services, debt relief attorney, and debt settlement attorney- is up 900% since last year.

A Lull In Demand

It’s important to note that consumer need for the help of debt settlement companies and bankruptcy has been at a historic low. The lull of demand over the past few years contributes greatly to the dramatic spike in demand suggested above.

Due to many economic factors way more complex than I can properly convey, consumers haven’t had a real need for debt relief companies in the past few years. Stimulus programs, bank-offered hardship relief, lifestyle adjustments, debt forgiveness, and more have all allowed people to “be okay.” Now, it seems the swings of inflation, deflation, and everything in between have become unmanageable for some again.

Credit Card Delinquency Rates Moving into 2023

One strong economic indicator that drives the debt relief industry is the credit card delinquency rate. This statistic does not consider payments that are just a few days late, as delinquency technically only happens 30 days after nonpayment. Here’s a look at the credit card delinquency rate from 2000 to the present.

The spike in delinquency rates in 2008 is no surprise. That’s when the financial world came tumbling down. We saw a major correction as banks faced pressure to rein in the delinquencies (that actually made them a tremendous amount of profit) with the implementation of the CARD Act of 2009, but the damage was already done.

Even after those corrections lowered the delinquency rate, the pandemic brought unexpected forms of relief, putting the credit card delinquency rate at a historical low from 2020 through 2022 as indicated in the chart above.

Credit card delinquency rates are still at a historic low, but the curve has turned, and all the external signs seem to indicate it will continue to rise. The debt relief industry really settled down once delinquency rates dropped below 3% in 2012. If the credit card delinquency rate is as tied to consumer demand for debt relief services as one might imagine, it makes sense to see increased web traffic as delinquency rates are rising.

Between keeping our ear to the ground and the data we’re seeing, the internet and the debt relief industry clearly expect a significant uptick in demand for our services in the very near future.

Why This Matters to Financial Professionals

As a financial professional, it’s important to know how to guide your clients to help they can count on and how to spot a debt relief scam. You are the person and people who will be on the front lines when things start to go south for your clients. They will come to you for help.

Last time, the best anyone could really do was offer a generic suggestion to find a debt relief company without direction. Consumers without direction will succumb to marketing. They’ll call a number from a radio ad, tv commercial, or internet ad. Then, they’re sold on a solution that wasn’t really right for them in the first place. For-profit companies have one goal, to make money.

The moment a for-profit debt relief company has someone on the phone, the sales representative is trained to sell that person their solution. Even if it might not be the best solution for the consumer, or if it could damage their financial future, a sales representative that is commissioned to enroll people for the shortest term possible could make bad suggestions. It’s not uncommon to hear that people were encouraged to withdraw funds from their 401k to pay off debt. We know this is almost always a bad idea. But when a blissfully ignorant young sales agent wants to earn a paycheck and please their equally ignorant manager, bad things happen to good people.

This is a big problem, and it’s one that is difficult to overcome, but it is solvable.

The debt relief industry doesn’t have to be a shadow industry. It can do a tremendous amount of good if the right people get connected with the right solutions.

The Need-to-Know About Debt Relief Programs

Here are three things you can do to prepare for the blast of manipulative debt relief marketing we’ll all experience:

1) Get a quick understanding of the solutions provided by the debt relief industry (debt resolution, credit counseling, debt settlement, bankruptcy, etc.)

2) Know when to refer someone to a debt relief attorney or other debt relief program for help.

3) Educate your clients about how to avoid debt relief scams and find the help they actually need.

We’ll be breaking down all three of these topics in future articles, but for now, we’ll share a high-level overview of what really matters.

Understanding the National Debt Relief Industry

If you ever had a call where a client says they’ll be chatting with their auto insurance agent about opening a new bank account, you’d quickly point out the flaw in their plan. Likewise, you don’t want to let someone who is facing a debt collection lawsuit call a credit repair company. They’re just not the pros for the job.

Let’s begin with an overview of the types of companies involved. There are four main types of companies in the space, and a fifth that is more or less just a scam.

Debt Relief Attorneys

That’s us. We help people understand and evaluate their legal risks when it comes to debt and credit. We help them consider the risks involved with any decision they might make, whether that be our strategies to help them resolve debt without bankruptcy, filing for bankruptcy, or dealing with a debt collector that’s harassing them, all while working to protect their wages and assets from aggressive collection tactics.

Our law firm provides the debt negotiation services offered by debt settlement companies (whom you’ll learn about below), except our state-licensed attorneys can offer legal advice on legal matters, all for a similar cost to a for-profit debt settlement company. We also use other legal strategies to protect the client and help them obtain the best possible outcome to reach their goals.

Law firms are subject to ethics rules under the American BAR Association, which discourage law firms from suggesting our legal service if we think there’s a better one available. So, while most people are able to get back on track without needing our services, we’re an excellent starting point for a consumer in debt. National Legal Center is a consumer rights law firm helping people in 36 states and growing.

Who do we help in a nutshell? People who are overwhelmed with unsecured debt. People on a fixed income who are choosing between eating and paying their debts. We can keep it that broad for now, or you can learn more about our legal services.

Want to connect people to us? Have them call 800-728-5285, or they can visit us at nationallegal.com. Want to connect people to us regularly? Line up a chat about how we can help your people.

Credit Counseling Agencies

These are typically non-profit companies that help people develop a budget and work with their creditors to set up a debt management plan which is a roundabout way of debt consolidation. They can also help people find the appropriate solutions for them.

So long as you’re connected with a reputable credit counseling agency (we do have our favorites) which you can find through the US Justice Department, you can be relatively sure you’re connecting them with the good guys.

Debt Settlement Companies

With fewer rules on their marketing than law firms or non-profit organizations, for-profit debt settlement companies are probably the loudest of advertisers.

These companies are best for straightforward situations where a consumer is unable to avoid charge-off, which happens after around six months of delinquency on unsecured debt. The goal is to settle the debt for less than what’s owed. Trouble looms here when consumers receive a wink-wink nudge-nudge to default on their debt when they really didn’t need to. The new rules are supposed to prevent that, but scripts are easily designed to convey messages without saying them.

Credit Repair Organizations

These companies claim to help people improve their credit scores by disputing negative items on a credit report. This is good if there are truly incorrect items and the consumer doesn’t have the interest or know how to mail off a letter and follow up with it. It’s a perfectly fine process, but it has been made to seem incredibly complex when truly it isn’t.

Credit repair is not a financial solution. It is a solution to credit scores which are a surface-level problem. It does not eliminate debt, lower payments, or make anything go away from anywhere other than a credit report.

Also, and this is important when a valid delinquent debt is challenged by a credit repair company, the creditor has just been forced to gather up all the information they need to file a debt collection lawsuit. The companies that people pay to improve their credit are doing exactly what people hire them to do, but the flaw is that it creates a greater risk for the underlying problem, which is the debt.

Debt Validation Companies

Another entity that is very much in the shadows is debt validation or debt elimination companies. These are horribly risky and are essentially outright scams.

Debt validation may have some proper use case somewhere that is valid for consumers, but it’s sure hard to find, and very few consumers will be capable of determining if that is actually a valid approach for them. These companies use the most egregious of business tactics, using tricky language and claiming straw man legal theories to say a debt isn’t valid and therefore does not need to be repaid.

The consumer has to pay them a big fee that is much more manageable than their monthly credit card payment, and in return, the company will convince them that all their problems don’t really exist because the debt isn’t valid. Then the consumer gets sued, a judge says the debt was valid all along, wages are garnished, and the debt validation company disappears after pointing to something in their contract that is meant to think the consumer is prevented from taking action against them.

There are some situations where debts really aren’t valid. Some really can’t be enforced due to state and federal laws. But these situations are rarely the reality for a consumer who calls us. Yes, it may happen over time and with intentional and ethical strategy, but it’s certainly the exception rather than the rule, and companies who claim otherwise are using incredibly misleading and downright unethical business practices.

2022 Brings A New Era for Debt Settlement Programs

While I am presenting my experience as a legal marketer with an understanding of the debt relief space, there are others within the firm who can share a different, deeper perspective, too.

An Emphasis on Risk and Risk Management

David Gelinas

For an update on some of the challenges debt settlement companies may face as the credit card default rate rises, I turned to our law firm’s Director, David Gelinas. Gelinas shared that “assessing a consumer’s legal risk during the initial consultations is central to providing sound debt relief advice.

Just as a licensed investment consultant should assess an individual’s comfort level of risk when considering an investment, a consumer considering debt relief should be made aware of their potential legal risks so they can make an informed decision if debt settlement is right for them. A risk assessment should not only include the consumer’s individual situation (i.e., Assets at risk and source of income, etc.) but should also include an assessment of the laws of the state in which the consumer resides.”

Further, Gelinas says, “debt collection lawsuits are far more common during the debt settlement process than people are led to believe. Potential clients should be aware of what legal assistance will be available should a lawsuit ensue. Non-attorney debt relief consultants typically downplay the legal risks associated with the debt settlement process.”

Gelinas says that only licensed attorneys should provide consumers with a legal review of their potential legal risks. However, he also acknowledges that debt settlement companies are in a difficult spot when it comes to discussing potential legal risk because doing so may be considered the unauthorized practice of law (UPL). While it’s often standard practice for debt settlement consultants to tell potential clients not to worry about lawsuits or that they have an attorney network they can be referred to if a lawsuit occurs, the time to assess a potential client’s legal risk and develop a legal strategy should be done at the beginning of a debt relief plan, not later.”

Debt Buyers are Faster to File

Michelle Creeden

I also spoke with our Practice Administrator, Attorney Michelle Creeden, who recently shared something interesting in a meeting. I reached out to ask her to expand on what she had shared.

“We have been seeing a push lately for debt buyers to send their accounts out to law firms right away. In the past, the accounts would have been sent to debt collectors first to see if money can be recovered without the added pressure and expense of litigation. Now debt buyers are hiring law firms and heading straight into court to secure a judgment against consumers.”

This is just another step in the long-growing trend of debt collectors over-leveraging the court system to put heavy pressure on debtors.

The Solution Lies In the Problem

Just as debt buyers are going straight to law firms, so too should the people who owe them money.

As Director Gelinas shared, debt settlement companies cannot offer legal advice or assist a consumer with a lawsuit. They may tap into attorney networks, which can have excellent value but are detached and limited by being a reactive approach rather than a proactive one.

Debt settlement companies do still have their place, but consumers are more likely to be sued if they stop paying their credit cards than they used to. It’s a real hurdle the industry will face this time around. If they don’t do it proactively, consumers can get hurt.

Again, the solution is that people who need help with debt should speak with an attorney who is familiar with the laws of their state when it comes to debt and debt collection. This way, their risk can be assessed from the very beginning, and their approach to resolving debt is based on risk and goals rather than a shallow consideration of their actual financial needs.

Here’s Where Financial Professionals Come In

Debt is a very real and difficult thing for people. When debt becomes overwhelming, people need help, clarity, and understanding of their options.

The debt relief industry has changed a lot in the past few years and will continue to do so. New companies are forming all the time to help people with their debt. But you can’t just recommend any company that comes along. You need to do your research and know where you’re sending someone.

On that note, financial professionals do need to be familiar enough with debt relief companies to make recommendations when someone asks. Otherwise, the people who trust you for their financial, insurance, and investment needs could land in the wrong place and be taken advantage of.

To best serve the people who come to you for help with debt, you’ll want to know who to send them to.

How to Vet a Debt Relief Company

How long has the company been in business?

If they’ve not been in business for more than five years, they haven’t had a chance to prove their debt relief solution. Remember, these solutions take years.

Are they accredited by the BBB?

Some arguments against the BBB are valid, but the company should at least be around long enough and well-established enough for the BBB to recognize them. If the BBB doesn’t know who they are, they haven’t earned enough credibility to earn a confident referral.

Are they a member of AFCC, IAPDA, BAR, or other (real) associations?

Much like the BBB, this is subjective. Sometimes an association is little more than a fee for a stamp, but real ones will provide oversight and regulation of their members. Again, what we’re looking to do is establish credibility.

Do they have good (legit) reviews online?

It’s okay if they don’t have a ton of reviews. People don’t really like to speak publicly about being in debt, and there are big privacy concerns with companies sharing clients’ names. Nevertheless, debt relief customer reviews indicate how the company operates. Take some time to read them and remember that real businesses aren’t perfect. The humans that operate the businesses make mistakes, and it’s okay to see 3 and 4 stars now and then.

How do they treat customers?

You can call with general questions or complete an online quote request to see how they treat a potential customer. If your intent is to vet them to send them referrals, most businesses would appreciate that effort rather than condemn it.

If they’ve passed all that, your next step is to take a gut-level “sneak peek behind the scenes” look at their messaging and their business practices. Both are very easy to find if you know what to look for.

Will they turn someone away if they aren’t the right fit?

One of the most important indicators is to try to see how hard they’ll try to put a round peg into a square hole. Companies that have holistic approaches to refer consumers to their needed solution without a referral fee are setting the gold standard for the debt relief industry. Those that do it with a referral fee (if it’s even legal in the situation) should disclose it to the consumer.

Do they present their service as a helpful solution to an existing problem, or are they attempting to manufacture need?

If you go on their website (and if they don’t have a website, there’s little reason to look any further, by the way. That’s a low bar to fail.) and it feels like they’re trying to convince or even subtly trick the visitor that they need their debt relief service, you know that conversions are more important to the company than the client’s actual needs. It’s that simple.

Help Them Get Help and Avoid Scams

When a client shares their desperation with you about their financial situation, it’s easy to want to do something. But, if you’re not careful, that can lead to doing the wrong thing. Here are some basic tips for you to help your clients get the help they need without getting scammed:

1. Listen to their story

More than ever, people need to be heard. You may not offer the solution that they need, but there’s a good chance they’re going to share something valuable that helps you learn where to send them so they can get the help they do need. In doing that, you build a long-lasting relationship with the person, building deep customer loyalty.

2. See if you can right-fit them

Can you determine which company they’re best to speak with? If they have a lawsuit or a complex situation, it’s good to speak with a debt relief law firm like ours. The consultation is free, and if we can’t help or see a better fit, we’ll say it. If the person is current on their accounts and is feeling the pressure, a credit counseling agency is a way to go.

Since both law firms and non-profit credit counseling agencies are required to consider all available options, both of those should be spoken with before going the route of a credit repair or debt settlement company.

3. Encourage the vetting tips

As we shared earlier, it’s important to only work with established, reputable companies. If the consumer seems able to go through that vetting process on their own, wonderful. If not, it might be good to have a company or two lined up in advance so you can give a confident suggestion.

4. Educate your clients about the process

With just a little knowledge of each business type, you’ll be able to share enough information for a consumer to make an educated decision. In almost all cases, a credit counseling agency is a great, safe first place to start.

Calling Financial Professionals To Action

Debt relief companies get their customers from marketing channels just like every other business and financial professional. The difference is that people don’t talk about debt, and the industry has intentionally lived in the shadows so that they have control over the messaging and how customers reach them.

If financial professionals can become informed, then consumers will become informed.

We should be able to trust that companies aren’t going to mislead people when they’re struggling. But we know that isn’t the reality. Scams are coming. It’s time to do your homework so you’re ready to help by sending people to the right places.

Debt Relief Scams Are Back. Financial Professionals Can Save the Day.

My current aim right is to get the word out about how people can avoid debt relief scams. I’m doing that by speaking to those of you on the front lines of personal finance.

Press and media: josh.richner@nationallegal.com
Connect on LinkedIn
Schedule a business development chat

Get more value from NLC in your inbox! Subscribe below.

The debt relief industry was in full swing during the 2008 financial crisis. Radio ads promising to “settle your debt for pennies on the dollar” blared across radio waves and infomercials. People in debt, desperate for help, responded. Unfortunately, while many of these companies attempted to provide a legitimate service, they were overshadowed by hordes of scams that preyed on desperate consumers.

Much-needed regulations came about in 2010 with the Federal Trade Commission’s amendments to the Telemarketing Sales Rule (TSR). The new rules effectively ended many of the more egregious practices in the industry. The players behind the scenes, and their ill-gotten profits, quickly disappeared.

A handful of people stayed and adapted. They learned how to operate a compliant organization in a post-TSR world, changed directions, reevaluated business models, and started helping people in broader, often more holistic ways.

As someone who stayed, I can say it feels like history is about to repeat itself.

And that needs a serious discussion.

Woman on phone - Settling Debt

Settling Debt with Cavalry Portfolio Services, Inc.

,

Cavalry Portfolio Services is one of the largest debt buyers in our country. In fact, they file more debt collection lawsuits than some of the biggest banks in the country. If you’re being sued by Cavalry Portfolio Services, it’s important to understand your rights and what you can do to protect yourself.

This article will discuss the debt buyer, how to get Cavalry off of your credit report, what to do if you’re being sued by them, and more. Then, we’re going to explore your options and touch on dealing with debt collectors in general. So, read on for all the information you need to know about settling debt with Cavalry Portfolio Services, Inc. and their affiliated companies.

Who Is Cavalry Portfolio Services, Inc.?

Cavalry Portfolio Services, Inc. is a debt buyer. That means they purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. So, naturally, their goal is to buy low and collect high.

If you’re wondering why you see Cavalry, or a variation of their name (such as Cavalry SPV, Cavalry SPV I LLC, or Cavalry SPV ii), it’s likely because they’ve purchased a charged off debt.

Once Cavalry Portfolio Services, Inc. has acquired a debt, they have a few options that they can exercise right away or in the future. To name a few, they may:

  • Collect on the debt directly
  • Hire a third-party collection agency to pursue collections
  • Place the account with a law firm for collection and/or litigation
  • Do nothing
  • Resell the account to a different debt buyer

Is Cavalry Portfolio Services, Inc. a Legitimate Debt Collection Company?

Yes, Cavalry Portfolio Services, Inc. is a legitimate company. In fact, Cavalry Portfolio Services, Inc. is one of the largest debt buyers in the United States.

Just because they are a legitimate organization doesn’t mean you should let your guard down, though. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies.

Double and triple-check to be sure you are truly communicating with the real Cavalry Portfolio Services, Inc. before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from Cavalry Portfolio Services, Inc., they are indeed a legitimate debt buyer.

Woman looking at paperwork - Settling Debt with Cavalry Portfolio Services

What’s the Relationship between Cavalry Portfolio Services, Inc. and PRA Group, Inc.?

There are several companies within the Cavalry ecosystem. For example, when you have a debt that has been purchased by Cavalry Portfolio Services, Inc., you may also see Cavalry SPV, Cavalry SPV I LLC, or Cavalry SPV ii on collection letters, your credit report, or legal documents if you’re being sued.

With all these companies intertwined, it can get a bit tricky.

Rather than untangle the corporate web behind Cavalry Portfolio Services, Inc., suffice it to say that Cavalry is a debt buyer who also acts as its own debt collector.

Their various subsidiaries each play a role in their business processes. All have a deviation of the core “Cav” within their names and, for the most part, you’ll primarily see Cavalry Portfolio Services, Inc. and PRA Group, Inc.

What Is the Relationship between Cavalry Portfolio Services, Inc., Citibank, and Other Creditors?

Cavalry Portfolio Services, Inc. purchases unpaid debt from lenders like CitiBank, Lending Club, and others.

Once a debt has been purchased by Cavalry Portfolio Services, Inc., it is their right to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you or your debt settlement attorney and the new owner of the debt or their collector.

Why Is Cavalry Portfolio Services, Inc. on My Credit Report?

When Cavalry Portfolio Services, Inc. becomes the new owner of your debt, their name will often appear on your credit report alongside the collection account. Their remarks may include their contact information, how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled.

Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, if they cannot verify the information, or if it is not a valid debt, you may be able to remove Cavalry Portfolio Services, Inc. from your credit report by disputing the remark. You’ll want to ensure the error is corrected with each of the three credit reporting agencies: Transunion, Experian, and Equifax.

Credit Report

How to Remove Cavalry Portfolio Services Debt from Your Credit Report

Although their internal policies are always subject to be changed, Cavalry Portfolio Services currently displays information regarding removing their remarks from your credit report. Essentially, their current policy is to remove paid and settled debts from your consumer credit report.

If you believe you owe the debt and want to remove Cavalry Portfolio Services debt from your credit report, you can repay the debt in full or negotiate a settlement. After about 60 days, which is likely to allow time for your payment to clear, they state that they will remove the account from your report.

National Legal Center can negotiate a settlement with Cavalry Portfolio Services and ensure they follow through on any legal obligations they may have to remove the account from your credit report.

What Should I Do If I Receive a Letter or Call from Cavalry Portfolio Services, Inc.?

If you’re receiving calls or letters from a debt collector at Cavalry Portfolio Services, Inc., or any collection agency, there are actions you can take and rights that protect you as a consumer in debt.

Begin by reading the Attorney’s Guide to Reading a Collection Letter. This will explain the core elements of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts.

Then, determine your next steps.

Are you sure you owe the alleged debt to Cavalry Portfolio Services, Inc.? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you’d like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center.

If you are sure the debt is valid, can you afford a payment plan to resolve or settle the account? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.

National Legal Center negotiates with companies like Cavalry Portfolio Services, Inc., every day. Complete this short form to discover options to resolve debt with Cavalry Portfolio Services, Inc., and any other creditors you may have on your credit reports.

Is Cavalry Portfolio Services, Inc. a Debt Collection Agency?

Yes and no. Cavalry is a debt buyer. They purchase debt, and then they have their debt collectors call in an attempt to collect the debt. The fact that they own the debt does raise questions on whether they are technically a debt collection agency. The title of being a “debt collector” brings along many requirements under the FDCPA.

If you feel you’ve been harassed or like your rights have been violated by debt collection companies, National Legal Center is here to help.

Lawsuit

Can Cavalry Portfolio Services, Inc. Sue Me?

Yes, Cavalry Portfolio Services, Inc. may be able to sue you for the debt you owe. A debt collection lawsuit can be a frightening experience that you should take seriously. If Cavalry Portfolio Services decides to sue you, it is important to speak with an attorney as soon as possible.

Failing to respond to a summons can result in a default judgment being entered against you. At that point, you’re susceptible to having wages garnished, money taken from your bank account, seizure of personal assets, and more.

National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.

Should You Negotiate a Settlement with Cavalry Portfolio Services, Inc.?

When Cavalry Portfolio Services, Inc. is contacting you about a debt, negotiating a settlement is one option to resolve the debt.

A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you pay Cavalry Portfolio Services, Inc., the account is reported to the credit bureaus as settled in full (or similar), and they should not take further action.

If Cavalry Portfolio Services, Inc. has filed a debt collection lawsuit, and you’re considering settlement, things change a bit. Of specific importance is the timing of the settlement.

For example, if the settlement occurs after Cavalry Portfolio Services, Inc. issued a summons, you’ll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement.

If you settle a Cavalry Portfolio Services, Inc. lawsuit after a judgment was entered, you’ll want to have documentation that confirms they will file a satisfaction of judgment with the court.

While you can ask the representative at whatever law firm is handling the matter for Cavalry Portfolio Services, Inc., it’s crucial to remember that they are not your attorneys!

Instead, they represent the other party, so it’s good to be skeptical and confirm anything they tell you. After all, their job is to collect the most funds possible on the accounts they handle.

Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t’s and dot your i’s.

Man on phone - Discussing Debt

Tips for Negotiating a Settlement with Cavalry Portfolio Services, Inc.

Here are some tips for negotiating a settlement with Cavalry Portfolio Services, Inc., or any other debt collection agencies:

  • Negotiate a settlement you know you can afford. Don’t over-commit yourself and fail to complete the terms of the arrangement.
  • Obtain a letter outlining the terms of the agreement, including the amount to be paid and the payment due date.
  • Follow the letter’s instructions. If the settlement agreement is $4,089.05, pay that, don’t pay $4,089! If it is due by the 28th, paying on the 30th doesn’t cut it—if you need an extension on a settlement, you also need a new letter.
  • Maintain your documents. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.

How Can a Debt Settlement Attorney Help?

Receiving a summons on a debt you owe to PRA is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make mistakes during legal proceedings.

If you decide to work with an attorney, they’ll likely look at your entire financial situation and work to find an affordable resolution for you and minimize your legal risks. They may also identify alternate legal strategies to deal with the debt.

Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?

You don’t have to wait until you receive a debt collection summons to begin working on a solution. By working with a lawyer familiar with debt-related matters, you can minimize the chances of a debt collection lawsuit happening in the first place.

Can the Fair Debt Collection Practices Act Help with a Debt Collection Lawsuit?

A debt collection company often walks a very fine line when getting a consumer to repay a collection account. Most collection agencies are cautious about following the laws that oversee debt collections, such as the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), and other consumer protection laws. However, sometimes an untrained or unruly debt collector can violate your rights.

Among many other things, a debt collector may not:

  • Share inaccurate information during phone calls
  • Provide legal advice
  • Lie about what type of legal action they can take
  • Misrepresent the debt
  • Pursue time-barred debt without proper notification
  • Disclose your debt to third parties

If a representative of a debt collection agency has violated your rights, and you are facing a debt collection lawsuit, you may be able to file a counterclaim against them.

A successful counterclaim on a debt collection lawsuit can lead to many outcomes. For example, it may result in the dismissal of the lawsuit brought against you, a waiver of the debt owed, the removal of the account from your credit reports, money damages to you, etc.

Couple looking at documents - Negotiating Debt

Contact Information for Cavalry Portfolio Services, Inc.

If you have an account owned by Cavalry Portfolio Services, Inc., it helps to know how to contact them. To obtain confident contact information, you may want to go to the company’s website, your credit report, or the Better Business Bureau.

Below is the contact information for Cavalry Portfolio Services, Inc.

Cavalry Portfolio Services, Inc.

Phone: 1-866-483-5139

Address:
1 American Lane, Suite 220
Greenwich, CT 06831-2200

National Legal Center negotiates with debt buyers and debt collection agencies regularly. Complete this short form to discover options to deal with a summons from Cavalry Portfolio Services, Inc. and any other collections account you may have.

Struggling with debt? There ARE options. Request a free consultation today!

Couple looking worried at paperwork - Facing Bankruptcy

Chapter 13 Bankruptcy: Overview and Alternatives

,

When you need help with debt, the idea of filing for Chapter 13 bankruptcy can be a frightening concept. Sure, you probably know that bankruptcy is meant to be helpful, but without a full understanding it can be hard to know if you’re the type of person it’ll be helpful for, or if you should look for alternatives to bankruptcy.

Trouble with debt can be caused by things that can’t be discharged in a Chapter 13 bankruptcy. If you have child support, alimony, or tax responsibilities, you’ll still have to sort out these debts. You also won’t have an easy time getting your student loan debt discharged through bankruptcy. Not to mention that you could still lose your home if you have a secured debt on your property.

Sometimes bankruptcy is a clear solution. Other times, an alternative to bankruptcy could help alleviate more of these debt-related struggles.

This article looks at the different types of bankruptcy, the limitations of Chapter 13 bankruptcy, and the National Legal Center’s Debt Resolution Plan as an alternative to Chapter 13 bankruptcy.

Let’s get started.

Bankruptcy Definition

Types of Bankruptcy

Generally, two types of bankruptcy exist: commercial and consumer bankruptcy.

Commercial bankruptcy involves legal proceedings that free businesses and corporate entities from paying some or all of their debts. Companies can typically file for Chapter 7 or Chapter 11 bankruptcy.

Consumer bankruptcy is bankruptcy for individuals. In other words, it involves legal procedures that relieve a person from some or all of their debts. Under consumer bankruptcy, individual debtors can file for Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 Bankruptcy 

Chapter 7 bankruptcy (also known as straight or liquidation bankruptcy) is particularly popular because it is the simplest and most common bankruptcy filing. According to the statistics, out of the 413,616 bankruptcies filed in 2021, 288,327 were Chapter 7 bankruptcies. 

When you file for Chapter 7 bankruptcy, the court effects a temporary stay that prevents your creditors from collecting your debt payments or executing any legal action, such as foreclosures or wage garnishments.

During the temporary stay, the court will also take possession of your properties and appoint a trustee to oversee the bankruptcy procedure.

The trustee will review your assets and liquidate all non-exempt properties to pay your creditors. Typically, the properties that fall under the exempt category (assets that you won’t sell) vary by state.

Your trustee will arrange a court sitting (or creditor meeting) where you’ll answer questions about your financial situation. After paying your creditors from the sold assets’ proceeds, the court will discharge all remaining debts.

However, not all debts are dischargeable under Chapter 7. You’ll still have to pay off student loans (with a few exceptions), child support, alimony, tax liens, secured debts, and any unsecured debts deliberately left out of your bankruptcy filings.

There’s a possibility to avoid some of these debts, such as student loans, if you can prove undue hardship. Typically, Chapter 7 bankruptcies take around four to six months to complete.

Qualification Requirements

If you file for Chapter 7 bankruptcy, you’ll need to meet some requirements before the court grants your request. Below are the  general qualification requirements for Chapter 7 bankruptcy:

  • You must complete an individual or group counseling program under an approved credit counseling agency.
  • You must not have filed bankruptcy too recently.
  • If you have a dismissed Chapter 7 or Chapter 13 bankruptcy filing, you must wait a period of time before submitting another petition before the court.
  • Either your average monthly income for the past six months must be lower than the median income for the same-sized household in your state, or you must undergo a means test to find out if your disposable income can partially pay off your debts to unsecured creditors.

If your disposable income at the end of the month can make partial repayments to your unsecured debtors, then you may have failed the means test, and the court may deny your request for Chapter 7 bankruptcy. The next line of action would be filing for Chapter 13 bankruptcy.

That said, you can file for bankruptcy on your own or hire a lawyer to handle the process for you. Or, you can explore alternatives to bankruptcy with a debt settlement attorney.

Documents for filing bankruptcy Chapter 13

Chapter 13 Bankruptcy

Chapter 13 bankruptcy (or wage earner’s bankruptcy) is a bankruptcy option for people who cannot pass the Chapter 7 bankruptcy means test. However, some people opt for this type of bankruptcy because it allows them to keep assets they would have liquidated if they filed for Chapter 7 bankruptcy.

Generally, in a Chapter 13 bankruptcy, you’ll submit a debt reorganization plan to a court that applies all your disposable income to pay off your creditors. The court will appoint a trustee to collect and distribute your repayments to the entities you owe.

The reorganization plan typically ensures that creditors cannot repossess or foreclose upon your home while it discharges other debts. However, like Chapter 7 bankruptcy, student loans, child support, and alimony are not dischargeable under Chapter 13 bankruptcy.

With a Chapter 13 bankruptcy, you can resolve your debt obligations within three to five years.

Qualification Requirements

Like Chapter 7 bankruptcy, debtors must meet several requirements to qualify for Chapter 13 bankruptcy. Here are the general requirements for filing for Chapter 13:

  • You must have a steady income (monthly salary, pension, unemployment compensation, rent, social security payments, etc.) to enable you to make monthly payments.
  • You must be current on your tax filings.
  • You cannot have filed bankruptcy too recently.
  • You must fall within limitations of maximum secured and unsecured debts.

Only individuals and sole proprietors can file for Chapter 13 bankruptcy. Small businesses and corporations are eligible for Chapter 7 and Chapter 11.

Can You Remove Chapter 13 from Your Credit Report before 10 Years?

It’s generally impossible to remove a Chapter 13 bankruptcy from your credit report, unless it was filed in error. However, a Chapter 13 bankruptcy stays on your record for seven years, after which it’ll automatically fall off your credit report.

Limitations of Chapter 13

While bankruptcy can help you deal with some of your debt issues, it has its fair share of limitations, including a handful of debt problems you’ll have to still deal with. Here are some of the limitations of Chapter 13 bankruptcy:

Saving for education

Student Loans 

A Chapter 13 bankruptcy will not relieve you of student loan debt. You can only avoid paying student loans in a Chapter 13 bankruptcy if you can prove that repayment would cause undue hardship, which can be difficult in most cases.

Medical Bills 

In a Chapter 13 bankruptcy, you put together a three to five-year plan to pay off your debt. Your trustee sums all your bills together and determines the amount you can pay based on your earnings.

Typically, the repayment sum for each creditor is less than the money you owe. In other words, your creditors (including your doctors and any additional hospital bills) will receive prorated amounts of the money owed.

The downside? Hospitals can deny you medical treatment after a bankruptcy filing, even if you have ongoing treatment.

Co-signed Debts

A Chapter 13 bankruptcy prevents creditors from attempting to collect repayments for your debts from your co-debtors, as the court would order an automatic co-debtor stay immediately after granting your request.

However, creditors can lift the stay and make your co-signers liable for your debt. Here are some situations where that could happen:

  • The co-signer received a primary benefit from the loan.
  • Your Chapter 13 repayment plan doesn’t include the co-signed debt.
  • The co-debtor stay would irreparably harm the creditor’s interest.

Your co-debtor would also still be liable for any co-signed debts if the court dismisses your Chapter 13 case or converts it to a Chapter 7.

Community Property States

Several states have community property rules, including Alaska, Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In these states, properties bought by either partner while married belong to both spouses.

As such, the state refers to the assets as community property. Similarly, the state also treats debts owed by either couple while married as belonging to both individuals.

These rules do not apply if the affected spouse incurs the debt or buys the property before the marriage or after a legal divorce. That said, in the event of a bankruptcy, creditors of one partner can reclaim the married couple’s assets as repayments for the affected individual’s debts.

However, the creditor cannot repossess the personal property of the other spouse obtained before marriage or after a divorce.

Bankruptcy

Chapter 13: By the Numbers

Bankruptcies are pretty complicated, with several prerequisites and limitations. As such, it helps to know the numbers behind them to decide whether filing for one is the best option for you.

Let’s discuss some figures surrounding a Chapter 13 bankruptcy, such as the cost and how long it’ll stay on your credit report.

How Much Does Chapter 13 Bankruptcy Filing Cost?

Like most legal proceedings, Chapter 13 bankruptcies typically involve the services of an attorney. Before filing for a Chapter 13 bankruptcy, you must know how much it’ll cost you in legal fees, especially since you’re already dealing with financial difficulties.

On average, a Chapter 13 Bankruptcy can cost you around $3,000. However, you could pay as much as $5,000 or as low as $2,500, depending on your case, resident state, or attorney.

Usually, you’ll pay a down payment before your lawyer files your request. After the filing, the rest of your payment becomes part of your Chapter 13 repayment plan.

How Long Does a Chapter 13 Bankruptcy Stay on Your Credit Report?

A Chapter 13 bankruptcy will stay on your credit report for seven years from your filing date. After the seven-year term, the bankruptcy will automatically fall off your credit report.

How Often Is Chapter 13 Bankruptcy Successful?

The success rate for Chapter 13 bankruptcies doesn’t make for good reading. One study of Chapter 13 bankruptcies over a seven-year period (2008-2015) highlighted that only 41% of cases were successful. Chapter 7 bankruptcies recorded more success (96%) within that same timeframe.

Bankruptcy

Creditor Contact after Bankruptcy Filing

A Chapter 13 bankruptcy effects an automatic temporary stay that prevents creditors from attempting to collect payments for your debts.

Usually, you’ll have to notify your creditors of your bankruptcy filing using a written notice. However, a verbal explanation is enough to prevent collection calls.

Some creditors may flaunt the court order and continue to contact you. In this case, you should inform your attorney immediately to take legal steps to stop these collection calls.

If your attorney cannot assist you, the consumer protection attorneys at National Legal Center can work with your lawyer to take action against creditors or collectors who do not honor your bankruptcy filing.

Avoid Chapter 13 Bankruptcy

While a Chapter 13 bankruptcy might seem like a viable solution to financial trouble, it comes with its fair share of limitations. For one, it doesn’t discharge all your debt and will negatively affect your credit rating. Furthermore, it has a relatively low success rate. This is your financial future at hand. You may feel like there’s no way to avoid Chapter 13 bankruptcy, but there may be. You owe it to yourself to explore all your options.

If you’re struggling with debt, a debt resolution solution that doesn’t require filing for bankruptcy may be a more suitable solution for you. Fortunately, we provide such a remedy at the National Legal Center.

National Legal Center’s debt resolution legal service provides a customer-centric strategy to resolve your debt struggles without a Chapter 13 bankruptcy. Our attorneys will create an affordable plan and work with your creditors to resolve your accounts and get you out of debt.

Our attorneys plan for all possible scenarios during your debt resolution consultations with your creditors (including potential lawsuits), and we’re equipped to resolve all eventualities. Our services also cover all unsecured debts, including those owed to an original creditor or debt buyer.

Reach out to us today to learn more about our debt resolution services and how we can assist you.

FAQs

Does Your Credit Score Go Up after Chapter 13 Discharge?

Yes, you can take steps to improve your credit score after a Chapter 13 discharge. However, you might experience a significant dip in your score during the timeline of your bankruptcy.

Can I Remove Chapter 13 from My Credit Report before 10 Years?

You can’t remove a Chapter 13 bankruptcy from your credit report before the expiration of the timeline if you filed it intentionally. However, you can remove a Chapter 13 bankruptcy if it was filed by mistake.

What Happens to My Credit after Paying Off Chapter 13?

A Chapter 13 bankruptcy will automatically fall off your credit report after seven years. While you’ll experience a dip in your score, the effects will diminish as you take steps to improve your credit rating.

How Long Does It Take for a Credit Score to Go Up after Chapter 13?

It’ll typically take 12-18 months to improve your credit rating after a Chapter 13 bankruptcy.

Struggling with debt? There ARE options. Request a free consultation today!

Debt Relief Scam Calls

Debt Relief Scam Calls from Credit National Assist

,

National Legal Center is a consumer protection law firm. We help people who’ve been taken advantage of by debt collectors, credit bureaus, and scammers. If you need help, call on us.

We’re all about helping people who’ve been harmed, but we want to prevent the harm in the first place. Our team has sleuthed and gathered information from around the web. The nature of scammers is that there isn’t usually much of a paper trail to go off of. Because of this, much of our information comes from reports that have been shared with us and consumer forums. If you feel we have published any untrue information about your company, we invite you to email or call to speak with our managing attorney to correct the record.

If you’ve been getting multiple calls from Credit National Assist, don’t be fooled and don’t give out your financial information. It has every indication of being a scam debt relief company. 

When you’re struggling with debt, it can feel like there’s nowhere to turn. When you think of calling for help, your phone suddenly feels like it weighs a thousand pounds. So when a company like Credit National Assist contacts you out of the blue promising relief from your debts, it can be tempting to take them up on their offer.

Before you do, though, make sure you aren’t encountering fraudulent phone calls aimed at pulling you into a debt relief scam.

In this article, we’re discussing how to identify these types of credit relief scams and what to do if you need legitimate help with credit card debt.

What Is Credit National Assist?

More than likely, they are simply a scam. We wish scam organizations did not exist, so if you’d like to claim this organization as your own and set the record straight, please contact us.

The reason we believe the calls you are receiving from Credit National Assist are a scam is due to reports on message boards and forums from people who’ve been called indicate that the calls include the following elements:

  • Claiming to be calling after an inquiry that never took place.
  • Asking questions that they should already know the answer to if you had completed a legitimate inquiry.
  • Offering debt relief to people who don’t have any debt.
  • Persisting to call after consumers have asked to be removed from their contact list.
  • Requesting personal information such as your credit card type and expiration dates.

These are all red flags that indicate you may be dealing with a scam artist, not a legitimate debt relief company.

We will give a caveat here – some legitimate organizations will hire telemarketing call centers to help them find customers. They may not be aware of the business practices of the telemarketing company.

However, telemarketing laws do not accept that as a legally acceptable excuse. Here’s an example:

Let’s say Intentionally Ignorant Debt Relief Company A hires Law Breaking Telemarketer B to make phone calls and drum up some business. If that illegitimate telemarketer breaks the law while telemarketing for the legitimate company, they’re both equally responsible.

Debt Relief Scam Calls

Identifying Debt Relief Scam Calls

What makes us say this is a Credit National Assist scam? The best way to identify a debt relief scam call is to be familiar with what legitimate debt relief companies do – and more importantly, what they can’t do under the various laws that regulate the industry.

Here are a few things to look out for, and if applicable, how the Credit National Assist company measured up:

Requests for Upfront Payment

Debt settlement companies cannot request any fee from a consumer before they have settled or negotiated at least one of your debts. This rule was put in place when the FTC amended the Telemarketing Sales Rule in 2010 after many debt settlement companies took advantage of consumers during the economic crisis.

If a company calls you out of the blue to offer financial assistance but asks for payment upfront – run the other way.

Promises to Invalidate All of Your Debts

No credit assistance or debt relief company, no matter how good they are at their job, can realistically promise to invalidate all of your debts. You’ll want to remember that whether a debt is valid is a legal matter. For a non-attorney to discuss the legal validity of debt would be the unlicensed (and likely inaccurate) practice of law.

Unfortunately, even the expert debt attorneys at National Legal Center can’t make everyone’s debt go away entirely. 

Debt validation as a primary debt relief strategy is ineffective and leaves most consumers worse off than they began. Yes, sometimes a debt can be proven to be invalid or unenforceable. But this is the exception, not the rule and if the individual making that call is wrong, you may have a debt collection lawsuit to tend to.

We did not see many people reporting that Credit National Assist was offering debt validation, though we have not heard much of what takes place after being connected with one of their agents.

If you have delinquent debt, and you believe it may not be valid, let our legal team take a look and hear your thoughts. Schedule your free consultation below.

Generic Company Names

When a company is populating their caller ID or introducing themselves with a generic name like “Credit Services” or “Card Services” instead of their actual company name, that’s another huge red flag. This is common among scam callers because they don’t want you to be able to identify them when you look up their number later.

This wasn’t the obvious case for Credit National Assist, as this is a more specific sounding name. In fact, there was a collection agency by the name of National Credit Adjustment Services (now out of business) and we can’t deny our own trade name of “National Legal Center” shares the same qualities.

Credit National Assist does not have an alarmingly generic name, but we were able to find almost no information about them online. When searching for “Credit National Assist,” all results are focused on unwanted phone calls. Searching through state and federal business records resulted in no confident matches.

Thin Company Profiles

When the company calling you claims to be a debt relief company but has almost no digital footprint, that’s another sign that something is fishy. Especially if the company in question is claiming to have been around for years. A legitimate business will have some kind of online presence. They should have a website with information about their company, their services, their team, and how to get in touch with them.

Not only does Credit National Assist lack a website, but we couldn’t find any mention of them anywhere else online. We could find little more than complaints from people who’ve received unwanted calls from Credit National Assistance and people who are looking for more information about them.

Continued Calls after Asking Them to Stop Calling

When a telemarketer continues calling you after you’ve asked them not to, they’ve not only disrespected your wishes, they may be breaking the law. This goes for all telemarketers, not just those offering credit assistance. Even if you did complete an online request for financial aid, credit assistance, or any other service, once you ask a company to stop calling they should stop! If they call back after you’ve asked them to stop calling, they may be violating the Telephone Consumer Protection Act (TCPA). We encourage you to call our law firm to see if you could take legal action and potentially recover money damages.

This is where Credit National Assist has most frustrated the people they are calling. People have made repeated claims online about continued calls, even after asking them to stop. Tactics like this, and spoofing their phone number to show local numbers on your caller ID, are all red flags of possible fraud.

Debt Relief Scam Calls

Get Reliable Help from National Legal Center

The legal professionals at National Legal Center have decades of experience helping consumers #standuptodebt. If you’re overwhelmed with debt or being harassed by debt collectors, we can help.

Our team wants to listen to your story. We’ll review your case and help you create a plan to resolve your debt or pursue claims against collectors or companies that have harmed you. Most importantly, we’ll give you the peace of mind that comes with knowing you have a legal expert on your side. Schedule your free consultation today!

Struggling with debt? There ARE options. Request a free consultation today!

Happy with debt control

Settling Debt with Midland Funding, LLC

,

If you’re among the millions of people who have received a letter or lawsuit about a debt owed to the debt buyer Midland Funding, LLC, you’ve probably got a few questions.

What is Midland Funding, LLC?

Who does Midland Funding, LLC collect for?

Can I sue Midland Funding, LLC for debt collection harassment?

Can I settle a lawsuit with Midland Funding, LLC?

This article will be answering all those questions and more. We’ll explore the relationship between the various companies involved with this debt collection conglomerate, and review options for dealing with debt collectors. So, read on for all you need to know about settling debt with Midland Funding, LLC.

What Is Midland Funding, LLC?

Midland Funding, LLC is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. Naturally, their goal is to buy old debt for as little as possible and collect as much as they can to maximize profitability.

Midland Funding, LLC is among the largest debt buyers in the United States, along with other debt buyers like LVNV Funding, LLC and Portfolio Recovery Associates, LLC. Given their large presence in the debt collection industry, theirs is a common name to see when you have debt fall behind and go to collections.

After Midland Funding, LLC acquires someone’s debt, they have a few options that they can exercise right away or in the future. To name a few, they may:

Settling Debt with Midland Funding, LLC If you're among the millions of people who have received a letter or lawsuit about a debt owed to the debt buyer Midland Funding, LLC, you’ve probably got a few questions. What is Midland Funding, LLC? Who does Midland Funding, LLC collect for? Can I sue Midland Funding, LLC for debt collection harassment? Can I settle a lawsuit with Midland Funding, LLC? This article will be answering all those questions and more. We'll explore the relationship between the various companies involved with this debt collection conglomerate, and review options for dealing with debt collectors. So, read on for all you need to know about settling debt with Midland Funding, LLC. What Is Midland Funding, LLC? Midland Funding, LLC is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. Naturally, their goal is to buy old debt for as little as possible and collect as much as they can to maximize profitability. Midland Funding, LLC is among the largest debt buyers in the United States, along with other debt buyers like LVNV Funding, LLC and Portfolio Recovery Associates, LLC. Given their large presence in the debt collection industry, theirs is a common name to see when you have debt fall behind and go to collections. After Midland Funding, LLC acquires someone’s debt, they have a few options that they can exercise right away or in the future. To name a few, they may: Suggested image: 311988854 ● Collect on the debt directly ● Hire a third-party collection agency to pursue collections ● Place the account with a law firm for collection and/or litigation ● Do nothing ● Resell the account to a different debt buyer One thing to keep in mind is that Midland Funding, LLC is not a lender, nor do they directly collect debts they purchase. Because of this, you are more likely to see collection activity coming from their consumer facing debt collection entity- Midland Credit Management, Inc. Because Midland Credit Management, Inc is a collection agency, they are subject to the Fair Debt Collection Practices Act. The FDCPA is a series of laws that protect consumers from unfair tactics by debt collectors. Is Midland Funding, LLC a legitimate company? Yes, Midland Funding, LLC is a legitimate company. In fact, they’re one of the largest debt buyers in America. Just because they are a legitimate organization doesn't mean you should let your guard down. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies. Double and triple-check to be sure you are truly communicating with the real Midland Funding, LLC before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from Midland Funding, LLC, they are indeed a legitimate debt buyer. What Is the relationship between Midland Funding, LLC, Midland Credit Management, Inc., and Encore Capital Group? Suggested Image: 249780757 You’re probably seeing that several entities are at work within the Midland Funding debt collection ecosystem. When you have a debt that has been purchased by Midland Funding, LLC, you may also see Midland Credit Management, Encore Capital Group, or Atlantic Credit and Finance. With all these companies intertwined, it definitely gets a bit tricky. Rather than untangle the corporate web behind Midland Funding, LLC, it can be summed up like this: Midland Credit Management is the front-line collection agency, Midland Funding tends to be the name on most credit reports and debt collection lawsuits, and Encore Capital Group tends to stay behind the scenes. Who does Midland Funding, LLC, collect for? Midland Funding, LLC purchases unpaid debt from major financial institutions and retailers like Capital One, and Synchrony Bank. Though their primary focus seems to be on revolving lines of credit like credit cards, they may also collect on other debt types such as auto deficiency balances, unpaid second mortgages, or home equity loans and lines of credit. Once a debt has been purchased by Midland Funding, LLC, it is their right (or that of their collecting arm, Midland Credit Management, Inc) to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you (or your debt settlement attorney) and the new owner of the debt or their collector. Why is Midland Funding, LLC on My Credit Report? Suggested Image: 123813415 When Midland Funding, LLC becomes the new owner of your debt, their name will often appear on your credit report alongside the account they’ve purchased. Their remarks may include contact information for Midland Funding, LLC (see below), how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled. Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, or they cannot verify the information, you may be able to remove Midland Funding, LLC from your credit report by disputing the remark. What should I do if I receive a letter or call from Midland Funding, LLC? If you're receiving calls or letters from a debt collector at Midland Funding, LLC or Midland Credit Management, there are actions you can take and rights that protect you as a consumer in debt. Suggested Image: 397735748 First, read the Attorney's Guide to Reading a Collection Letter for clarity of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts. Then, determine your next steps. Are you sure you owe the alleged debt to Midland Funding, LLC? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you'd like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center. If you are sure the debt is valid, can you afford payments to resolve or settle the account? Make sure any arrangement is affordable and doesn't leave you falling behind on other obligations. National Legal Center negotiates with companies like Midland Funding, LLC, and Midland Credit Management, Inc every day. Complete this short form to discover options to resolve debt with Midland Funding, LLC, and any other creditors you may have on your credit reports. Can Midland Funding, LLC sue me? Suggested image: 24330457 Yes, Midland Funding, LLC may be able to sue you for the debt you owe. A debt collection lawsuit is a scary situation to face, but it does need to be taken seriously. If Midland Funding, LLC sues you, seek legal assistance as soon as possible. National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you. Can I sue Midland Funding, LLC for debt collection harassment? Yes! If you believe your consumer rights have been violated, you have the right to take action. Numerous laws exist to protect consumers from unfair business practices, and this is especially true of the debt collection industry. The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices when they collect debts. Collection agents walk a very fine line when trying to get a consumer to repay a collection account. Most collection agencies are cautious about following the laws that oversee debt collection industry. However, untrained or uncaring debt collectors can violate your rights. Among many other things, a debt collector may not: ● Share inaccurate information during phone calls ● Provide legal advice ● Lie about what type of legal action they can take ● Misrepresent the debt ● Pursue time-barred debt without proper notification ● Disclose your debt to third parties Protecting you Beyond the FDCPA While many consumer protection attorneys focus solely on the FDCPA, National Legal Center will always do our best to fully protect our clients. In addition to the FDCPA, NLC will evaluate your case to see if other consumer protection laws may apply to your situation. Your case will also be reviewed for violations of other consumer protection laws such as the: • Telephone Consumer Protection Act (TCPA) • Fair Credit Reporting Act (FCRA) • Electronic Funds Transfer Act (EFTA) • Truth in Lending Act (TILA) • State-specific laws, and more. If you've been harmed or harassed by a debt collector, #standuptodebt with National Legal Center. You may have the debt dropped entirely or be entitled to money compensation, among a number of other resolutions. Filing a Counterclaim to a Debt Collection Lawsuit If a representative of a debt collection agency has violated your rights and then files a debt collection lawsuit, you may be able to file a counterclaim against them. A successful counterclaim on a debt collection lawsuit can lead to many outcomes. For example, it may result in dismissal of the lawsuit brought against you, a waiver of the debt owed, removal of the account from your credit reports, money damages to you, and more. Should You Negotiate a Settlement with Midland Funding, LLC? When Midland Funding, LLC is contacting you about a debt, one option to resolve the debt is negotiating a settlement. A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you've paid the settlement, the account is reported to the credit bureaus as settled in full (or similar), and Midland Funding, LLC should not take further action. If Midland Funding, LLC has filed a debt collection lawsuit and you're considering settlement, things change a bit. Of specific importance is the timing of the settlement. For example, if the settlement occurs after Midland Funding, LLC issued a summons, you'll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement. If you settle a Midland Funding, LLC lawsuit after a judgment was entered, you'll want to have documentation confirming they will file a satisfaction of judgment with the court. While you can ask the representative at whatever law firm is handling the matter for Midland Funding, LLC, it's crucial to remember that they are not your attorneys! They represent the other party, so it's a good idea to be skeptical and confirm anything they tell you, because their job is to collect the most funds possible on the accounts they handle. Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t's and dot your i's. Tips for Negotiating a Settlement with Midland Funding, LLC. Here are some tips for negotiating a settlement with Midland Funding, LLC. These suggestions apply to any other debt collector, too! 1. Make a deal you can keep- Don't over commit yourself and fail to complete the terms of the arrangement. Only negotiate a settlement you know you can afford. 2. Get it in writing- Request a letter outlining the terms of the agreement, including the amount to be paid and the payment due date. This should be a non-negotiable as it is the only way to protect yourself from continued collections. 3. Follow the letter’s instructions- If the settlement agreement is $4,089.98, pay that, don't pay $4,089! If it is due by the 28th, paying on the 30th doesn't cut it —if you need an extension on a settlement, you also need a new letter. 4. Keep those documents-. If the account surfaces in the future, you'll be glad to have a copy of your settlement letter and proof that you paid it as agreed. How Can a Debt Settlement Attorney Help? Receiving a summons on a debt you owe to Midland Funding, LLC is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a consumer protection lawyer familiar with debt settlement to protect your rights and ensure you aren't taken advantage and to prevent mistakes during the legal proceedings. Image suggestion: 55853776 If you decide to work with an attorney with National Legal Center, they’ll review your entire financial situation to develop a plan that is affordable for you and minimizes your legal risks. They may also identify alternate legal strategies to deal with the debt. Did you know a debt settlement attorney can help even if you're not facing a lawsuit? You don't have to wait until you receive a debt collection summons to begin working on a solution. Working with a lawyer familiar with debt matters can minimize the chances of a debt collection lawsuit happening in the first place. Contact Information for Midland Funding, LLC If you have an account that is owned by Midland Funding, LLC, it helps to know how to contact them. To obtain confident contact information, you may want to go to the company’s website, your credit report, or the Better Business Bureau. Below is the contact information for Midland Funding, LLC as well as Midland Credit Management. **Important** At the time of this article’s publication, Midland Funding, LC appears to be directing all inquiries and communication to Midland Credit Management. Be sure to verify payment instructions directly with any debt collection agency before making any payments. Midland Funding, LLC Phone: (800)296-2657 Midland Credit Management, Inc. Correspondence Information Phone: (877) 653-5193 P.O. Box 939069 San Diego, California 92193 Payment Information Phone: (877)420-0039 320 East Big Beaver, Suite 300 Troy, Michigan 48083 Dispute and Complaint Information Phone: (877)420-0039 Attn: Chief Compliance Officer P.O. Box 939069 San Diego, CA 92193 \ National Legal Center solves debt. Complete this short form to discover options to deal with a summons from Midland Funding, LLC and any other collections account you may have. Call today and let National Legal help you #standuptodebt once and for all. Are you struggling with debt? Use the form below to get in touch with us.
  • Collect on the debt directly
  • Hire a third-party collection agency to pursue collections
  • Place the account with a law firm for collection and/or litigation
  • Do nothing
  • Resell the account to a different debt buyer

One thing to keep in mind is that Midland Funding, LLC is not a lender, nor do they directly collect debts they purchase. Because of this, you are more likely to see collection activity coming from their consumer facing debt collection entity- Midland Credit Management, Inc. Because Midland Credit Management, Inc is a collection agency, they are subject to the Fair Debt Collection Practices Act. The FDCPA is a series of laws that protect consumers from unfair tactics by debt collectors.

Is Midland Funding, LLC a legitimate company?

Yes, Midland Funding, LLC is a legitimate company. In fact, they’re one of the largest debt buyers in America.

Just because they are a legitimate organization doesn’t mean you should let your guard down. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies. Double and triple-check to be sure you are truly communicating with the real Midland Funding, LLC before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from Midland Funding, LLC, they are indeed a legitimate debt buyer.

What Is the relationship between Midland Funding, LLC, Midland Credit Management, Inc., and Encore Capital Group?

Midland Funding LLC

You’re probably seeing that several entities are at work within the Midland Funding debt collection ecosystem. When you have a debt that has been purchased by Midland Funding, LLC, you may also see Midland Credit Management, Encore Capital Group, or Atlantic Credit and Finance.

With all these companies intertwined, it definitely gets a bit tricky.

Rather than untangle the corporate web behind Midland Funding, LLC, it can be summed up like this: Midland Credit Management is the front-line collection agency, Midland Funding tends to be the name on most credit reports and debt collection lawsuits, and Encore Capital Group tends to stay behind the scenes.

Who does Midland Funding, LLC, collect for?

Midland Funding, LLC purchases unpaid debt from major financial institutions and retailers like Capital One, and Synchrony Bank. Though their primary focus seems to be on revolving lines of credit like credit cards, they may also collect on other debt types such as auto deficiency balances, unpaid second mortgages, or home equity loans and lines of credit.

Once a debt has been purchased by Midland Funding, LLC, it is their right (or that of their collecting arm, Midland Credit Management, Inc) to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you (or your debt settlement attorney) and the new owner of the debt or their collector.

Why is Midland Funding, LLC on My Credit Report?

Midland Credit LLC

When Midland Funding, LLC becomes the new owner of your debt, their name will often appear on your credit report alongside the account they’ve purchased. Their remarks may include contact information for Midland Funding, LLC (see below), how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled.

Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, or they cannot verify the information, you may be able to remove Midland Funding, LLC from your credit report by disputing the remark.

What should I do if I receive a letter or call from Midland Funding, LLC?

If you’re receiving calls or letters from a debt collector at Midland Funding, LLC or Midland Credit Management, there are actions you can take and rights that protect you as a consumer in debt.

Midland Credit LLC

First, read the Attorney’s Guide to Reading a Collection Letter for clarity of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts.

Then, determine your next steps.

Are you sure you owe the alleged debt to Midland Funding, LLC? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you’d like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center.

If you are sure the debt is valid, can you afford payments to resolve or settle the account? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.

National Legal Center negotiates with companies like Midland Funding, LLC, and Midland Credit Management, Inc every day. Complete this short form to discover options to resolve debt with Midland Funding, LLC, and any other creditors you may have on your credit reports.

Can Midland Funding, LLC sue me?

Midland Credit LLC

Yes, Midland Funding, LLC may be able to sue you for the debt you owe. A debt collection lawsuit is a scary situation to face, but it does need to be taken seriously. If Midland Funding, LLC sues you, seek legal assistance as soon as possible. National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.

Can I sue Midland Funding, LLC for debt collection harassment?

Yes! If you believe your consumer rights have been violated, you have the right to take action. Numerous laws exist to protect consumers from unfair business practices, and this is especially true of the debt collection industry.

The Fair Debt Collection Practices Act (FDCPA)  is a federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices when they collect debts.

Collection agents walk a very fine line when trying to get a consumer to repay a collection account. Most collection agencies are cautious about following the laws that oversee debt collection industry. However, untrained or uncaring debt collectors can violate your rights.

Among many other things, a debt collector may not:

  • Share inaccurate information during phone calls
  • Provide legal advice
  • Lie about what type of legal action they can take
  • Misrepresent the debt
  • Pursue time-barred debt without proper notification
  • Disclose your debt to third parties

Protecting you Beyond the FDCPA

While many consumer protection attorneys focus solely on the FDCPA, National Legal Center will always do our best to fully protect our clients. In addition to the FDCPA, NLC will evaluate your case to see if other consumer protection laws may apply to your situation. Your case will also be reviewed for violations of other consumer protection laws such as the:

  • Telephone Consumer Protection Act (TCPA)
  • Fair Credit Reporting Act (FCRA)
  • Electronic Funds Transfer Act (EFTA)
  • Truth in Lending Act (TILA)
  • State-specific laws, and more.

If you’ve been harmed or harassed by a debt collector, #standuptodebt with National Legal Center. You may have the debt dropped entirely or be entitled to money compensation, among a number of other resolutions.

Filing a Counterclaim to a Debt Collection Lawsuit

If a representative of a debt collection agency has violated your rights and then files a debt collection lawsuit, you may be able to file a counterclaim against them. A successful counterclaim on a debt collection lawsuit can lead to many outcomes. For example, it may result in dismissal of the lawsuit brought against you, a waiver of the debt owed, removal of the account from your credit reports, money damages to you, and more.

Should You Negotiate a Settlement with Midland Funding, LLC?

When Midland Funding, LLC is contacting you about a debt, one option to resolve the debt is negotiating a settlement.

A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you’ve paid the settlement, the account is reported to the credit bureaus as settled in full (or similar), and Midland Funding, LLC should not take further action.

If Midland Funding, LLC has filed a debt collection lawsuit and you’re considering settlement, things change a bit. Of specific importance is the timing of the settlement.

For example, if the settlement occurs after Midland Funding, LLC issued a summons, you’ll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement. If you settle a Midland Funding, LLC lawsuit after a judgment was entered, you’ll want to have documentation confirming they will file a satisfaction of judgment with the court.

While you can ask the representative at whatever law firm is handling the matter for Midland Funding, LLC, it’s crucial to remember that they are not your attorneys! They represent the other party, so it’s a good idea to be skeptical and confirm anything they tell you, because their job is to collect the most funds possible on the accounts they handle.

Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t’s and dot your i’s.

Tips for Negotiating a Settlement with Midland Funding, LLC.

Here are some tips for negotiating a settlement with Midland Funding, LLC. These suggestions apply to any other debt collector, too!

  1. Make a deal you can keep– Don’t over commit yourself and fail to complete the terms of the arrangement. Only negotiate a settlement you know you can afford.
  2. Get it in writing- Request a letter outlining the terms of the agreement, including the amount to be paid and the payment due date. This should be a non-negotiable as it is the only way to protect yourself from continued collections.
  1. Follow the letter’s instructions- If the settlement agreement is $4,089.98, pay that, don’t pay $4,089! If it is due by the 28th, paying on the 30th doesn’t cut it —if you need an extension on a settlement, you also need a new letter.
  2. Keep those documents-. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.

How Can a Debt Settlement Attorney Help?

Receiving a summons on a debt you owe to Midland Funding, LLC is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a consumer protection lawyer familiar with debt settlement to protect your rights and ensure you aren’t taken advantage and to prevent mistakes during the legal proceedings.

Midland Credit LLC

If you decide to work with an attorney with National Legal Center, they’ll review your entire financial situation to develop a plan that is affordable for you and minimizes your legal risks. They may also identify alternate legal strategies to deal with the debt.

Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?

You don’t have to wait until you receive a debt collection summons to begin working on a solution. Working with a lawyer familiar with debt matters can minimize the chances of a debt collection lawsuit happening in the first place.

Contact Information for Midland Funding, LLC

If you have an account that is owned by Midland Funding, LLC, it helps to know how to contact them. To obtain confident contact information, you may want to go to the company’s website, your credit report, or the Better Business Bureau.

Below is the contact information for Midland Funding, LLC as well as Midland Credit Management.

**Important**

At the time of this article’s publication, Midland Funding, LC appears to be directing all inquiries and communication to Midland Credit Management. Be sure to verify payment instructions directly with any debt collection agency before making any payments.

Midland Funding, LLC

Phone: (800)296-2657

Midland Credit Management, Inc.

Correspondence Information

Phone: (877) 653-5193

P.O. Box 939069

San Diego, California 92193

Payment Information

Phone: (877)420-0039

320 East Big Beaver, Suite 300

Troy, Michigan 48083

Dispute and Complaint Information

Phone: (877)420-0039

Attn: Chief Compliance Officer

P.O. Box 939069

San Diego, CA 92193

National Legal Center solves debt. Complete this short form to discover options to deal with a summons from Midland Funding, LLC and any other collections account you may have. Call today and let National Legal help you #standuptodebt once and for all.

Are you struggling with debt? Use the form below to get in touch with us.

Struggling with debt? There ARE options. Request a free consultation today!

Load More

Get in touch

P.O. Box 835
Candia, NH 03034

Call Us

SUPPORT: 800-728-5285
FAX: 866-526-1602

GET A FREE CREDIT & DEBT ANALYSIS
Back To Top
© National Legal Center 2023

Click Here to View Our Privacy Policy

The Law Office of Fox, Kohler & Associates, PLLC | dba National Legal Center aka NLC | employs one or more licensed attorneys in:

AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, IL, IN, KY, LA, MA, MD, ME, MI, MN, MO, NH, NJ, NY, OH, OK, PA, RI, SC, TN, TX, VA, VT, WI

National Legal Center is a tradename of the Law Offices of Fox, Kohler & Associates, PLLC, a NH law firm, PO Box 835, Candia, NH 03034. Rosanna Fox is admitted to practice law in NH, Arthur Kohler is admitted in MA. Results may vary based on the circumstances of your case. Not available in all states. This is Attorney Advertising Material and is not intended as legal advice.