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Debt Collection: The Company and the Collection Process of Jefferson Capital System

Nobody wants to encounter an unpaid debt. Aside from the discomforts it gives, it will hurt your credit score. Further, if you default on your loan, the original creditor may send your account to a collection agency, wherein some collectors give you a difficult time dealing with it.

Confronting a debt collector may not be a good experience for some and maybe even one of the most devastating experiences they have had. Is it usual practice?

The Company

When you have unpaid debt or a delinquent account, you can expect a debt collector call. A debt collection company is a third-party service provider that caters to their clients’ accounts recovery needs. These clients can be big companies such as hospitals, financial institutions like banks, and financial lending companies. These are the clients of Jefferson Capital Systems, LLC.

Jefferson Capital Systems is a Minnesota based debt collection company founded in 2002. They provide services in debt collection to many businesses in Illinois and Minnesota. Like every debt collection company, having their name on your credit report can be damaging for you. Click Here if you want help in removing Jefferson Capital Systems’ name from your credit report.

Despite the several services offered, the company has a controversial review, which received customer complaints on violations of FDCPA or the Fair Debt Collection Act. They even received damaging accusations from their clients alleging false statements and misrepresentation, allegedly collecting debts not owed.

Nonetheless, Jefferson Capital Systems, LLC is a legitimate company that has become the leader in consumer charged-off purchase and bankruptcy receivables in the United States and the United Kingdom. The company was featured by Bloomberg in March 2020 when they forged an acquisition partnership with a Canadian company Canaccede Financial Group who leads in the service of insolvencies and buying charged-off consumer receivables.

The Debt Collection Process

Outstanding debts encountered at one point with your finances are being collected or charged off by debt collectors like Jefferson Capital System. How do they carry out the process to successfully manage the collection process?
The company sends out a collection notice to the account holder. The letter should contain the following information: name of the collection agency with return contacts and address, the original creditor’s company name, the total unpaid amount, additional costs, and other charges.

When you receive a debt collection notice, do not fret and do not panic. You have the legal right to make a written request to verify the debt’s legitimacy. Verification should happen within thirty days upon receipt. At this point, they should suspend collection and instead reply to your request.

2. If the credit verification fails, the agency should stop collecting the debt. And if your account has been forwarded to the credit bureau, they must inform the bureau that the item is being disputed, and they should request to remove the item from your credit report. A credit report will reflect your credit score and determine your creditworthiness.

3. You can also opt for a debt settlement process if the debt is correctly verified and legitimately yours. This process lets you agree to pay a substantial amount for a one-time payment. This payment is made in return to forgive or erase a considerable portion of your debt. You can also pay on an agreed payment schedule as entered into by you and the collector.

What Are Your Legal Rights?

Being the debtor, you also have legal rights to exercise. Both parties must respect the laws to prevent you from being violated and harassed. The federal law created the Fair Debt Collection Practices Act that governs debt collection practices. These are some of the persuasive techniques that you usually encounter that was supposed you have protected yourself:

You have the right to be respected. Collection companies are prohibited from using abusive, deceptive, and unfair practices in collecting debts. They should not intimidate you because of your age, sex, race, or other characteristics. Thus, the next time a collection agency is harassing you, you can always make the necessary complaints in the courts’ proper venue.

They should not deceive you into publicizing any debt to urge you to pay, nor will the caller or the collector pretend as law enforcement agents. This scenario usually happens, and sometimes they succeed with this kind of tactic.

They should not contact you before 8:00 in the morning or after 9:00 in the evening without your permission. Some collectors call during these ungodly hours without any hesitations.

Takeaway

Debt collection agencies exist to cater to clients who need their debt collection services. And this is one of the services of Jefferson Capital System. They handle clients from various businesses and industries. When being contacted by them, make your best decision to face them instead of fleeing away from them.

They may be intimidating, but always mindful, though, that you have the right to protect yourself from harassment and violation. It is crucial that you know the laws and use them correctly.

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