Capital Management Services (CMS) is a large, aggressive, third-party debt collection agency. They’re headquartered in Buffalo, New York and service accounts nationwide.
They collect on a variety of types of consumer debt accounts including: charge off debt, auto loans, telecommunications, defaulted student loans, and more. In addition, they’re what the industry calls a “late stage” debt collector.
In other words, they work and purchase the rights to your debt account, from other collection agencies. They’re purported to work with Citibank, Capital One, Discover Bank, PNC Bank, AT&T, among others.
If you’re currently dealing with the endless, obnoxious phone calls, or receiving demanding letters, or have discovered Capital Management on your credit reports, you’re in the right place. The first thing to share is the Fair Debt Collection Practices Act (FDCPA).
This is federal legislation intended to regulate the debt collection industry. Essentially it requires debt collectors to treat you with a modicum of respect and dignity, and be honest. Of course, there’s much more to it, and it’s worth your detailed review sometime. And yes, just like our drug laws are violated everyday, so is the FDCPA.
If you feel your consumer rights have been violated you may choose to report this to the appropriate authorities. Who is the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), your state’s attorney general’s office, and potentially your personal attorney.
Will Paying Off CMS Collections Help Credit?
For some folks, paying off CMS Collections after first performing the necessary due diligence, and the tips in this article, may discover this is an effective way to clear credit report dings. And that’s paramount to credit score improvement, removing the negative items on your credit reports, that are dragging your credit score down.
However, merely paying off debt in collections and just hoping it’ll help your credit score, is akin to hoping Santa Claus will visit in the middle of the night on Christmas Eve. You see, the only thing that happens when you just go simply paying debt collectors, is a change in the status of the item on your credit reports.
It’ll be changed to a paid collection. This is a negative, damaging, and derogatory item that will adversely affect your credit score. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can damage and drag your credit score down by as much as 100 points.
Capital Management Services will of course call you, send letters, and they’re going to report negative information on your credit reports. They can also charge interest on your account and legit add collection fees, to rapidly inflate your total balance.
If they’re unable to collect payment, they have two options. First, they can sell your account to yet another debt collector. This new debt collector will start calling you, sending letters, and they’ll report even more bad credit.
The second option, and from reports it sounds like Capital Management does this with some frequency, is they can sue you in a civil court. Their goal is to win a judgement against you.
If this happens, you’ll be notified thru a court summons. It’s smart to appear on your court date, because otherwise the judge has no choice but to find in favor of the plaintiff and in this case Capital Management Services.
Not only will a judgement destroy your credit score. It can also cause your wages to get garnished, liens to be placed against you and or your property, and even asset seizure. For full details, check out your local legislation, because every state has unique laws.
Whatever you do, don’t just ignore this issue, because it’s almost guaranteed to become a bigger headache to sort out. Not to mention, it’s causing the expense of financial peace of mind, due to a bad credit score, from the CMS Collections account on your credit reports.
Capital Management Services
698 1/2 S Ogden St
Buffalo, NY 14206
Phone number: 1-716-871-9050
4 Tips For Dealing With Capital Management
1. Request Account Validation
When it comes to how to deal with debt collectors, the very first step for every consumer dealing with every collection agency is to request debt validation on your account. This is your consumer right granted by the FDCPA.
We’re asking Capital Management to prove this is a legitimate debt account, and provide the necessary details about the debt. Such as who the original creditor was, the dates of account activity, the total balance, etc.
After all, it’s not like we did business directly with Capital Management Services, they’re contacting us, demanding payment. It’s most effective to submit your validation request in writing, and using certified mail, with return receipt requested. This will give you evidence they received your request.
You see, they’re required to respond within 30 days of receipt by providing you with the evidence, paperwork, and documents proving this is, in fact, your collection account. If they fail to validate your account, for whatever reason, then in accordance with the FDCPA the debt is forgiven.
In other words, you’re no longer legally responsible for payment. Further, Capital Management is also supposed to contact all three credit bureaus to have them get collections removed from credit report files, regarding this debt.
2. Statute of Limitations
If they do validate your account, we next want to review the documents they send. We’re looking for your last date of account activity. Because you aren’t legally responsible for repayment of most consumer debts, forever. No more than we still throw people in debtors’ prisons.
We’re specifically talking about the statute of limitations, this is the legal time window for which you are responsible for repayment of a debt. This is state legislation that does vary, so investigate your local listings for full details.
Typically, it’s about seven years from the first date of delinquency. Once this time window runs out, then the debt is legally forgiven. Your legal obligation, ends with the statute of limitations time clock.
And this applies to most types of consumer debt accounts including: charge offs, credit cards, auto loans, medical bills, telecommunications, and many more. The few exemptions are federal income tax, and federal defaulted student loans.
Beware. One of the most common strategies of the debt collection industry is to re-age consumer accounts. For obvious reasons. We just want you to know, the collection agencies ain’t sitting around waiting to forgive anyone’s debt.
3. Negotiate a Settlement Contract
If your account is validated. And it’s within the statute of limitations time window, our next step is to negotiate a settlement contract directly with Capital Management Services.
There’s two parts to this, the first is to always negotiate to settle for less than the total balance. This way you’ll be paying off debt in collections for just a fraction of the balance.
Frequently, you’ll be able to settle the debt for as little as 15% up to around 45% of the total. For instance, with a $2,000 debt you may be able to settle for just 25% or $500. This is standard operating procedure, and they’ll happily accept a payment for less. They even anticipate it.
The second part of your contract is mission critical. You must get Capital Management to agree to stop reporting your account information to all three credit bureaus, in exchange for your payment.
If we overlook this part of your contract, we’ll get stuck with that paid collection on your credit reports. We encourage you to get this contract in writing too. And now let’s talk about our final step to fix your credit, and remove this negative item from your credit reports.
4. How To Remove CMS Collections From Credit Report
Our last step involves exercising more of your consumer rights, and specifically those granted by the Fair Credit Reporting Act (FCRA). This federal legislation is how to dispute items on credit report files.
In other words, this is how we challenge the accuracy of any item on your credit reports, so long as you believe it’s inaccurate, misleading, or made in error. There’s three ways to dispute credit report items: online, over the phone, and by mail.
Once the credit bureaus get your dispute, and they first have to deem it valid, which is another conversation for another place and time. So make sure to sign up for our free newsletter for more help with credit, and join our congregation.
Once the credit bureaus get your dispute and say it’s valid, they’re required to investigate the item. They’ll call it a re-investigation, but nonetheless they’ll contact Capital Management to verify your account.
As per your settlement agreement, Capital Management, will not verify your account when the credit bureaus investigate. And in compliance with the FCRA, this means the credit bureaus must remove this item from your credit reports. This is how to clean credit file dings, blemishes, and remove negative items, and do so legally.
In sum, when you’re dealing with debt collectors, you’re swimming in shark-filled waters. If you go at this alone, you’re going to have to stay tough, disciplined, and organized.
You can do it, you can fix bad credit, and long before seven slow, expensive, and embarrassing years tick by. After all, can you or your families financial future afford to wait?
If you’re concerned with improving your credit score, an apt analogy is it’s a lot like your Grade Point Average (GPA) in glory school days bygone. It doesn’t matter if you’re acing all your courses, if you’re failing The Art of Walking, because this negative mark is going to ruin your overall GPA.
This is also true of your credit score. And why it’s so imperative to clean credit report dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair companies to help.
Because in 2016 alone, over 9 million negative items were removed from consumer’s credit reports. One of the best firms is the Credit Pros. They’ve helped client’s successfully remove collections, late payments, charge offs, judgements, liens, and many more negative credit report items.
Get a free credit consultation with a certified FICO professional by calling toll-free 1-877-418-7596. And for more tips, techniques, and strategies about how to improve my credit score with Dan Willis, sign up for our free newsletter and join our congregation.
Get a FREE Credit Consultation