Jefferson Capital Systems, LLC is an aggressive third-party debt collection agency. They’re headquartered in St. Cloud, Minnesota. They primarily service and collect charge off debt. Jefferson Capital is what the industry calls a junk debt buyer.
Because it appears, Jefferson Capital International will actually purchase the rights to your account. Then, Jefferson Capital Systems will actually service and try to collect payment.
And they do actively use the judicial system, as in there’re many complaints about them suing consumers in a civil court for payment. Additionally they also service and collect for bankruptcy debts.
If you’re currently receiving the obnoxious phone calls, demanding letters, have discovered Jefferson Capital on your credit report, or are even being sued, you’re in the right place. And we must begin with the Fair Debt Collection Practices Act (FDCPA).
This is federal legislation passed by Congress intended to regulate the debt collection industry. In short, it says they’re required to treat you with the modicum of respect and dignity, that every human being deserves. It’s worth reviewing in detail at your convenience.
Will Paying Off Jefferson Capital Collections Improve My Credit?
Your most pressing question is likely will paying off collections help credit? If you simply pay off this Jefferson Capital collections debt, and nothing more, no it will not help your credit.
The only thing that happens when you just pay off debt in collections, is the status of the item on your credit report is changed. It’s changed to a paid collection.
This is still a negative, damaging, and derogatory item that’s going to lower your credit score. Anthony Sprauve, a spokesman for FICO, says collections on your credit report can lower your credit score by as much as 100 points.
The key to fix your credit, is to remove this item from your credit reports. And for some folks, after first performing the due diligence and the steps we share in the rest of this article, may discover paying off collections is a very effective way to clear credit file dings, blemishes, and Jefferson Capital Systems.
Now, in addition to the relentless phone calls, and letters Jefferson Capital is also going to report negative information on your credit reports. They’ll also likely add collection fees and potentially interest to your account balance.
Because it’s high probability they purchased the rights to your account, if they’re unable to collect payment, they have the legal ability to sell your account to yet another debt collector. This new collection agency, of course, will begin the calls, sending letters, and they’ll report even more bad credit on your credit reports.
The more likely option is Jefferson Capital will file a civil lawsuit against you. Their goal is to win a judgement, because if they do, then they’ve metaphorically got you by the short and curlies.
Not only will a judgement on credit report files, absolutely obliterate your credit worthiness. It can potentially result in wage garnishment, liens being 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. By the way, if you’re dealing with a federal tax lien and are looking for information about the IRS Fresh Start program.
This is done directly with the IRS. And for additional details check out a YouTube video about how to remove tax lien from credit report files using this IRS Fresh Start program.
On a sidebar, due to new data standard requirements implemented by all three credit bureaus on July 1st, 2017 it’s easier than ever before to remove public record from credit report files. This includes bankruptcies, judgements, foreclosures, tax liens, and more.
Jefferson Capital Systems, LLC
16 McLeland Road, Dept C
St. Cloud, MN 56303
4 Tips For Jefferson Capital Systems
1. Request Account Validation
The very first step when dealing with debt collectors, is to request debt validation on your account. This is your right as a consumer, granted by the FDCPA. Essentially we’re saying to Jefferson Capital, you first prove this is a legit account, and mine, and then we can potentially discuss payment.
It’s most effective if you make this request in writing, sent certified mail with return receipt requested. You see, they’re required to respond within 30 days of receipt by providing you with the documents, evidence, and paperwork that does prove this is your debt.
This paperwork will also show you all the details about the account, such as who the original lender or creditor was, the balance, dates, etc. If they fail to validate your account, then in compliance with the FDCPA, the debt is forgiven.
As in you’re no longer legally responsible for payment. Further, they’re suppose to notify all three credit bureaus to have them remove collections from credit report files, concerning this account.
2. Statute of Limitations
If your account is validated, the next step is to investigate your last date of account activity. You should be able to easily find this in the paperwork they send you to validate your account.
Listen, the statute of limitations is the legal time window you are legally responsible for payment. And it ain’t forever. Generally, it’s about seven years from the first date of delinquency. This is a state law, and it does vary, so for full details investigate your local legislation.
Once this time window expires, then the debt is legally forgiven. In other words, your legal obligation to repay has ended. And while this applies to the overwhelming majority of types of consumer debt, it’s not all.
The few exceptions include defaulted federal student loans, and federal income tax. However, everything else is covered including charge off debt, medical bills, retail, utilities, telecommunications, and many more.
Caution, one of the most common debt collection industry tactics is to re-age consumer accounts. And often this is done illegally. In short, it’s naive to think any debt collector is sitting around waiting to forgive your debt.
3. Negotiate a Settlement Agreement
Assuming your debt is valid, and within the statute of limitations, our next step is to negotiate a settlement agreement directly with Jefferson Capital Systems. It’s best to get this agreement in writing, and there’s two big keys here.
First, always to negotiate to settle for less. This way you’ll be paying off collections for only a fraction of the total balance. Typically you’ll be able to settle somewhere in the ballpark of 15% up to 45% of the total balance.
The second key is you must get Jefferson Capital to agree that in-exchange for your payment, they’ll stop reporting your account information to all three credit bureaus. If we neglect this part of the agreement, once we make payment, we’ll be stuck with that paid collection on our credit reports.
4. Remove Jefferson Capital Collections From Credit Report
In this final step, we’re looking at how to clean up credit report dings, blemishes, and negative items. And to do this we’re going to need to deploy more of your rights as a consumer. Specifically those granted by the Fair Credit Reporting Act (FCRA).
This federal legislation is how to dispute credit report items, errors, and in this case the Jefferson Capital collections items. There are three ways to file your dispute online, over the phone, and by mail.
Once the credit bureaus get your dispute and find it valid, they’re required to investigate. During which, they’ll contact Jefferson Capital and request verification of your account. According to your settlement agreement Jefferson Capital won’t verify your account during the credit bureaus investigation.
In compliance with the FCRA, this means the collection item must be removed from your credit reports. This is how to clear credit history dings, blemishes, and negative items and to do so legally.
If you’re being sued by Jefferson Capital Systems, please show up for your court date. Often collection agency lawsuits are won by default because the consumer fails to appear. If this happens the judge has no choice, and the evidence against you isn’t even presented.
Many times the collection agency doesn’t even have the required evidence. Nevertheless they win and it’s a lot tougher road to remove judgement from credit report files. Not to mention the potential hassle, and aggravation.
At the end of the day, your credit score is much like your Grade Point Average (GPA) in school days bygone. It doesn’t matter if you’re acing all your classes, 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 mission critical that we clean up credit report dings, blemishes, and remove any negative items. These are the real credit score killers, and doing this is much like removing a failing grade from your report card.
We encourage our members to consider professional, legal, and legitimate credit repair companies to help with this. 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 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 can I improve my credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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