Summary: Is Jefferson Capital Systems LLC showing up on your credit report? Find out what you need to do to remove them and get your credit score back on track.
Unwanted calls and letters from debt collectors are stressful. They can make you cringe every time the phone rings. And what about your credit report? With Jefferson Capital Systems LLC showing up, your credit score can take a hit.
The Consumer Financial Protection Bureau (CFPB) reported that over 70 million Americans are dealing with debt in collections. If you’re one of them, don’t despair.
You have more options than you might think.
I know what you’re thinking: “How can I get a big bad collections agency to leave me alone?“.
Here’s how to do it.
Who is Jefferson Capital Systems LLC?
Jefferson Capital Systems, LLC., is based in Minnesota They’re one of the largest third-party collectors in the US.
Jefferson has been accredited by the Better Business Bureau since 2005 and has a B rating from the BBB.
You’ve never heard of them?
I’m not surprised. Because they specialize in third-party debts, they buy past-due accounts from other businesses.
If you see Jefferson Capital Systems, LLC or JCap on your credit report, your debt was sold to them by the original company you owed.
If you have an account in collections, you have two challenges.
- You have to resolve the account. A collection agency will harass you and could even sue you as long as the debt is not resolved.
- You have to address the damage to your credit. Collection accounts are a serious drag on your credit score.
These two challenges are related, but they are not the same thing. One involves dealing with the collection agency, the other involves dealing with the three major credit bureaus: Experian, Equifax, and TransUnion.
How to Get Jefferson Capital System Off Your Back
Jefferson Capital Systems, LLC, is a debt collector. If they’re contacting you, it isn’t just to say “hi.” They only want one thing: Your money.
But here’s the thing: You’re not a prisoner to your debt. You can get Jefferson Capital System off your credit report and out of your life.
Follow these steps.
1. Know Your Rights
The rights of debtors and the obligations of debt collectors are spelled out in the Fair Debt Collection Practices Act (FDCPA). Here are some key points.
- A debt collector cannot call you before 8AM or after 9PM.
- A debt collector cannot call your place of employment.
- If you have a lawyer, the collector must communicate with your lawyer.
- A debt collector may not communicate with your friends or family members or tell them about your debts.
- Debt collectors cannot threaten to harm you, your reputation, or your property, or use profane language.
- Debt collectors must identify themselves and the company they represent. They cannot claim to be law enforcement or other officials.
- A debt collector cannot threaten you with imprisonment or seizure of assets.
For a full review of your rights under the FDCPA see this summary from the Consumer Financial Protection Bureau (CFPB).
2. Validate and Verify the Debt
A debt collector must supply the following information to you within five days of the first time they contact you. This is called debt validation and the information is usually contained in a debt validation letter.
- The amount you owe.
- The name of the creditor.
- A notice that you have 30 days to dispute the debt.
If you do not dispute the debt within 30 days, it is presumed valid. Always dispute debts. To dispute the account you will send a debt verification letter. Send the debt collector a certified letter asking for the following.
- How much you owe.
- The name and address of the original creditor.
- Proof that you owe the debt.
- The date of the original debt.
- Proof that the collector has legal standing to pursue collection efforts in your state.
Remember the difference between a debt validation letter, which the collection agency sends to you, and a debt verification letter, which you send to them. Once you receive the debt validation letter you have 30 days to send your debt verification letter.
Always check the date of the debt against the statute of limitations in your state. If the statute of limitations has expired, the collector cannot pursue legal action against you. Remember that making a payment or acknowledging that the debt is yours can restart the statute of limitations.
If the collector cannot verify the debt they must cease contact with you and notify the credit bureaus that the debt is unverifiable and should be removed from your credit record.
3. Get Jefferson Capital Systems LLC to Quit Calling
You could get as many as 15 calls per day, according to a Consumer Credit Card Market Report.
That’s way too many.
But you can’t just call them at 833-851-5552 and ask them to stop.
Instead, follow these simple steps to get Jefferson Capital System to stop calling you.
- Write a “stop contact” or “cease” letter telling them to stop contacting you.
- Make a copy for yourself and mail the original to 16 McLeland Road, St. Cloud, MN 56303.
- To prove you sent the letter, send it by certified mail with “return receipt requested.”
Make sure you follow these exact steps.
If you do, the National Consumer Law Center states, “the collector can only acknowledge the letter and notify you about legal steps the collector may take.”
When you stop the phone calls, you get some breathing room. Remember that you still owe the debt, and the collector can take legal action.
Then you can tackle the next step.
4. Contest the Debt With the Credit Bureaus
If you believe that you do not owe the debt or that the collection agency has failed to validate the debt, you can file a dispute with the credit bureaus. You will need to dispute the account separately with each credit bureau.
The credit bureau must investigate and verify your debt. If they cannot, they must remove it from your credit record.
Remember that even if the debt is removed from your credit record, the collection agency can still pursue collection efforts.
5. Make a Deal
Let’s say the company is able to validate and verify your debt.
That’s when you try to make a deal. Remember that debt collectors pay, on average, 4 cents for every dollar of debt that they buy. That gives you room to negotiate. A collector can accept less than you owe and still make a profit.
Jefferson Capital System LLC might agree to a debt settlement for less than you owe.
There are two parts to a debt settlement.
- First, you have to get the debt collector to accept a settlement offer. If they do, the debt will be considered paid.
- Second, you have to try to get the debt collector to remove the account from your credit record. This is called a “pay-for-delete” agreement.
You might offer 10% of your balance to see what they say.
They’ll probably ask for more, but don’t let them push you around. With a little negotiation, you can reach an agreement you’re comfortable with. After that, it might take up to 30 days for Jefferson to report your debt as paid to the credit bureaus.
6. Go For Deletion
Jefferson Capital says in their website’s FAQ section that they automatically delete the debt from your credit record, so theoretically you don’t have to get it in writing. I would just to be safe.
I hang out in a lot of collections communities on Facebook and here’s a typical conversation about Jefferson Capital.
As you can see, the first member did a great job negotiating a $365 debt down to just $182.96 and then “it was completely deleted within 2 weeks.”
What she means is she checked her credit report and it was gone.
Jefferson Capital says they report updated account information twice per month to the credit bureaus, on the “second and fourth Fridays of each month.”
However, you’ll also see in the Facebook group conversation above that it doesn’t always work, as the reply says she paid off her debt and it is still on her credit report.
That’s why we recommend you get it in writing. Even if it is in writing, though, you cannot compel a credit bureau to remove a legitimate account from your record. It will be recorded as paid, but it may remain on your credit report for seven years from the date when the account first became delinquent.
A pay-for-delete arrangement is a gamble. It may not work, but it’s worth trying. If the settlement is accepted you will no longer have to deal with the collection agency, and that’s a big plus.
Get Your FREE Pay for Delete Letter Template
After much testing, we have put written a great pay to delete letter you can use to get started.
7. Hire an Expert to Handle It
This last step is optional, but it might be the fix you’re looking for.
Debt collectors can be aggressive. From phone calls to letters, they never give up!
If you get stuck, reach out to the credit experts. Credit repair companies have experience in dealing with pushy debt collection companies.
This way, you don’t have to deal with it on your own. When you leave it to the pros, you can breathe a big sigh of relief.
It will cost you something and you’ll have to be sure the company you’re working with is credible. Debt relief and credit repair scams are everywhere. If you find the right company and you’re willing to pay, it might be worth it.
Usually, a credit repair company is only a useful choice if you have multiple collection accounts or other issues on your credit report. If it’s a single account, you’re usually better off dealing with it yourself.
Get Professional Help
We analyzed 21 credit repair companies based on price, service, and results, and picked our top three choices.
“I Received a Settlement Offer from Jefferson Capital. What Should I Do?”
If Jefferson Capital sends you a settlement offer, consider paying it off. Again, they promise to remove the record from your credit report so removing a negative like that should help your credit score.
But don’t pay off a collection in these circumstances.
- Your debt has not been validated and verified.
- The collector has not agreed to remove the negative item from your credit report.
- If the debt is old. If the debt is nearing the end of the statute of limitations, it could be better to wait it out. Once the statute of limitations expires you can no longer be sued for a debt. Old debts have less impact on your credit score than new ones, and they will drop off your credit report seven years from the date of the original delinquency.
You’ll have to calculate the risk versus the reward and decide whether to pay or not.
Can Jefferson Capital Sue Me? What Can I Do If They Take Me to Court?
A collections company can (and sometimes will) file a suit against you if you refuse to pay off your debt.
Here’s a real post from a Facebook community about a woman whose “Barkley” (maybe she meant Barclay) credit card debt has been sold to Jefferson Capital.
As you can see, this woman is very much distraught that Jefferson Capital will not accept her settlement. In this case, they may take her to court.
If it does go to court, start by reading up on how to deal with a lawsuit from a debt collector. The two most important things to remember are:
- Repond to the lawsuit.
- Show up to the court date!
If you truly are experiencing financial hardship, the judge will usually work with you to come to an agreement to pay off your debt.
Life After Debt
Carrying around the burden of debt can be uncomfortable. You might not know what to do or where to turn for help.
Just remember: Your debt does not define you!
If you have accounts in collections, remember two things:
- Don’t panic. It won’t help.
- Don’t ignore the situation. That won’t help either.
Instead, follow the steps given here. Be persistent, make deals when you can, and you can put collections behind you.