Have you received a letter or phone call from a company called Jefferson Capital Systems? If you have, you may be wondering why this business is contacting you or whether scammers are targeting you.
Jefferson Capital Systems is a real business, headquartered in Minnesota. What does Jefferson Capital Systems do? It is a debt buyer and collector that is trying to get you to pay a debt that you may owe.
How Collection Agencies Work
Collection agencies operate under one of two business models: A traditional collection agency contracts with businesses that need help collecting debts. The collection agency works on behalf of the creditor and takes a percentage of any debt that is collected.
Debt buyers, on the other hand, purchase old debt from companies for pennies on the dollar. The debt buyer then tries to collect at least something from the debtor. Because the debt buyer has paid so little for the debt, even a small payment on the original balance could represent a significant profit.
What To Expect
Jefferson Capital Systems operates like many collection agencies in that it attempts to persuade debtors to make payments through repeated contacts, damaging a debtor’s credit history by reporting the debt to credit bureaus and, in some cases, even filing a lawsuit against the debtor.
Here are some things that you might expect if Jefferson Capital Systems attempt to collect a debt from you:
- Letters sent to your address claiming that you owe money. You can expect the language in these letters to intensify the longer the debt goes unpaid.
- Phone calls to your home, cell phone and office from debt collectors. These collectors can be very persistent. The collector may try to trick you into agreeing to pay a debt that isn’t yours, that is outside the statute of limitations for collections in your state or that has already been discharged in bankruptcy.
- Contacting you on social media or via email.
- Negative information is added to your credit reports, which can pull down your credit score.
- Filing a lawsuit against you. If the company wins the lawsuit, it can attempt to collect funds from you by garnishing your paycheck, levying your bank accounts, or even seizing any valuables that you own.
Don’t Ignore Them
All of the above can be annoying, and in some cases, can cause serious issues with your finances and even your career. You should be aware, also, that companies like Jefferson Capital Systems do not always have the best and most efficient business processes, there fore you should not accept responsibility for any debt until they prove you’re obligated to pay it.
As noted above, debt buyers will sometimes purchase debt that isn’t legally collectible in the courts in hopes of manipulating you into making a payment anyway. Another issue is when a debt buyer fails to verify the identity of the debtor and instead tries to collect from an innocent party who has the same name as the actual debtor. Because of these factors, it’s important to not ignore communications from a debt collector even if you are sure that you don’t owe any money.
Responding to Inquiries
You may be wondering how you should respond to communications from Jefferson Capital Systems. First, check Bills.com Jefferson Capital Systems Review for their advice on how it operates. There are federal and state laws that can protect you against harassment from collection agencies and provide you with remedies against their unethical and even illegal business practices. It is, however, up to you to take action. In some cases, you may have the ability to stop collection activity by writing a letter to the collector or what is been reported to credit bureaus. However, there may be a time limit during when she can exercise the rights.