How to deal with Jefferson Capital Systems

Jefferson Capital System is a significant debt collection agency in the United States. According to their website: "Jefferson Capital Systems, LLC is an established Debt Buyer and Debt Collector. CL Holdings, LLC is the parent company of Jefferson Capital Systems, LLC".

Just like dealing with any debt collector, be prepared. Verify that you owe the debt, that the company does not harass you, and that you have the right tools to settle your debt.

What is Jefferson Capital Systems? Are they real or a scam?

Jefferson Capital is not a scam. It is a real debt collection agency. They purchase debt and then contact consumers to collect on the debt through negotiations or lawsuits.

Jefferson Capital Systems LLC is a debt collection agency owned by JCAP Funding LLC. It was founded in 2002 and currently has about 250 employees. It can show up on your credit report under various names, including Jefferson Capital Systems, JCAP Funding LLC, Jefferson collection, or Jefferson capital systems Verizon.

Do you owe Jefferson Capital Systems money?

Jefferson Capital Systems buys debt from many creditors. They usually buy the debt for pennies on the dollar. There are various reasons that you may not owe Jefferson Capital money. For example, the debt may not belong to you, the statute of limitations expired, or you already paid off the debt.

Step 1 - Validate your debt.

Validate a debt when Jefferson Capital Systems contacts you to collect a debt. You have 30 days to validate the debt, so act quickly. Validate a debt regardless of your personal belief of you being responsible for the debt.

Step 2 - Check to see if the Statute of Limitations (SOL) is valid.

While the SOL can affect the chance of a creditor winning a lawsuit, it does not prevent the debt collection agency from trying to get you to pay. Determining the actual SOL for your debt can be tricky. State laws set a time limit for debt collections; however, it is still possible for some creditors to sue you even if the time has expired. 

Since Jefferson Capital Systems frequently acts as a debt buyer or a third-party collector, it may be limited in its actions if the SOL expired. However, it is always wise to pay attention to any lawsuit, to appear in court and plead an affirmative defense.

However, even if you believe that the SOL expired, the creditor may claim that circumstances that extended the date of the law permitted a longer time than you calculate.  In any case, Jefferson Capital Systems still has the right to contact you and get you to negotiate a settlement.

>> Learn more: Learn more about states' laws regarding statute of limitations.

Stop Jefferson Capital Systems from debt collection harassment

Debt collectors often are very aggressive in their collection tactics. Like other debt collection agencies, Jefferson Capital Systems is strictly regulated by The Fair Debt Collection Practices Act. 

Here are some of the actions that they are forbidden to do:

• Use the Telephone to Annoy or Harass
• Call at an unreasonable time such as before 8:00 AM or after 9:00 PM
• Threaten Arrest
• Use Abusive or Threatening Language
• Contact a relative, friend, or colleague who doesn’t own the debt
• Seek Unjustifiable Amounts
• Contact a Consumer at Work

If you believe the collection agency violated your rights under the FDCPA, consult with a consumer rights attorney in your area. Discuss possibly filing a lawsuit against the collection agency; not only could a lawsuit result in the cancellation of your debt, but you could be awarded damages.

Learn how to negotiate your debt with Jefferson Capital Systems

Collection agencies like Jefferson Capital Systems typically buy collection accounts for 1 to 10 cents on the dollar. Jefferson Capital will contact you, hoping to negotiate a settlement. As a last resort, they will pursue a lawsuit.

Your first option is to take a do-it-yourself approach. Debt negotiation is a skill and requires a significant amount of time and effort. Here are three tips:  Be calm, clear, and convincing. Be persistent. Send a debt negotiation letter.

Suppose you do not feel comfortable negotiating, then partner with a debt negotiation company. Debt settlement companies rely on databases of past settlements, so their negotiators know what range original creditors and collection agencies have accepted for payments in the past. They can reach a negotiated settlement with your debt collection agency quickly.

Complaints and lawsuits about Jefferson Capital Systems LLC

Like most collection agencies, Jefferson Capital has many complaints registered in the BBB and the Consumer Finance Protection Bureau (CFPB). The CFPB has complaints about trying to collect a debt that the consumer didn’t owe, harassment and impersonating an attorney, law enforcement, or government official.

Here is a couple of example of  complaints:

You told them to stop contacting you, but they keep trying “I have asked Jefferson Capital Systems to stop contacting me via phone several times. I requested to only be contacted by mail; however they repeatedly call. They over talk me and attempt to belittle me. This is not an effective method of trying to get someone to pay a debt. This is illegal and Im getting extremely tired of it".

Called before 8am or after 9pm “A " Jefferson Capital Syst " something company keeps calling at all times of the day, they flagged my credit with an absurd amount of money " owned '' that I have no idea where it's from. Please make them STOP.”

Deal with a Jefferson Capital lawsuit

Although Jefferson Capital Systems cannot threaten you on a collection call, they do have the right to bring a lawsuit against you. They can pursue legal remedies such as a wage garnishment or bank levy.

If Jefferson Capital files a lawsuit against you, consult with a lawyer in your state with consumer law experience. You must file an answer to their summons and complaint or risk losing the lawsuit by default. Ignoring a summons will not make it go away, so take action to respond to the lawsuit.

Can you remove Jefferson Capital Systems from your credit report?

The short answer is that most negative tradelines stay on your credit report for seven years from the delinquency date. Bankruptcies remain for ten years, and judgments can remain for even longer if the creditor renews them.

Suppose you see an inaccurate item from Jefferson Capital or a company associated with it. In that case, it is possible to file a dispute with the Credit Reporting Agencies and have the negative items removed from your credit report.

>> Learn more: Learn how to dispute a credit report.