National Enterprise Systems: How to deal with a collection call

 National Enterprise Systems is a mid-size debt collection agency in the United States. NES is a member of several large credit and collection industry associations, including ACA International, Consumer Bankers Association (CBA), Debt Buyers Association (DBA), and Northern Ohio Credit Association (NOCA). They act as agents for original creditors, third-party debt owners, as well as for debt they purchase.

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 National Enterprise Systems? Are they real or a scam?

NES collections is not a scam. It is a real debt collection agency. This company manages and collects past due debts and accounts receivables from nationwide company clients. They also manage the debt that they purchase. They contact consumers to collect on the debt through negotiations or lawsuits.

National Enterprise Systems, Inc. was founded in 1987and currently has about 150 employees. They work with creditors in many industries and debt types including automotive, financial services, government agencies, retail, student loans, and telecommunications.

Do you owe National Enterprise Systems money?

National Enterprise Systems operates as agents for many creditors. They also buy debt. They usually buy the debt for pennies on the dollar.

There are various reasons that you may not owe NES or the company they collect for money. For example, the debt may not belong to you, the statute of limitations expired, or you already paid off the debt.

If you are contacted by National Enterprise Systems, then take these steps:

Step 1 - Validate your debt.

If NES contacts you to collect a debt - validate it. Once contacted, you have 30 days to validate the debt, so act quickly. It is recommended to send a registered letter. It is a good idea always to validate the debt.

According to the law, the debt collection agency is obligated to validate the debt. If you don’t receive proper validation, then send a notice of insufficient validations. If the collection agency cannot validate the debt, it has no legal basis to collect it.

>>Learn more: Follow the steps described in the Bills.com debt validation article to preserve your rights under the FDCPA.

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. 

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.  If the SOL expired, it is always wise to pay attention to any lawsuit, to appear in court and plead an affirmative defense

In any case, National Enterprise 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 National Enterprise Systems from debt collection harassment

Debt collectors often are very aggressive in their collection tactics. Like other debt collection agencies, NES Collections 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 National Enterprise Systems

The first course of action is to get you to make a payment. This is especially true for first-creditor or newer debt. 

However, collection agencies like NES typically buy collection accounts for 1 to 10 cents on the dollar. They 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 National Enterprise Systems

Like most collection agencies, NES 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:

Threatened to contact someone or share information improperly - Contacted your employer "National Enterprise Systems ( NES ) in XXXX, OH has repeatedly ignored requests from the employee and our corporate entity to refrain from calling employees while they are at work. If NES is claiming to be a debt collector, this practice is a violation of the Fair Debt Collection Practices Act ( FDCPA ).  If NES is claiming to be a debt buyer/holder, this practice is in violation of the FDCPA pursuant to the United States XXXXourt of Appeals for the Third Circuit ruling in XX/XX/2018 in Tepper v. Amos Financial, LLC, No. 17-2851. Tepper v Amon Financial, LLC ruled that an entity whose principal purpose is the collection of any debt regardless of whether the entity owns the debt it collects is a debt collector for purposes of the FDCPA."

Threatened or suggested your credit would be damaged “National Enterprise Systems is trying to collect on behalf of XXXX XXXX  for an unknown debt. National Enterprise Systems has not supplied any proof of contract, how the debt was calculated, or proof of purchase of the contract from the original creditor. They simply sent a computer generated letter 4 months ago. I disputed the item with them and the 3 credit bureaus. I have yet to hear back from any of them. It has been over 60 days since the initial dispute. By law, the maximum time to respond is 30 days. This negative account in the amount of {$3000.00} is lowering my credit score and causing issues for credit approvals. My quality of life should not be lowered due to their mistake and not following proper Credit and Collection Laws such as FDCPA..”

Deal with a National Enterprise Systems lawsuit

Although National Enterprise Systems, Inc. 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 NES 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 National Enterprise 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 NES 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.