How to Remove Jefferson Capital Systems from Your Credit Report
Have you come across the name Jefferson Capital Systems on your credit report or received recent phone calls from company representatives? This article covers the steps to remove Jefferson Capital Systems from your credit report.
What is Jefferson Capital Systems, LLC?
Jefferson Capital Systems is a legitimate debt collection company that was founded in 2002 and is headquartered in Saint Cloud, Minnesota. It purchases unpaid debts from original creditors, essentially buying charge-offs from an original service provider.
Jefferson Capital Systems can appear under several names on your credit report, including Jefferson Capital LLC, Jefferson Capital Systems, Jefferson Capital Systems Verizon or Jefferson Collection. The small agency collects debt from service providers in several industries as well as bankruptcy debt.
How does Jefferson Capital Systems work?
When companies can’t collect on unpaid bills, they often sell the rights to the debts to third-party debt collection agencies (like Jefferson Capital Systems) at low rates. Once Jefferson Capital Systems owns your debt, its staff members can call, message and send letters to try to get you to pay your debt. They then place the debt on your credit report, where it can remain for as long as seven years. This could negatively impact your credit score.
3 steps to remove Jefferson Capital Systems from your credit report
Follow these steps if your debt is sold to Jefferson Capital Systems.
1. Send Jefferson Capital Systems, LLC a debt validation letter
When you first start receiving communications from Jefferson Capital, check your credit report to find the debt. You can access free weekly credit reports from the three major credit bureaus (Equifax, TransUnion and Experian) at the official website, AnnualCreditReport.com.
When a debt collection account first appears on your credit report, you have 30 days to dispute the claim. Thanks to the Fair Debt Collection Practices Act (FDCPA), you have every right to submit a debt validation letter to Jefferson Capital Systems.
In your debt validation letter, you should ask Jefferson Capital for the following information:
- The original creditor
- The current debt amount
- The debt’s age
- Any supporting documentation that proves the debt is valid
If you do not think the debt is valid or you found an error, dispute the item with one of the three major credit bureaus.
2. Negotiate a partial payment on your account
If your debt is valid, you must prepare to pay it off. Since Jefferson Capital buys debts at low prices, it may be willing to accept payments less than the amount you owe. For instance, you might be able to settle a $150 debt with a $75 payment.
The negotiation process may involve back-and-forth communication with Jefferson Capital until the company agrees on an amount. You can propose to pay either a lump sum or monthly installments.
When first deciding how much you can pay, consider your current income and other financial obligations. Don’t forget to also leave some wiggle room for emergencies. If you want professional help with this process, you can use a non-profit credit counseling service. They can help you create a debt management plan.
If you come to an agreement with Jefferson Capital, get it in writing. This is an important step to document the agreement of your approved payment plan.
3. Wait for the collection to fall off your credit report
As mentioned, a collection account can remain on your credit report for around seven years, depending on your state. Unfortunately, if the debt is valid, you cannot remove it from your credit report prematurely.
Alternative option: seek help from a credit repair company
Some situations are best left to the professionals. While you can remove a debt collection account from your credit report on your own, it isn’t always easy. If you want to avoid negotiating and leave your debt disputes to someone with more time and experience, a credit repair company can help.
Unfortunately, scams exist. According to the Consumer Financial Protection Bureau (CFPB), watch out for the following warning signs before choosing a company:
- The company requires payment upfront and aggressively requests it
- The company promises to remove something from your credit report, even things that are valid
- The company advises you to dispute all information on your credit report, even correct information
- The company refuses to explain your rights to you
- The company tells you not to contact any credit reporting agency
Jefferson Capital Systems contact information
Mailing address: 200 14th Avenue E, Sartell MN 56377
Phone number: 1-833-851-5552
Dealing with Jefferson Capital Systems
Jefferson Capital Systems can call you regularly, but there are limits to the agency’s collection practices under the FDCPA. For example, they can only call you at certain times and can’t contact you at work if you ask them not to. You can also demand that the agency communicates with you in writing instead of over the phone. Written communication makes it easier to track your conversations with the debt collector and hold them to agreements.
Disclaimer: This story was originally published on July 2, 2020, on BetterCreditBlog.org. It has been updated to reflect current information. To find the most relevant information concerning collections or credit card inquiries, please visit:
- How to Remove Collections from Your Credit Report
- How to Remove Negative Items From Your Credit Report