How To Remove Jefferson Capital Systems LLC 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 founded in 2002 and headquartered in Minneapolis, Minnesota. It buys unpaid debts from the original creditors, basically buying payments from the original service provider.
Jefferson Capital Systems may appear under several names on your credit report, including Jefferson Capital LLC, Jefferson Capital Systems, Jefferson Capital Systems Verizon or Jefferson Collection. A small agency collects debts from service providers in several industries and bankruptcies.
How does Jefferson Capital Systems work?
When companies are unable to collect unpaid debts, they often sell the rights to the debts to third-party debt collection agencies (such as Jefferson Capital Systems) at low prices. Once Jefferson Capital Systems is in charge of your debt, its employees may call, text and mail you to try to get you to pay your debt. Then they put the debt on your credit report, where it can stay for seven years. This may have a negative impact on your credit score.
3 steps to remove Jefferson Capital Systems from your credit report
Follow these steps if your loan is sold to Jefferson Capital Systems.
1. Send Jefferson Capital Systems, LLC a letter of credit
When you first get in touch with Jefferson Capital, check your credit report for credit. You can access free weekly credit reports from the three major credit bureaus (Equifax, TransUnion and Experian) at the official website, AnnualCreditReport.com.
If a debt collection account first appears on your credit report, you have 30 days to dispute the claim. Due to the Fair Debt Collection Practices Act (FDCPA), you have every right to submit a debt verification letter to Jefferson Capital Systems.
In your credit verification letter, you should ask Jefferson Capital for the following information:
- The original lender
- The present value of the debt
- Years of debt
- Any supporting documents that prove the credit is valid
If you don’t think the credit is valid or you’ve 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 active, you should be prepared to pay it. Since Jefferson Capital buys loans at low prices, it may be willing to accept payments that are less than the amount you owe. For example, you might be able to pay off a $150 debt with a $75 down payment.
The negotiation process may involve back-and-forth communication with Jefferson Capital until the company agrees on a price. You can propose paying a lump sum or monthly installments.
When you first decide how much you can afford to pay, consider your current income and other financial obligations. Don’t forget to 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 in writing your approved payment plan agreement.
3. Wait for the collection to appear on your credit report
As mentioned, a collection account can stay on your credit report for up to seven years, depending on your situation. Unfortunately, if the debt is valid, you can’t remove it from your credit report early.
Another option: seek help from a credit repair company
Some situations are better left to the professionals. While you can remove a debt collection account from your credit report yourself, it’s not always easy. If you want to avoid negotiation and leave your debt disputes to someone with more time and experience, a debt settlement company can help.
Unfortunately, there are scams. According to the Consumer Financial Protection Bureau (CFPB), look out for the following warning signs before choosing a company:
- The company needs payment in advance and is asking for it aggressively
- The company promises to remove something from your credit report, even active ones
- The company advises you to dispute all information on your credit report, even the correct information
- The company refuses to explain your rights to you
- The company tells you not to contact any credit reporting agency
Contact information for Jefferson Capital Systems
Mailing address: 200 14th Avenue E, Sartell MN 56377
Phone number: 1-833-851-5552
Affiliated with Jefferson Capital Systems
Jefferson Capital Systems can always call you, but there are limits to the agency’s collection practices under the FDCPA. For example, they may only call you occasionally and cannot contact you at work if you ask them not to. You can also request that the agency contact you in writing instead of by phone. Written communication makes it easier to follow up on your conversations with the debt collector and stick to agreements.
