Receiving a notification that CBCS is now on your credit report can come as quite a shock, especially when you don’t know what CBCS is or why it’s on your report in the first place.
When consumers discover this new collection account, there are several common and costly mistakes they might make. Making these mistakes can leave the collection account on your report for much longer than it needs to be, so it’s crucial that you understand what they are and how you can avoid them instead.
The worst thing you can do is let fear drive you to contact CBCS or make a payment without all the facts.
Let’s break down all the mistakes and what you should do instead.
Who is CBCS?
Credit Bureau Collection Services, Inc. (CBCS) is a debt collection agency that is based in Columbus, Ohio. They have been in business since 1948, so they have been around for over 75 years. Below is their basic contact information:
Credit Bureau Collection Services, Inc. (CBCS)
250 E. Broad St., 4th Fl.
Columbus, OH 43215-3743
Phone: 877-886-7331
P.O. Box 551149
Jacksonville, FL 32255
Website: www.revcosolutions.com
Email: Mail@RevcoSolutions.com
In July of 2020, CBCS rebranded to Revco Solutions after merging with Professional Recovery Consultants, Inc. They are owned by LaSalle Capital, a private equity firm out of Chicago. Despite the name change, they still have the same leadership, including executives who were personally named in federal enforcement actions.
What Their Record Says About Them
Before we dive into all the costly mistakes consumers make when they find a CBCS account on their report, it’s essential to understand the CBCS record.
In March 2010, the Federal Trade Commission (FTC) sued CBCS for violating the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). They ended up paying over $1.1 million to settle the charges.
The FTC found that CBCS had weak verification procedures in place. When consumers disputed debts due to mistaken identity, CBCS would match only three out of the four data points before trying to collect the debt. If consumers disputed the same debt over four times, CBCS would investigate further. If a consumer didn’t dispute the debt at least five times, they were likely still pursued for a debt they didn’t owe.
Aside from the FTC action, CBCS has been named in nearly 200 federal lawsuits, according to the court records. They currently have a 1.04 out of 5-star rating with consumers and a B- rating with the Better Business Bureau (BBB), but they aren’t accredited. There have been over 125 complaints filed in the past three years across all of the databases.
The Costly Mistakes Consumers Make When They Find a CBCS Account on Their Report
When consumers find a collection account on their report, there are several costly mistakes they might make. These mistakes can keep the negative account on your report for much longer than it has to be. Let’s break down each mistake and what you should do instead.
Mistake #1: Pay the Collection Immediately
The worst thing you can do when you find a collection account on your report is to pay it immediately. This seems like the logical course of action. You find the debt, you pay it, and then it’s off your report. Unfortunately, that’s not how credit reporting works.
Paying the collection will change the status to paid, but it will still remain on your report for seven years from the original date you missed a payment. A paid collection is still a collection, so it will still negatively affect your credit score, your ability to get a loan, and the interest rates you pay.
If you make a payment, you may also be restarting the statute of limitations in some states, which means you’re giving them more time to sue you. Plus, you’re confirming that the account is yours, which means you can never claim in the future that the debt isn’t valid.
Before you make a payment, you need to make sure the account is yours and the information on your report is accurate.
Mistake #2: Give Them Too Much Information
Debt collection agencies like CBCS make their living off consumers’ fear. They want to scare you into calling them and paying them without checking to make sure the account is valid first.
Once you’re on the phone with them, they will try to get as much information from you as they can. You need to remember that the information should only flow one way: from them to you. You have the right to request they validate the debt. You have the right to ask for documentation that proves they own the debt and that it’s the right amount. They don’t have the right to know what you make, where you work, or any information about your bank accounts.
Here’s what one consumer said about their experience with CBCS:
“CBCS pulled a total of $358.92 electronically from my checking account. I do not know how they got my account number. After going through my past bank statements, this is not the first time they have pulled an EFT from my account. They total $1789.59. I did not give them permission to take any money.”
If you give a debt collector your bank account information, they may pull funds from your account without your permission.
Why Disputing Works Against Debt Collectors Like CBCS
The reason consumers have the right to dispute information on their report is that there are a lot of errors. A study done by U.S. PIRG found that 79% of credit reports have errors or disputes on them. Disputing the information isn’t a loophole; it’s a process that’s in place to help protect consumers.
How Credit Bureau Investigations Work
When you dispute an item on your report, the credit bureau is required to investigate. They have to contact the entity that’s reporting the information and ask for proof that it’s accurate. This is why it’s so much better to work with the credit bureaus instead of the collection agency. The credit bureau is acting as a third party. They have to investigate your dispute.
When you work directly with a debt collector, you aren’t getting a third party’s help. Debt collectors aren’t in the business of helping you; they’re in the business of making money.
By initiating a dispute with the credit bureaus, you’re putting the burden on the debt collector to prove that you owe the debt. If they can’t do that within a reasonable amount of time (typically 30 days), then the item has to be removed from your report. A debt collector can’t just tell you that you owe money; they have to prove it.
The Debt Buying Model
Debt collectors like CBCS buy debts from other companies. They purchase debts for pennies on the dollar and then try to collect the full amount from consumers. The problem with this model is that documentation can get lost when debts change hands. If you dispute a debt that a collector has purchased, they may not have all the documentation they need to prove the debt is valid.
In the FTC’s case against CBCS, they noted that the debts the company was trying to collect were “often old” and the information about the debts “may not be accurate for a variety of reasons.”
If a debt collector can’t prove that a debt is valid, they can’t collect it, and it has to be removed from your report.
Reasons That Will Get CBCS Removed
If the credit report contains inaccurate, mistaken, false, or unverifiable information, then you can get the collection accounts removed. This is why the professional dispute process works. It is helpful to consider the reasons for the inaccuracy of information in credit reports to understand the success of the dispute process.
Common Errors of Collection Accounts
The most common errors in collection accounts are errors in the balance due, date reported, debtor’s identity, and whether or not the debt was valid in the first place.
CBCS has been hit with several class-action lawsuits, including charges that the company added unauthorized collection fees to accounts, fees that weren’t permitted by contract or state law, and that the company sent collection notices that contained confusing, misleading, and false information about debts.
In one federal lawsuit, the company added $188.18 in collection fees to an account that weren’t permitted under any agreement or under Wisconsin state law.
In another case, the company sent collection letters that falsely implied consumers needed to provide proof of payment to dispute a debt, a requirement that isn’t permitted under federal law. The cases demonstrate the kinds of errors commonly found in collection accounts.
Another common error is wrong-person collections. One person wrote:
“In my experience, CBCS seems to be highly disorganized and usually has very little knowledge of the accounts they collect on. They are known to frequently mix up family member names and call the wrong homes and workplaces harassing people that don’t even owe them money.”
If a collector is trying to collect a debt from the wrong person, then the information on your credit report is likely to be invalid.
Why 79% of Credit Reports Are Inaccurate
There is a simple reason why nearly 8 out of 10 credit reports contain errors. The credit reporting industry deals in billions of pieces of information every month.
Original creditors must report information to the bureaus, debts must be sold to collectors, collectors must report their information, and all of that information must be matched to the right consumer. The chances for error at every step of the process are immense.
According to a report by the Consumer Financial Protection Bureau, 45 percent of all debt collection complaints involve consumers who say they don’t owe the debt. That’s the single most common complaint the bureau receives.
The problem isn’t a few isolated mistakes. It’s a systemic issue that affects millions of consumers. If you assume that the information on your credit report is accurate simply because it’s there, you’re trusting a system that we know fails nearly 8 out of 10 times.
The dispute process exists because the system needs to be corrected. Using the dispute process isn’t “gaming the system.” It’s holding the system accountable.
What Not to Do
Understanding the right approach requires knowing what not to do. Avoid these common mistakes to prevent making your situation worse.
Don’t Pay the Account Quickly
The single worst thing you can do is pay a collection account quickly. This might seem counterintuitive. After all, isn’t paying a debt the right thing to do? Yes and no.
When you pay a collection account, you’re acknowledging the debt and you’re settling the account. In most cases, paying an account will not result in its removal. This is true even if you negotiate a settlement for less than the full amount.
The credit reporting system isn’t like a court system. You don’t have the same kind of rights, and you won’t get the same kind of protections. A payment or settlement is not the same thing as a dismissal.
Instead, paying a collection account will usually result in the account being marked “paid” and remaining on your report for seven years. That means a paid collection, which can affect your credit score nearly as much as an unpaid collection.
Don’t Offer Information Freely
When a debt collector contacts you, don’t offer information freely. This is another common mistake. Collection agencies are in the business of collecting information, and everything you say can and will be used against you.
If you tell a collector that you owe the debt, you’re acknowledging it, even if you didn’t intend to. If you provide information about your income, your debts, or your credit history, you could be providing exactly what the collector needs to pursue you.
Don’t Try to Handle a Dispute Alone
Consumers who try to dispute collections on their own often find themselves in over their heads. Collection agencies handle disputes every day. They know exactly what language to use, which deadlines to point to, and how to make responses that technically satisfy the credit bureau requirements without actually providing any proof.
A collector has enormous advantages over an individual consumer when it comes to information.
Don’t Restart the Clock
A dispute won’t restart the clock on an old debt, but a payment or admission can. In most states, the statute of limitations on a debt ranges from three to six years. When the clock runs out, the collector can no longer sue you for the debt.
If you make a payment or acknowledge an old debt, however, you could be restarting the clock. This is why collectors like to pursue consumers for old debts. It’s a way to revive a debt that’s too old to collect.
What You Should Do Instead
If you know what not to do, you still need to understand what to do instead. Here are the right steps.
Understand Your Rights
Know your rights under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. The FCRA says that you have the right to dispute information on your credit report that’s inaccurate, incomplete, or unverifiable. The FDCPA says you have the right to representation and that a debt collector must communicate with your representative if you have one.
Use the Proper Channels
Use the proper channels to dispute information. Don’t simply contact the collector. Instead, contact the credit bureau directly. You can file a dispute online, by phone, or by mail. Be sure to provide documentation and details about the error. The bureaus are required to investigate most disputes within 30 days.
Use a Professional
Don’t be afraid to use a professional. Consumers who try to handle disputes on their own often find themselves outmatched. A credit repair professional can help level the playing field and ensure your rights are protected.
Ensure Information Is Correct and Complete
The final step is to ensure that information on your report is correct and complete. A credit repair professional can help you obtain corrections, updates, and verifications of the information in your file.
Why You Should Work with a Professional
If you’re not already convinced, consider the reasons you should work with a professional.
Avoid Mistakes
Perhaps the biggest reason to work with a professional is to avoid mistakes.
When you work with a credit repair professional, you avoid the kinds of mistakes that can leave you worse off than when you started. You avoid restarting the clock. You avoid providing information that strengthens the collector’s case. You avoid settling for less than the best outcome. Instead, every communication is strategic and purposeful.
Maximize Your Chances of Success
The best way to maximize your chances of success is to work with a professional. A credit repair professional knows the kinds of documentation that a collector must provide. A professional knows the specific regulatory requirements that apply in your case. A professional knows the steps to take to maximize your chances of success.
For example, a professional will know whether the collector must respond to your dispute within a specific timeframe and what happens if the collector fails to respond. A professional will know how to pursue the weaknesses in the collector’s case and how to ensure the greatest chance of removal.
Get the Best Outcome
Working with a professional is the best way to get the best outcome. If you settle a debt for less than the full amount, the collector may agree not to report the account to the credit bureaus. In some cases, however, the collector may report a settled account anyway. A professional will negotiate to ensure the best outcome and fight to get negative information removed from your report.
Speed Is Essential
If you need one more reason to work with a professional, consider that speed is essential. The faster you act, the better your chances of success. A lawsuit from a collection agency like CBCS is relatively rare, but the longer you wait to address a collection account, the more time the collector has to strengthen its case. The collector may obtain more information. The collector may sell the account to another collector. The collector may take steps that make it harder to resolve the account later.
Early intervention gives you options. If you challenge an account before you’ve made any payments or admissions, you keep every option open. Once you’ve taken certain steps, some of those options aren’t available anymore.
If you contact a credit repair professional the moment you suspect a problem, you have more options than if you wait several months or even years. The credit bureaus have timelines for their investigations that they must follow. The faster you start the dispute process, the faster you’ll have a resolution.
Every month that a collection account remains on your credit report is another month that it’s dragging down your credit score, your loan options, and your financial opportunities.
Conclusion
CBCS, now Revco Solutions, has a long history of violating federal regulations and attracting federal enforcement actions as well as consumer complaints. The company’s $1.1 million FTC settlement and its nearly 200 federal lawsuits demonstrate a pattern of practices that affect real consumers. If this collector ends up on your credit report, you should understand its history and how that history should inform your response.
The mistakes most consumers make — rushing to pay, offering information freely, and trying to handle disputes on their own — all work to the advantage of the collector. The collection industry relies on fear and confusion to get consumers to accept quick resolutions that favor the collector, not the consumer.
You have more power than you think. The dispute process, the verification requirement, and the documentation requirements all exist to protect consumers from inaccurate reporting. Using those protections is your right.
Your Next Step
If CBCS or Revco Solutions appears on your credit report, your next step should be obvious. It’s time to act. Contact us at FightCollections.com to speak with a credit repair professional who understands how to challenge collection accounts for results.
Our team understands the specific documentation collectors must provide, the regulatory requirements they must meet, and the dispute process that gets results.
Don’t let a collection account from a company with this history damage your credit any longer than it already has. Don’t make the kind of mistakes that keep consumers trapped. Instead, take the first step toward protecting your credit standing today.
