Are you seeing Credit Systems International on your credit report? You’re not the only one. You’re not helpless either.
Credit Systems International is a Texas-based debt collection agency that has been around since 1980. That means this 46-year-old company has spent decades perfecting the art of aggressive practices and miscommunication. Your journey to regaining control over your credit begins with knowing who they are.
Credit Systems International is a debt collection agency focusing on medical, utility, and government debt collection. With 48 employees and a revenue of $5.2 million, they make it a point to not communicate via email, making it difficult for you to keep a paper trail. Now that we have established the facts, let’s dive into their reputation.
Allegations of Misleading and Deceptive Practices in Debt Collection and Credit Reporting
A BBB-accredited company, Credit Systems International has had 201 complaints filed with the BBB in the past three years, with 166 of them pertaining to problems with product and services. Despite their accreditation, they have a rating of 1.67/5 stars. Of the complaints filed, 100% were responded to by the company.
However, only 34 (16.9%) of them were successfully resolved, while 167 (83.1%) of them were closed without being resolved.
Moreover, Credit Systems International has been a party to more than 45 federal court cases. The most common allegations against them include:
- Misleading and deceptive practices in debt collection and credit reporting
- Failure to validate debts
- Violations of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act
In one instance, a consumer alleged that CSI violated the FCRA by failing to conduct a reasonable investigation into their dispute and failing to report the results to the credit reporting agency. Another consumer claimed that CSI continued to attempt to collect a debt from him despite his repeated requests for validation, which was never provided.
What Credit Systems International Wants You to Do
1. Panic and Pay Them Immediately
When a collection agency like Credit Systems International lists a debt on your credit report, they’re counting on you panicking and paying it right away. The moment you react out of fear instead of knowledge, they win.
The truth they don’t want you to know is that 79% of credit reports contain errors or inaccuracies. That collection account on your report may not be yours at all, or it may be inaccurate. Whatever the reason, paying a collection account without verifying it first is like paying a bill you don’t owe.
One consumer, who had to deal with CSI’s illegal and harassing calls, wrote the following to the BBB:
“This company has been reporting this same debt as derogatory EVERY SINGLE DAY on my credit report for weeks. This is a predatory practice intended to force me to pay without verifying the debt, as each separate report of this same debt lowers my credit score.”
If they’re trying this hard to get you to pay without verifying, you should be just as determined to make sure you’re not a victim of identity theft or mistaken identity.
2. Remain Silent and Do Nothing
CSI and other debt collectors count on consumers not responding to their communications. If you remain silent, they win. But, if you know your rights and you understand the dispute process, you can flip the tables.
Instead of blindly paying a debt, you can demand that the debt collector prove you owe it. If they can’t, the credit bureaus must remove it from your report. And here’s the thing — most of the time, debt collectors can’t prove you owe the debt.
When you request debt validation, they must respond within a specific amount of time, and they must provide specific information to prove the debt is legitimate. If they can’t do either, you’ve won.
In their complaints to the BBB, several consumers mentioned that they requested debt validation from CSI, but the company failed to provide any documentation or proof of debt. One consumer wrote:
“I requested debt validation from them. After a month, I received a letter from them stating that they were unable to locate the documentation for my account. How convenient. I responded to the letter stating that since they were unable to validate the debt, the debt should be forgiven and removed from my credit report.”
Why Paying a Collection Account Can Hurt Your Credit
Credit repair isn’t as simple as paying off collection accounts. In fact, paying a collection can actually harm your credit in the long run.
If you pay a collection account, it will be marked as “paid collection” on your credit report. But, it will remain on your report for seven years from the original delinquency date. So, you’ll still have a negative mark on your report, and you’ll be out the money you paid for it.
If you dispute a collection account and it’s found to be invalid or unverifiable, it will be completely removed from your credit report. This means you avoid the negative credit consequences associated with the debt, and you won’t have to waste your money paying it.
So, the next time a debt collector contacts you, don’t panic and pay. Instead, dispute the debt and make them prove you owe it. If they can’t, you can have it removed from your report and avoid the damage it’s causing your credit.
What Disputing a Collection Account Can Do for You
Most People Don’t Need a Mountain of Documentation to Dispute a Debt
You don’t need extensive proof that a debt isn’t yours to dispute it. In fact, all you have to do is write a simple letter to the credit reporting agencies and request that they investigate.
When you initiate a dispute, the credit reporting agency must investigate and verify the information with the creditor. If they can’t verify, the information must be removed from your report. In many cases, this is as simple as writing a letter and waiting for the creditor to fail to verify.
One of the most common reasons debt collectors can’t verify debts is that they don’t retain much of the original documentation when they purchase debt portfolios. So, when a consumer disputes a debt and they’re forced to verify, they can’t because they don’t have the documentation.
Several consumers have complained to the BBB about CSI’s failure to validate debts. One consumer wrote:
“I am filing this complaint due to CSI reporting and attempting to collect a fraudulent account. The account is tied to an address that I have never lived at. I did not authorize this account. I never signed a contract, nor did I receive any services. This account is 100% fraud.”
This consumer disputed the account because it wasn’t theirs, and they requested that CSI validate it. When CSI couldn’t validate, they should have removed the account from the consumer’s report. But, instead, they continued to attempt to collect.
Debt Collectors Often Don’t Respond to Disputes
The FDCPA requires debt collectors to respond to consumer disputes within a specific amount of time. They must also cease collection activities until they can verify the debt.
However, many debt collectors ignore this and continue their attempts to collect. Others don’t respond at all. Either way, if a debt collector doesn’t meet their verification burden, you can have the account removed from your report.
A number of BBB complaints against CSI indicate that the company often fails to respond to consumer disputes. Consumers have also filed complaints with the Consumer Financial Protection Bureau about CSI’s failure to respond. One consumer wrote:
“I disputed this debt and have yet to receive any response or validation from this company. I requested validation more than 30 days ago and have yet to hear back.”
It’s also worth noting that some debt collectors will respond to a dispute with a threat. They might tell you that they’re going to sue or that they’re going to continue collection activities even if you dispute the account. Don’t be intimidated. If a debt collector threatens you, report them to the CFPB or your state’s Attorney General.
Keep Your Information to Yourself
Debt collectors will often contact consumers directly to discuss debts. When this happens, they’re looking for information that will help their case against you. They want you to acknowledge that the debt is yours or give them access to financial information. They may also use high-pressure tactics to get you to pay immediately.
Instead of engaging with a debt collector directly, tell them you need the information in writing and hang up. If they call back, don’t answer. If you must communicate with them, do so only in writing and don’t provide any information they request.
CSI has several complaints against them for their abusive communication tactics. One consumer wrote to the BBB:
“I just received a call from this business. She was very rude to me. I tried to ask where my bill was from, and another rude response advising it was from my medical provider.”
Another consumer had a similar experience:
“When you call asking to speak to someone, you are supposed to say who you are and where you’re calling from. That always seems to be an issue for them… Her reply was ‘when you’re ready to identify yourself, call us back.’ The level of unprofessionalism is unreal.”
Having a Credit Repair Expert in Your Corner
Professional credit repair experts understand the law and your rights under it. They can help you navigate disputes and communicate with debt collectors and credit reporting agencies. They can also help you identify the most critical information to request in a dispute.
Hiring a professional can get you better results than trying to handle it on your own. The settlement amounts for FDCPA lawsuits against CSI can range from $1,500 to $3,000 per individual consumer. Credit repair experts know how to help you navigate these processes to get the best possible outcome.
In many cases, this outcome will be removal of the negative information from your credit report.
Conclusion
Don’t let Credit Systems International push you around and dictate your next move. You have rights under federal law, and you can use them to your advantage to dispute collection accounts and have them removed from your report.
While CSI may have been in the industry for 46 years, their history is marred by complaints, lawsuits, and allegations of wrongdoing. Don’t become their next victim. Instead, stand up for yourself, understand your rights, and dispute any collection accounts that you believe are inaccurate or invalid.
FightCollections.com can help you with the dispute process. Contact us today for a free consultation.
