Halsted Financial Services, LLC is a debt collection agency, also known as a third-party debt collector, that has been in business since 2008.
Here is some general information about Halsted Financial Services:
Company Name: Halsted Financial Services, LLC
Address: 8001 Lincoln Ave, Suite 500, Skokie, IL 60077
Phone Number: (855) 284-0831
Years in Business: 17 years (founded May 30, 2008)
Contact Email: You can find this information by visiting their website at halstedfinancial.com
Halsted Financial Services has additional locations in Westminster, CO, and an offshore call center in Mandaluyong, Philippines. They are licensed to collect debts in the following states: California, Nevada, New York, North Carolina, Illinois, Colorado, Minnesota, and Washington.
Halsted Financial Services Collection Controversy
According to the Consumer Financial Protection Bureau (CFPB), there have been more than 650 complaints filed against Halsted Financial Services. The Better Business Bureau (BBB) has received 354 complaints within the last three years and 126 complaints in the last 12 months.
There are over 100 federal lawsuits filed against Halsted Financial Services for violating the Fair Debt Collection Practices Act (FDCPA). In December 2016, a judge ruled in favor of the plaintiff in the state of Indiana for $3,852.50. In January 2018, another ruling in the state of California awarded the plaintiff $4,156.95 in damages, fees, and costs.
Many of the complaints against Halsted Financial Services revolve around their attempts to collect debts that do not belong to the consumer, failure to validate debts when requested, and disclosure of the debt to family members and other third parties.
One reviewer on the BBB website posted the following comment about Halsted Financial Services: "Very unprofessional sending text messages to a 3rd party that is NOT authorized on my account!"
Myth #1: Paying off a collection account removes it from my credit report
One of the most common misconceptions about credit reporting is that once a consumer pays off a collection account, the account will be removed from their credit report. This is not accurate. When a consumer pays off a collection account, the account will be marked as paid. However, it will remain on the credit report for the full seven years from the original delinquency date.
If you have a collection account on your credit report from 2022, it will remain on your credit report until 2029, regardless of whether you pay the collection account this year, next year, or never. Paying off a collection account does not offer any real credit benefit because the negative account will remain on the report either way.
Myth Busting: Removals are possible if the information is inaccurate
A collection account can be removed from a credit report if the information is inaccurate, incorrect, a mistake, fraudulent, or if the credit reporting agency (CRA) and/or collection agency cannot verify the account in a reasonable amount of time. This is not a loophole; it is a consumer's right.
According to a study done by the U.S. PIRG, "79% of credit reports contain either mistakes or serious errors." When a consumer applies for credit and the original creditor grants credit, there are multiple parties involved in the process. When the account becomes delinquent and is sold to a debt buyer, there are multiple data transfers from party to party. Then, when a debt buyer places the account with a third-party debt collector, there is another data transfer. When data is transferred from party to party, there are many opportunities for the data to become incorrect, incomplete, or fraudulent.
Halsted Financial Services is primarily a third-party debt collector. They do not buy debt. This means they collect debts on behalf of other companies. This is another opportunity for data to become incorrect or incomplete.
On their website, they claim, "Halsted Financial Services, LLC is not a data furnisher to any Consumer Reporting Agency." If this is true, then how did the collection account from Halsted Financial Services end up on your credit report in the first place?
Myth #2: If I write a goodwill letter to the collection agency, they will remove the account from my credit report
All over the internet, you will find templates for goodwill letters that consumers can use to dispute a collection account. A goodwill letter is exactly what it sounds like. The consumer writes a letter to the collection agency explaining their situation and politely asks the collection agency to remove the account from their credit report as an act of goodwill.
Why Goodwill Letters Do Not Work
Collection agencies are not in the goodwill business. They are in the debt collection business. If you write a goodwill letter explaining how sad your situation is, the collection agency is under no obligation to remove the account from your credit report. In fact, the only thing you typically accomplish by writing a goodwill letter is to confirm your address and acknowledge that the debt belongs to you.
The biggest issue with a goodwill letter is that you are asking the collection agency to do something nice for you. You are asking them to remove the account from your credit report as a favor. The collection agency is under no obligation to grant you this favor.
Myth Busting: Assert your rights, do not ask for favors
The FDCPA offers consumers many rights when dealing with collection agencies. Consumers have the right to request validation of the debt. Consumers have the right to dispute inaccurate information. Consumers have the right to protection from harassment, intimidation, and deception.
If the collection agency cannot properly validate the debt or if the information on the credit report is inaccurate, the consumer has the right to request that the account be removed from their credit report. This is not asking the collection agency for a favor. This is making them abide by their obligations under the law.
Halsted Financial Services has been sued over 100 times for violations of the FDCPA. In many cases, the plaintiff was awarded a judgment because Halsted Financial Services failed to respond to the allegations. This may indicate that Halsted Financial Services has a problem validating their debts.
Myth #3: If I talk to the debt collector and answer all their questions, it will help my situation
When a debt collector calls you and asks you questions, your initial reaction is to cooperate. You want to answer their questions, explain your situation, and help them understand. You believe that this will help your situation and that the debt collector will appreciate your willingness to cooperate.
Why You Should Not Answer a Debt Collector's Questions
A debt collector's job is to collect as much money as possible from you. Every question they ask has a purpose. They want to know your personal information so they can confirm who you are. They want to know if you work so they can determine if you have the ability to pay the debt. They want to know where you work so they can potentially garnish your wages. They want to know about other income sources or assets you may have that can be used to pay the debt.
One consumer posted a complaint about Halsted Financial Services on the BBB website. The complaint was as follows: "This company has been calling and texting me for months regarding a debt in the name of a person I've never heard of, using an address I've never lived at... Each time I tell them I am not that person, they tell me my number will be removed but then a week later the calls and text messages start again."
Every time this consumer answered the debt collector's questions, they provided them more information that could potentially be used against them.
Myth Busting: Every question should have a strategic purpose
You do not have to answer a debt collector's questions. You have the right to make them put everything in writing. You have the right to limit the communication that you have with a debt collector.
Before you answer any questions, you should determine if answering the questions will benefit you or the debt collector.
Debt collectors have all the information and all the power. You do not have to give them more information than they are entitled to. When you keep the information you provide to a debt collector to a minimum, you are evening the playing field.
If you hire a professional credit repair expert to help you communicate with debt collectors, they will understand how to strategically answer questions. They will know what information you are required to provide and what information you should withhold. They will also know how to phrase disputes in a way to make them most effective.
Myth #4: I can handle this situation on my own and do not need any help
All over the internet, there are free templates and advice on how to dispute a collection account. Many consumers attempt to handle the situation on their own because they believe they can achieve the same results as a professional credit repair company and save the money.
Why You Should Not Try to Handle the Situation on Your Own
Disputing a collection account involves understanding complex federal regulations and knowing how to properly document everything. It also involves understanding how to properly time disputes and how to properly follow up on disputes.
When you submit a dispute, you must be sure it is worded properly. If not, you may actually be providing the collection agency with more information that they can use against you. If you submit a dispute and leave information out, it may be rejected for lack of information.
The stakes are high. A collection account can affect your credit score by over 100 points. An inaccurate collection account can prevent you from getting a mortgage. It can prevent you from getting a car loan. It can prevent you from getting a credit card and even prevent you from getting a job.
Myth Busting: A professional understands the process and the value they bring to it
A professional credit repair company works with collection accounts every day. They understand the documentation that must be submitted with a dispute. They understand how to time a dispute for the best results and how to follow up on a dispute to be sure it gets the attention it deserves.
A professional credit repair company also understands the history and tactics of individual collection agencies. If you are dealing with a collection agency like Halsted Financial Services that has over 650 federal complaints filed against them and a history of third-party disclosure violations, a professional credit repair company will understand how to proceed.
Having a professional credit repair company as an intermediary between you and the collection agency also helps prevent you from doing something that will hurt your case. When you are stressed about a debt and a debt collector is calling you, you are vulnerable to saying something you will regret. Having a professional credit repair company represent you helps eliminate that possibility.
What Actually Works
The dispute-first strategy
Instead of paying a collection account or attempting to negotiate a goodwill deletion, the most effective strategy is to dispute the collection account. This forces the collection agency and credit reporting agency to verify that the information on the credit report is complete and accurate.
Many times, a collection agency cannot verify the information on the credit report. Sometimes, the information is not accurate. When the information cannot be verified or was not accurate in the first place, the account must be removed from the credit report.
This strategy is effective because it forces the collection agency and credit reporting agency to comply with federal regulations. You are not asking for a favor; you are asking them to comply with the law.
Why professional help makes a difference
The difference between a consumer disputing a collection account on their own and a professional credit repair company disputing the account on the consumer's behalf is often the expertise, persistence, and strategic knowledge they bring to the situation.
A professional credit repair company will understand what errors to look for on the credit report. They will understand how to document those errors and how to escalate the dispute if the credit reporting agency does not respond adequately to the initial dispute.
A professional credit repair company will also understand all the tools available to the consumer. Sometimes, there are grounds for filing a complaint with the regulatory agencies. Sometimes, there are grounds for alleging an FDCPA violation. Sometimes, there are other tools available that the consumer would not typically use on their own.
If you are dealing with a debt collector like Halsted Financial Services that has had over 100 federal complaints filed against them and has a history of failing to validate debts, working with a professional credit repair company may be the difference between successfully removing the account from your credit report and not.
Conclusion
Halsted Financial Services Removal
Having a collection account on your credit report from Halsted Financial Services is not the end of the world. You can dispute it and potentially have it removed from your credit report. Do not fall for the myths that it is best to pay a collection account as soon as possible or attempt to negotiate a goodwill deletion by writing a goodwill letter. Do not fall for the myth that you should attempt to cooperate with a debt collector and answer all of their questions. Do not fall for the myth that you should attempt to handle the situation on your own without professional assistance.
The facts are that it is best to dispute the collection account first and assert your legal rights. The facts are that you should limit the amount of information you provide to a debt collector and attempt to only provide information that serves a strategic purpose. The facts are that you should hire a professional credit repair company to assist you with the process.
With over 650 federal complaints filed against them and over 100 federal lawsuits for violations of federal law, collection accounts from Halsted Financial Services may be easier to remove from your credit report than you think.
What to do next...
If you have a collection account on your credit report from Halsted Financial Services, do not contact them. Do not pay them without the help of a professional credit repair company. Do not assume the information on your credit report is accurate.
FightCollections.com is a professional credit repair company that specializes in getting consumers relief from debt collectors. We understand their tactics and we understand the laws that govern their behavior.
Contact us at FightCollections.com today for a free consultation. Our staff will evaluate your situation and determine the best course of action. We will identify potential errors and violations and help develop a strategy to protect your credit report and your rights as a consumer.
The debt collection industry makes its money by taking advantage of consumers who do not understand their rights. Make a powerful decision to educate yourself and assert your rights.