When you see National Enterprise Systems on your credit report, your initial reaction may be to call them and sort it out. That's exactly what they hope you will do.
The debt collection industry has perfected the playbook for making consumers believe they are the ones who need to prove themselves, who need to explain and negotiate from a defensive position.
But the secret truth the debt collection industry doesn't want you to know is this: The burden of proof is not on you. Under the law, it's the debt collector's responsibility to prove the debt is valid, that you owe it, and that they have the right to collect it. Once you know that, the power shifts into your hands.
Who is National Enterprise Systems?
National Enterprise Systems, Inc. is a debt collection agency based in Ohio that has been in business since 1987. Here's an overview of the company:
Address: 29125 Solon Road, Solon, Ohio 44139
Phone: (440) 542-1360 or toll-free (800) 973-0600
Email: web-info@nes1.com
Years in Business: 38 years (founded July 2, 1987)
National Enterprise Systems collects debts in all 50 states across various sectors, including automotive, retail, financial services, telecommunications, higher education, and government. The company acts as both a third-party debt collector for original creditors and as a debt buyer of delinquent debt portfolios.
The Proof is in the Pudding
Despite holding an A+ rating with the Better Business Bureau, National Enterprise Systems has a long history of complaints and regulatory actions against it.
The Ohio Attorney General sued National Enterprise Systems after gathering more than 390 complaints against the company. The consent judgment required NES to pay approximately $414,000 in consumer restitution and fines. The state found that the company:
Called and harassed consumers' workplaces and families
Called before 8:00 a.m. and after 9:00 p.m.
Used abusive language
Attempted to collect on debts consumers did not owe
Failed to verify debts when consumers asked for it
Made unauthorized withdrawals from bank accounts
These weren't one-offs. These were systematic violations that attracted the attention of the state government.
The Consumer Financial Protection Bureau's (CFPB) complaint database lists 686 complaints against National Enterprise Systems, of which about 81% are related to debt collection problems. This puts National Enterprise Systems as one of the more complained-about debt collection companies.
Why You Should Never Pay a Collection Agency First
The Danger of Paying First
Debt collection agencies like National Enterprise Systems want you to pay them as soon as possible. They'll do everything they can to create a sense of urgency. But paying a collection agency is not a magic solution to making the account disappear from your credit report.
When you pay a collection agency, all it does is change the status of the debt from "unpaid collection" to "paid collection." The item can still remain on your credit report for years.
And here's the thing: A study by U.S. PIRGs found that 79% of credit reports contain errors or other major mistakes. This means there's a good chance the information about the collection account on your credit report is wrong. It could be the wrong balance, the wrong account holder, or even a debt you've already paid or discharged.
If you pay first without verifying the information is accurate, you may end up paying money you don't owe. Even worse, by paying it, you may be acknowledging you owe a debt you don't actually owe, and you may be renewing the statute of limitations on an old debt or reaffirming inaccurate information on your credit report.
The Dirty Little Secret about Debt Validation
Here's something debt collectors don't want you to know: Many debt collectors can't validate the debt. This is especially true for debt collection agencies that buy up portfolios of charged-off debts. When debts are sold from the original creditor to a debt collector, the paperwork often doesn't follow.
National Enterprise Systems has faced several federal class-action lawsuits over its debt collection letters and validation processes. In the case of Severns v. National Enterprise Systems Inc, the plaintiffs claimed the collection letters listed several confusing dates that made it unclear when the 30-day debt validation period would expire.
As a result, consumers weren't getting the full time they were entitled to under the law to dispute the debt.
This is leverage you can use in your favor. When you properly dispute a debt, the debt collector is required to provide you with debt validation within a reasonable amount of time. And if they can't, the account must be removed from your credit report.
Understanding Your Rights under Federal Law
What You Need to Know about the FDCPA and FCRA
The Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) are federal laws enacted to protect consumers from debt collection agency harassment. Here are some of the rights you have under these laws that you may not be aware of:
Under the FDCPA, debt collectors may not harass you, make false statements, or engage in unfair practices. They can't call you before 8 a.m. or after 9 p.m., unless you agree to it. They can't call you at work if you tell them not to. And they can't talk about your debt with other people.
The West Virginia Attorney General fined National Enterprise Systems $75,000 for illegally tacking collection fees onto debts consumers owed for student tuition.
Under the FCRA, you have the right to dispute any information on your credit report you believe is inaccurate, incomplete, or unverifiable. The credit reporting agency must investigate your dispute within 30 days and, if it can't verify the information, it must be deleted from your report.
Garnishment: Separating Fact from Fiction
One of the scariest tactics debt collectors use to get you to pay up is the threat of wage garnishment. But the reality is there are a lot of exemptions under state and federal law that protect most consumers from having their wages or assets garnished.
For example, Social Security benefits, disability benefits, retirement accounts, and a certain amount of wages may be exempt from garnishment. The rules vary by state, but the bottom line is most consumers have more protections under the law than debt collectors want you to know.
These implied threats are psychological tactics to get around your rational brain and push your fear button. If you know your legal rights and exposure, these tactics no longer work.
The Psychology of Debt Collection Calls
Why Debt Collectors Try to Intimidate You
Debt collectors know psychology. They know most of us are programmed to respond to authority, so they try to present themselves in the most authoritative way possible. Some debt collectors have even been caught impersonating attorneys, government officials, or process servers.
We've seen patterns of this kind of behavior in complaints against National Enterprise Systems. One reviewer on the BBB website said representatives of the company would go back and forth from reading their script about how they understand her situation to talking down to her and telling her she had no choice but to deal with them.
This is a purposeful tactic to keep consumers off balance and prevent them from thinking clearly about their situation. If you recognize the tactic for what it is, you can maintain your emotional distance and protect your interests.
There's a Difference between Follow-up and Harassment
What debt collectors consider follow-up, consumers consider harassment. Multiple phone calls a day. Calls to your workplace. Calls to your family members. All of these tactics are designed to make you uncomfortable enough to pay up.
One consumer complained that National Enterprise Systems was calling her workplace three times a day on different phone lines despite her requests that they not contact her at work. Another consumer said the company continued to contact her even though she'd discharged the debt through bankruptcy years before.
These aren't the behaviors of a company trying to collect a legitimate debt. This is harassment, plain and simple.
You have the legal right to block communication with a debt collector. You aren't being rude or evasive. You are exercising your legal right to be free from harassment. Under the FDCPA, you can demand a debt collector stop contacting you, and it must comply or risk legal penalties.
Turning the Tables on the Debt Collector
How to Make the Debt Collector Prove Your Case
Perhaps the most important mental shift you can make when dealing with a collection account on your credit report is to understand you don't have to prove anything. The debt collector must prove the debt is valid, the correct amount, that you're the responsible party, and that it has a legal right to collect the debt.
When you dispute a collection account, you aren't defending yourself. You're putting the debt collector on trial. And if it can't come up with the evidence, it loses.
National Enterprise Systems has been a defendant in ongoing litigation because of its debt validation processes and collection letters. In the case of Thalman v. National Enterprise Systems Inc, the plaintiffs alleged the company's collection notices didn't make it clear what amount of payment was needed to satisfy debts. As a result, consumers might make a payment the company could then claim was insufficient.
These are the kinds of practices that disputing a debt properly can uncover.
Why You Need Professional Help
Why You Shouldn't Go It Alone
Debt collectors are counting on information asymmetry. They have entire teams of people who understand how the system works inside and out. Most consumers only deal with debt collection once or twice in a lifetime.
This information asymmetry is what the debt collection industry is designed to exploit. By working with a professional credit repair company, you level the playing field. Credit repair professionals understand the magic language that triggers investigation requirements. They understand what documentation a debt collector must provide and how long a credit reporting agency has to respond.
Most importantly, they understand how to identify errors and validation issues that can get a collection account removed from your credit report.
And let's not forget the biggest benefit of all: When you work with a credit repair professional, you don't have to deal with the psychological gamesmanship collectors engage in. While you go about your life, professionals go about the work of repairing your credit.
What to Do Next
So what do you do if National Enterprise Systems has put a collection account on your credit report? You could pay it, but you might end up paying money you don't owe. The account could contain errors. The debt collector may not have the documentation it needs to prove you owe the debt. The debt might be past the statute of limitations, or it might not even be your debt.
Instead of paying, you can dispute the account. This triggers a formal investigation that puts the burden where it belongs — on the debt collector — to prove its case. And if it can't validate the debt with documentation within the allotted time frame, the credit reporting agency must remove the account from your report.
This isn't about shirking a legitimate debt. This is about making sure the information on your credit report is accurate and your legal rights are protected. If the collection account is inaccurate, unverifiable, or fraudulent, it doesn't belong on your credit report.
Need Help?
If you're not sure how to navigate this process or if you're facing harassment from National Enterprise Systems, you don't have to go it alone. FightCollections.com helps consumers dispute collection accounts and enforce their rights under the FDCPA and FCRA.
Our team has extensive experience with debt collectors like National Enterprise Systems, including its history of regulatory actions and hundreds of complaints against it. We know what to ask for, what documentation to demand, and how to hold debt collectors accountable when they fail to meet their obligations under the law.
If you're ready to stop playing defense and start putting the debt collector on trial, contact FightCollections.com today for a free consultation. It's time to put the burden of proof where it belongs and reclaim your credit.
