If you see a collection from RGS Financial on your credit report, it may be as unwelcome as a roof leak on a rainy day.
But before you contact them or write a check, you need to know exactly what you are dealing with and what documentation they are required to have.
The collection industry lives on information asymmetry. The collection agency knows the rules and they are counting on you not knowing them. They buy debt from an original creditor who has charged it off and taken the tax deduction.
RGS Financial likely paid a few pennies on the dollar for your debt and may or may not have all the documentation for it. According to a study by U.S. PIRGs, 79% of credit reports have errors or other serious issues. Credit reporting agencies are not checking the information for accuracy when adding a collection account to your credit report.
Your best and first move is to demand verification of the debt.
Who is RGS Financial?
RGS Financial is a debt collection agency that has been in business since 2005. It is located in Texas and may be collecting on behalf of several original creditors. Here is the contact information for RGS Financial:
Address: 1700 Jay Ell Drive, Suite 200 Richardson, TX 75081
Mailing Address: P.O. Box 852039 Richardson, TX 75085
Phone: (469) 791-4700
Toll-Free: (866) 941-8600
Email: info@rgsfinancial.com
Years in Business: 20 years (founded April 2005)
Parent Company: Williams & Fudge, Inc. (acquired July 2023)
This information is provided so you can send a written request to validate your debt. Do not call them to try to make a deal or settle a debt over the phone.
A History of Questionable Conduct
The history of RGS Financial is less than encouraging. They have been a party to over 115 federal court cases. These cases accused them of violating consumers’ rights and using illegal communication practices.
In the past 10 years, the Consumer Financial Protection Bureau’s (CFPB) complaint database has logged over 200 complaints against RGS Financial. The majority of those complaints were about attempts to collect a debt the consumer did not owe. The second largest category was for failure to validate a debt. This history suggests RGS Financial may have a problem with documentation.
As one consumer reported to the Better Business Bureau (BBB), “This business has been spoofing NY numbers now calling me three times today alone… They don’t leave voicemails, just call non stop.” This type of behavior is why requesting debt validation is so effective.
When a collection agency is trying to bully you into paying, they probably do not have the paperwork to back it up.
What is the Problem with the Paperwork?
What the Collection Agency Has to Show You
When you request debt validation, the collection agency must show you that the debt is valid, that you owe the amount they claim, and that they have the right to collect it.
For debt buyers, the paperwork trail may be the Achilles heel. When the original creditor sells a charged-off debt, the documentation may or may not come with it. Maybe they have the account statements. Maybe they still have the signed agreement. Maybe they have the documentation showing the debt’s ownership was properly transferred.
For each of these missing links in the chain, the collection agency’s case gets a little weaker.
As one consumer complained to the CFPB, “RGS Financial started randomly reporting a debt on my reports. I wrote the company asking for validation of the debt to include they have the right to collect it and what the debt is for and that it is mine. I got no response.” This is not an isolated incident.
30-Day Validation Period
Under the Fair Debt Collection Practices Act (FDCPA), you have a 30-day window to request debt validation when you get the written notification of a debt. During that time, the collection agency cannot collect on the debt until they provide the proper validation. Many times, the collection agency does not have the paperwork to respond to your request.
Requesting debt validation is not just playing defense. It is an offense move that forces the collection agency to prove its case before you do anything. If you properly request debt validation, you will find that collection agencies frequently cannot document debts.
Margins are thin in the debt buying business. Collectors cannot afford the time and money it takes to dig up the documentation for every consumer who challenges them.
They probably paid pennies on the dollar for your debt. If you challenge it, the cost of providing proper documentation may outweigh the benefit of getting a payment from you. That is why requesting proper debt validation frequently ends in the account being closed or getting the account removed from your credit report.
Paying Without Validation is a Mistake
The Paid Collection Trap
Many consumers assume if they pay a collection account, it will be removed from their credit report. This is not true and can leave you holding the bag. If you pay a collection account, its status will be updated to paid, but the account will still stay on your report for seven years. You did not gain anything by paying it off.
If you make a payment on a debt, you may be restarting a clock. Some debts may be past the statute of limitations for the collection agency to sue you in your state. If you make a payment, you may be acknowledging the debt and restarting that clock.
Consumers have complained about RGS Financial’s payment processing. As one consumer logged at the BBB, “What type of company makes something as simple as crediting me for money I paid towards a balance. Yet make it so complicated… I demand a resolution and receipt of my payment and written agreement of the settlement.”
If consumers have issues with payments, it is even worse when they paid for an account they should have disputed.
Why You Should Verify Instead of Pay
If you do not want to pay an unverified debt, you should dispute the accuracy of the information. A collection account can be removed from your credit report if the information is inaccurate, erroneous, fraudulent, or if it cannot be verified in a timely manner. This is not a technicality. It is a consumer protection.
Credit reporting agencies must investigate disputes and remove information they cannot verify. If 79% of credit reports have errors, credit reporting agencies are not checking for accuracy when the information is added to your credit report. This means the disputed information may not verify because the documentation was never gathered in the first place.
In Tataru v. RGS Financial, a class-action suit against RGS Financial achieved class certification for Illinois consumers who received a collection letter that contained allegedly misleading statements about IRS reporting requirements. This shows that collection practices can be successfully disputed by individual consumers.
Make RGS Financial validate your debt before you pay it. It is your best chance of getting the correct information and possibly removing the account from your credit report.
The Paper Trail Game
Here’s What You Should Gather Before Filing a Dispute
Prior to filing a dispute, you will want to start your paper trail. Start by getting copies of your credit reports from all three of the major credit reporting agencies: Equifax, Experian, and TransUnion. You should make sure to note exactly what RGS Financial is reporting, the account number, the amount claimed, the date of first delinquency, and any other information reported.
You will also want to save all communications from RGS Financial. This should include dates and times of phone calls, the contents of calls, copies of letters, etc. The purpose of this paper trail is twofold. First, you will want to use it to determine if the information being reported by RGS Financial is accurate. Second, you will want to use it to determine if the agency has violated any of your rights under the FDCPA.
If you do not believe the debt is yours, you should gather any information you have to support this claim. This may include identity theft reports, proof you never had an account with the original creditor, proof the debt was paid, etc.
Information to Be Included in a Validation
What should be included in the validation you receive from RGS Financial? First, the agency should provide you with the original creditor’s name, if different than the collector. Next, it should include the amount of money owed. This should be broken down into principal balance, interest, and fees. Finally, it should show the chain of ownership to prove ownership.
You should not accept a generic letter stating you owe money. Instead, you should insist the collector provide you with documentation connecting you to the debt. In reviewing the CFPB complaints against RGS Financial, it appears that many consumers received generic responses that did not meet these requirements.
Any discrepancies between what RGS Financial is reporting and what they are able to validate should be grounds for a dispute. If RGS Financial is claiming you owe a different amount than what is being reported on your credit report, this is a discrepancy. If the collector cannot provide a copy of your signed agreement, this is a discrepancy. These are your ammunition.
The Value of a Professional
Why Consumers Rarely Succeed in DIY Disputes
Consumers who attempt to handle their own disputes with a debt collector are at a disadvantage. Debt collection agencies like RGS Financial deal with thousands of accounts and know how to respond to most common dispute tactics. They are also well-versed on the technicalities of credit reporting law and can provide responses that technically meet the minimum requirements but do not necessarily resolve the consumer’s issue.
There is a significant information imbalance that tilts heavily in favor of the debt collector. They have access to the account history, access to legal counsel, and established relationships with the credit reporting agencies. Most consumers do not know what information to request, what constitutes an inadequate response, or when a debt collector has crossed the line.
In reviewing the BBB complaints filed against RGS Financial, it appears only two of the 19 complaints filed in the last three years were successfully resolved as defined by the consumer. This would indicate that few consumers who deal directly with the company are successful.
The Systematic Approach Why It Works
Fortunately, credit repair professionals have systematic approaches to dealing with debt collectors. Rather than playing a game of wits with the debt collector, reacting to their tactics on a case-by-case basis, the credit repair professional relies on a systematic approach that has been tested and proven on thousands of accounts. They know what information to request, what constitutes an inadequate response, and when the debt collector has violated the consumer’s legal rights.
Furthermore, when RGS Financial realizes the consumer has retained the services of a credit repair professional, they recognize the consumer is not making idle threats. They know the consumer has access to the expertise and resources necessary to pursue their legal options all the way to the end.
The purpose of retaining a credit repair professional is not to avoid debts that are rightfully yours. Instead, it is to make sure the information on your credit report is accurate, verifiable, and documented properly. If the debt collector is unable or unwilling to meet these minimum standards, they should not be permitted to adversely affect your credit. Only a professional has the resources to ensure your legal rights are fully protected.
Conclusion
You do not have to accept that RGS Financial has the right to place an account on your credit report. The fact that the company has been sued in more than 115 federal cases and been the subject of more than 200 CFPB complaints would indicate that their business practices frequently fail to meet consumer protection standards. Their documentation may be incomplete or inaccurate. Their validation responses may be generic or inadequate. They may not have the legal right to collect the debt.
The paper trail game is to your advantage if you understand your rights and how to use them. Ignoring a debt collector’s calls and letters is not cowardice; it is a strategy. Demanding documentation before you make a payment is not stalling; it is common sense. Disputing information on your credit report that has not been verified is not dishonest; it is your right.
Do not be pressured by a sense of urgency created by a debt collector into making decisions that benefit them instead of you. The debt collection industry makes its money by using fear and confusion to their advantage. Your strongest defense is an informed, documented, and professional response.
What to Do Next?
If you have an account on your credit report from RGS Financial, you have the right to make sure the information is accurate and verified. At FightCollections.com, we specialize in challenging collection accounts through documentation and the dispute process. We understand what the collector must prove and how to identify when they fail to meet those minimum standards.
Contact us at FightCollections.com to discuss your account and determine the best course of action. Let us evaluate your situation and provide you with the guidance you need to protect your legal rights.
The first step toward a cleaner credit report is recognizing that you have more rights than the debt collector wants you to know. You deserve to have an accurate report. You deserve to have a verified report. If RGS Financial cannot provide the documentation to prove their account, the information should not be on your report. Let us help you find out.
