Jefferson Capital Systems On Your Credit Report?

If you’ve come across the name Jefferson Capital Systems on your credit report, this article is for you. It’s always alarming when a debt collection agency appears on your credit score. 

Identifying valid debts vs invalid ones, and knowing how to deal with debt collection agencies, is vital to maintaining a good credit score. 

Debt collection agencies such as Jefferson Capital Systems can be aggressive, intimidating, and sometimes ruthless in their collection efforts. If you are receiving unwanted communications from them, or think their collection efforts are misplaced, you may be able to cease them entirely. 

Who is Jefferson Capital Systems? 

It's important to recognize that Jefferson Capital Systems is a legitimate debt collection agency. The bulk of their business stems from purchasing charged-off debt from original lenders. Therefore, even if you do not recognize their name, the debt they are trying to collect may be yours. 

Jefferson Capital Systems, which also reports debt on credit reports under the name JCAP, is based in St Cloud, Minnesota, and was established in 2002. Their induction began when they purchased $2 billion in charged-off credit card accounts for pennies on the dollar. Although they are headquartered in Minnesota, you may receive calls from JCAP phone numbers ranging in area codes from various states and regions. 

This debt collection agency is often referred to as a “junk debt buyer.” This means they purchase tens of millions, or hundreds of millions, of charged-off debt for an incredibly low cost. Collection agencies like this then utilize all their resources and time to pursue making their money back on these purchases. They do so sometimes to the point of harassing debtors. 

Despite acquiring the charged-off debts for such a low price, they will stop at nothing to try and collect as much as they can. This is how junk debt buyers and companies such as JCAP turn a profit on their purchases. 

What Debts Do Jefferson Capital Systems Collect? 

Jefferson Capital Systems engages in debt collection for a vast variety of lending sectors. Their own website lists the following clientele: 

• Auto Finance 
• Credit card 
• Telecommunications
• Retail finance
• FinTech Installment Loans
• Utilities
• Healthcare
• PowerSports Finance (ATVs, snowmobiles, off-highway vehicles, and watercraft)
• Demand Deposit Accounts & Lines of Credit 

The majority of these debts are ones that Jefferson Capital Systems has purchased, making them the new creditor to be paid by the debtor. JCAP boasts on their website an extensive portfolio of companies that have sold debts to them. And, keep in mind that the companies listed above may not be a complete list of their clients. 

They nudge companies with charged-off debt accounts on SELLING NOW. They also insist that the sooner they can begin their collection efforts, the better their odds of getting payments. 

The Ins and Outs of How Jefferson Capital Systems Operates 

Unfortunately, reports on Jefferson Capital Systems to the Better Business Bureau (BBB) indicate aggressive and harassing collection tactics. This is all too common these days when it comes to debt collection agencies. 

Many consumers have reported their communications as rude, unhelpful, threatening, and harassing. Furthermore, they have numerous complaints about an automated answering system that hangs up on callers and never connects to a live person. There are also reports that they fail to send out required collection letters or responses to inquiries. 

Fortunately for those receiving calls from JCAP, these abusive practices may be a benefit to consumers in their crosshairs. Their oversight of consumer rights and disregard for collection laws they are bound to may invalidate many of the debts they are working to collect.

If you are receiving calls, emails, texts, or letters from Jefferson Capital Systems, you should reach out to a credit repair agency immediately. It is highly likely that their collection tactics have already violated your rights. 

It’s also likely they have failed to provide the documentation required by law proving the debt as valid. A reputable credit repair company can review your case and advise you on whether the debt is collectible and valid in the first place. 

Removing Jefferson Capital Systems From My Credit 

The best way to remove Jefferson Capital Systems from your credit report is to seek professional help from a credit repair company. There is a sequence of steps that can be taken to first validate the debt, check for consumer rights violations, and negotiate the debt down. 

Make Them Validate Your Debt 

The first thing you should request from Jefferson Capital Systems is debt verification or validation. As discussed above, the majority of the debts they are attempting to collect have been purchased from other lenders. Some of these debts have been bought and sold many times. 

Every time a debt is transferred from one debt collector to another, there is a risk of misplacing a portion of your file. If the debt can’t be verified to your legal name, mailing address, aliases, and contact information, it can't be verified as yours. 

However, there are strict timelines in which you must request a debt collector validate your debt. It is always recommended you utilize a credit repair company to aid you in this process. They are well-trained and well-versed in the timelines, language needed for a validation request, and have better odds of getting your debt proven as invalid. 

Have Your Rights Been Validated? 

The next step to take when communicating with a company like Jefferson Capital Systems is to see if your consumer rights have been violated. If they have broken any state or federal laws in their collection practices, you may be entitled to legal recourse. 

Some of the most common violations JCAP has engaged in are as follows: 

• Harassing or threatening language
• Unreachable customer service and helplines for concerned debtors. 
• Reporting resolved debts as unresolved on credit reports. 
• Seeking payments for debts owed from the wrong person. 
• Making incessant calls, emails, or texts to the point of active harassment. 

If you think your rights have been violated by JCAP, reach out to a credit repair company today. They will review your case and let you know whether you have experienced anything worthy of legal recourse against this debt collection agency. 

To Negotiate or Not to Negotiate

When faced with a company like Jefferson Capital Systems, many people wonder if it’s worth it to pay them back. This may get them off your back, but it might not be the most viable route to take. Paying off a past-due debt can sometimes hurt your credit more than it can help it. 

There is a statute of limitations on how long debts can be reported on your credit report. After seven years, whether the report is paid or not, it can no longer be reported on your credit. But, once you acknowledge the debt as valid and yours, this clock starts over. Making a payment, whether in full or partially, acknowledges the debt as yours and valid. 

If you are unsure if you should make a payment on a collection with JCAP, seek the advice of a reputable credit repair company. They can advise you on the best course of action. And, they can determine if starting a payment plan with this collection will increase the chances of restoring your credit. 

The Best Way To Beat Jefferson Capital Systems 

The best way to beat Jefferson Capital Systems is to ensure you don’t take them on alone. Their portfolio of purchased debts is vast and their collection efforts are aggressive and ongoing. Do your research, seek sound advice, and get a free case review from Credit Glory before you give them any of your hard-earned money.