Getting a message from Capital Management Services saying you owe them money can leave you feeling emotionally charged. But to make the best decisions, it’s important to stay cool and deal with the facts as they stand.
Fortunately, there are some facts that work in your favor thanks to federal law. With a little action on your part, you can halt communications from Capital Management Services or even dispute the debt entirely if you’re lucky.
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What is Capital Management Services?
Capital Management Services, LP is a debt collection agency that was founded in 2000 in Buffalo, NY. 1 They provide both first-party and third-party debt collection services for financial companies.
All of the following alternative names also refer to Capital Management Services:
- Capital Management Services of America, LP
- Capital Management Services LP of DE
- Capital Receivables Management Services, LP
- CMS, LP
Who does Capital Management Services collect for?
Capital Management Services, Inc. primarily collects debts on behalf of companies in the finance industry. Their clients include credit card issuers, banks, and lending service providers of all sizes.
Specifically, Capital Management Services collects the following types of debt: 2
- Credit card debt
- Mortgages
- Home equity lines of credit
- Auto loans
- Medical debt
Is Capital Management Services a scam?
No, Capital Management Services, LP isn’t a scam. They’re a legitimate debt collection agency and a member of ACA International. 3
However, while Capital Management Services, LP is a legitimate company, they may still behave unethically. For example, the company has faced litigation for violating consumer rights by trying to collect old debts that no longer legally need to be paid. 4
What’s more, scammers may impersonate Capital Management Services, Inc. representatives to try to collect money from you. For this reason, it’s important to verify the validity of any debts you’re contacted about before you make a payment, which you can do by contacting Capital Management Services using the contact information below.
VIDEO: Capital Management Services in 2 Minutes—Fix Your Credit Report & Know Your Rights
How to stop Capital Management Services from calling you
Capital Management Services will call, email, or mail you if they believe you have an unsettled debt. The reason debt collectors like these are calling you is simple—they want to pressure you into paying up.
Unfortunately, Capital Management Services representatives will keep trying to contact you unless you pay the debt, prove that it doesn’t belong to you, or reach an agreement with them (or with your original creditor).
Don’t ignore debt collectors like Capital Management Services—in the end, you may get sued, and you may even have your wages garnished. It’s smarter to engage with them tactically to ensure you don’t have to pay, or that you get the best deal you can.
To begin, you can get Capital Management Services to stop calling you—at least temporarily—by sending them something called a debt verification letter.
Send a debt verification letter
A debt verification letter is a formal request that obligates a debt collector to provide further evidence of a debt. You must send it within 30 days of them first contacting you. Note that Capital Management Services should have sent you a debt validation letter proving you owe the debt first, as it’s required by law.
Benefits of sending a debt verification letter
Sending a debt verification letter has three benefits:
- You’ll prevent Capital Management Services from calling you during this period: When you send a debt verification letter, third-party debt collection agencies like Capital Management Services are required by law to stop contacting you until they can provide evidence that you actually owe the debt they’re trying to collect. 5
- You’ll get more information about the debt: You should never pay a debt that you don’t recognize. Forcing Capital Management Services to provide documentation will help you determine whether this is a legitimate debt that you actually need to pay. It’s an easy way of figuring out if the debt collector is a scam agency.
- You may successfully disown the debt: If Capital Management Services can’t provide more information about the debt (which is frequently the case), then they have no choice but to delete it from your records.
Beware the statute of limitations
The verification materials that you receive may show that your debt has passed the statute of limitations. This is a legal limit that means the debt is too old for Capital Management Services to sue you over, at which point it’s known as time-barred debt.
If this is the case, you can send Capital Management Services a letter telling them to stop contacting you. Legally, they’ll have to abide by that.
The statute of limitations on most debts is between 3 and 6 years, but the exact amount of time depends on several factors, including the state you live in. The best approach is to check your state attorney general’s website and email their office if the information you’re looking for isn’t available online.
How to remove Capital Management Services from your credit report
If your credit score is suffering as a result of Capital Management Services debt, there are three ways to recover:
1. Dispute the debt with all three credit bureaus
If you think that the debt associated with Capital Management Services on your credit report is illegitimate (e.g., if you paid it on time or it belongs to somebody else), dispute the item on your credit report. You can also dispute debts that are older than 7 years (measured from the date of your first missed payment)—by law, they’re supposed to fall off your credit report by then.
To dispute a debt for free, send a credit dispute letter to the credit bureaus that are showing Capital Management Services on your credit report.
To find out which credit bureaus you need to send the letter to, request your free credit report from each of the major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com. If they don’t respond to your dispute within 30–45 days, then they’re legally obligated to remove the item in question.
2. Negotiate with Capital Management Services
Unfortunately, if the debt is legitimate and it’s less than 7 years old, removing Capital Management Services from your credit report will be very difficult (although not impossible).
Your best move at this point is to simply pay the debt. Newer credit scoring models ignore paid-off collection accounts, which means paying off your collection will boost your credit score even if you can’t remove the item.
However, when you pay, there are two negotiation strategies you can try as a last-ditch attempt to remove Capital Management Services from your credit report:
- Pay for delete: You might be able to convince Capital Management Services to remove the negative mark in exchange for paying off the debt. You can open these negotiations by sending them a pay-for-delete letter.
- Goodwill deletion: This is an alternate strategy you can try after paying your debt. Once the account is paid off, you can send Capital Management Services a goodwill letter asking them to empathize with your situation and remove the mark from your credit report as an act of kindness. Create your letter using our free goodwill letter template.
3. Wait 7 years for Capital Management Services to fall off of your credit report
Unfortunately, most collection accounts will stay on your credit report for 7 years after your first missed payment. Even if you pay off your debt to Capital Management Services, it will remain on your credit report.
Learn more about Capital Management Services’s impact on your credit score:
- How many points will my credit score increase after I pay off collections?
- How to rebuild your credit after having a debt sent to collections
How to deal with Capital Management Services harassment
Unless you tell them not to, Capital Management Services will keep contacting you until you pay off or settle your debt. However, there are restrictions on how they can go about doing this.
Restrictions on Capital Management Services
When attempting to collect payments from you, Capital Management Services must adhere to the regulations specified in the Fair Debt Collection Practices Act. This is a federal law that prevents debt collectors from engaging in harassment or predatory behavior, such as lying to you or calling you incessantly or at unreasonable hours.
Capital Management Services representatives also need to follow the rules set out in the Telephone Consumer Protection Act. It’s a good idea to familiarize yourself with these laws so that you can take action against Capital Management Services if they do something illegal.
Can I sue Capital Management Services for harassment?
Yes, you can sue Capital Management Services for harassment. If you can show that they’ve violated your rights under the Fair Debt Collection Practices Act, then you can collect $1,000 in statutory damages for each violation as well as payment for any damages that you’ve sustained as a result of their violation. Capital Management Services will also have to pay your attorney fees and court costs.
How to file a complaint against Capital Management Services
If a debt collector violates your rights under the Fair Debt Collection Practices Act or does something illegal, then you can report them to the Federal Trade Commission, the Consumer Financial Protection Bureau, or your state attorney general. From there, you’ll be able to find out whether you can also sue Capital Management Services.
Another option is filing a complaint on the Better Business Bureau (BBB) website, but this might not have the outcome you’re hoping for. Bear in mind that the BBB is actually a private organization that has no affiliation with the US government. They’ll forward your complaint to Capital Management Services, but there’s no guarantee that the agency will address it in a satisfactory manner. What’s more, if your dispute is sent to an arbitrator, then you may give up your right to take Capital Management Services to court.
Should you pay Capital Management Services?
You should only pay a collection agency like Capital Management Services if you’re certain the debt is yours and you owe it. If you’re struggling financially and can’t afford to pay this debt collector, you can get help from a non-profit credit counselor.
