• Skip to primary navigation
  • Skip to main content
  • Skip to footer

FinanceJar

FinanceJar

Take the next step on your journey

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Credit Cards
    • Credit Card Reviews
    • Best Credit Cards for Bad Credit
    • Fair Credit
    • No Credit
    • Building Credit
    • Secured
    • Unsecured
    • 0% Interest
    • No Annual Fee
    • Guaranteed Approval
    • No Credit Check
    • No Foreign Transaction Fee
    • Gas
    • Students
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us
  • 24/7 Support:

    323-649-8707

Home Debt Debt Collection Collection Agencies NCO Financial Systems

NCO Financial: What It Is and What It Means for Your Credit

Credit report showing Alorica/NCO Financial collection account

At a glance

  • NCO Financial Systems is a debt collection agency that’s now owned by Alorica.
  • Find out what the company does (and what they’re not allowed to do), what your rights are, and how to get NCO Financial off your credit report.
  • NCO Financial is likely hurting your credit score.

Get expert help. Call now to remove NCO Financial Systems from your credit report.

Call (855) 764-0034 Tap to Call

Specialists available Monday to Friday, 10AM - 8PM EST.

Written by FinanceJar Team

Reviewed by Victoria Scanlon

Apr 12, 2022

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

Table of Contents

  1. What is NCO Financial?
  2. Who does NCO Financial collect for?
  3. Is NCO Financial a scam?
  4. How to stop NCO Financial Systems from calling you
  5. How to remove NCO Financial Systems from your credit report
  6. How to deal with NCO Financial Systems harassment
  7. Should you pay NCO Financial Systems?

What is NCO Financial?

NCO Financial Systems is a debt collection agency that was founded in 1926. They’ve changed ownership multiple times in the past few years. 1

Most recently, a large company called Alorica purchased NCO Financial’s holding company, Expert Global Solutions, in 2016. 2

All of the following names may be associated with NCO Financial:

  • NCO Collection Agency
  • NCO Financial Systems
  • NCO Financial Services
  • NCO Credit
  • NCO Group
  • NCO Portfolio Management
  • EGS Financial Care, Inc
  • EGS
  • EGS FC

NCO Financial Systems might appear under any of those names on consumer credit reports.

What is Alorica and how is it different from NCO Financial Systems?

Established in 1999, Alorica is a business process outsourcing company based in Irvine, California. 3 In addition to customer service outsourcing, they provide various debt collection services. 4

Even though Expert Global Solutions was bought by Alorica, they’re still a licensed debt collection agency under the name EGS Financial Care, Inc. 5

What’s more, Alorica states in a disclosure on their website that many of their subsidiaries operate under the brand Alorica but remain separate legal entities. This could mean that you’ll still see NCO Financial Systems on your credit report or in correspondences addressed to you, even though they don’t operate as an independent company.

Who does NCO Financial collect for?

NCO Financial used to be a prominent collector of student loan debt, and they held a contract with the US Department of Education to collect federal student loan debt between 2005 and 2010. 6 Before they were acquired by Alorica, NCO Financial also collected medical, credit card, and student loan debt. 7 8 9

Currently, Alorica serves companies in a wide array of industries, including financial technology, ecommerce, and subscription services. 10

Is NCO Financial a scam?

If someone contacts you claiming to be a representative of NCO Financial Systems, it’s probably not a scam. It’s not entirely clear whether the agency (now a subsidiary of Alorica) still collects debt under their original name, but several signs suggest that they do.

For instance, NCO Group subsidiaries have several pages on the Better Business Bureau (BBB) and Dun & Bradstreet (D&B) websites, and they’re still included in online state government systems. 11 12 13

NCO Group, Inc. even opened a new D&B file in 2017 after they were acquired by Alorica and listed the same address they were registered under for debt collection activities in the past. 14 15

However, scammers do sometimes pose as representatives of legitimate debt collection agencies, and the murky status of NCO Financial and Alorica means you should exercise extra caution when dealing with them, even though they’re legitimate organizations.

Always be sure to verify any debts you’re contacted about before you pay them, and never give out personal details (like your credit card information or Social Security number) over the phone.

NCO Financial lawsuits

Even though NCO Financial Systems wasn’t a scam, they faced quite a bit of high-profile litigation before they became part of Alorica.

For example, the Federal Trade Commission filed two lawsuits against NCO Financial’s parent company NCO Group for violating consumer rights—NCO Financial settled the largest of these lawsuits for $3.2 million in 2013. 16 17

Most recently, NCO Financial faced a consent order from the state of Arizona alleging violations of federal and state laws. 18

This history of litigation provides another reason to be cautious if someone contacts you under the NCO Financial Systems name.

NCO Financial Contact Information

If you want to remove NCO Financial, now known as Alorica, from your credit report, write to their address:

NCO Financial, Alorica Logo

Address: 5161 California Ave
Irvine, CA 92617, USA
Phone Number: (866) 256-7422
Website: www.alorica.com

Disputing an incorrect entry on your credit report can be stressful and difficult. Consider working with a professional.

VIDEO: NCO Financial Systems in 2 Minutes—Fix Your Credit Report & Know Your Rights

How to stop NCO Financial Systems from calling you

NCO Financial Systems 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, NCO Financial Systems 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 NCO Financial Systems—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 NCO Financial Systems 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 NCO Financial Systems should have sent you a debt validation letter proving you owe the debt first, as it’s required by law.

Debt Verification Letter Template

Debt Verification Letter

Use this debt verification letter template if NCO Financial Systems has contacted you about a debt and you want to dispute it. If you send this within 30 days, they're legally obligated to respond with evidence of the debt and can't contact you until they do.

Build My Letter Now PDF Word

Benefits of sending a debt verification letter

Sending a debt verification letter has three benefits:

  1. You’ll prevent NCO Financial Systems from calling you during this period: When you send a debt verification letter, third-party debt collection agencies like NCO Financial Systems are required by law to stop contacting you until they can provide evidence that you actually owe the debt they’re trying to collect. 19
  2. You’ll get more information about the debt: You should never pay a debt that you don’t recognize. Forcing NCO Financial Systems 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.
  3. You may successfully disown the debt: If NCO Financial Systems 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 NCO Financial Systems to sue you over, at which point it’s known as time-barred debt.

If this is the case, you can send NCO Financial Systems 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 NCO Financial Systems from your credit report

If your credit score is suffering as a result of NCO Financial Systems debt, there are three ways to recover:

1. Dispute the debt with all three credit bureaus

If you think that the debt associated with NCO Financial Systems 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 NCO Financial Systems on your credit report.

Credit dispute letter to credit bureau

Credit Dispute Letter

If NCO Financial Systems is on your credit report by mistake, the credit bureaus have to remove it from your report. Use this credit dispute letter template to file a dispute about NCO Financial Systems directly with any of the credit bureaus.

Build My Letter Now PDF Word

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 NCO Financial Systems

Unfortunately, if the debt is legitimate and it’s less than 7 years old, removing NCO Financial Systems 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 NCO Financial Systems from your credit report:

  • Pay for delete: You might be able to convince NCO Financial Systems 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 NCO Financial Systems 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.

If you can’t afford to pay off your debt, try negotiating a debt settlement

If your debt is fairly old, then there’s a chance that NCO Financial Systems will accept less than the full amount you owe (a practice known as debt settlement) to minimize their losses. You can negotiate a debt settlement with NCO Financial Systems over the phone or by sending a debt settlement letter.

3. Wait 7 years for NCO Financial Systems 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 NCO Financial Systems, it will remain on your credit report.

Learn more about NCO Financial Systems’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 NCO Financial Systems harassment

Unless you tell them not to, NCO Financial Systems 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 NCO Financial Systems

When attempting to collect payments from you, NCO Financial Systems 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.

NCO Financial Systems 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 NCO Financial Systems if they do something illegal.

Keep records of letters and phone calls

If you think that NCO Financial Systems may be violating your rights, then it’s a good idea to record your phone calls, save any letters they send you, and keep records of when they’ve contacted you. This will make things much easier if you need to take legal action against them in the future.

Can I sue NCO Financial Systems for harassment?

Yes, you can sue NCO Financial Systems 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. NCO Financial Systems will also have to pay your attorney fees and court costs.

How to file a complaint against NCO Financial Systems

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 NCO Financial Systems.

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 NCO Financial Systems, 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 NCO Financial Systems to court.

Should you pay NCO Financial Systems?

You should only pay a collection agency like NCO Financial Systems 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.

Takeaway: NCO Financial Systems is a legitimate debt collection agency

  • NCO Financial Systems is a debt collection agency, which means they collect severely delinquent debts that lenders have charged off and transferred or sold.
  • NCO Financial Systems probably isn’t a scam, but you should make sure to avoid scammers by verifying your debts and only making payments once you're sure they're legitimate.
  • You have rights under the Fair Debt Collection Practices Act that prohibit debt collectors from harassing you. You can sue for harassment, and you won’t need to pay the legal fees if you win.
  • There are several ways of removing NCO Financial Systems debt from your credit report, but if these approaches fail, then you should consider seeking advice from a credit repair professional.

Other Collection Agencies

  • NCB Management Services
  • NPAS Solutions
  • National Recovery Agency
  • Nationwide Credit, Inc.
  • Nationwide Recovery Service
  • Nationwide Recovery Systems
  • North Shore Agency
  • Northland Group
  • One Advantage
  • Online In Sv

Article Sources

  1. United States Securities and Exchange Commission. "Expert Global Solutions, Inc." Retrieved April 12, 2022.
  2. Alorica. "Alorica Completes Acquisition of Expert Global Solutions, Solidifying Company as the Clear Leader in the U.S. Market" Retrieved April 12, 2022.
  3. Better Business Bureau. "Alorica" Retrieved April 12, 2022.
  4. Alorica. "Financial Solutions Fact Sheet" Retrieved April 12, 2022.
  5. OpenGovUS. "EGS Financial Care, Inc" Retrieved April 12, 2022.
  6. USASpending.gov. "Department of Education (ED) Contract Summary" Retrieved April 12, 2022.
  7. U.S. Government Publishing Office. "Vanover v. NCO Financial Services, Inc." Retrieved April 12, 2022.
  8. Casetext. "Allen v. NCO Financial Systems Inc" Retrieved April 12, 2022.
  9. USASpending.gov. "NCO Financial Systems Inc" Retrieved April 12, 2022.
  10. Alorica. "Industries" Retrieved April 12, 2022.
  11. Better Business Bureau. "NCO Group Search Results" Retrieved April 12, 2022.
  12. Dun & Bradstreet. "NCO Group Search Results" Retrieved April 12, 2022.
  13. Oregon Department of Administrative Services. "Garnishment/Attachment Deduction Codes" Retrieved April 12, 2022.
  14. Dun & Bradstreet. "NCO Group, Inc." Retrieved April 12, 2022.
  15. OpenGovUS. "NCO Financial Systems, Inc." Retrieved April 12, 2022.
  16. Federal Trade Commission. "NCO Group to Pay Largest FCRA Civil Penalty to Date" Retrieved April 12, 2022.
  17. Federal Trade Commission. "World's Largest Debt Collection Operation Settles FTC Charges, Will Pay $3.2 Million Penalty" Retrieved April 12, 2022.
  18. Arizona Department of Financial Institutions. "NCO Financial Systems, Inc. Consent Order" Retrieved April 12, 2022.
  19. Federal Trade Commission . "Fair Debt Collection Practices Act" Retrieved December 1, 2021.

FinanceJar Team

Staff Writers & Editors

View Author

The FinanceJar Team is a group of financial experts, writers, and industry professionals who collaborate to bring you fresh and simple insights into your finances. They're dedicated to guiding you toward the right path on your financial journey.

Related Articles

Credit report showing SYNCB/PPC
Credit Inquiries

Nov 5, 2021

SYNCB/PPC: What Is It and Why Is It on My Credit Report?

SYNCB/PPC stands for Synchrony Bank/PayPal Credit. There are a few...

FinanceJar Team
Polar bear guarding credit report in ice, representing how to freeze your credit
Credit Reports

Sep 22, 2021

How to Freeze Your Credit

A credit freeze prevents prospective lenders and creditors from...

Samuel Osbourne
new credit card envelope does it hurt credit
Credit Scores

Oct 1, 2021

Does Opening a Credit Card Hurt Your Credit?

Opening a new credit card can hurt your credit score slightly in...

FinanceJar Team
Black car being repossessed which has an impact on credit
Credit Repair

Aug 5, 2022

How Long Does a Repo Stay on Your Credit?

A repossession takes 7 years to come off your credit report,...

FinanceJar Team
Gauge representing credit utilization rate
Credit Scores

Oct 6, 2021

Credit Utilization: What It Is and How It Affects Your Credit Score

Your credit utilization is the amount of your revolving credit that...

FinanceJar Team
Man disputing an item on his credit report with the credit bureaus
Credit Repair

Sep 13, 2021

How to Dispute an Item on Your Credit Report

If you suspect you have inaccurate information on your credit...

Victoria Scanlon
FinanceJar

Footer

Credit

  • Credit Scores
  • Credit Repair
  • Credit Reports
  • Credit Cards
  • Debt

Company

  • About Us
  • Contact Us

Legal

  • Terms & Conditions
  • Privacy Policy

Call Us

9AM – 9PM EST: 347-527-4868
24/7 Help Line: 323-649-8707

How We Make Money

We make money from advertising. We place links on our website to our affiliates, and when you click those links, our affiliates compensate us for it. Our relationships with our affiliates may affect which products we feature on our site and where these products appear in our articles.

Facebook Twitter Instagram TikTok YouTube LinkedIn Pinterest

© 2025 – ONR Financial Networks LLC – All Rights Reserved.

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Credit Cards
    • Credit Card Reviews
    • Best Credit Cards for Bad Credit
    • Fair Credit
    • No Credit
    • Building Credit
    • Secured
    • Unsecured
    • 0% Interest
    • No Annual Fee
    • Guaranteed Approval
    • No Credit Check
    • No Foreign Transaction Fee
    • Gas
    • Students
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us
  • 24/7 Support:

    323-649-8707

We hope this template helps you achieve your goals.

Would you please review us?

A review would mean a lot to us — and takes less than 20 seconds. Let us know what you think. Thanks!

Leave My Review

What you’ll get

  • Assess

    Fill in your information and we will securely pull your TransUnion credit report.

  • Address

    We challenge inaccurate negative items with the bureaus and your creditors.

  • Advise

    We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

Don’t want to wait? Call us!

Monday to Friday, 10AM - 7PM EST

FinanceJar

Get a FREE 5-minute credit consultation.

Get a credit improvement plan that works for you with 1 phone call.

What you’ll get

1
Assess

Fill in your information and we will securely pull your TransUnion credit report.

2
Address

We challenge inaccurate negative items with the bureaus and your creditors.

3
Advise

We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

This is completely secure and won’t hurt your credit score.

By clicking "Submit" I agree by electronic signature to: (1) be contacted about credit repair or credit repair marketing by a live agent, artificial or prerecorded voice and SMS text at my residential or cellular number, dialed manually or by autodialer, and by email (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

Don’t want to wait? Call (888) 859-0871 now

FinanceJar

Advertising Disclosure

Some of our articles feature links to our partners, who compensate us when you click them. This may affect the products and services that we showcase in our articles and how we place and order them. It does not affect our evaluations of them, which our writers and editors create independently, without considering our relationships with our partners.

FinanceJar

Editorial Standards

We promise to always deliver the best financial advice that we can. That’s our first priority, and we take it seriously.

To ensure that our articles and reviews are objective and unbiased, our writers and editors operate independently from our advertisers and affiliates. Our writers do not take FinanceJar’s relationship with its affiliates into consideration when writing their reviews and articles.

Everything we publish is as accurate and as complete as we can make it. All of our articles undergo several rounds of fact-checking before we publish them, and we do our best to keep them as no-nonsense and jargon-free as possible while still delivering the information that you need.

We know that taking financial advice from us requires a lot of trust on your part. We’re grateful for that trust, and we won’t abuse it. Learn more about our editorial standards.

FinanceJar

How We Make Money

FinanceJar partners with other companies in the credit and finance industry, such as credit card issuers and credit repair companies.

We make money through advertising. Our pages feature links to our partners’ websites. If you click on one of those links, we get paid.

The links to our partners are always clearly marked. You’ll always be able to tell what you’re clicking. We’ll never try to trick you into clicking anything you’re not genuinely interested in.

That’s the only way that we make money. We don’t accept compensation in exchange for reviews or articles, and we don’t directly sell any products or services ourselves. Our editorial team operates independently (with no influence from our affiliates or our advertising team) so as to avoid compromising the objectivity of our reviews. Learn more about how we make money.