Capital Management Services: How to deal with collection calls

 Capital Management Services is a nationally licensed collection agency. They provide collection services for clients in the financial industry. They have been in business since 1996. They have about 175 employees with headquarters in Buffalo, NY.

Just like dealing with any debt collector, be prepared. Verify that you owe the debt, that the company does not harass you, and that you have the right tools to settle your debt.

What is Capital Management Services:? Are they real or a scam?

Capital Management Services (CMS) is not a scam. It is a real collection agency that provides services to original creditors and third-party debt buyers. They do no purchase debt. CMS collects many types of debts, including bank and retail cards, student loans, mortgages, bank overdrafts, bankruptcy holds and dismissals, judgments, telecom, and commercial recovery.

Capital Management Services collects debts from the early delinquency stage through the out of statute stage.

Capital Management Services L.P. also lists 716-871-9050 as their phone number.

Important notice: The name Capital Management may refer to a different company. CMS notes on their website, "There are more than a few companies that include the words ‘Capital Management” as part of their name. We are Capital Management Services, LP. We are located in Buffalo, NY. We do not use any phone numbers that use area code 855. Please reach out to our Compliance Office at Compliance@cms-collect.com if you have any questions regarding the “Capital Management” contacting you."

Do you owe Capital Management money?

Capital Management represents many original creditors and third-party debt buyers. They do not purchase debt. You may see their name on your credit regarding a credit inquiry.

However, there are various reasons that you may not owe money for a debt that they are trying to collect. For example, the debt may not belong to you, the statute of limitations expired, or you already paid off the debt.

If Capital Management Services contacts you, then take these steps:

Step 1 - Validate your debt.

Validate a debt when CMS contacts you to collect a debt. After the initial contact, you have 30 days to validate the debt, so act quickly. It is recommended to send a registered letter. It is a good idea always to validate the debt. If you don’t receive proper validation, then send a notice of insufficient validations. If the collection agency cannot validate the debt, it has no legal basis to collect it.

>>Learn more: Follow the steps described in the Bills.com debt validation article to preserve your rights under the FDCPA.

Step 2 - Check to see if the Statute of Limitations (SOL) is valid.

State laws set the time that a creditor can sue you and collect on the debt. However, they are complicated and not easy for the layman to understand. Capital Management Services represents both original creditors and third-party debt buyers. In most states, an original creditor can pursue a lawsuit, even if the SOL expires. 

Even if you think that the SOL expired, the creditor may have a different opinion on the expiration date and pursue a lawsuit against you. It is always wise to respond to a lawsuit. In the case of an expired SOL, you must answer any summons and claim an affirmative defense.

In any case, they still have the right to contact and get you to pay or negotiate a settlement. 

>> Learn more: Learn more about states' laws regarding statute of limitations.

Stop Capital Management Services from debt collection harassment.

Debt collectors often are extremely aggressive in their collection tactics. The Fair Debt Collection Practices Act strictly regulates debt collection agencies' activities. 

Here are some of the actions that they are forbidden to do:

• Call at an unreasonable time such as before 8:00 AM or after 9:00 PM
• Use the Telephone to Annoy or Harass
• Seek Unjustifiable Amounts
• Contact a Consumer at Work
• Threaten Arrest
• Use Abusive or Threatening Language
• Contact a relative, friend, or colleague who doesn’t own the debt

If you believe Capital Management Services violated your rights under the FDCPA, consult with a consumer rights attorney in your area. Discuss possibly filing a lawsuit against the collection agency; not only could a lawsuit result in the cancellation of your debt, but you could be awarded damages.

Learn how to negotiate your debt with Capital Management Services

Capital Management Services will contact you, hoping to receive full payment. Their website offers a few options to make payments, including online payments, mail, Western Union, and phone. Thye are interested in closing accounts quickly; however, they claim to

"..provide convenient and flexible payment options that can help consumers achieve a resolution to their outstanding accounts. We listen to account holders and recognize their desire for payment choices that fit their lifestyle.

In some cases, it is wise to take a do-it-yourself approach. However, dealing with a collection agency, especially with aggressive lawyers, is stressful. It takes a significant amount of time and effort. It is helpful if you convince Capital Management Services that you are in hardship. Here are three tips: Be calm, clear, and convincing. Be persistent. Send a debt negotiation letter.

Another approach is to use a professional debt negotiation company. Debt settlement companies rely on databases of past settlements, so their negotiators know what range original creditors and collection agencies have accepted for payments in the past. They can reach a negotiated settlement with your debt collection agency quickly.

Complaints and lawsuits about Capital Management Services

Like most collection agencies, CMS has complaints registered in the BBB and the Consumer Finance Protection Bureau (CFPB). The CFPB has complaints about collecting a debt that the consumer didn’t owe, harassment and impersonating an attorney, law enforcement, or government official. The complaints themselves are not proof of illegal or improper activities, although a good source to learn about how consumers perceive the interactions and problems they have with the debt collection agencies.

Here is a couple of example of complaints:

False statements or representation - Attempted to collect wrong amount "At XXXX EST on Friday, XX/XX/2021, I missed a call on my cell phone from what appeared to be a local number XXXX ( XXXX XXXX XXXX. I called that number back on XX/XX/2021 at XXXX and asked if someone had called me. A woman asked my name I said this is XXXX, did you call me? She said yes, this is Capital Management Services and asked for my last name. I said you called me and Im not familiar with this company why are you calling. She said are you XXXX XXXX I stated that was my name, but its not now, can you tell me why youre calling, I dont think we have ever done business. I felt it was a scam. I XXXX  the name and it appears it may be collections, only I dont have anything that would have gone to collections. She said I cant tell you without your name, birthdate, or last 4 of your social. I said Im not giving you my info over the phone unless you identify what yorur company does. She proceeded to try to get my info. Birthdate and last four of social. I finally gave month and day of birth and she told me there was a discrepancy in the date she had versus what I provided ( stupidly I gave her the correct date ) so she wouldnt be able tell me anything without the last 4 of my social. I said I dont ever give my social to anyone over the phone ... nice try ... and hung up. Any legitimate company would tell you who they are and why they are calling and Im pretty sure collections has to identify themselves. I want to report them for fraud, misrepresentation, illegal, and unethical behavior. I found many consumer reports regarding similar tactics. I also read they try to collect debts that have already been paid or charged off. I dont understand how they can continue to get away with this".

 Communication tactics - Frequent or repeated calls "REPEATED calls at all times of the day, multiple times a day. This company has been told REPEATEDLY that the person they are asking for IS NOT HERE. They have also been told REPEATEDLY that this is a business, and that I am tired of their repeated phone calls. I am tired of their phone calls and I am tired of being ignored when I ask them to stop. They are some kind of XXXX XXXX collection agency and they ignore everything I tell them. Next phone call I receive from these lowlifes, I am blowing my referee whistle into the phone".

Deal with a Capital Management Services lawsuit

Capital Management Services L.P. cannot make empty threats to sue you when making a collection call. However, they do have the right to start a lawsuit and pursue legal remedies such as a wage garnishment or bank levy. 

If CMS files a lawsuit against you, consult with a lawyer in your state with consumer law experience. You must file an answer to their summons and complaint or risk losing the lawsuit by default. Ignoring a summons will not make it go away, so take action to respond to the lawsuit.

Can you remove Capital Management Services from your credit report?

Since they do not own the debt, CMS likely appears on your credit report as a credit inquiry. They do not report to the credit bureaus. However, the original creditor or the third-party debt buyer may appear on your credit report.

Most negative tradelines stay on your credit report for seven years from the delinquency date. Bankruptcies remain for ten years, and judgments can remain for even longer if the creditor renews them.

If the information is inaccurate, then you can have it removed. If you see a debt that you don't recognize or has incorrect information, then file a dispute with the Credit Reporting Agencies and have the negative items removed from your credit report.

>> Learn more: Learn how to dispute a credit report.