CKS Financial: How to Handle a Collection Call

 CKS Financial is a small debt collection agency in the United States. They have been in business since 2009. CKS Financial purchases consumer debt portfolios and offers collection services to merchants, service providers, government entities, and other organizations that extend credit to their customers or members

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 CKS Financial? Are they real or a scam?

CKS Financial is not a scam. It is a real debt collection agency. They are located in Chesapeake, VA, and employ about 35 people. They buy debt from retailers and finance companies, often for pennies on the dollar. CKS Financial also offers collection services for original creditors and third-party debt buyers. 

CKS Financial also uses the name Webcollex, LLC. Although the name does not appear on the website, it might appear in a collection letter sent by CKS Financial. It also seems that CKS Prime Investements LLC is a totally owned subsidiary of Velocity Portfolio Group, Inc.

Do you owe CKS Financial money?

Since CKS Financial also purchases past-due or delinquent debt from various financial and retail companies, it is quite possible that you now owe them the outstanding balance. Otherwise, you might get a letter from them for debts that are owed by an original creditor or a third-party debt buyer.

However, there are various reasons that you may not owe the original creditor or the current owner of the debt money. For example, if you were a victim of identity theft, the debt may not belong to you. It is also possible that you already paid off the debt, they have the wrong information in the file, or the statute of limitations expired.

Step 1 - Validate your debt.

If CKS Financial contacts you to collect a debt - validate it. Once contacted, you have 30 days to validate the debt, so act quickly. The best method is to send a registered letter. Before you proceed with the collection agency, always validate the debt.

The law obligates CKS Financial 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. The rules are complex and not easy to understand. If CKS Financial Solutions is acting as a third-party collection agency, once the SOL expires, it cannot pursue a lawsuit. 

However, 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.

Even if they don't pursue a lawsuit, the debt collection agency has the right to contact and try to get you to pay or negotiate a settlement. 

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

Stop CKS Financial from debt collection harassment.

Debt collectors often are highly aggressive in their collection tactics. Although The Fair Debt Collection Practices Act strictly regulates debt collection agencies.

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

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

If you believe CKS Financial 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 CKS Financial

CKS Financial will contact you, hoping to receive a payment on your debt.  In some cases, they purchased the delinquent debt for pennies on the dollar and they will often settle for much less than your actual balance. If you are suffering a financial hardship, then it might be possible to negotiate a large settlement.

It is possible to do negotiations on your own. However, dealing with an aggressive debt collector,  especially with aggressive lawyers, is stressful. It takes a significant amount of time and effort. It is helpful if you convince them that you are in a hardship. Here are three tips: Be calm, clear, and convincing. Be persistent. Send a debt negotiation letter.

If you have a large debt and financial hardship, consider using a professional debt negotiation company. Reputable debt settlement companies have large teams of negotiators, vast databases, and sophisticated tools. They know what range original creditors and collection agencies have accepted for payments in the past. A professional can reach a negotiated settlement with your debt collection agency quickly.

Complaints and lawsuits about CKS Financial

CKS Financial has complaints registered in the BBB and the Consumer Finance Protection Bureau (CFPB) like most collection agencies.

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 an excellent 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 from the CFPB website:

Communication tactics - You told them to stop contacting you, but they keep trying "I have been receiving calls from a debt collector regarding XXXX XXXX. They have been continuously calling me every single day up to 4 times per day. I have told them I do not know who this person is and I have personally owned this # for 12 years. However, they continue to call. They are a nuisance to my life. I have blocked them from each and every number that they have called me from, but they manage to continuously call me. The most recent number that they have called from is XXXX CKS Financial. ".

False statements or representation - Attempted to collect wrong amount "I was contacted by CKS financial through a letter that they are representing XXXX XXXX a debt collector company. I vehemently disputed the incorrect and inconsistent content of their letter. I have sent a request for debt validation to the company since the original lender will not provide me with any documentation.".

Deal with a CKS Financials lawsuit

Although CKS Financial has the right to pursue a lawsuit in some circumstances, they cannot make empty threats to sue you when making a collection call. Depending on the events, they might start a lawsuit and pursue obtaining a public judgment leading to liens on personal property, wage garnishments, or bank levies. 

If a lawsuit is filed 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 CKS Financial from your credit report?

CKS Financial may appear on your credit report under their name or as Webcollex or Velocity Portfolio Group. 

Most accurate negative tradelines remain 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.

It is possible to remove inaccurate data relating to the original creditor or the debt purchaser. In that case, it is possible to 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.