KLS Financial Services Inc. (KLS) is a third-party collection agency based in North Carolina that specializes in collecting delinquent medical bills. KLS has received consumer complaints alleging violations of the Fair Debt Collection Practices Act (FDCPA), such as failing to provide written verification of debts and threatening to take actions that cannot legally be taken. If KLS has contacted you about delinquent financial obligations, make sure you understand your rights before you take action.
The harassing company pays our fees.
They’re legit. According to the Better Business Bureau (BBB), KLS Financial Services, Inc. was founded and incorporated in 2017. The BBB established a profile page for KLS in 2018, and KLS has been a BBB-accredited business since then. The BBB lists KLS Financial Services as a collection agency.
According to its website, “the driving force behind the operations of KLS…is to create a ‘Win-Win-Win’ scenario in which…clients recover those monies justly and honestly owed to them” and consumers “are provided a means and a solution in which they can afford to repay those honest and just debts.”
KLS Financial Services indicate that they offer services for medical collections, commercial collections, and consumer financial assistance. KLS’s medical collections division addresses the needs of doctors, chiropractors, dentists, physician assistants, and other medical – and healthcare-related service providers who are frustrated when patients they have treated “refuse to pay their bill” and are faced with a “handful of guidelines that medical practices must follow while collecting medical debts.” KLS “helps all medical practices navigate the collections process.” KLS also collects commercial business-to-business accounts. Although “large, commercial companies will naturally have a lot more outstanding debt than smaller companies,” KLS “loves to help small and large companies alike.”
The KLS website does not provide any detailed information about their regulatory compliance polices. On their Services page, under the Consumer Financial Assistance heading, KLS states that they “love to help consumers and … have tons of resources …on their website, including … an entire page dedicated to” consumers. Clicking on the Consumer Financial Assistance link leads to a page with another link entitled, “Planting Seeds,” that is supposed to lead to a page with information about “KLS Tips and Tricks,” “Financial Education,” and “Credit Counseling Services.” Clicking on the Planting Seeds link leads to a blog page with articles about how consumers can learn to be smarter about spending and budgeting. The Frequently Asked Questions page instructs consumers to contact KLS regarding questions about bills. However, there are no links or references to consumer protection resources, laws, or enforcement agencies.
As of March 2020, the BBB has closed 3 complaints against KLS Financial Services, Inc, which cited problems with billing and collections. As of November 2018, the Consumer Financial Protection Bureau (CFPB) has closed 30 complaints regarding KLS. Justia does not list any cases of civil litigation involving KLS.
KLS Financial Services, Inc.
991 Aviation Parkway, Suite 500
Morrisville, NC 27560
Telephone: (833) 447-3557
Website: http://www.klsfinancialservice.com
Who are we? We are Lemberg Law, a Consumer Law Firm
Lemberg Law is a consumer law firm helping victims of collection harassment and abuse. We are ranked A+ by the BBB. We’ve helped more than 15,000 consumers stop harassment and recover money from debt collectors. Harassed? Abused? Misled by a collector? Call our Helpline today! There is no charge unless we win.
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely KLS would sue you for a debt you may not owe or they cannot validate. However, debt collection agencies are known to have summoned debtors to court and garnish wages after a default judgement. Contacting an attorney BEFORE this could possibly happen would be a smart move. We’ve helped thousands of consumers fight back against unscrupulous debt collection harassers. Find out if we can help you too today!
Absolutely. You can sue a debt collector. Here is a Sample Complaint:
Complaints against KLS Financial Services cite problems resulting from disputes about the validity of debts and the accuracy of information reported to credit reporting agencies. In March 2019, a complainant stated that KLS had refused to remove a collection account from his credit report even after he had paid the outstanding balance. He claimed that KLS had said they would remove the delinquency if he paid them an additional sum of money. According to the complainant, KLS had “made additional entries on his credit file instead of removing the balance owed after they had received payment.” He said he had paid the balance to the original creditor in full and that he had not paid a partial amount or agreed to a settlement. He said he had “called and spoken with KLS… several times about removing the delinquency from his credit file,” but KLS allegedly told him that the credit reporting agencies had made the decision to keep it on his credit report. The complainant said he had contacted the credit reporting agencies regarding the dispute, but “after contacting them, …he learned that they remove items from the report as soon as the creditor submits it as paid.” Yet, “even after he had paid the item and the money was taken from his account, KLS still would not remove it.” Instead, KLS allegedly told the complainant “that it would take 60 days for the credit bureau to remove it,” but that if he “paid them an additional $12.99, … they would remove it from his credit report within 5 days.” The complainant said that he regarded KLS’s conduct as extortion. In addition, “after he filed a dispute with the credit bureau, KLS …finally zeroed the balance of the account, but made an additional entry on his report” that indicated he had settled the account. This notation caused another drop in his credit score. He also said that KLS “still has not sent him any type of confirmation stating that the debt has been satisfied, so that he can submit a dispute to the credit bureau.”
In November 2019, a complainant stated that KLS Financial Services had contacted him regarding a debt “that he allegedly owed in the amount of $150.00.” According to the complainant, the KLS agent explained to him that if the debt was paid within an agreed timeframe, KLS would not report the debt to the credit reporting agencies. The complainant agreed to settle the debt for a reduced amount in accordance with terms established by KLS and paid $110.00, which excluded late fees and penalties. However, shortly after paying the agreed settlement, the complainant received an alert that an item had been added to his credit report for a debt in the amount of $150.00. He contacted KLS “immediately upon receiving the alert,” but the only resolution they offered was that “the report had already been sent by the time they had received the payment, and no one had seen it.” The complainant stated that KLS’s action violated the FDCPA’s prohibition against using false or misleading information to collect a debt and misrepresenting the legal status or amount of a debt.
Federal laws protect you. The Fair Debt Collections Practices Act (FDCPA) regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt. The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA).
Yes. If you want to enforce your rights, or recover money for violations — you need to sue. Federal laws provide individuals like you with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
You may have a case, if…
“With your help the nagging collection calls have finally ceased! I was thrilled I was also able to get damages from the collection agency. I am unable to adequately express my joy. I am so thankful I made the call.”
“When I first emailed the office, I was not exactly sure what they could do for me. I had an idea, but they responded back with everything I could expect to take place. I never believed I would be receiving a check, it was definitely a silver lining. I highly recommend them to anyone seeking customer legal services.”
“I just wanted to let you know we received the check from your office on now and I wanted to take some time to inform you that we really appreciate all of your efforts in this matter.”
We ought to be able to assist. Give us a call and tell us what is happening.
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Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
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