Capital Management Services or CMS is a debt collection agency, which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
What is Capital Management Services?
Capital Management Services , L.P. (CMS) is a third-party debt collection agency based in New York. CMS has received consumer complaints alleging violations of the Fair Debt Collection Practices Act (FDCPA), such as failing to provide written verification of debts and attempting to collect debts not owed. If CMS has contacted you about delinquent financial obligations, make sure you understand your rights before taking action.
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Is Capital Management Services a scam?
They’re legit. According to the Better Business Bureau (BBB), Capital Management Services, L.P. was founded in 2000. The BBB established a profile page for CMS in 2001. The BBB lists Capital Management Services as a collection agency. Buzzfile estimates Capital Management Services’ size of its headquarters staff at 113 employees.
According to its website, Capital Management Services “is a nationally licensed and recognized collection… agency, providing the highest level of delinquent receivables resolution…and is one of the fastest growing receivable management firms in the country.”
Who does Capital Management Services collect for?
The Capital Management Services website does not specify which types of businesses or industries for whom they collect debts. Their Mission is to be the “Best-in-Class receivables specialist throughout the industry through deliberate and definitive response to growth and change by continuing to enhance their technology, improve effectiveness, and drive efficiencies that foster superior results for every client.”
Their Prospective Clients page indicates that CMS is available to accept delinquent accounts from virtually any type of merchant or business and provides information about CMS’s facilities, data protection, client servicing, training, compliance, auditing, tools, and business continuity. CMS’s collection technology tools include internet search engines; Equifax intelligent credit profiling and recovery stores; internal modeling; power and predictive dialing options; inbound and outbound call blending; and account batching and data scrubs.
Capital Management Services provides collector training that includes testing and annual recertification in FDCPA, system navigation, collection techniques, skip tracing, and client-specific certification. CMS cites membership in the Buffalo-Niagara Partnership, the NYS Collectors Association, the Asset Buyers Program, the Empire Zone, and the Renewal Community Zone. Their website provides a Consumer Comments button for site visitors with concerns about regulatory compliance, but there are no direct links or references to consumer protection resources, laws, or enforcement agencies.
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.
How many complaints are there against Capital Management Services?
As of December 2019, the BBB has closed 38 complaints against Capital Management Services in the preceding 3 years, with 13 complaints closed in the previous 12 months. Most of those complaints cited problems with billing and collections. As of July 2013, the Consumer Financial Protection Bureau (CFPB) has closed 347 complaints involving CMS. Justia lists at least 10 cases of civil litigation involving CMS.
Capital Management Services, LP 698 1/2 S Ogden Street Buffalo, NY 14206 Phone Number: 800-519-2687 Website: http://www.cms-collect.com/
Can Capital Management Services Sue Me or Garnish My Wages?
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely CMS 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!
In September 2019, in the United States Court of Appeals for the Seventh Circuit, a judge issued an order in a case alleging Capital Management Services had violated the FDCPA. In the original case, the plaintiff had incurred a debt that was ultimately assigned to CMS for collection. She received four letters from Capital Management Services about her debt. Each letter included personalized statements and individualized payment options written in an effort to encourage the plaintiff to make payments on her debt. For example, the plaintiff received a letter that stated in part:
“In an effort to liquidate as many files as possible, we are making the following settlement offers:
“29% reduction of your present balance to the amount of $1340.00, if paid in full on or before 11/30/2016. (A savings of $550.00)
“24% reduction of your present balance to the amount of $1440.00. The first payment of $720.00 or more is due on or before 11/30/2016. The second and final payment of $720.00 or more is due on or before 12/30/2016. (A savings of $450.00)
“19% reduction of your present balance to the amount of $1530.00. The first payment of $510.00 or more is due on or before 11/30/2016. The second payment of $510.00 or more is due on or before 12/30/2016. The third and final payment of $510.00 or more is due on or before 01/30/2017. (A savings of $360.00)
“Settling a debt for less than the balance owed may have tax consequences and the original creditor may file a 1099C form. We cannot provide you with tax advice. If you have any questions, the original creditor encourages you to consult a tax advisor of your choosing.”
The plaintiff’s complaint alleged that this language violated Sections 1629e and 1692f of the FDCPA, which prohibit the use of “false, deceptive, or misleading representation or means in connection with the collection of a debt” or the use of “unfair or unconscionable means to collect or attempt to collect any debt.” Specifically, the plaintiff cited the paragraph that refers to the 1099C tax form. The trial court found that because the letter that CMS sent the plaintiff stated that settling a debt “may have tax consequences,” rather than stating that it “will have tax consequences,” CMS had not used language that was either false or misleading. The plaintiff appealed the decision and asked the court to reverse the judgment.
At the September 2019 appeals hearing, the Court noted that a statement may be literally true, but still be unfair or misleading to the average consumer. The IRS tax code that would require the original creditor to file a 1099C tax form only applies when the original creditor forgives a debt of $600.00 or more. Because the letter specified that the maximum amount forgiven by any of the settlement offers was $550.00, the court determined that the statement was misleading. In addition, the Court determined that simply by including language that implied the IRS would get involved in litigating the plaintiff’s debt, CMS may have also violated the FDCPA’s provision against using misleading, unfair, or unconscionable means to collect a debt. As a result, the original decision was reversed, and the case was referred back to the trial court.
Capital Management Services Calling You?
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).
Consumers have reported this agency harassing them from the following numbers:
Can I sue CMS for harassment?
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.
“I’ve had experiences before with legal teams and I can say certainly that Lemberg Law has certainly earned their reputation the old fashioned way…being constant in representing their client’s best interest.”
“I’m forever thankful for the help I received, and urge Lemberg Law to anybody who has ever had a doubt about what’s right or wrong when dealing with debt collectors. Attorney Jody Burton is wonderful. I was never led astray and she’s the utmost professionalism. Lemberg and its team are truly the light at the end of the tube”
“Thanks are not sufficient for such fantastic results! ”
Can You Help Me Delete Capital Management Services from My Credit Report?
Most probably we can. Contact us to have us review the items on your credit report.
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About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.