Credit Union – CU Recovery 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.
Credit Union Recovery, Inc. or CU Recovery is a third-party collection agency based in Minnesota that specializes in collecting delinquent debts from the members and customers of credit unions. CUR has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA), including threatening to take actions that cannot legally be taken and failing to verify debts. If CUR has contacted you about past due collection items, make sure you know your rights before you take action.
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Is CU Recovery a scam?
They’re legit. According to its website, Credit Union Recovery, Inc. “and The Loan Service Center TLSC provide two separate and distinct services to…credit union clients.” According to the Better Business Bureau (BBB), TLSC was incorporated in 1998, then started locally in 1999. The BBB established a profile page for TLSC in 2006. The BBB does not indicate a founding or incorporation date for CUR. The BBB established a profile page for CUR in 1994. Both TLSC and CUR are listed as collection agencies. Buzzfile estimates CUR’s annual revenue at $2.7 million and the size of its headquarters staff at 25 employees; and TLSC’s annual revenue at $317,000 and the size of its headquarters staff at 3 employees.
The CUR/TLSC website states that CUR “is a full service, nationally licensed collection agency managing non-performing and charged off loans with a comprehensive menu of third party collection services. CUR is recognized as the leading industry expert for credit union collections of all loan types.”
Who does CU Recovery collect for?
CU Recovery’s collection services include first-party collections; third-party collections; skip tracing; a “lifecycle management suite”; and several training programs. Credit Union Recovery’s first-party collections division is administered by TLSC. TLSC “provides staffing solutions to credit union collection departments on a part-time, full-time, temporary, or permanent basis to manage all loan types—secured, unsecured, overdraft shares, or real estate—from 0 to 90 days delinquent.” Services include payment reminders; payment reminders “plus”; and extended services such as bankruptcy, repossession, skip tracing, and door knocks.
CUR’s third-party collection solutions “promise… a thorough approach to maximizing recoveries from… placements.” Services include pre-collection letters; collection of unsecured accounts; collection of negative share and checking accounts; collection of secured accounts, including repossession and remarketing; skip tracing; on-site file pickup; and commercial collections.
CUR supports an extensive program of collector training, including the CUR Collection Academy, with an associated scholarship program. The CUR collector training program “will guide your staff through collection best practices using the CUR 5 Call Type contact plan, while covering collection communications that work, and providing specifics on collecting within FDCPA guidelines.” Their resources page includes many links to collection industry resources and professional associations. However, their website is client-facing and does not include a page dedicated to consumer protection resources, laws, and 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 CU Recovery?
The BBB has received 3 complaints in last 3 years and closed 2 complaints in last 12 months for CU Recovery. As of May 2015, the Consumer Financial Protection Bureau (CFPB) has closed a total of 14 complaints against CUR. Justia lists at least 7 cases of civil litigation involving CUR.
Can Credit Union – CU Recovery 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 CU Recovery 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 May 2000, in the United States Court of Appeals for the District of Minnesota, a judge issued a decision in a case alleging CUR had violated the FDCPA. In the original case, the plaintiff had “signed a promissory note from a credit union for her son’s car loan.” Subsequently, “the credit union referred the note to CUR for recovery after the loan went into default.” CUR sent the plaintiff collection letters, which she disputed by requesting validation. CUR sent her information validating the debt, but the plaintiff alleged that the information contained in the validation notice proved that CUR had violated the FDCPA. Specifically, CUR had demanded an amount to be paid by the plaintiff that included an additional 15% of the principal balance due on the initial loan. The additional 15% was added by CUR as a “collection fee,” and the plaintiff alleged that including this fee violated the FDCPA’s prohibition against misrepresenting the amount or legal status of any debt. The district court in the initial case “concluded that CUR’s notice violated the FDCPA by adding the collection fee based on a percentage rather than on actual costs when the plaintiff’s agreement with the credit union provided she was liable only for actual costs.” CUR appealed the district court’s decision, insisting that adding the collection fee was not illegal. At the May 2000 appeals hearing, the court indicated that they were “satisfied that the district court committed no error of law and judgment was correctly granted for the reasons stated in the district court’s order adopting the magistrate judge’s report and recommendation.” In addition, the judge at the appeals hearing stated, “Contrary to CUR’s view, the court agrees with the district court’s conclusion that CUR violated the FDCPA when it charged the plaintiff a collection fee based on a percentage of the principal balance that remained due rather than the actual cost of the collection.” As a result, the court upheld the previous decision in favor of the plaintiff.
Credit Union Recovery 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).
Can I sue CUR 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.
“To anybody who has a problem with a debt collector, I highly suggest Lemberg Law. I obtained attentive, personalized service and obtained resolution within three months.”
“I could not have stopped the collection calls myself.
“Thank you Lemberg Law!!! Harassed non-stop by rude collectors. My attorney was speedy and polite, really knew what she was doing. They took my call, asked what was going on, never interrupted, and were extremely patient. I knew what was going on every step of the way. They got the calls to stop and sent me a check in the mail as promised. I even paid off my debt with the settlement! Ha!.”
“Thank you for standing with me Lemberg Law. I was so afraid I could lose my job because of a caller who called my job number 4 hours straight back to back. He not only harassed and threatened me but also abused workmates who received the call when I wasn’t around. Since I solicited for your services, I’ve had a peace of mind, and I’m happy because of the few dollars I got as a settlement.”
Can You Help Me Delete Credit Union Recovery from My 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.
I got a call from cu recovery today and talked to a ross portee and he told me i owe a credit Union for a car i let ho back it says its charged off and now they want their money .he told me to get a loan to pay this off and to call back tues..i told this ross i was having a hard time with my bills like power and rent. I cant get a loan because of my credit. And pay it back.. What should i do?