FedChex Recovery, LLC (FCR) is a third-party collection agency based in California that specializes in processing and collecting non-sufficient funds (NSF) checks. FCR has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA), such as threatening to take actions that cannot legally be taken and attempting to collects debts not owed. If FCR has contacted you about past due financial obligations,make sure you understand your rights before you respond.
The harassing company pays our fees.
They’re legit. According to the Better Business Bureau (BBB), FedChex Recovery, LLC is a legitimate collection agency, founded and incorporated in 2001. The BBB lists FCR as a collection agency, banking service, and payment processing service that uses the alternate business name, FedChex, LLC. Buzzfile estimates FCR’s annual revenue at $7.6 million and the size of its headquarters staff at 40 employees.
According to its website, FCR is an “innovator in the payment industry…with a suite of solutions that operates with cutting-edge technology to expedite and ensure efficiency throughout the entire payment lifecycle.” FCR’s mission is to “remain a recognized leader in providing depository, treasury, and risk management…by delivering cost effective, ethical, reliable, and high-quality solutions of strategic value, while sustaining a challenging and rewarding work environment.”
The FCR website does not provide any detailed information about the types of businesses or industries with whom they do business. Instead, they provide services to any merchant or business, “from Fortune 500 companies to much smaller organizations,” who engages in transactions, “including ACH services, customer debit payments, payment verification, and more.”
FedChex Recovery offers five different types of payment services—check verification; ACH and conversion; remote deposit capture; lockbox; and decoupled debt. Collection efforts appear to be handled by FCR’s check verification and ACH and conversion services. “Payment verification and risk help merchants determine when there is a risk of accepting payment from customers, thereby …lowering costs due to fraud and bad checks after payment acceptance.” The ACH and conversion “system provides a safe, reliable method to move money electronically;… allows merchants to eliminate printing hard-copy checks and drafts; and informs merchants of returned checks 3 to 5 days earlier than traditional methods.”Remote deposit capture; lockbox; and decoupled debt services provide a single “method for all check deposits”; faster payment processing; and lowered risks and costs for providing customer loyalty cards.
FCR cites membership in several professional associations, including the Association for Financial Professionals (AFP). However, they do not identify themselves as a debt collector; and they do not provide any 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.
As of May 2019, the BBB has closed 6 complaints against FedChex Recovery in the preceding 3 years, with 2 complaints closed in the previous 12 months. Almost all of those complaints alleged problems with billing and collections. Since September 2018, the Consumer Financial Protection Bureau (CFPB) has closed 3 complaints involving FCR. Justia lists at least 3 cases of civil litigation involving FCR.
FedChex Recovery, LLC
27042 Towne Centre Drive, Suite 150
Foothill Ranch, CA 92610
Telephone:(800) 992-6713
Website: http://www.fedchex.com/
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely FCR 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!
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Unlawful Debt Harassment? Learn the Law & Sue the Collector.
Absolutely. Here are some Sample Complaints
Complaints against FedChex Recovery cite problems resulting from disputes about the validity of billing and collection procedures and allegations of harassment. In September 2018, a complainant stated that FCR had contacted him “regarding a textbook rental” for a book he no longer had “in his possession and which he believes he… returned at the close of… spring semester.” The complainant stated that the “representative from FCR explained that the book was rented from a website called Textbook Rush, which is valid, but” the complainant’s account… shows no overdue books and he received no online correspondence in the three years since he rented books from that company to indicate that the book was allegedly overdue.” In addition, the complainant stated that he thought it “was already fishy that he was receiving calls about the book three years too late, especially considering the high late fee of $500.00 when he rented the book for less than $100.00 and paid for it in full.” He had also called the Secretary of State “in both states from which he received phone calls…and both Secretary of State offices declared that FCR was not registered as a legitimate business in their records.” After checking his credit report, he did not find a “record of debt for any textbook rental.” Regardless, he “receives calls every 2 weeks from different phone numbers in different parts of the country claiming to be representatives of this FCR debt collection agency.” He also stated that he was “reaching out to Textbook Rush to make certain that no books are overdue on his record.” FCR chose not to respond publicly to this complaint.
In August 2017, a complainant stated that he had been receiving annoying letters from FedChex Recovery. Allegedly, FCR was “claiming they were collecting a debt from a company who tried to advertise their business to help with a school loan.” The complainant stated that “when they told him he would have to pay money,” he told them he didn’t have any money because he is “disabled and… ill.” In addition, “the agency, United Student Loan Assistance Center, was supposed to take him off their list.” He complained that so many months and years later he was receiving “threatening letters…stating he needs to pay within 40 days or” they will report a delinquency to the credit reporting agencies. He reminded FCR that he is disabled and ill and requested that they stop harassing him. In response, FCR “apologized for the inconvenience,” and stated that the “file… from United Student Loan Assistance Center…was submitted for collections in error.”
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).
But here’s the rub: If you want to enforce your rights, or recover money for violations — you need to sue. These 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…
“The group at Lemberg Law was professional, courteous, and effective. Their grasp of consumer protection laws and guidelines are second to none, and they work extremely difficult to ensure this procedure is client-friendly.”
“After a few months of frustration with a debt collector, I eventually called Lemberg Law. It was among the best financial decisions I have ever made. Jody and her staff were comprehensive, useful, and above all else powerful. I highly recommend their services and thank them for their continual efforts.”
“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.”
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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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FCR called me today while I worked. They claimed that I owed money. But I do not have debts. They better stop!
FCR began calling me with robocalls at the beginning of 2022. Both on my work cell and at work. I reached out to the number listed on the website and a lady answered about what the debt entailed, but would not send me anything in the mail, just email. The debt in question went to SMRT LLC for Cpap supplies. That company was notoriously bad at billing. I had to be proactive in checking my Insurance statements and seeing if anything was due from me then calling the company directly. This company folded in 2021 with their customer base now referred to Lincare. So FCR sent another email to my work stating I still owed for debts, but did include a specific list of invoices. After looking through my bank registers I found the checks that covered those, with the invoice numbers listed in the memo side, and got the cashed copies from the bank as proof. I owe nothing to them that I am aware of, but I continue looking through old statements going back past the statute of limitations for California debt (4 years). I’m a divorced disabled veteran with bad ADHD being harassed at work by these stooges, it’s affecting my well being.