Financial Data Systems (FDS) is a third-party collection agency based in North Carolina. FDS has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA), including misrepresentation and attempting to collect debts not owed. If you have been contacted by FDS, understand your rights before responding.
The harassing company pays our fees.
They’re legit. According to the Better Business Bureau (BBB), Financial Data Systems is a consumer finance, consumer loan, and financial services company. The BBB does not indicate a founding date, but their profile page for FDS was established in 2009. Buzzfile indicates a founding date of 2005 and describes Financial Data Systems as an investment advisor operating within the security and commodity brokers sector.
According to its website, FDS has been providing collections services since 1998. Their stated mission is “to provide businesses in North Carolina and the surrounding states with the most comprehensive, professional and successful collections in the industry.
FDS cites its DAKCS software as the key to its effectiveness. “DAKCS offers complete financial control with its unique report features…The system is completely automated, allowing FDS’ staff to spend… time collecting…money and not manually calling and downloading accounts.” FDS also employs “state of the art predictive dialing systems…that make thousands of collections calls and reminders per hour.”
FDS’ business services occupy two main divisions: first-party collections, or Extended Business Office (EBO), and third-party contingency collections. Their EBO service acts “as an extension of clients’ business offices, providing the staff, technology, and processes to increase your cash flow by decreasing accounts receivable.” Their third-party collection service uses letters, phone calls, and skip tracing to locate and contact debtors with delinquent accounts. Three letters are sent out during the first 30 days, and delinquencies are reported to the credit reporting agencies if no contact is made.
They cite a staff training program based on the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), and the Health Information Portability and Accountability Act (HIPAA). They also cite membership in the Healthcare Financial Management Association (HFMA), the Association of Credit and Collection Professionals (ACA), and the North Carolina Self Storage Association (NCSSA). However, there are no links or references to consumer protection resources, laws, or 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 October 2020, the BBB has closed 34 complaints against Financial Data Systems in the preceding three years, with 13 closed in the past 12 months. Almost all of those complaints allege problems with billing and collections. Since July 2015, the Consumer Financial Protection Bureau (CFPB) has closed 14 complaints against FDS. Justia lists at least 1 case of civil litigation naming FDS as a defendant.
Financial Data Systems
PO Box 688
Wrightsville Beach, NC 28480
Telephone: 888-950-7800
Website: http://www.fdscredit.com/
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely FDS 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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Absolutely. Here are some Sample Complaints
Many complaints against Financial Data Systems demonstrate a tendency toward inaccurate documentation and non-responsiveness. For example, in June 2017, a complainant indicated that he had sent 3 letters to FDS requesting that inaccurate items be removed from his credit report. He requested verification of the debt and indicated he had never received it. He indicated all of his letters were sent certified mail and he provided the dates of mailing. He also indicated that the response he did receive was “vague” and “barely readable.” He also claimed to have called FDS, but they “failed to find correct information.” He requested that all calls to his home or place of employment, including automated calls, cease and desist. Finally, he indicated that despite all his efforts to correct inaccurate information, nothing had happened. In response, an FDS representative indicated, “I do not see where you sent three certified letters to us. I do see where you disputed the accounts with the Credit Bureaus and we responded to those disputes.” In addition, the representative insisted that they had sent him the requested documentation, but that the mailing address they had on file was inaccurate. As far as the complainant’s attempt to contact FDS by phone, the representative responded, “the phone number you called is to our client. Perhaps you are confused in who you have been communicating with.” Finally, the representative agreed to cease and desist phone contact attempts and invited the complainant to call the representative directly to “discuss the account and see what we can do to get it taken care of and removed from your credit file.” The complainant’s rebuttal indicated he would not accept FDS’ response as a resolution and restated his position with regard to the dispute.
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 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.”
“I would recommend your company to anyone. You have the debt collectors off my back, and I will finally see the light at the end of the tunnel. Throughout the entire procedure your employees were courteous and professional. I was blown away by their efficacy also.
“After speaking to one of the partners, and going over the plan of action, I felt I’d chose the perfect company to go to work for me. He was very accommodating in describing what was going to happen. I would strongly recommend Lemberg Law to anybody being hassled by debt collectors”
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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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