Phoenix Financial Services LLC 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 Phoenix Financial Services?
Phoenix Financial Services or PFS is a third-party debt collection agency based in Indiana. It has received consumer complaints alleging violations of the Fair Debt Collection Practices Act (FDCPA), including improper contact or sharing of information and threatening to take actions that cannot legally be taken. If you have been contacted by this debt collector, make sure you understand your rights before responding.
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Is Phoenix Financial Services a scam?
They’re legit. Phoenix Financial Services, LLC is a legitimate collection agency. They are listed as a domestic limited liability company located in Indianapolis, IN. According to the Indiana Secretary of State’s Office, PFS were founded in 2014 and have a perpetual business license. Buzzfile indicates that Phoenix Financial has annual revenue of almost $500,000.00 and employs five people.
PFS’ website indicates that they are a “results-oriented revenue cycle management firm powered by data driven analytics and backed by the highest standards in regulatory compliance, quality assurance, data security, and customer care.”
Who does Phoenix Financial Services collect for?
Phoenix Financial Services focuses exclusively on debt collection, specializing in student loan debt, medical bills, and unpaid taxes and government obligations. PFS is a relatively new operator in the debt collection industry, and their founding date coincides with the recent upsurge of debt among college graduates resulting from the unprecedented corruption of the university system by widely publicized predatory lending schemes.
Their website hosts fairly complete information about regulatory and compliance laws, including the Gramm-Leach-Bliley Act (GLBA), the Fair Debt Collections Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA), and the Health Insurance Portability and Accountability Act (HIPAA). However, their consumer resources page is not particularly helpful. Federal resources include a link to the Internal Revenue Service page. Student Loan resources only refer site visitors to loan companies and information about wage garnishment. There are also links to the three credit reporting agencies. Their contact form collects information from site visitors but does not inform them of their rights under the FDCPA. Their pay online feature requires users to agree to accept phone calls from Phoenix Financial as a condition of using the service.
Phoenix Financial Svces is a young company in a very competitive industry. They have focused on collecting student debt, much of which is the result of predatory financial schemes underwritten with government-backed subsidies and accompanied by wage-garnishment legislation. Furthermore, like student loan debt, their secondary specialization on medical billing puts them in contact with people whose debts are often not the result of reckless consumerism or abuse of high-limit credit cards.
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 Phoenix Financial Services?
Many complaints against Phoenix Financial Services result from overly aggressive or abusive practices. The Better Business Bureau indicates that this collection agency has been in business for three years and has been accredited since 2015. As of August 2017, the BBB lists a total of 129 closed complaints, 123 for billing or collection issues and 6 for problems with customer service. Many of these complaints indicate that people who receive debt collection notices from Phoenix Financial often do not recognize the bills or the original creditors and often have to negotiate to have false and damaging information removed from their credit reports. This occurrence may be caused by PFS’ business model, which requires them to purchase third-party debt in large quantities. Of the 36 total customer reviews on the BBB website, 26 are negative. Many of the positive reviews are the result of people who have voluntarily called in to pay or settle a debt, or who appear not to be otherwise impaired by financial difficulties. Justia lists at least 5 legal complaints filed against PFS.
Phoenix Financial Services, LLC PO Box 361450 Indianapolis, IN 46236 Corporate Office: 1-855-342-6567
Can Phoenix Financial 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 PFS 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 2018, a proposed class action filed in New York federal court claimed Phoenix Financial Services LLC failed to clearly specify a consumer’s debt amount in a collection letter. The letter, dated January 3, 2018, indicated that the plaintiff’s account was accruing interest and fees but didn’t provide enough information for the man to calculate the true balance on a given day, the case claims.
The lawsuit alleged the defendant failed to specify the interest rate, amount of interest, date of interest and late fees would be applied, amount of late fees, and amounts of the added charges accrued over “any measurable period.”
In 2017, a complainant indicated that Phoenix Financial Services had initiated collection activity—including placing negative reports with Experian Credit Reporting Agency—for an unverified debt that the complainant had never assumed. This activity caused inconvenience, adversely affected the complainant’s credit, and violated the FCRA. Although the negative information was ultimately removed, and the debt was returned to the original creditor, Phoenix Financial Services accepted responsibility for the violation. Also in 2017, a complainant reported that unverified debts had been reported on his or her credit report in violation of the FCRA. After a standard complaint procedure, the negative information was removed. However, three months later, the same complainant was again notified by the credit reporting agencies that Phoenix Financial Services had again placed unverified negative financial information on his or her credit report. Although the error was again corrected, these repeated lapses indicate a pattern of behavior on the part of Phoenix Financial Services that indicates an inability or an unwillingness to respect financial regulatory laws or consumer protection laws.
Here are past Press Releases of Lawsuits Brought On By Lemberg Law Against this agency
October 6, 2015. On behalf of our client, Lemberg Law recently filed a complaint in U.S. District Court, Western District of North Carolina. The case, against Phoenix Financial Services, charges the debt collection agency with violating state and federal law and asks for $1,000 in statutory damages, plus other relief.
Receiving calls at work can be distracting. They can be against the rules. And they can get you into trouble. Our client says that this debt collection agency called him during work hours on his cell phone. He told a PFS debt collector that he wasn’t able to take calls before 5:00 p.m., but they still called during the day.
In addition, in an attempt to be cooperative, our client agreed to let the agency make automatic withdrawals from his bank account. But they did so without the written consent required by law.
The lawsuit charges that Phoenix Financial Services violated the Fair Debt Collection Practices Act (FDCPA) by engaging in harassing behavior; by contacting our client at a place and time known to be inconvenient; and by using unfair and unconscionable means to collect a debt. It also charges PFS with violating the North Carolina Fair Debt Collection Practices Act by engaging in harassing behavior, and with violating the North Carolina Unfair Trade Practices Act. It also charges Phoenix Financial Services with violations of the Electronic Funds Transfer Act by debiting our client’s bank account without his legal authorization.
Phoenix Financial 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).
Can I sue PFS 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.
Consumers have reported this agency harassing them from the following numbers:
“We were so impressed with how the attorney listened to us and understood the position we were in. Thank you for stopping the calls. The check was a nice bonus, but mostly we’re glad we’re not being hounded anymore.”
“Lemberg Law contacted me within a couple of hours of me submitting my info on their site. That same day Daniel emailed me instructions on what to do the next time the collection agency called. Within a week, the calls had stopped. Today marks week 2 and we’ve not had a call in three days. I can’t say thank you enough.”
“I can’t praise your service enough. I was lost and just really wanted my credit report cleaned up. You have gone beyond my expectations. Thanks again!”
Can You Help Me Delete Phoenix Financial Services from My Credit Report?
In short, odds are good we can. Call us to today and we’ll tell you how we can help.
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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.