Sued by Jefferson Capital Systems? 5 Steps to Take Now!

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If you have been sued by the company Jefferson Capital Systems, you are not alone. Debt collection lawsuits are a common issue many people face.

Who is Jefferson Capital Systems?

Jefferson Capital Systems, LLC is a debt collection agency and a debt buyer. They purchase charged-off consumer debt from other creditors and pursue collection efforts. According to the Florida Division of Corporations, Jefferson Capital Systems’ principal address is 16 McLeland Road, St. Cloud, Minnesota 56303.

Jefferson Capital Systems is BBB accredited with an A- rating, in spite of 1,252 complaints in the last 3 years (as of 1/17/25).

The Consumer Financial Protection Bureau complaint database reflects 1314 complaints (as of 1/16/2025 – with a 3 year lookback).

Why have I been sued by Jefferson Capital Systems in a debt collection lawsuit?

Jefferson Capital Systems is a debt collection agency that often purchases debt from other companies. Sometimes, after an account goes into delinquency, the creditor decides to sell the charged off debt to another party. These delinquent accounts are often sold to companies like Jefferson Capital Systems, who then pursue collection efforts. Therefore, if Jefferson Capital Systems has sued you, it is probably because they now own a debt that you once owed to another creditor.

Is there a class action lawsuit against Jefferson Capital Systems?

More than a dozen class action lawsuits have been filed against Jefferson Capital Systems.

Many of these lawsuits claim that Jefferson Capital Systems failed to let the consumer know who the debt was originally was owed to, including these two cases that were filed in 2018 in Wisconsin and New York.

Class action lawsuits have also been filed against Jefferson Capital Systems alleging that the company did not tell the consumers that it was not allowed to sue the Plaintiffs because their debt was too old and barred by the statute of limitations. These cases include cases filed in Wisconsin and Connecticut in 2018.

Jefferson Capital Systems has also had class action lawsuits filed against them for failing to disclose that the company was not allowed to sue the Plaintiffs on their debt because it was too old, including a 2018 suit filed in Florida and a 2017 suit filed in New York. If you are part of a class action lawsuit, it is advisable to seek representation from a knowledgeable law firm.

Understanding the Debt Collection Lawsuit

A debt collection lawsuit is a legal action initiated by a debt collector, such as Jefferson Capital Systems LLC, to recover an alleged debt from a consumer. Typically filed in state or federal court, the lawsuit seeks a judgment for the amount of the debt, plus any accrued interest, fees, and costs. If you fail to respond or defend yourself, the court may enter a default judgment against you. This can lead to severe consequences, including damage to your credit score and potential wage garnishment. It’s crucial to understand the gravity of a debt collection lawsuit and take appropriate steps to protect your rights and financial well-being.

Know Your Rights Under Fair Debt Collection Practices

The Fair Debt Collection Practices Act (FDCPA) is a federal law designed to protect consumers from unfair, deceptive, or abusive practices by debt collectors, including Jefferson Capital Systems LLC. Under the FDCPA, debt collectors are prohibited from:

• Contacting you at inconvenient times or places

• Threatening actions they do not intend to take

• Failing to identify themselves as debt collectors

• Making false statements about the debt or your rights

You have the right to dispute the debt and request verification from the debt collector. Additionally, you can request that the debt collector cease communication with you. Knowing your rights under the FDCPA can help you navigate interactions with debt collectors more confidently and protect yourself from unlawful practices.

What can I do about my lawsuit by Jefferson Capital Systems?

1. Show Up 

First, don’t bury your head in the sand! Florida Courts are divided into 3 levels depending on how much the lawsuit is for: small claims, county court, and circuit court. In small claims cases, a defendant is required to attend a hearing early on called a “case management conference”; whereas in county court and circuit court, the defendant has 20-days to file a written response from the day the lawsuit papers are served. If a defendant doesn’t appear (in small claims) or they fail to respond (in county court or circuit court), the court will likely enter a default judgment against them. Make sure to respond (or hire someone to do so) so you don’t lose off the bat! Failing to respond can result in a default judgment, which will negatively impact your credit report.

2. Review the claim

Next, review the records from the case. The debt may have originated from credit card companies or other creditors. When a lawsuit is based on the records of another company, it may be that the records are inaccurate. Review the claim and don’t assume it is correct just because they have written it. See if the claim and the amount are accurate.

3.  Consider your options

Evaluate the alleged debt from the lawsuit, along with your other debt and your income.  Is there a defense to the claim?  Can you realistically afford settlement, or does it make more sense to consider bankruptcy?  Here is where you may want to have a free consultation with a debt resolution professional who can help you to objectively review your options. You may also consider negotiating a manageable payment plan to settle the debt.

4. Gather Evidence and Build Your Case

If you are facing a debt collection lawsuit, gathering evidence and building a strong case is essential. Start by reviewing the complaint and summons to ensure the debt collector has followed proper procedures. Collect all relevant documents related to the debt, such as contracts, invoices, and payment records. Look for any errors or inaccuracies in the debt collector’s claims. Additionally, research the statute of limitations for debt collection in your state, as this could be a critical factor in your defense. Being thorough in your preparation can significantly strengthen your position in court.

4.  Negotiate

Assuming bankruptcy is not your best option and depending on the merits of your case, negotiation with Jefferson Capital LLC may be the next best step. If you hire a debt settlement attorney to assist you with the lawsuit, your attorney will negotiate for you. However, if you are determined to go it alone, you are generally better talking to the opposing firm than doing nothing (*this is a generalization; each situation is different). Just keep in mind, they are not looking out for your best interest. They are likely not going to tell you about your defenses to the lawsuit or your protections from collection. Their job is to get you to pay.

5. Any Settlement Agreement Should be in Writing

Finally, if you reach a settlement agreement, even if you are representing yourself, your agreement should be in writing. A law firm can help ensure that the settlement agreement is legally sound and protects your interests.

7. Seek Professional Help if Needed

Facing a debt collection lawsuit can be overwhelming, and seeking professional help from a qualified attorney can make a significant difference. An attorney can help you understand your rights and options, represent you in court, and negotiate a settlement or payment plan with the debt collector. Professional legal assistance can provide you with the expertise and support needed to navigate the complexities of a debt collection lawsuit effectively.

Additional Tips for Dealing with Jefferson Capital Systems

• Be aware of your rights under the FDCPA and the Fair Credit Reporting Act (FCRA).

• Keep detailed records of all communication with Jefferson Capital Systems LLC.

• Do not ignore the lawsuit or fail to respond, as this can result in a default judgment.

• Consider seeking the help of a qualified attorney to represent you in court.

• Be cautious of debt settlement companies that promise to negotiate with Jefferson Capital Systems LLC on your behalf, as these companies may charge high fees and may not be able to deliver on their promises.

By staying informed and proactive, you can better manage your interactions with Jefferson Capital Systems and protect your financial health.

Questions on Your Jefferson Capital Systems Lawsuit?

We offer a complimentary consultation with our experienced law firm. We’ll evaluate your case and review your options with you.