How To Deal With FBCS

What Is FBCS?

FBCS currently stands for Financial Business and Consumer Solutions. It was called Federal Bond Collection Services when the company was founded in 1982. They collect consumer debts — car loans, healthcare bills, utility bills, student loans, credit cards — and commercial debts, but this article focuses on the process for consumer debts.

FBCS is headquartered in Hatboro, Pennsylvania, with offices in New Jersey and Florida.

Why Is FBCS Contacting Me?

According to their website, FBCS typically collects debts on behalf of its clients, although they may also collect charged-off debts they purchase from original creditors. Regardless of who owns the debt, FBCS often accepts payments directly, either online, by mail, by phone, or through MoneyGram.

Is FBCS Legit? 

Yes, FBCS is a legitimate company, but many people have lodged complaints against them. The company is accredited by the Better Business Bureau (BBB) with a B rating. Customer reviews on the website reflect a 1-star rating out of 5, with more than 100 complaints submitted in the past three years. If you check the Consumer Complaint Database on the Consumer Financial Protection Bureau’s (CFPB) website, you’ll see more than 450 complaints filed since 2011.

Many consumers complained that the FBCS attempted to collect debts that didn’t belong to them, made false statements, threatened to take legal action or improperly share information with third parties, and made harassing phone calls.

Third-party debt collectors who engage in harassment and deception are at risk of violating the Fair Debt Collection Practices Act (FDCPA). If you think FBCS or any other debt collector violated the FDCPA when trying to collect a debt from you, you have the right to file a complaint and possibly sue for compensation.

Note to reader: These reviews and complaints highlight relevant issues, but they may not represent all consumers’ experiences.

How Do I Know if I’m Being Scammed?

Even though FBCS is a legitimate company, criminals may use their name to try to trick you into handing over personal information or sending money. To avoid debt collection scams, know the 8 most common red flags and insist debt collectors validate any debt they’re trying to collect.

Do I Have To Pay FBCS? 

If FBCS is allowed to collect the debt, the debt is yours, and the debt amount is correct, then yes, you may have to pay FBCS. 

There are a lot of “ifs” here, so before you pay anything, make sure FBCS has validated the debt. Companies like FBCS make money by contacting as many consumers as possible. Mistakes are more common than you might think.

If FBCS can’t validate the debt, then you don’t have to pay and you can tell them to stop contacting you. 

If FBCS can validate the debt, you need to decide what to do next.

Step 1: Send a Debt Verification Letter

FBCS is required to send you a debt validation letter before or within five days of first contacting you. The letter should include information about how to dispute the debt if you disagree with it. 

You usually get 30 days to dispute the debt, and you can do so by sending a debt verification letter. You can also use this letter to ask for more details about the debt account. If you dispute the debt, FBCS must stop trying to collect the debt from you during the dispute process.

Step 2: Decide What To Do Next 

If FBCS has validated the debt, you have three options: You can dispute the debt, negotiate a debt settlement, or ignore the debt (not recommended). 

Option 1: Dispute the Debt 

If you disagree with the debt amount or feel you don’t owe the debt, you can file a dispute with FBCS. When you dispute a debt, also check your credit report and credit history. If FBCS is mistakenly trying to collect a debt from you, there’s a good chance there’s a mistake on your credit report too.

The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute incorrect information on their credit reports. You can do this by sending a 609 letter to any of the big three credit bureaus reporting the error: Experian, Equifax, or TransUnion.

Option 2: Negotiate the Debt and Make a Settlement Offer 

The simplest way to deal with your debt is to pay it off in full, although this may not be realistic for you. But what if you could pay off a portion of the debt and close the account? You can try to negotiate your debt with FBCS and settle the account for less than you owe. With some debt collectors, you can settle your debt for around 40% to 60% of what you owe.

This may seem like a long shot, but debt collectors like FBCS only get paid if they recover money from you. Their revenue is typically a percentage of the amount they recover, so they can still make money if they agree to settle a debt for a portion of the original amount. Plus, a settlement saves them time and effort.

FBCS may begin this negotiation process. You can agree to their original offer or try to negotiate it down further. They may not agree, but it doesn’t hurt to ask. To learn more about taking full advantage of these negotiations, read Upsolve’s Guide to Beating FBCS.

Can You Negotiate Every Past-Due Debt?

Many consumer debts, such as credit cards and medical bills, are negotiable. Federal tax debts are also negotiable via a special process with the IRS.

Some consumer debts aren’t negotiable, though. For example, home mortgages and auto loans are secured debts. This means the original creditor can repossess the property if you don’t pay, so they have no incentive to negotiate with you. 

Student loans are also not usually negotiable, but you can take advantage of student loan forgiveness programs if you’re struggling with payments.

Option 3: Ignore the Debt (Not Recommended) 

While ignoring the debt is technically an option, it comes with serious negative consequences and isn’t advisable. 

What Happens if I Ignore FBCS?

Ignoring FBCS could lead to a lower credit score; increased debt due to interest, fees, and legal costs; the risk of a potential lawsuit resulting in wage garnishment; or constant stress (because debt collectors like FBCS don’t easily give up).

Not paying a debt collector might seem doable because an unpaid debt will fall off your credit report after seven years. But debt collectors can still try to collect a debt even if it doesn’t show up on a credit report, and if the statute of limitations deadline hasn’t passed, you could be subject to a debt collection lawsuit. Even if it has passed, some debt collectors may still try to sue you, even though they’re not supposed to.

Ignoring FBCS can make an already unpleasant situation worse. The good news is that you have options to deal with this debt. Debt collectors rely on you not knowing your choices. Now that you have this knowledge, you can make the best step forward for your financial health.

Can FBCS Sue Me?

It’s possible they could sue you, but it’s not likely for several reasons. First, it takes time and money to litigate, and many of the debts FBCS tries to collect aren’t worth this cost. Second, FBCS doesn’t usually own the debt they try to collect. 

Regardless, don’t assume FBCS won’t sue you. Several factors play a part in an agency’s willingness to file suit, including:

• The amount of the debt

• How old the debt is and the applicable statute of limitations

• If there’s a written contract backing the debt

• How much money they could win in the case, including interest and attorney fees

• How easily they can get a court order to garnish your wages 

If FBCS sues you, you’ll be served with a summons and complaint through mail or in person. To avoid losing the case by not taking action, respond to the complaint as soon as possible.

You can file your formal response with the help of a lawyer or do it yourself. To learn more about defending yourself against an FBCS lawsuit, read Upsolve’s Guide to Beating FBCS.

Let’s Summarize…

FBCS collects commercial and consumer debts, but a significant portion of its debt collection activities involves recovering consumer debts on behalf of original creditors. If FBCS calls you or sends you a letter about owing money, you should first validate the debt. After that, you can think about other options, like negotiating a settlement or disputing the debt.