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How To Deal With Northstar Location Services

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In a Nutshell

Northstar Location Services LLC (a part of The Northstar Companies) is a legitimate debt collection agency that collects consumer debts. If Northstar contacts you, you need to validate the debt to ensure it is legitimate. After you confirm the debt is real and yours, you have a couple of options for moving forward with Northstar. You can dispute the debt (especially if you find inaccuracies or disagree with the specified amount), or you can negotiate to settle the debt. If you negotiate to settle the debt, you pay a portion of the total amount owed.

Written by the Upsolve Team
Updated August 21, 2024


What Is Northstar Location Services?

Northstar Location Services LLC is a third-party debt collection agency under the umbrella of The Northstar Companies, based in both the U.S. and Canada. Northstar collects consumer debts from overdue credit cards, medical bills, utility bills, and more.  

Here is their contact information: 

Website: https://www.thenorthstarcompanies.com/ 

Phone number: (716) 817-6770 / (877) 630- 6700

U.S. office address: 4285 Genesee Street, Cheektowaga, NY 14225

Canada office address: 350 Bertie Street, Fort Erie, Ontario L2A 1Z5

You may be wondering how debt goes from an original creditor to a debt collector. It starts with your original creditor (credit card company, utility provider, etc.), sending you written notices and calling you repeatedly when your payments are late. If you ignore their collection efforts, they charge off (sell) your debt to a debt collector like Northstar. The debt collector then creates a collections account for your debt and takes over collection efforts. 

Why Is Northstar Location Services Contacting Me?

If Northstar contacts you, this means they purchased your debt from a creditor (healthcare company, utility company, etc.). Now, the collection agency, Northstar, is continuing collection efforts instead of the original creditor. 

Since Northstar now owns your debt, if you need to negotiate something, like a payment plan, you’ll work directly with the debt collection agency instead of your original creditor. 

Is Northstar Location Services Legit?

Yes, Northstar is a legitimate company. However, according to the Better Business Bureau (BBB) and the Consumer Financial Protection Bureau (CFPB), many consumers have submitted complaints against them. Northstar Locations Services LLC currently has a 1.0/5 star customer review rating on their BBB page.

As of early 2024, the BBB reports more than 40 complaints against Northstar in the past three years. The CFPB currently has 470 complaints against Northstar in their complaint database. Multiple complaints claim Northstar has attempted to collect on debts the consumer doesn’t actually owe. 

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

Trying to collect on a debt that a consumer doesn’t owe is a common violation of the Fair Debt Collection Practices Act (FDCPA).  The FDCPA is a federal law that protects Americans from harassment from debt collectors and collection agencies. If you think a debt collector has committed a violation, you can report them to the CFPB and even sue for possible monetary compensation. 

How Do I Know if I’m Being Scammed?

Even though Northstar is a legitimate company, people can use the company’s name to try to scam you and get your personal information. A scammer usually asks for sensitive details, like bank account information or your Social Security number. This is information that a legitimate debt collection agency would already have. 

Learn how to spot a scammer by reading our guide, 8 Red Flags of Debt Collector Scams.

The best way to protect yourself from scammers is to validate the debt (more on this below) right away and ask for follow-up information. If you think you’re dealing with a scammer, you can report them to the Federal Trade Commission (FTC), a government agency that specializes in protecting consumers' rights. 

Do I Have To Pay Northstar Location Services?

Before paying anything, first make sure the debt is legitimate. Sometimes, debt collectors get information wrong, like the amount owed or the creditor's name. Debt collectors typically buy debt in bulk from multiple creditors, so it’s common for them to mix up case details. 

To figure out if the debt is legitimate, you need to validate the debt to verify that:

  • The debt is an actual debt that you owe.

  • The debt collector genuinely owns the debt.

  • The amount of debt is accurate.   

If the debt collector was wrong and the debt isn’t actually yours, they should stop contacting you. If they can prove the debt is yours, you’ll have to decide what to do next. 

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Step 1: Send a Debt Verification Letter

If Northstar hasn’t already sent you a debt validation letter, you need to request one from them. You can also create and send your own debt verification letter

Debt Validation Vs. Debt Verification Letters

A debt validation letter is a document from a debt collector that contains the details of the debt they’re trying to collect from you. By law, a debt collection company must send you this letter before or within five days of first contact. They also have to allow a 30-day period during which you can dispute the debt.

During those 30 days, the collection agency can’t contact you through phone calls, letters, or emails. If they can’t verify your debt, Northstar must halt all collection activity. You are not obligated to pay if they cannot verify your debt within these 30 days. Make sure you review your credit report and challenge any incorrect information with the major credit bureaus

If Northstar can verify your debt, what you do next depends on whether you agree or disagree with the amount they claim you owe.

Step 2: Decide What To Do Next

It may not feel like you have much say in what happens after Northstar validates your debt, but you do get to choose how you proceed. 

Your three main options are: 

  • Disputing the debt

  • Negotiating or settling the debt 

  • Ignoring the debt (while this is technically an option, this is not recommended

Option 1: Dispute the Debt

If you disagree with the details of the debt outlined in your debt validation letter, you have a right to dispute the debt

If there’s incorrect information on your debt validation letter, often that same information is incorrectly reported on your credit report. Check your credit report and dispute any inaccuracies you find. 

Under the Fair Credit Reporting Act (FCRA), you have the right to a free copy of your credit report from each of the three major credit bureaus — Experian, Equifax, and TransUnion —  once every year. You can get your free credit report from AnnualCreditReport.com. 

You can also request credit bureaus to remove negative entries from your credit report using the 609 Credit Dispute Letter

Option 2: Negotiate the Debt and Make a Settlement Offer

If you aren’t able to pay the total debt upfront (which is common for most people), look into negotiating a debt settlement to pay less than the full amount owed.

Debt collectors often accept settlements ranging from 40%-60% of the original amount owed. You can start discussions by offering a lower percentage, even starting as low as 25%, but be open to meeting at around 50%. Showing your willingness to negotiate may help you get a lower percentage. Read Upsolve’s Guide to Northstar Locations Services to learn more about negotiating a successful settlement.

You have some leverage in these negotiations. Debt collectors are usually open to negotiating because they acquire your debt from the original creditor at a fraction of its value and still make a profit even if you pay much less than what you originally owed.

Can You Negotiate Every Past-Due Debt?

Whether you can negotiate a past-due debt usually depends on the kind of debt. Negotiations are generally an option for common types of consumer debts, like credit card debt, medical bills, and personal payday loans. Tax debt is also negotiable, however, the IRS has its own process for negotiating owed tax debt.

Debts tied to mortgages or car loans usually cannot be negotiated because the creditor can easily foreclose on your house or repossess your car.

Federal student loan debts are also non-negotiable. However, if you’re facing challenges with student loan payments, you can explore available student loan forgiveness options.

Technically, you can choose to ignore the debt; however, this is not recommended. Dealing with debt can feel overwhelming and you may have the urge to ignore everything, hoping the debt or the debt collector goes away. 

Unfortunately, ignoring the debt or the debt collector won’t make the debt go away. It usually increases your stress and causes greater money anxiety. It can also cause debt collectors to intensify their collection efforts, leading to more issues and stress. 

What Happens if I Ignore Northstar Location Services?

If you ignore a debt collector, unfortunately, it won’t solve your problems. It could actually create more, including:

  • Hurting your credit score

  • Costing you more money in the long run (as interest charges, fees, potential court costs, etc. accrue)

  • Creating an opening for you to get sued by the debt collector 

If a debt collector sues you and you ignore the lawsuit, the debt collector can receive an automatic win. They can also get a default judgment and file a wage garnishment order against you to take your income. 

Avoiding the debt doesn't make the debt collector go away or make the debt itself disappear. Negative information falls off your credit report after seven years, but the actual debt doesn’t go away. Collection agencies can continue their efforts as long as the statute of limitations remains.

Bottom line: Ignoring a debt collector can cause more harm than good. It might seem scary, but responding to Northstar is easier than you may think. 

Can Northstar Location Services Sue Me?

Yes, unfortunately, Northstar can sue you if their collection attempts go unanswered. If they’ve tried to contact you multiple times and you have ignored their efforts, they may take legal action by filing a debt collection lawsuit.

Whether or not a lawsuit happens depends on a few factors, such as:

  • Your state’s wage garnishment laws

  • The amount of time your debt has been in collections

  • The amount of debt you owe

How do you know if you’re being sued? You’re notified through a summons and a complaint — two official court documents. A summons alerts you to the lawsuit, while a complaint outlines the case details. Your paperwork is delivered to you in person, handed directly to you, or left with an adult at your home.

If you get sued, it's important to respond! If you're worried about responding on your own, but you can't afford a lawyer, you can draft a answer letter for free or a small fee using our partner SoloSuit. They've helped 234,000 people respond to debt lawsuits, and they have a 100% money-back guarantee.

To learn more about how to proceed in this situation, read Upsolve’s Guide to Beating Northstar Location Services.

Let’s Summarize…

Northstar Location Services (The Northstar Companies) is a legitimate debt collection agency that collects different types of consumer debts. If Northstar contacts you, first validate that the debt is legitimate. If the debt is accurate and yours, take action and respond to Northstar as soon as possible. Taking on a debt collection agency, like Northstar, can feel overwhelming, but it can be necessary to protect yourself and your personal finances.  



Written By:

The Upsolve Team

Upsolve is fortunate to have a remarkable team of bankruptcy attorneys, as well as finance and consumer rights professionals, as contributing writers to help us keep our content up to date, informative, and helpful to everyone.

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