How To Deal With the Debt Collector Unifin

What Is Unifin, Inc?

Unifin is a debt collection agency based in Skokie, Illinois. They buy debt that has been charged off by creditors such as credit card companies, banks, or medical institutions. Once a debt is charged off, it’s usually out of the original creditor’s hands and you’ll likely be contacted by the debt collector — in this case, by Unifin.

This can make it difficult to know who has your debt account and who you’re supposed to pay. Typically, once your debt has been sold to a debt collection agency, you’ll need to work with them to settle the debt or pay it off.

Why Is Unifin Contacting Me?

If Unifin contacts you, they are likely trying to collect on a debt that they believe you owe. If you got behind on a credit card bill, student loan payment, or other debt and didn’t resolve the issue with the original creditor, your debt may have been sold to Unifin. This often happens several months after you’re past due on an account.

Keep in mind that debt buyers and third-party debt collectors don’t always get their facts right. While it’s legal, the debt-buying business is exploitative and profit-driven. Since debt is usually bought and sold in large batches, it’s not uncommon for collection agencies to incorrectly identify the debt owner, outstanding balance, or account status. 

If something doesn’t feel right about the debt information you receive, be sure to verify the debt! (More on how to do this below.) Don’t just ignore the notice. Your credit score can seriously suffer, and you may even get sued.

Is Unifin Legit?

Unifin, Inc. is a legitimate debt collection agency that’s been in business for 12 years. But just because they’re legit, doesn’t mean they are free of issues. Currently, Unifin has a “B” rating with the Better Business Bureau (BBB), but its average customer rating on the platform is low (1.27 out of 5 stars). 

The Consumer Financial Protection Bureau (CFPB) has investigated over 300 complaints about the company in recent years, which include:

• Using profane, obscene, or abusive language

• Continuing to contact individuals after they’ve told Unifin to stop contacting them (usually with a written cease and desist letter)

• Attempting to collect debts that weren’t actually owed

• Threatening to take negative action such as hurting credit

• Making frequent phone calls or sending frequent text messages

This isn’t an exhaustive list, but it shows some of the most common complaints against Unifin, Inc. Many of these behaviors are illegal under the Fair Debt Collection Practices Act, a federal law that was created to protect consumer rights.

If you’re experiencing similar issues with Unifin, it’s important to file a complaint with the CFPB. The CFPB is a government agency tasked with enforcing the FDCPA. You also have the right to sue Unifin and seek compensation for FDCPA violations.

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

One final note: Though Unifin is a legitimate company, some scammers may use this name to try to get money from you. If something feels off about a call, text, or notice from a supposed Unifin collector, make sure the communication isn’t a scam before you give out any information. Here are debt collection scam red flags to look out for.

Do I Have To Pay Unifin?

Before you can answer this question, you want to make sure the debt that Unifin claims you owe is legitimate, that it belongs to you, and that the amount is correct. You do this by validating or verifying the debt. From there, you can decide whether you want to dispute the debt, negotiate a debt settlement, or pay the debt in full.

Step 1: Send a Debt Verification Letter

The terms debt validation and debt verification are often used interchangeably. Technically speaking, Unifin is legally required to send you a debt validation letter, and you can send them a debt verification letter to ask for even more information or to dispute a debt. Both of these letters are important!

If Unifin has contacted you but hasn’t sent a debt validation letter, you can request one. By law, they should send you a letter before or within five days of initial contact with you. If they don’t, make note of the date of their first contact, then request a letter and keep the postmarked envelope when you receive it.

Whether or not you’ve gotten the debt validation letter, you can send a debt verification letter to ask for more details about the debt or to dispute it (more on that in the next section). If they can’t verify the debt within 30 days, you probably don’t have to pay it. If Unifin isn’t able to verify the debt, be sure to check your credit reports to make sure it wasn’t inaccurately reported. If it was, dispute the entry with the relevant credit bureau.

If Unifin successfully verifies the debt, you need to decide what to do next.

Step 2: Decide What To Do Next

If Unifin is able to verify the details of the debt, you may feel like your only option is to pay it in full or risk the consequences. But that’s not true!

You could:

• Dispute the debt if you think the information is incorrect.

• Negotiate a debt settlement (pay less than the full amount you owe on the debt).

• Ignore the debt… though this isn’t recommended, because there are negative consequences.

Option 1: Dispute the Debt

As mentioned above, the debt-buying business can be a bit shady. Because of the nature of the business — buying and selling debt in bulk — debt collection agencies often get information about your debt wrong. They may come after you for a debt you already paid off, that you discharged in bankruptcy, or that was never yours in the first place (due to identity theft or misidentification). They may also try to collect the wrong amount of debt.

If you get a debt validation notice from a debt collector and any of the details of the debt are wrong, you have the right to dispute it. This process isn’t difficult, but it will take some time and energy. Upsolve has a guide on How To Dispute a Debt You Don’t Owe. Read this guide to learn more if you think this is the best option for you.

Option 2: Negotiate the Debt and Make a Settlement Offer

Let’s say that at this point you’re sure that the debt is yours and that Unifin has a right to collect it. In this case, your next best step is probably to negotiate the debt and make a settlement offer. You could choose to pay the debt in full, but many people don’t have the money to do that (which is why they’re in this situation in the first place). 

Even if you could pay in full, settlement is an option worth considering. Why? Unifin likely purchased your debt for pennies on the dollar. So if you owe $1,500, they could have paid as little as $15–$60 for your debt account. They can still turn a profit even if you pay less than the full amount, which means you have negotiating power. Read Upsolve’s Guide to Beating Unifin to learn about how to make a settlement offer with the company.

Can You Negotiate Every Past-Due Debt?

Not all types of debt can be negotiated, but most consumer debts can be. This includes:

• Credit card debt

• Medical bills

• Personal loans

• Payday loans 

You can also negotiate back taxes and tax debts with the IRS.

If your debt is backed by collateral, like a car (auto loan) or home (mortgage), you probably can’t negotiate it because the lender can just take the property back. Federal student loans are also usually non-negotiable, though there are an increasing number of ways to get student loan forgiveness. 

Option 3: Ignore the Debt (Not Recommended)

You may be tempted to ignore Unifin’s calls or notices, but doing so won’t make the debt go away. In fact, it can lead to severe consequences like being sued and having your wages garnished or bank account frozen. If Unifin takes you to court, you’ll often end up paying even more than the debt since you may also be responsible for legal fees and court costs if you lose the case.

This is why most experts advise people not to ignore debt collectors. If you truly can’t pay even a reduced amount as part of a settlement, you may want to consider filing Chapter 7 bankruptcy to avoid wage garnishment orders and further hits to your credit.

What Happens if I Ignore Unifin?

If you ignore Unifin and don’t deal with the debt, you risk:

• Hurting your credit score

• Owing more in the long run due to interest and fees

• Getting sued, which can lead to wage garnishment or losing your property

• Feeling even more stressed — debt collectors don’t give up easily

• Having the debt haunt you for many years — the statute of limitations for many consumer debts in most states is 3–6 years

Bottom line: Dealing with debt (especially when you don’t have the money to repay it) is stressful, but ignoring your debt can be even more stressful. If you’re reading this article, you’ve taken a very important step toward reclaiming your power and effectively dealing with your debt. Read Upsolve’s Guide to Beating Unifin to learn about your options.

Does Unifin Sue?

Yes. One of Unifin’s debt collection strategies is to sue people to try to get a court judgment to garnish their wages. 

You’re probably wondering if you’re likely to be sued. This depends on many factors, including your state’s wage garnishment laws, how long your debt has been in collections, and how much you owe.

Though many states prohibit it, some debt collectors will send you documents that are made to look like official court documents but aren’t. If you get sued, you’re usually served papers in person. This process varies by state, but generally, you’ll get a court summons and a formal complaint document. 

You can absolutely respond to the lawsuit on your own. You don’t have to hire a lawyer. To learn how, read How Do You Answer a Summons for Debt Without an Attorney?

Let’s Summarize…

Unifin is a third-party debt collection agency. If you’re being contacted by Unifin, make sure you get a debt validation letter so you can verify the debt is yours and the amount is correct. If it is, consider negotiating a debt settlement. This allows you to pay less than the full amount of the debt and put the matter to rest for good.