Sued by Jefferson Capital Systems?
- Author: Mike Weston
- Last Modified: January 8, 2025
We are a law firm that fights Jefferson Capital Systems, LLC debt collection lawsuits.
Jefferson Capital Systems, LLC is a debt buyer who buys debt from original creditors. Jefferson Capital currently touts itself to be the fourth largest debt buyer in the United States. This debt buyer is also currently expanding into the United Kingdom and Canada. Jefferson Capital specializes in purchasing and managing “non-performing,” i.e., charged-off and delinquent consumer loans and debt portfolios. This debt buyer works with original creditors to buy charged-off, delinquent accounts before attempting to collect the amounts allegedly owed by consumers, which may be showing up on your credit report.
Jefferson Capital Systems, LLC acquires charged-off consumer accounts from various original creditors, e.g., credit card companies, banks, and other lenders. JCap typically buys these charged-off accounts at a bulk discount and will then attempt to collect the full amount from individual consumers. Once Jefferson Capital purchases these “non-performing” debts ” within a debt portfolio, it steps into the shoes of the original creditor and manages the collection process, working to recover the amounts allegedly owed from consumers.
Once a charged-off debt is purchased from an original creditor by Jefferson Capital Systems, LLC, this debt buyer may then utilize your local court system to file a lawsuit against you in an attempt to collect your alleged debt.
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Who Is Jefferson Capital LLC?
Jefferson Capital LLC is a buyer of charged off debt. Jefferson Capital may be showing up on your credit report or they may have served you with a lawsuit. Equable files thousands of collection lawsuits each year against consumers. Jefferson Capital LLC will hire a local collection attorney to file the lawsuit.
Jefferson Capital LLC will rely on witness testimony in a “business record affidavit” when trying to prove their case against you. It is important to fully understand the rules of evidence when attacking these affidavits and any documents attached.If you have recently been served with an Jefferson Capital LLC lawsuit then you should take action to protect yourself.
Jefferson Capital Systems, LLC is a debt collector according to their website, Its mailing address is 16 McLeland Road, Dept. C, St. Cloud, MN 56303. This information matches the information on the Better Business Bureau’s (BBB) website for this company. According to the BBB, Jefferson Capital Systems has had 576 complaints in the last three years. Of that total, 547 complaints were directly related to billing and collection issues. However, Jefferson Capital Systems is also located at 5 Concourse Pkwy NE Ste 400, Atlanta, GA 30328-9114 according to another BBB Review, This can create some confusion for a consumer who is being sued by this debt collector.
However, in a complaint filed by the Federal Trade Commission in the Northern District of Georgia, Atlanta Division against Jefferson Capital Systems, LLC, we can find the answer. In the complaint it states, Jefferson Capital Systems, LLC “is a Georgia limited liability company that maintains its principal place of business in St. Cloud, Minnesota.”
According to the complaint, Jefferson Capital Systems, LLC is a subsidiary of CompuCredit Corporation. Unfortunately, that is not who owns Jefferson Capital Systems, LLC today. In August 2012, CompuCredit sold the company to Flexpoint Fund II, L.P. for $130.5 million. If you follow the link on the webpage for Jefferson Capital Systems, LLC, it takes you to a website for Jefferson Capital International. The website states that the company is “an industry-leading provider of traditional and unique recovery services for consumer charged-off accounts. Our clients include creditors and national debt buyers.”
Regardless of who owns Jefferson Capital Systems, LLC, the company still is in the business of buying charged-off accounts and filing lawsuits against individuals to collect that debt.
How Does Jefferson Capital Systems, LLC Collect Charged-off Debts?
When a consumer defaults on a loan or a credit account, the lender will try to collect this account using several different tactics. First, the creditor will write letters, call the customer, and threaten collections. If this does not work, the creditor may turn the account over to a collection company that agrees to accept a percentage of the amount for pursing the individual for payment of the debt. If the collection company cannot get payment, the lender may “charge off” the debt as a bad debt.
When this happens, Jefferson Capital Systems, LLC purchases the charged-off account for pennies on the dollar. It then files a lawsuit against the consumer to collect the full amount owed on the account plus interest, attorney’s fees, and costs. The problem that many consumers face is that Jefferson Capital Systems, LLC does not always follow the rules when trying to collect a delinquent debt.
In the court case referred to above, the Federal Trade Commission alleged that Jefferson Capital Systems, LLC violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. and participated in unfair and deceptive business practices under the Federal Trade Commission Act, 15 U.S.C § 45(a). (See Federal Trade Commission v. Compucredit Corporation and Jefferson Capital Systems, LLC, Case 1:08-CV-BBM-RGV, N.D. Ga., 2008.)
What should you do if you are sued by Jefferson Capital System, LLC?
- Review the Petition or Complaint to determine the original creditor: When you are served with legal papers, Jefferson Capital must disclose the original creditor from whom they purchased your alleged debt. This information will help you understand the nature of the debt collection lawsuit. The details of your case will be outlined in Jefferson Capital’s Petition or Complaint. This document should include the balance alleged and may even include a redacted account number associated with the original account.
- Do Not Ignore the Lawsuit: Ignoring a lawsuit will likely result in a default judgment being obtained against you, which means the court will automatically decide in favor of Jefferson Capital and leave you vulnerable to post-judgment collection techniques
- Review the Petition or Complaint: Carefully read all papers you were personally served or received through alternate service. Note the amount of the debt you owe and any other pertinent details, including any notice of hearing that you may have received
- Gather Documentation: Collect all relevant documents related to the alleged original debt, which is now owned by Jefferson Capital Systems, including any correspondence with Jefferson Capital LLC, account statements, and payment records.
- Respond to the Lawsuit: File a formal response (also known as an “Answer”) with the court by the deadline specified in the lawsuit papers. This is crucial to avoid a default judgment. Your response should address each point in the Petition or Complaint, indicating whether you agree or disagree.
- Consider Settlement Options: If the alleged debt is valid and you are unable to pay it in full, you may be able to negotiate a settlement or payment plan with Jefferson Capital. Oftentimes, Jefferson Capital is willing to settle for less than the full amount owed. Once settled, Jefferson Capital is required to update your credit report to show that the debt has been settled. They are required to report the debt correctly pursuant to the Fair Credit Reporting Act.
- Attend Court Hearings: If the case goes to court, you will need to make sure that you attend all scheduled hearings. There are often multiple hearings which will require you to attend. For most people, needing to attend these hearings being expected to know the court rules of civil procedure is incredibly stressful. Missing a hearing can result in a judgment against you.
Hire a Debt Relief Law Firm on a Fixed Fee Payment Plan: It is advisable to seek legal counsel, especially if you believe the alleged debt is not yours, the amount is incorrect, or if you believe you may have any defenses. A lawyer who specializes in consumer debt or credit matters can provide valuable advice and possibly represent you in court
What Happens With a Judgment?
Do I Need a Lawyer?
Without a Lawyer
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Most of our cases are dismissed by the creditor prior to trial or we reach a favorable settlement for our clients depending on the circumstances of their situation.
Our Results with Jefferson Capital LLC
1) Jefferson Capital Systems, LLC vs. Our Client
J5CV14235107 Travis County Justice Court 5-1
Result: Case Dismissed, no money paid to Jefferson Capital
2) Jefferson Capital Systems, LLC vs. Our Client
Kerr County Court at Law, Cause NO 14484C
Result: Case Dismissed, no money paid to Jefferson Capital
3) Jefferson Capital Systems, LLC vs. Our Client
Dallas County Justice Court 5-2, Cause NO JX1300076P
Result: Case Dismissed, no money paid to Jefferson Capital
4) Jefferson Capital LLC vs. Our Client
Tarrant County Justice Court Pr. 2, Case NO JP0213JS000109661
Result: Case Dismissed, no money paid to Jefferson Capital
5) Jefferson Capital LLC vs. Our Client
Dallas County Justice Court 1-1, Case NO JX1300537H
Result: Case Dismissed, no money paid to Jefferson Capital
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Mike Weston is a seasoned debt lawsuit defense attorney and founder of Weston Legal. Since 2005, Mike has devoted his career to compassionately helping consumers struggling with issues involving their personal and business debts. Mike is grateful to have been able to help tens of thousands of clients become empowered with knowledge on the path to financial stability.
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