Have you received a phone call or letter from a company known as Delivery Financial Services?
If so, it represents a debt that has been placed for collection by a company in any number of different industries. Delivery Financial Services doesn’t have a collection specialty.
It’s a small collection agency, but the size isn’t really a factor in the collection universe. A small collection agency can be just as serious an adversary as a larger one.
Whatever you do, don’t ignore a collection account on your credit report from the company. Also, do not disregard a phone call or written correspondence alleging you owe a debt.
Failing to act on a collection account is the absolute worst strategy. Even if you don’t believe you owe the money claimed.
Collection accounts can be escalated into court judgments if you fail to cooperate with the agency. That doesn’t mean you have to roll over and pay the debt out of fear of litigation.
But you should do everything possible to make sure a judgment isn’t the outcome. If it is, the agency will be able to pursue more advanced collection activities. This could include garnishing your wages until the debt is paid.
You can attempt to deal with Delivery Financial Services on a do-it-yourself basis. This guide is designed to help you do just that.
But if that doesn’t work out, or if you don’t feel qualified to do the job, we’ll also recommend sources of professional help.
About Delivery Financial Services
Delivery Financial Services, LLC is a collection agency based in Phoenix, Arizona, that launched in 2001.
It appears to be a small collection agency, although it provides services nationwide.
Delivery Financial Services is one of the few collection agencies to state categorically on its website that they may pursue legal action against a debtor who fails to pay.
This statement should never be taken lightly. It may or may not suggest the company is more likely to pursue legal action against you.
Maybe more so than other collection agencies, but they’re certainly dangling the possibility.
They also indicate that their clients have not placed debts for collection that have occurred within the past two years.
If Delivery Financial Services is pursuing collection efforts against you, the account is likely to be seriously delinquent.
That may explain why they openly declare they’ll pursue legal action if necessary.
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
Is Delivery Financial Services Legitimate?
Delivery Financial Services is a legitimate debt collection agency with a Better Business Bureau rating of “C.” They sit at about the middle of the scale of A+ to F.
The BBB reports 11 complaints against the company within the past three years, of which 10 have been answered, and others have been resolved in the consumer’s favor.
Only seven of the complaints include details, which is too small a sample to indicate a pattern.
What Debts Does Delivery Financial Services Collect?
Industries serviced by the company include:
- credit cards
- commercial accounts
Before You Deal with Delivery Financial Services
You need to be aware of certain rules before dealing with any collection agency.
1. Don’t deal with collection agencies by phone
Telephone communication with a collection agency is the absolute worst way to communicate.
It’s a method that completely favors the collection agency. Their agents are well versed in how to deal with consumers to collect debts.
Meanwhile, consumers rarely have a corresponding capability. That makes it easier for the collection agent to harass and even intimidate you into getting yourself deeper into trouble.
For that reason, phone communication with a collection agency needs to be avoided, or at least, minimized. Understand that phone calls with collection agencies are routinely recorded.
That means the information you provide in the conversation can be held against you as evidence in a lawsuit.
Equally important, phone contact enables the collection agency to contact you repeatedly. This may convince you to make promises you can’t keep.
If that happens, the situation can deteriorate quickly.
2. All contact with a collection agency should be in writing
Under federal law, you have a right to insist communication with a collection agency to be handled in writing only. You should take full advantage of this right.
It will eliminate the phone calls, which will be an early win for you.
Inform the collection agency early in the process that all communication is to be handled exclusively in writing. That will offer you the following advantages:
- It greatly reduces the collection agency’s ability to threaten you.
- The agency will have less incentive to harass you since letters don’t have the same effect as phone calls.
- Letters give you a greater ability to control the flow of conversation. Disclose only as much information as you feel is necessary, and avoid incriminating yourself.
- You can address various points in the negotiating process on a one-on-one basis to avoid becoming overwhelmed.
- You’ll be establishing a written track record of communications that will make it easier for you to manage the process.
- If the collection agency pursues legal action against you, a file folder filled with written correspondence between you and the agency may be your best defense. No such protection will be available if most of your communication has been by phone.
Be sure all letters you send to the collection agency are sent by certified mail, return receipt requested. That will provide evidence that you not only sent the letters, but also that the agency received them.
3. Never promise to make a payment unless you’re willing and able to make it
Make a promise to pay a collection agency and fail to deliver, and the collection agency can use that against you as evidence in a lawsuit.
Never promise to pay a collection agency unless you have the funds to make the payment, and fully intend to send it. Anything less will lead to bad outcomes.
4. Familiarize yourself with your rights under federal law
The Fair Debt Collection Practices Act (FDCPA) provides consumers with certain protections from collection agency abuses.
You can learn these protections by reading the Debt Collection FAQs provided by the Federal Trade Commission (FTC).
Just knowing your rights under federal law may give you the upper hand when a collection agency starts getting ugly.
Get Professional Help in Dealing with Delivery Financial Services
Dealing with collection agencies is not for everyone; it’s an acquired skill.
If you don’t feel up to the challenge, or if you’ve attempted and you’re not making any progress, it’ll be time to get professional help.
Start with a good credit repair company. They know how to work with collection agencies and can often have your credit profile improved in the process.
If Delivery Financial Services threatens you with legal action, you’ll need an attorney. We recommend Lexington Law, since they specialize in credit law.
You’ll also want their services if the collection agency fails to fully validate your debt but refuses to stop collection efforts against you.
Specific Strategies for Dealing with Delivery Financial Services
Now that you’re familiar with the basics, let’s move on to specific strategies for dealing with Delivery Financial Services.
1. Demand Delivery Financial Services Provide a Debt Validation Letter
There’s a letter known as a debt validation letter that a collection agency is required to provide you under federal law.
The letter essentially outlines the agency’s claim against you. It will include information about the debt and your liability for it.
That will include the amount of the debt, the name of the original creditor, the date the debt went into collection, the full amount of the debt, what the debt was for, and information that clearly connects you to the obligation.
You need to demand this letter as early in the negotiating process as possible. Once you have the letter, you can compare the information it contains with your own records.
Many collection accounts are an attempt to collect funds on a debt that’s already been paid. Or, it could be a case of mistaken identity.
If you have documentation that can prove your situation, you can insist that Delivery Financial Services end collection efforts against you. In addition, have them remove any negative information from your credit reports.
2. Request a Goodwill Deletion
This is a strategy you can use if a collection account was caused by circumstances beyond your control.
For example, let’s say the account is in collection because you are experiencing a prolonged period of unemployment. You could also be dealing with a debilitating illness or injury, a divorce, or the death of a loved one.
You can send the agency a goodwill letter requesting that the collection account be deleted from your credit reports.
Now, this strategy will not get you out of having to pay the debt. In fact, either the debt must have already been paid, or you plan to do so now.
But it can succeed in having the collection account removed from your credit reports. This will immediately improve your credit scores.
Your letter will need to indicate that either the debt has been paid, or you are about to pay it.
It must also make a compelling case about the circumstances surrounding the account going into collection. Even better is including documentation supporting your claim of extenuating circumstances.
This strategy isn’t guaranteed to work. But if you have a legitimate reason why the account is in collections, it’s worth making the request.
Especially if you paid the debt or you’re in a position to pay it.
Not all collection agencies will agree to do it, but some may. Try it and see what happens.
3. Offer a “Pay-for-Delete” Agreement
This is very similar to a goodwill deletion in most respects. But it doesn’t rely on making a case for extenuating circumstances.
Instead, you’ll be offering to pay the debt—in full—in exchange for the collection agency removing the collection account from your credit reports.
A collection agency may agree to this arrangement to get full payment of the debt quickly.
This may actually be more likely to work with a collection agency like Delivery Financial Services. Their revenue model is based on a contingency fee.
The agency charges the original creditor a fee of between 25% and 50% of the collection amount. But this fee only happens upon payment.
If payment is never received, the collection agency doesn’t earn any income.
You may be able to exploit this compensation system with a pay-for-delete offer.
You’ll do this by sending Delivery Financial Services a pay-for-delete letter. You will explain that you’ll make full payment on the account in exchange for the collection agency removing the collection account from your credit reports.
If they agree, ask them to confirm the agreement in writing. Send the payment only when you’ve received the letter.
That said, even with written confirmation, the collection agency may accept your funds and still not have the collection account removed from your credit reports.
That’s because pay-for-delete arrangements are not legally enforceable.
You have no recourse if the company fails to cooperate, even after confirming the agreement in writing.
4. Demand Deletion if Delivery Financial Services Can’t Fully Validate the Debt
As described in Strategy #1, use a debt validation letter to prove you don’t owe a debt.
But if the company doesn’t provide the letter, or it comes back incomplete, you have a legal right to challenge the claim.
You may even be entitled to compensation because the agency has not complied with federal law.
If the company does not provide the letter, or it comes back incomplete, you should immediately dispute the debt under federal law.
Even if Delivery Financial Services doesn’t drop the case against you, you can go to the credit bureaus and dispute the debt.
They’ll investigate your dispute within 30 days of receipt.
If the collection agency fails to provide complete information about the debt or any information at all, the bureaus will drop the collection account from your credit reports.
But be aware that even if the credit bureaus remove the collection account, the collection agency may continue collection efforts against you. If so, you may need professional help.
5. Settle the Debt for Less than the Full Amount Owed
Use this strategy if you know that you owe the debt Delivery Financial Services claims you do.
It won’t remove the collection account from your credit report, but it will enable you to settle the debt for less than the full amount.
You can do this by sending a letter to Delivery Financial Services proposing to settle the full amount of the debt for a reduced amount.
Your first offer should be no more than half the full amount. If Delivery Financial Services is willing to negotiate, they’ll counteroffer with a higher amount.
You’ll negotiate back and forth until you reach a satisfactory settlement amount. Once it is, send no money, at least not immediately.
Instead, insist Delivery Financial Services provide you with written acknowledgment of their willingness to accept the reduced amount in full satisfaction of the debt.
In addition, request that further collection activities against you be halted, and the account will be reported as paid to all three credit bureaus.
Send payment once the letter is received. But if you send payment before, the company may accept your reduced payment as a partial payment, and continue to pursue you for the balance of the debt.
Absent the letter from the company, you’ll have no evidence that a settlement agreement was ever reached.