FMS Inc.

FMS Inc.

If a company that goes by FMS Inc. or FMS Collections has contacted you, you may or may not have a past-due debt.

But, whether you do or you don’t, you’ll need to respond to the company and get the situation squared away.

FMS Inc. is an all-purpose collection agency, which means they collect for a wide range of businesses and organizations.

Even if you don’t think you legitimately owe the debt, you’ll still need to reach out to the company.

If you can prove the debt is not yours, or that it’s been paid in the past, you should be able to have it removed from your credit report.

But, if it is a legitimate obligation, you’ll need to settle as quickly as possible.

A collection account will stay on your credit report for up to seven years from the date it first became delinquent. It will lower your credit score for that entire time.

That may prevent you from getting new credit, or cause you to pay higher interest rates than you otherwise would.

But, an even worse outcome will be if the collection account turns into a judgment. If that happens, you’ll lose your ability to challenge the debt, and the company may be able to garnish your wages until the debt is fully paid.

We’re going to cover the strategies you can use to deal with FMS Inc. on your own. But, if you don’t think you can, we will provide professional services that can get the job done for you.

About FMS Inc.

Based in Tulsa, Oklahoma, FMS, Inc. was founded in 1993, and describes itself as a full-service receivables management company.

The company also maintains offices in Los Angeles as well as Boise, Idaho.

The company operates in all 50 US states and all Canadian provinces except Saskatchewan.

What Debts Does FMS Inc. Collect?

The company claims that it provides collection services to all industries, but specifically mentions financial services, education loans, and healthcare.

FMS Inc. also lists specific specialties such as:

  • audit deficiencies
  • bankruptcy
  • checks
  • commercial
  • consumer loans
  • credit cards
  • judgments
  • medical
  • mortgages
  • pay loans
  • retail
  • subprime
  • telecommunications
  • utility
  • deceased
  • international
  • offshoring
  • student loans
  • government

That covers a wide variety of potential collection activity, which is to say that if you’re being contacted by FMS Inc., it could be over just about any type of debt you can imagine.

However, some of the services they claim to provide are done through third-party contractors.

No information on FMS, Inc. is available through the Better Business Bureau, at least not as of the time this article was written.

Nor is any information available for the company through the Consumer Financial Protection Bureau (CFPB).

As such, we are unable to provide specific details on the number of complaints filed against the company, or the nature of the most common issues consumers have with the company.

If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.

Ask Lex Law for Help

How to Deal with FMS Collections

There are four basic rules you need to be familiar with in dealing with any collection agency, including FMS Inc:

1. Don’t deal with FMS Collections by phone

Collection agencies love to deal with consumers by phone, which is the exact reason why you shouldn’t. Phone contact gives all the advantages to the collection agency.

They can call you at all hours of the day, whether you are at home or at work, mounting a campaign that could easily cross the line into harassment.

You should also understand that collection agencies routinely record phone conversations. It’s standard procedure, but it’s not harmless.

A collection agency will use a recorded phone conversation to get you to provide additional information—the kind that connects you with the debt—and even to make promises you can’t keep.

As a recorded conversation, the agency not only can rely on the information, but they can also use it as evidence in court if they seek a judgment against you.

Allow yourself one phone conversation with FMS Inc. That will be either the first time they contact you by phone, or if you’re calling to verify their contact information so you can challenge a collection account in your credit report.

In the process, get as much information as you can from the agency, while simultaneously providing as little as possible yourself.

2. All contact with FMA Collections should be in writing

If you shouldn’t deal with FMS Inc. by phone, how should you manage your communications? In writing.

Under federal law, you have a right to insist a collection agency contact you only by written correspondence.

At a minimum, this will eliminate the annoying and harassing phone calls and the pressure they bring.

But, written correspondence has other advantages. First, it avoids the possibility you may be coerced into providing information that will incriminate you, or making a promise to send payment that you can’t fulfill.

Second, it will give you a written track record of all your conversations and agreements with FMS Inc. That will eliminate the confusion tactics collection agencies often employ.

You’ll have a letter from the company spelling out exactly where you are in the process.

That will give you an opportunity to generate a specific, thoughtful response that will move you in the direction of ultimate settlement.

And third, written correspondence may be your best defense if the company chooses to sue you for the debt. It will represent hard evidence of any misrepresentations the company has made that may be in violation of federal law.

Be sure to send all correspondence using certified mail, return receipt requested. That will prove you sent your letters and that FMS Inc. received them.

From there, you should have a dedicated file folder where you’ll store all correspondence, yours and theirs.

3. Never promise to make a payment unless you’re willing and able to make it

This is pretty basic, so we’ll not spend a lot of time on it. If you make a promise to pay a collection agency and fail to follow through, they can use that as evidence against you in a lawsuit.

Never make a promise to pay unless you have the money available and you fully intend to send it. Any other course of action will put you in a worse position.

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.

Specific Strategies for FMS Collections

Now let’s move on to some specific strategies for dealing with FMS Inc. and attempting to get the collection off of your credit:

Demand FMS Inc. Provide a Debt Validation Letter

The first step in dealing with any collection agency is to demand they provide a debt validation letter.

This is a document that should fully connect you to the debt the agency claims you owe.

The letter will include the name of the original creditor, the dollar amount of the debt, when it first went into collection, and any information proving you owe the debt.

You’ll request this letter because you’ll want to know exactly how much information FMS Inc. has. For example, they may be attempting to collect a debt you’ve already paid.

That can happen because the original payment was misapplied or simply ignored. It may also be a case of mistaken identity.

They may be coming after you for the debt although it’s actually owed by someone who has a similar name.

With the debt validation letter, you’ll have the basic information necessary to do your own research and challenge the debt.

And, if the letter comes back incomplete, or if it isn’t supplied at all, you’ll have a legal basis to challenge the debt.

We’ll get into that topic in more detail in a bit.

Request a Goodwill Deletion

If you legitimately owe a collection debt, but it was caused by circumstances beyond your control, you may be able to request a goodwill deletion.

This will start by sending FMS Inc. a goodwill letter. In the letter, you’ll ask them to delete the account from your credit report.

Now, if you’re thinking it won’t be that easy, you’re right. First, you can only request a goodwill deletion if either you already paid the debt or you intend to do so.

In most cases, you’ll also need to pay the debt in full.

But, the most important element of a goodwill deletion request will be your explanation for what caused the debt to go into collection.

If this happened due to an extenuating circumstance, like a prolonged time of unemployment, a divorce, or a major health event, you’ll have a good argument.

Providing documentation supporting your claim will strengthen your case.

It’s not guaranteed to work, and it won’t prevent you from having to pay the debt. But, it might remove a damaging collection account from your credit report.

Offer a “Pay-for-Delete” Agreement

This is something like the goodwill deletion request, except there’s no extenuating circumstance behind it.

Essentially, you’ll be asking FMS Inc. to remove the collection account from your credit report in exchange for you paying the debt in full.

You’ll start by sending FMS Inc. a pay-for-delete letter in which you’ll offer to pay the debt in full in exchange for the agency removing the collection account from your credit reports issued by Experian, Equifax and TransUnion.

They may agree, in the interest of collecting the full amount of the debt. If they do, request confirmation in writing before sending any money.

But, be aware that even if they do agree and back it up in writing, they are under no legal obligation to comply.

They may collect your money, and then fail to remove the collection account from your credit report.

And, since pay-for-delete arrangements are not legally enforceable, you’ll have no recourse.

Demand Deletion if FMS Collections Can’t Fully Validate the Debt

A bit earlier, we discussed the debt validation letter. If FMS Inc. either fails to provide it, or it comes back missing important information, you can dispute the debt.

In theory, at least, FMS Inc. should recognize the error, remove the collection account from your credit reports, and end further collection attempts.

If they don’t, you can open a dispute with the three major credit bureaus. They’ll have 30 days to investigate your dispute.

If FMS Inc. similarly fails to provide a debt validation letter, or the information is incomplete, the credit bureaus will delete the collection account from your credit reports.

Unfortunately, that doesn’t mean FMS Inc. will stop efforts to collect the debt. If that happens, you’ll need to get professional help to deal with them.

Settle the Debt for Less than the Full Amount Owed

This is probably the most common strategy for clearing up collection debts. It won’t remove the collection account from your credit report, but it will get the collection agency out of your life.

And, even as far as your credit report is concerned, a paid collection is better for your credit score than an open one.

You’ll send FMS Inc. a letter offering to settle the debt for less than the full amount. Your initial offer should be no more than half the balance the company claims you owe.

If they’re willing to settle, they’ll respond with a counteroffer. You can counter their counter, and eventually, you’ll meet somewhere in the middle.

You’ll still need to send money, but not as much. But, before you do, be sure to get written confirmation of your agreement from FMS Inc.

They must agree to the following terms:

    1. FMS Inc. will accept the reduced amount in full satisfaction of the entire debt.
    2. The account will be closed, and collection efforts terminated.
    3. The account will be reported as fully paid to all three major credit bureaus.

If you send payment before you receive their letter of agreement, they may accept your money, and then continue to pursue you for the balance of the debt owed.

Collection agencies don’t play fair, so you’ll need to make sure all your bases are covered before sending any money.

Get Professional Help in Dealing with FMS Collections

Not everyone has the ability to take on a collection agency and come out on top.

If you’re feeling overwhelmed by the process, or you feel like you’ve hit a snag in your dealing with FMS Inc., it’s probably time to get professional help.

Fortunately, there’s plenty out there.

A good credit repair company is a good place to start.

They not only can help you settle the debt with FMS Collections, but also may even be able to have the collection information removed from your credit report.

But, if you sense FMS Inc. may pursue a judgment against you, you’ll need legal representation.

A good choice is Lexington Law, since they are a law firm that specializes in credit law.

As such, it’s likely they’ll be able to take measures that will prevent the case from ever going to court, and maybe even have the account deleted completely.

If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.

Ask Lex Law for Help

Prevent Loan Scams

About Prevent Loan Scams

Prevent Loan Scams provides guides, reviews & information to help consumers through every restorative step of their financial journey.

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