Is Capital Bill Pay Legit? Understanding This Controversial Debt Collector

Debt collection is never a fun process. But when a debt collector starts contacting you to pay up it pays to understand their reputation. Capital Bill Pay is one such controversial debt collector that consumers need to research.

I’ve done the homework for you in this article. Here’s what we’ll cover:

• What is Capital Bill Pay?
• Complaints against Capital Bill Pay
• Steps to take when Capital Bill Pay contacts you
• How to respond to a Capital Bill Pay lawsuit
• Strategies for negotiating with Capital Bill Pay
• Is Capital Bill Pay a scam?

Let’s dive in!

What is Capital Bill Pay and how does it work?

Capital Bill Pay LLC is a debt collection agency based in Franklin Tennessee. They specialize in collecting unpaid medical bills credit cards, personal loans, and other consumer debts.

Here’s some background on Capital Bill Pay:

• Founded in 2003
• Privately-owned company
• 300+ employees
• Collects over $100 million per year
• Member of the Association of Credit and Collection Professionals (ACA International)

Capital Bill Pay uses aggressive tactics to collect debts, including:

• Telephone calls – They may call multiple times a day.
• Letters – Send collection notices in the mail.
• Credit reporting – Report delinquent accounts to credit bureaus.
• Lawsuits – Take consumers to court for unpaid debts.

While debt collection is legal, some of Capital Bill Pay’s practices have drawn consumer complaints and lawsuits. We’ll cover that next.

Complaints against Capital Bill Pay’s debt collection practices

Capital Bill Pay has been in business for a long time and has over 200 complaints with the Better Business Bureau. They’ve also faced over 1,100 grievances filed at the Consumer Financial Protection Bureau.

Here are some of the most common complaints against Capital Bill Pay:

• Harassment – Consumers accuse them of excessive calls, sometimes 10+ times a day. This violates the Fair Debt Collection Practices Act.

• Deceptive practices – Collecting debts consumers don’t owe, inflated balances, adding unauthorized fees.

• Failure to verify debts – Not responding to consumers’ written requests to validate the debt details. Required by law.

• False statements – Threatening arrest, wage garnishment, or lawsuits they don’t intend to file.

• Use of obscene language – Cursing, racial slurs, and belittling remarks during calls.

While these complaints represent a fraction of Capital Bill Pay’s overall business, they highlight serious issues in their collection processes. Consumers being pursued for debts should know their rights.

Steps to take when Capital Bill Pay contacts you

If Capital Bill Pay starts calling about an unpaid bill, don’t panic. Take these smart steps:

• Request a debt validation letter. This forces Capital Bill Pay to verify details like the original creditor and exact balance owed. Send the request via certified mail.

• Dispute inaccuracies. If the amount or details are wrong, send a dispute letter. Make Capital Bill Pay investigate and provide proof.

• Record calls & save letters. This documentation helps if you need to sue for illegal practices later.

• Limit communications. Per FDCPA, send a cease-and-desist letter telling them to only contact you in writing. Stop calls.

• Report violations. File complaints with the Consumer Financial Protection Bureau and your state attorney general.

• Consult an attorney. For serious cases like harassment or fraudulent debts, get professional legal help responding.

Following up disputes with debt validation letters or cease-and-desist notices can force Capital Bill Pay to prove the legitimacy of their collection efforts. Don’t let them steamroll you.

How to respond to a Capital Bill Pay lawsuit

Sadly, Capital Bill Pay sues thousands of consumers annually when debts remain unpaid. If you get hit with a lawsuit over an old bill, here are some tips:

• Don’t ignore the court summons. You must respond within the required window (often 20-30 days) or risk an automatic default judgment against you.

• Review court documents. The summons and complaint from Capital Bill Pay should explain the history of the account. Check for errors.

• Meet response deadlines. Ask the court clerk for details on responding and whether you can get an extension. Miss the deadline and you’ll almost certainly lose.

• File an answer. In your response, address each claim point-by-point. Deny allegations that are false. Raise affirmative defenses like expired statute of limitations.

• Consider legal help. Though not required, consulting a lawyer skilled in debt defense can really strengthen your case against Capital Bill Pay. Or use legal software like SoloSuit for an affordable DIY option to generate court forms.

• Negotiate a settlement. If Capital Bill Pay makes you a reasonable settlement offer to avoid trial, you may want to take it. Get any payment/dismissal deals in writing.

• Show up for court. If your case isn’t resolved beforehand, be sure to arrive early on your hearing date, dress nicely, and bring all your evidence and witnesses.

With the right response strategy, you can potentially get the lawsuit dropped or settled favorably – even when up against a large debt collector like Capital Bill Pay. Don’t let them win by default.

Strategies for negotiating debt settlement with Capital Bill Pay

If you can’t afford to pay off the full balance demanded by Capital Bill Pay, you may be able to settle your account for less. Here are tips to get the best possible deal:

• Act fast. The best settlements come early in the process, before Capital Bill Pay files a lawsuit. They are more incentivized to compromise.

• Get terms in writing. Have Capital Bill Pay sign a settlement contract detailing the lump-sum payment amount and deadline. Get the signed contract before paying anything.

• Look for errors. Review account records for any discrepancies, unauthorized fees or interest that you can leverage in negotiations.

• Raise defenses. For example, expired debts past the statute of limitations have more leverage since suing over them is illegal.

• Report problems. Complain to the CFPB and state attorney general if Capital Bill Pay uses unethical leverage like threats.

• Start high. Many experts recommend beginning settlement offers around 25-50% of the total you allegedly owe. Capital Bill Pay will likely counter higher.

• Get tax implications. Settled credit card debts can potentially be reported as taxable income. Understand the costs before accepting a deal.

With some preparation and negotiating savvy, you could settle your Capital Bill Pay debt for a fraction of what they demand. Don’t rush into any agreement without examining it closely first.

Is Capital Bill Pay a scam?

With all the complaints and controversy surrounding Capital Bill Pay’s tactics, it’s reasonable to ask: Are they a legitimate business or some kind of scam?

The truth is, Capital Bill Pay is a real debt collection company that’s been in business for many years. However, some of their practices walk a fine ethical line. Some key facts:

• They are an accredited and licensed debt collector.

• Capital Bill Pay collects on behalf of many well-known creditors and financial institutions.

• Many alleged debts they collect on are legally owed by consumers.

• They have obtained thousands of court judgments against debtors.

So Capital Bill Pay as a company is not a scam or fraud. But some of their collection methods could be deemed illegal or unethical consumer abuses:

• Aggressive and deceptive calls/letters from collectors

• Trying to collect expired or already paid debts

• Adding unauthorized fees and interest

• Harassing family members or coworkers

• Empty threats about jail time or asset seizure

While every debt collector to some degree faces consumer complaints, Capital Bill Pay seems to have more frequent and severe grievances than average. They walk a fine line between forceful collection and harassment.

The bottom line on Capital Bill Pay

Dealing with Capital Bill Pay as they pressure you to pay off an old debt can be stressful. Their reputation for aggressive tactics means you must be proactive about standing up for your rights.

Don’t let them bully you into paying a debt that’s not yours, expired, or has errors. Follow up disputes with written validation requests. Record interactions. Turn to regulators if they cross legal boundaries.

If sued, take it seriously and respond on time. With legal guidance, you may be able to get the case dismissed or settled favorably. Don’t just ignore the problem – know your debt collection rights.

So is Capital Bill Pay legit? Yes, but that doesn’t mean you shouldn’t proceed carefully in handling debts they claim you owe. With the right precautions, you can handle them legally and limit any financial damage.