Class Action Investigation: Jefferson Capital Systems, LLC

Information about Jefferson Capital Systems, LLC

Jefferson Capital Systems, LLC is a limited liability company, organized under the laws of Georgia, with its principal place of business at 16 McLeland Road, St. Cloud, Minnesota, 56303.

Jefferson Capital Systems, LLC, was the subject of a Federal Trade Commission enforcement action for alleged (a) violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., and (b) 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. (Order here)

Complaints about Jefferson Capital Systems, LLC

On Internet sites set up to collect complaints about business, there are many recent complaints about Jefferson Capital Systems’ debt collection activites, ie.

  • “I am 83 years old and received several collections for a credit card debt that, if it was even mine, would have to have been more than 20 years old.”[1]
  • “Jefferson Capital Systems, LLc (sic) said they were attempting to collect a debt for a Credit Card from back in 2006 that I never even applied for.”[2]
  • “They’re trying collect an eronious (sic) debt in the amount of $2,200.13 claiming it is an HSBC account. I don’t have, nor did I ever have and HSBC credit card, loan or bank account.  They’re now offering me to settle for $1,100.20.  I believe they make these collections up thinking someone is ignorant enough to pay them.  They should be investigated for fraud.”[3]

[1], accessed 8/5/14.

[2], accessed 8/5/14.

[3], accessed 8/6/14.

Have You Been Sued for a Credit Card Debt in Small Claims Court by Jefferson Capital Systems, LLC?

Jefferson Capital Systems, LLC is a debt buyer.  Debt buyers purchase old credit card debts (often for pennies on the dollar) and then sue consumers in small claims court.  Frequently, default judgments enter against people who have had no opportunity to defend themselves against small claims lawsuits filed against them.

This is a problem of national concern.  Small claims courts throughout the country are experiencing a glut of credit card lawsuits pursued by sophisticated debt buyers who reap great profits.  Many sue on questionable debts and use illegal tactics against America’s poorest and most vulnerable consumers.  In a recent New York Times Article, a judge with first-hand experience of the problem said that in 90% of cases, credit card debts cannot be proven.

To curb abuses by high volume professional debt collectors in Massachusetts Courts, the  Massachusetts Small Claims Rules were amended in 2009.  According to Small Claims Rule 1, the term “assigned debt” means “a claim or judgment where the right to collect the debt has been assigned by the creditor to another person or entity.” Each of the requirements of Rule 2(b) apply in a small claims cases regarding credit card debt purchased by a debt buyer, and must be followed in order to comply with Massachusetts Small Claims Rules.

The requirements of Rule 2(b):

“Additional Requirements for plaintiffs in trade or commerce or pursuing assigned debt.  Any plaintiff pursuing a claim incurred in the course of plaintiff’s trade or commerce, or pursuing a claim for assigned debt, shall file along with the Statement of Small Claim form the Verification of Defendant’s Address form, certifying that he or she has verified the defendant’s mailing address in the manner set forth therein. The form need not be served on the defendant.

Any such plaintiff shall include the following information in the description of claim in the Statement of Small Claim form when the claim is filed with the court:

(1) The name of the original creditor (if different from plaintiff’s);

(2) The last four digits of the account number assigned by the original creditor, if any; and

(3) The amount and date of the defendant’s last payment, if any.

If the plaintiff fails to comply with this section and the defendant does not appear at the scheduled trial, no default judgment shall be entered for the plaintiff and the claim shall be dismissed without prejudice.


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