Is IC System Legit? How to Settle Your Debt

IC System is a legitimate debt collection agency based in St. Paul, Minnesota. Founded in 1938, the family-run company collects debts for hundreds of creditors nationwide. They primarily pursue medical bills, utility debts, and government obligations.

You can resolve your debt with IC System through negotiation. The key is clear communication and understanding your rights. Getting behind on bills happens, especially after job loss or financial setbacks. Debt collectors may contact you, but you have options to settle for less.

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Don't let IC System win by default. You have 14-30 days to respond and protect your wages from garnishment. Generate your Answer now before the deadline passes.

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Who Does IC System Collect For?

IC System purchases unpaid debts from original creditors at reduced prices. They then attempt to collect the full amount from consumers. The company operates as an authorized debt collection agency under federal regulations.

Understanding who you’re dealing with helps you negotiate effectively. IC System works with various creditors across medical, utility, and government sectors.

IC System Reviews from Real Consumers

Consumer experiences with IC System vary widely. You can read reviews on these platforms:

Google business reviews
Better Business Bureau profile
CFPB consumer complaint database

Some consumers report positive experiences with professional service. One reviewer shared they successfully resolved two collections accounts without credit report damage. The reviewer emphasized that communication and timely payment arrangements made the difference.

Clear communication is your best tool. Explain your financial situation honestly and work toward an amicable resolution.

How to Negotiate a Settlement with IC System

Settling your debt avoids litigation and saves you money. Follow these three steps to reach an agreement.

Step 1: Calculate Your Maximum Payment

Determine what you can actually afford before starting negotiations. Review your monthly expenses and available savings carefully. A lump sum payment gives you stronger negotiating power.

If you can’t afford a lump sum, calculate installment amounts. Be realistic about your budget to avoid missed payments.

Step 2: Start Settlement Negotiations

Offer 30% to 50% of the total debt as your opening position. Collectors typically accept lower amounts for immediate lump sum payments. Prepare to negotiate upward from your initial offer.

Our partner Solo can help you negotiate settlement offers automatically. The tool sends and receives offers until you reach an agreement.

Step 3: Get Written Confirmation

Never pay without a written debt settlement agreement. The document must state that your payment settles the debt in full. Request confirmation that IC System will report the account as “settled” or “paid.”

Written agreements protect you from future collection attempts. Review all terms carefully before sending payment.

How to Respond to an IC System Lawsuit

IC System may sue you if you fail to pay. You have 14 to 30 days to respond depending on your state. Missing this deadline results in a default judgment against you.

Default judgments allow wage garnishment and bank account levies. Responding to the lawsuit protects your income and assets. You can represent yourself by following these steps.

Step 1: File a Written Answer

Your Answer responds to each allegation in the Complaint. You have three options for each claim:

Admit: You agree you owe the debt
Deny: You challenge the collector to prove their claim
Deny due to lack of knowledge: You state you don’t have enough information

Our partner Solo helps you draft your legal Answer in minutes. The service guides you through each required section.

Step 2: Assert Affirmative Defenses

Affirmative defenses are facts that defeat the collector’s claims. Common defenses include statute of limitations violations and lack of documentation. You must include these defenses in your Answer or lose the right to raise them.

Research which defenses apply to your situation. State laws vary on debt collection timeframes and requirements.

Step 3: File Your Answer with the Court

Print two copies of your completed Answer. Mail one copy to the court via certified mail. Send the second copy to the plaintiff’s attorney via certified mail.

Keep your certified mail receipts as proof of filing. Meeting the deadline is critical to avoiding default judgment.

Your Rights Under the FDCPA

The Fair Debt Collection Practices Act protects you from abusive collectors. The FTC enforces this federal law against third-party collection agencies. IC System must follow these rules when contacting you.

Debt collectors cannot:

Call before 8 AM or after 9 PM
Claim you owe amounts not legally owed
Use profanity or verbal abuse
Threaten arrest or jail time
Make threats they cannot legally carry out
Discuss your debt with third parties

FDCPA violations are common despite being illegal. Collectors count on consumers not knowing their rights. You can sue for $1,000 per violation plus attorney fees.

Document every interaction with IC System. Keep records of calls, letters, and voicemails. Evidence helps if you need to file a counterclaim.

What to Do If IC System Contacts You

Take immediate action when IC System calls or writes. Ignoring debt collectors makes your situation worse. Respond strategically to protect your rights.

Request debt validation in writing within 30 days of first contact. The collector must prove they own the debt and the amount is accurate. Our partner Solo provides templates for validation letters and lawsuit responses.

If IC System violates the FDCPA, consider filing a complaint. You may be entitled to damages even if you owe the debt. Many cases settle quickly when collectors face legal consequences.

Frequently Asked Questions

What is IC System and are they legitimate?

IC System is a legitimate debt collection agency founded in 1938 and based in St. Paul, Minnesota. The family-run company collects debts for hundreds of creditors, primarily focusing on medical bills, utility debts, and government obligations.

How do I settle my debt with IC System for less?

Calculate what you can afford to pay, then offer 30-50% of the total debt as a lump sum payment. Negotiate upward if needed, but always get a written settlement agreement before paying. The agreement should state the payment settles the debt in full and will be reported as paid or settled to credit bureaus.

What happens if IC System sues me?

You have 14-30 days to respond depending on your state. File a written Answer responding to each allegation, assert affirmative defenses, and send copies to the court and plaintiff's attorney via certified mail. Failing to respond results in a default judgment that allows wage garnishment.

Can IC System call me at any time?

No. Under the FDCPA, IC System cannot call before 8 AM or after 9 PM. They also cannot use abusive language, threaten illegal actions, or discuss your debt with third parties. You can sue for $1,000 per violation if they break these rules.

How do I validate a debt from IC System?

Request debt validation in writing within 30 days of first contact. IC System must provide proof they own the debt and verify the amount is accurate. They cannot continue collection efforts until they provide this validation.