How to Settle Debt With Phillips & Cohen Associates (2024)

Having an account sent to Phillips and Cohen Associates hurts your credit score. The collection account can remain on your credit report for up to seven years. Even if you pay the debt in full, it stays on your report. Not paying will lower your credit score even further. If the debt isn’t yours, take action immediately and request verification.

You can settle your debt with Phillips and Cohen Associates. The company has a reputation for working with consumers to resolve debts.

What is Phillips & Cohen Associates?

Phillips & Cohen Associates is a debt collection agency based in Wilmington, Delaware. They specialize in credit card charge-offs, consumer retail debt, and deceased account services. If Phillips & Cohen contacts you, a creditor has sent your debt to collections. You may receive phone calls, letters, or even a lawsuit summons.

The company often purchases debts from original creditors at discounted prices. They then attempt to collect the full amount from consumers. Sometimes they work with debt settlement agencies to help recover payments.

3 Steps to Settle Your Debt With Phillips and Cohen

Phillips and Cohen will work with you to settle your debt. Follow these three steps to reach a settlement agreement:

Step 1: Respond to Any Pending Lawsuit

If Phillips and Cohen has sued you, file a written Answer immediately. You must respond before the deadline, which ranges from 14 to 35 days depending on your state. Your Answer should deny the allegations and assert your affirmative defenses. Filing an Answer prevents a default judgment against you. You can work with our partner Solo to respond to the lawsuit properly.

A default judgment allows the debt collector to garnish your wages or freeze your bank account. Responding buys you time to negotiate a settlement.

Step 2: Make a Fair Settlement Offer

Determine how much you can realistically afford to pay. Make a fair offer based on your budget and the debt amount. Phillips and Cohen often accepts 40% to 60% of the original debt to settle. The company purchases debts for pennies on the dollar, so they still profit from partial payments.

Don’t offer an unreasonably low amount. Offering $5 on a $5,000 debt won’t get a response. Start with a good faith offer around 40% of the total. Be prepared to receive a counteroffer and negotiate.

One consumer named Zach successfully negotiated his three-year-old debt with Phillips and Cohen. He found the company “lenient and flexible” throughout the settlement process. Phillips and Cohen collectors understand that recovering some money is better than nothing.

Step 3: Get the Settlement Agreement in Writing

Never make a payment without a written settlement agreement. Record all phone conversations with Phillips and Cohen Associates. Once you reach an agreement, request written documentation of the settlement terms. The document should specify the settlement amount, payment due date, and confirmation that the debt will be marked as settled.

If you’re being sued, file the settlement agreement with the court. The agreement tells the judge the case should be dismissed upon payment. Keep copies of all documents and payment receipts for your records.

Send a Debt Validation Letter First

Before negotiating, send Phillips and Cohen a Debt Validation Letter. The Fair Debt Collection Practices Act requires debt collectors to verify debts when requested. Phillips and Cohen must provide proof that you owe the debt and that they own it. If they can’t provide proper documentation, they must remove it from your credit report.

Debt collectors often lose documentation when buying debts from original creditors. They may not have proper chain of title proving they own your debt. Requesting validation puts the burden of proof on them. If Phillips and Cohen can’t verify the debt, you’re off the hook.

A debt validation request also serves as a strong defense in a lawsuit. Many debt collectors lack sufficient evidence to prove the debt amount or ownership.

How to Respond to a Phillips and Cohen Lawsuit

If Phillips and Cohen sues you, responding properly is critical. Your written Answer is your first line of defense. Here’s the process:

Respond to Each Claim in the Complaint

The lawsuit Complaint lists specific allegations against you. You must respond to each allegation individually. You can admit, deny, or state you lack sufficient knowledge to respond. Most attorneys recommend denying as many allegations as possible. Denials force Phillips and Cohen to prove each claim with documentation.

Assert Your Affirmative Defenses

Affirmative defenses are legal reasons the lawsuit should be dismissed. Common defenses in debt collection cases include the statute of limitations. Each state has a time limit for filing debt lawsuits, typically three to six years. If Phillips and Cohen waited too long to sue, the case gets dismissed. Other defenses include mistaken identity, already paid debt, or bankruptcy discharge.

File Your Answer and Serve Phillips and Cohen

Submit your Answer to the court before the deadline. Missing the deadline results in an automatic default judgment against you. Make copies of your Answer. Send one copy to Phillips and Cohen’s attorney via USPS certified mail with return receipt. The return receipt proves you properly served the opposing party. Keep one copy for your records and file the original with the court.

You can use our partner Solo to draft and file your Answer to ensure it’s done correctly and on time.

Is Phillips and Cohen Legitimate?

Yes, Phillips and Cohen is a legitimate debt collection agency. They’re registered with the Better Business Bureau and licensed to collect debts. However, being legitimate doesn’t mean they always follow the rules. Many consumers have filed complaints against Phillips and Cohen.

Phillips and Cohen Reviews and Complaints

Phillips and Cohen has poor consumer ratings across review platforms. The company has an average of 2 out of 5 stars on Google reviews. Their Better Business Bureau rating is 1.29 out of 5 stars. Numerous consumers have submitted complaints to the BBB and the Consumer Financial Protection Bureau.

Common complaints include aggressive collection tactics, failure to validate debts, and reporting inaccurate information. Some consumers report harassment and violations of the Fair Debt Collection Practices Act. Most collection agencies have many complaints because they sometimes violate federal debt collection laws.

Your Rights Under the FDCPA

The Fair Debt Collection Practices Act protects consumers from abusive collection practices. The Fair Credit Reporting Act provides additional protections regarding credit reporting. Understanding your rights helps you identify and report violations.

What Debt Collectors Cannot Do

Phillips and Cohen Associates cannot legally engage in these practices:

• Report inaccurate or incomplete information on your credit report
• Refuse to validate the debt when you request verification
• Fail to prove the account is yours within 30 days of your request
• Threaten, harass, or call you repeatedly throughout the day
• Use profanity or abusive language during collection calls
• Publicly publish information about your debts
• Lie about their identity or the purpose of their call
• Fail to identify themselves as a debt collector orally and in writing
• Threaten to have you arrested for unpaid debt
• Call you before 8 a.m. or after 9 p.m. local time
• Discuss your debt with anyone except you, your spouse, or your lawyer

If Phillips and Cohen violates any of these rules, you can sue them. You may recover up to $1,000 per FDCPA violation plus actual damages and attorney fees.

Document Everything

Keep detailed records of all interactions with Phillips and Cohen Associates. Save all letters, emails, and text messages. Write down dates, times, and summaries of phone conversations. Note the name of each representative you speak with. Recording these details protects you if the debt collector violates your rights.

If Phillips and Cohen calls you, consider recording the conversation. Check your state’s recording laws first, as some states require two-party consent. Documentation also helps during settlement negotiations and proves you fulfilled agreement terms.

Alternatives to Settlement

Settling your debt with Phillips and Cohen isn’t your only option. Consider these alternatives based on your financial situation:

Dispute the Debt

If the debt isn’t yours or the amount is wrong, dispute it. Send a written dispute letter explaining why the debt is inaccurate. Phillips and Cohen must investigate and provide verification. If they can’t verify the debt, they must stop collection efforts.

Fight the Lawsuit

You can defend yourself in court if Phillips and Cohen sues you. Many debt collection lawsuits have weaknesses. The collector may lack proper documentation or miss the statute of limitations. Our partner Solo can help you fight the lawsuit and potentially get the case dismissed.

Consider Bankruptcy

If you’re drowning in debt, bankruptcy might be appropriate. Chapter 7 bankruptcy can discharge unsecured debts like credit cards and medical bills. Chapter 13 bankruptcy creates a repayment plan for three to five years. Bankruptcy stops collection efforts immediately through automatic stay. You can speak with a bankruptcy attorney for free to explore your options.

How Settlement Affects Your Credit

Settling a debt for less than you owe impacts your credit score. The settlement appears on your credit report for up to seven years. Your credit report will show the account as “settled” or “paid settled” rather than “paid in full.” Lenders view settled debts negatively, though not as negatively as unpaid collections.

However, settling is better than leaving the debt in collections. An active collection account continuously damages your credit score. Settling stops the bleeding and allows you to start rebuilding credit. After settlement, focus on rebuilding your credit with positive payment history.

Rebuilding Credit After Settlement

Once you settle with Phillips and Cohen, start repairing your credit immediately. Pay all current bills on time every month. Payment history makes up 35% of your credit score. Consider getting a secured credit card to build positive payment history. Keep credit utilization below 30% of available credit.

You can also work with our partner Kikoff to rebuild your credit score through their credit building program.

Check your credit reports regularly for errors. Dispute any inaccurate information with the credit bureaus. Building credit takes time, but consistent positive behavior improves your score steadily.