How to Settle Debt With State Collection Service (SCS)
If State Collection Service contacts you about a debt, respond quickly and know your rights. You can negotiate a settlement for less than you owe, even if they've filed a lawsuit. Filing an Answer to the lawsuit prevents a default judgment and gives you time to reach a reasonable settlement agreement.
Respond to SCS LawsuitGetting calls from State Collection Service? Stay calm and take control.
You can validate the debt, understand your legal rights, and negotiate a settlement for less than you owe. If State Collection Service has already sued you, filing an Answer stops a default judgment and gives you time to settle.
Beat State Collection Service With a Proper Answer
Don't let State Collection Service win by default. File your Answer and negotiate a settlement for less than you owe. Our partner Solo helps you respond to the lawsuit and protect your rights.
Answer the LawsuitOur partner Solo can help you respond to the lawsuit and negotiate with collectors.
What Is State Collection Service?
State Collection Service is a third-party debt collection agency based in Madison, Wisconsin. They collect debts on behalf of other companies.
You should not ignore their calls or letters. State Collection Service is a legitimate collection agency with legal rights to pursue unpaid debts.
Who Does State Collection Service Collect For?
State Collection Service specializes in medical debt collections. They work with hospitals, medical centers, and healthcare organizations to collect delinquent accounts.
If you have unpaid medical bills, SCS likely purchased your account or received it for collection.
State Collection Service Reviews and Reputation
You can find State Collection Service reviews on several platforms:
- Google Reviews
- Better Business Bureau
- Consumer Financial Protection Bureau complaint database
The reviews are mixed. Some consumers report positive experiences when they engaged directly with SCS collectors.
One borrower named Alysa shared: “Jeffrey was a very understanding person and had a great life conversation with him. He worked very well with me setting up an appropriate payment plan that works with my income.”
The key takeaway? Engaging with State Collection Service improves your chances of reaching a reasonable resolution.
How to Negotiate and Settle Your Debt With SCS
You can negotiate a settlement even if State Collection Service has sued you. The key is responding to the lawsuit quickly.
Filing an Answer prevents a default judgment and opens the door for settlement negotiations.
Steps to Settle With State Collection Service
- Calculate how much you can realistically pay without impacting essential expenses
- Use this formula: Amount available = (monthly income – monthly costs) + savings
- Contact State Collection Service with a written settlement offer
- Start with an offer below your maximum to leave room for negotiation
- Expect multiple rounds of back-and-forth negotiation
- Get any settlement agreement in writing before paying
Most debt collectors will accept 40-60% of the original debt as a settlement. State Collection Service may negotiate even lower depending on your circumstances.
Our partner Solo specializes in helping people negotiate settlements with debt collectors like SCS.
Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) protects you from abusive collection practices. State Collection Service must follow strict rules when contacting you.
What State Collection Service Cannot Do
- Call or contact you at work
- Use vulgar, profane, or abusive language
- Make false threats about lawsuits
- Contact you before 8 AM or after 9 PM
- Harass you with repeated calls
- Discuss your debt with family, friends, or coworkers
Many consumers don’t know these rights exist. Debt collectors count on your ignorance to pressure you into paying.
Document any FDCPA violations. You may have grounds for a counterclaim that could eliminate your debt entirely.
How to Respond to a State Collection Service Lawsuit
If State Collection Service files a lawsuit, you must respond. Ignoring the lawsuit guarantees you will lose.
A default judgment gives SCS the right to garnish your wages and seize your bank accounts.
Three Steps to File Your Answer
- Respond to each claim in the Complaint without admitting fault
- Assert your affirmative defenses
- File the Answer with the court and send a copy to State Collection Service
You typically have 14-30 days to file your Answer, depending on your state. Check your Summons for the exact deadline.
Common Defenses Against State Collection Service
When you file your Answer, you can challenge the lawsuit on several grounds. State Collection Service must prove:
- They have the legal right to sue you
- You are the person who owes the debt
- The amount claimed is accurate
If SCS cannot prove these elements, the court may dismiss the case.
Statute of Limitations Defense
Every debt has a statute of limitations. This is the time limit for filing a lawsuit.
If State Collection Service sued you after the statute of limitations expired, you can file a motion to dismiss. The court should throw out the case with prejudice.
Statute of limitations periods vary by state and debt type. Most range from 3-6 years.
What Happens After You File Your Answer
Filing an Answer is just the first step. You should immediately contact State Collection Service to negotiate a settlement.
Most debt collectors prefer settling over going to court. Trials are expensive and time-consuming.
If you cannot reach a settlement, attend all court hearings. Missing a hearing will result in an automatic judgment against you.
Quick Action Plan for State Collection Service Lawsuits
Follow these steps if SCS takes you to court:
- Document any FDCPA violations (calls before 8 AM, after 9 PM, or at work)
- File your Answer before the deadline on your Summons
- Raise affirmative defenses like statute of limitations
- Demand proof of the debt amount and your legal responsibility
- Contact State Collection Service immediately to negotiate
- Get any settlement agreement in writing before paying
These strategies give you the best chance of beating State Collection Service in court or settling for less.
Consider Filing a Counterclaim
If State Collection Service violated the FDCPA, you can file a counterclaim. Successful FDCPA counterclaims can result in:
- Damages up to $1,000 per violation
- Attorney fees and costs
- Dismissal of the debt collection lawsuit
Common FDCPA violations include calling at unreasonable hours, threatening illegal actions, and contacting third parties about your debt.
Keep detailed records of all communication with State Collection Service. These records become evidence for your counterclaim.