How to Settle Debt With Financial Recovery Services (FRS)

By Talk About Debt Team
Reviewed by Ben Jackson
Last Updated: February 17, 2026
6 min read
The Bottom Line

Financial Recovery Services is a legitimate debt collector that must follow FDCPA rules. You can validate the debt, negotiate a settlement for less than you owe, and respond to lawsuits to avoid default judgment. Taking action protects your rights and helps you resolve the debt on your terms.

Respond to FRS Lawsuit

Financial Recovery Services contacted you. You feel panicked and cornered.

You can handle this debt collector without losing control. You have rights, options, and a clear path forward.

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Don't let FRS win by default. Generate your Answer to their lawsuit and negotiate a settlement online without stressful phone calls.

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In this guide, you’ll learn who Financial Recovery Services is. You’ll discover how to negotiate with them. You’ll find out how to settle your debt for less.

What Is Financial Recovery Services?

Financial Recovery Services is a legitimate debt collection agency. Founded in 1996, they specialize in recovering money from delinquent accounts.

You might see them listed as FRS, Financial Recovery Services of Minnesota, or fin rec svc.

Contact Information for FRS

  • Telephone: 952-831-4800
  • Consumer Hotline: 866-438-2860
  • Address: 1345 Mendota Heights Road, Suite 100, Mendota Heights, MN 55120
  • Website: https://www.fin-rec.com/

Who Does Financial Recovery Services Collect For?

FRS collects debts across multiple industries. You might hear from them about various types of accounts.

They collect for companies in these sectors:

  • Banks
  • Credit card companies
  • Retail stores
  • Installment loan providers
  • Service contract companies
  • Utilities

Your delinquent utility bill could land with FRS. So could your unpaid credit card or auto loan.

What People Say About Financial Recovery Services

Online reviews for FRS are mixed. Some consumers report positive experiences.

You can read reviews on these platforms:

  • Google Reviews
  • Better Business Bureau
  • Yelp

Mixed reviews shouldn’t stop you from engaging with FRS. Many debt collectors, including this one, work with people to resolve debts.

Proactive communication is your best strategy. Our partner Solo can help you negotiate online through a digital settlement platform.

The Law Protects You Against Debt Collectors

Debt collection is a regulated industry. FRS must follow strict rules under the Fair Debt Collection Practices Act.

Some collectors resort to bullying tactics. Harassment is illegal. Spam calls are illegal. Profane language is illegal.

Here are your key rights when dealing with Financial Recovery Services:

Your Right to Privacy

No debt collector can discuss your debt with unauthorized third parties. They cannot call friends, coworkers, or extended family about your debt.

FRS cannot send you postcards. Voice messages must be limited-content messages only.

Limited-content messages must include:

  • A company name that doesn’t indicate debt collection
  • A callback phone number
  • A request for you to reply
  • Optional information like a greeting or representative’s name

Social media contact must be private. Your friends and followers cannot see debt collection messages.

Your Right to Respect and Dignity

Owing money doesn’t give anyone permission to disrespect you. FRS employees cannot use profanities or derogatory language.

Debt collectors cannot call your workplace after you ask them to stop. They cannot try to embarrass you at work.

Your Right to Information

Every FRS caller must fully identify themselves. They must provide their full address and phone number.

After first contact, they must send a written debt validation notice. You should receive this within five days.

The validation notice must include:

  • The company’s name and mailing address
  • Name of the original creditor
  • The debt account number
  • The current amount owed with all fees and interest
  • Your rights as a consumer
  • A way to dispute the debt

If you dispute a debt, FRS must investigate. They must provide documentation to support their claims.

Your Right to Send a Cease and Desist

You can stop debt collectors from contacting you. Telling FRS to cease contact doesn’t resolve the debt.

A cease and desist letter stops the hassle of endless calls and messages.

How to Engage With Financial Recovery Services

You can reduce your chances of dealing with debt collectors. You can also handle them effectively when they contact you.

Pay Debts Promptly

The best way to avoid debt collectors is staying current. Keep your end of the contract you signed.

Your creditor won’t involve third-party collectors if you pay on time.

Check Your Credit Report Regularly

Review your credit report before accounts go to collections. You can catch errors early and protect your credit score.

You can get free credit reports annually from TransUnion, Equifax, and Experian. Checking your own credit report doesn’t hurt your score.

Send a Debt Validation Letter to FRS

A debt validation letter is your request for proof. You can send this letter after receiving the validation notice.

The letter buys you time while FRS proves every detail is accurate.

Use certified mail when sending your letter. You’ll know exactly when FRS receives it.

FRS has thirty days to investigate and respond. If they can’t prove you owe the debt, they must stop collection efforts.

Report Fraudulent and Abusive Collectors

Your FDCPA rights are legally enforceable. You can take action if FRS oversteps.

Report violations to the Federal Trade Commission (FTC). Also report to the Consumer Financial Protection Bureau (CFPB).

You can sue FRS for harassment. If you win, you’re entitled to damages up to $1,000 per violation.

Report suspected identity theft to authorities immediately.

How to Negotiate With Financial Recovery Services

You can negotiate a debt settlement with FRS. Settling means they accept less than the full amount owed.

Debt collectors often accept settlement offers. Accepting partial payment lets them close delinquent accounts.

Follow these steps to negotiate with Financial Recovery Services:

  1. Respond to any lawsuit from FRS in a timely fashion.
  2. Calculate what you can realistically pay toward the debt.
  3. Reach out to FRS with your settlement offer in writing.
  4. Start with an offer lower than your calculated amount.
  5. Memorialize any agreement in a written Debt Settlement Agreement.
  6. Pay the agreed amount on time.

For example, if you owe $7,000, calculate what you can pay. Maybe you can afford $3,000 while still covering living expenses.

Start negotiations at $2,000. You leave room to negotiate upward if FRS rejects your offer.

Both you and the debt collector must sign the settlement agreement. Our partner Solo can help you negotiate and settle online without phone calls.

How to Respond If Financial Recovery Services Sues You

FRS filed a lawsuit against you. Your first step is filing a written Answer.

Many people ignore debt lawsuits. Some don’t know where to begin responding.

Ignoring the lawsuit leads to a default judgment. Default judgment gives FRS the right to garnish your wages.

Avoid default judgment by following these three steps:

  1. Respond to every paragraph in the Complaint.
  2. Assert your affirmative defenses.
  3. File the Answer with the court and send a copy to FRS.

What Are Affirmative Defenses?

Affirmative defenses are legal reasons the court should rule in your favor. Common defenses include:

  • The statute of limitations has expired
  • The debt amount is incorrect
  • You already paid the debt
  • FRS lacks proper documentation
  • The debt belongs to someone else

You must file your Answer by the deadline in the Summons. Missing this deadline results in automatic loss.

Our partner Solo helps you draft and file your Answer to respond to FRS lawsuits.

Your Next Steps With Financial Recovery Services

You now know how to handle Financial Recovery Services. You understand your rights under federal law.

Validate the debt first. Negotiate a settlement if the debt is accurate. Respond to any lawsuit immediately.

You can settle this debt and move forward with your financial life.

Frequently Asked Questions

What is Financial Recovery Services?

Financial Recovery Services (FRS) is a legitimate debt collection agency founded in 1996. They collect debts for banks, credit card companies, retailers, installment loan providers, service contract companies, and utilities. You might see them listed as FRS, Financial Recovery Services of Minnesota, or fin rec svc.

How do I validate a debt from Financial Recovery Services?

Send FRS a debt validation letter within 30 days of first contact. Use certified mail so you have proof of delivery. FRS must investigate and provide documentation proving you owe the debt. If they cannot prove the debt is accurate, they must stop all collection efforts.

Can I negotiate a settlement with Financial Recovery Services?

Yes, you can negotiate a settlement for less than the full amount owed. Calculate what you can afford to pay, then make a written offer below that amount. FRS often accepts settlements because it lets them close delinquent accounts. Get any agreement in writing before making payment.

What happens if I ignore a lawsuit from Financial Recovery Services?

Ignoring a lawsuit from FRS leads to a default judgment against you. Default judgment gives FRS the legal right to garnish your wages and place liens on your property. You must file a written Answer to the lawsuit by the deadline listed in the Summons to avoid this outcome.

What are my rights when dealing with Financial Recovery Services?

Under the Fair Debt Collection Practices Act, you have the right to privacy, respect, and accurate information. FRS cannot discuss your debt with unauthorized third parties, use profane language, or contact you at work after you ask them to stop. You can also send a cease and desist letter to stop all contact.