Is Commonwealth Financial Systems Legit? CFPB Shut Them Down
Commonwealth Financial Systems was permanently shut down by the CFPB for violating federal debt collection laws. The company illegally refused to validate debts and continued collection efforts despite consumer disputes. Always request debt validation when collectors contact you to protect yourself from paying debts you don't legally owe.
Fight Back NowGetting calls from Commonwealth Financial Systems? You can stop worrying now.
The Consumer Financial Protection Bureau shut down this debt collector in December 2023. They broke federal laws protecting consumers like you.
Respond to Debt Collectors Before It's Too Late
Don't let collectors violate your rights like Commonwealth did. Get help responding to collection attempts and protect yourself from illegal practices.
Answer Collectors NowHere’s what happened and how you can protect yourself from other collectors.
What Is Commonwealth Financial Systems?
Commonwealth Financial Systems was a medical debt collector based in Dickson, Pennsylvania. The company operated until the CFPB permanently closed it down.
Their official phone number was 800-848-2170. The company’s Better Business Bureau rating was F with one-star reviews.
Commonwealth Financial Systems is no longer collecting debts. You don’t need to respond to their calls or letters.
Commonwealth Broke Two Major Federal Laws
The CFPB discovered Commonwealth violated the Fair Credit Reporting Act and Fair Debt Collection Practices Act. Both laws protect you from abusive collection practices.
Fair Credit Reporting Act Violations
Commonwealth failed to investigate disputed debts properly. They also didn’t inform credit bureaus when consumers disputed accounts.
These violations damaged credit reports across the country. Many people saw false collection accounts on their reports.
Fair Debt Collection Practices Act Violations
The company refused to validate debts when consumers requested proof. Under federal law, collectors must stop collection efforts until they validate the debt.
Commonwealth ignored these requests completely. They continued harassing people for debts they couldn’t prove were real.
If other collectors are violating your rights, our partner Solo can help you respond and protect yourself.
The CFPB’s Three-Part Enforcement Action
The Consumer Financial Protection Bureau didn’t just slap Commonwealth on the wrist. They shut them down permanently.
Permanent Shutdown
Commonwealth can no longer buy, sell, or collect debt. The company cannot help others with debt collection either.
You won’t receive any more calls or letters from this company.
Credit Report Deletions Required
The CFPB ordered Commonwealth to contact all credit bureaus. They must delete every Commonwealth collection account from consumer reports.
Check your credit report to confirm these accounts are gone. You deserve accurate credit reporting.
$95,000 Fine to Victim Relief Fund
Commonwealth must pay $95,000 to help victims of their illegal practices. The fine goes to the CFPB victim relief fund.
How to Protect Yourself From Debt Collectors
Commonwealth’s shutdown teaches an important lesson. You have powerful rights under federal law.
Always Request Debt Validation
Never pay a debt collector without proof you owe the money. Many people paid Commonwealth for debts they didn’t actually owe.
You can stop collectors in their tracks with a debt validation letter. Send this letter as soon as a collector contacts you.
What to Include in Your Validation Request
Your debt validation letter should request specific information:
- The original creditor’s name
- The exact amount you allegedly owe
- A copy of your signed contract with the original creditor
- The date of your last transaction on the account
- Proof the collector is licensed to collect this debt
- Proof the collector can legally operate in your state
Once the collector receives your letter, they must stop contacting you. They can’t resume collection until they provide validation.
When Validation Letters Don’t Work
Validation letters only work before a lawsuit is filed. If you’ve already been sued for debt, you need a different strategy.
You can still fight back in court. Many debt collection lawsuits can be settled for less than the full amount.
Our partner Solo helps you respond to debt lawsuits and negotiate settlements.
What Happens If Collectors Ignore Your Validation Request
Collectors who ignore validation requests break federal law. You can file complaints and potentially sue them.
Commonwealth Financial Systems paid the price for ignoring consumer rights. Other collectors will face similar consequences if they break the rules.
File a CFPB Complaint
The Consumer Financial Protection Bureau accepts complaints against debt collectors. Your complaint helps them identify patterns of illegal behavior.
You can file complaints online at the CFPB website. Include all documentation of your interactions with the collector.
Consider Legal Action
The FDCPA allows you to sue debt collectors for violations. You may recover damages and attorney fees.
Many consumers have successfully sued collectors for ignoring validation requests. Your case could result in financial compensation.
Check Your Credit Report for Commonwealth Accounts
The CFPB ordered Commonwealth to delete all collection accounts. You should verify these deletions on your credit report.
Pull your credit reports from all three major bureaus. Look for any Commonwealth Financial Systems entries.
If you still see Commonwealth accounts, dispute them immediately. The company was ordered to remove these entries.
Don’t Let Other Collectors Intimidate You
Commonwealth’s shutdown proves that consumer protection laws work. You have rights, and agencies like the CFPB enforce them.
Never let a debt collector bully you into paying without proof. Always request validation before sending money.
Knowledge of your rights saves you money and stress. Collectors count on consumers not knowing the law.