Knight Adjustment Bureau: How to Settle Debt for Less

Knight Adjustment Bureau sent you a letter. The number is bigger than you expected. Your credit report now shows a collection account you didn't see coming.

Good news: You can negotiate. Knight Adjustment Bureau settles debts regularly, often for 50-70% of the claimed balance. They're a business. They bought your debt for pennies on the dollar. They'll take less than the full amount if it means getting paid now.

Here's how to do it without hiring an attorney.

Who Is Knight Adjustment Bureau?

Knight Adjustment Bureau is a third-party debt collector based in Holladay, Utah. They've been collecting debts since 1975. Their office sits at 5525 S 900 E, Suite 215, and their main phone line is 801-531-7251.

If you're getting calls from 800-748-4113 or similar numbers, it's them.

They collect consumer debts: credit cards, medical bills, personal loans, payday loans. They typically buy these accounts after your original creditor gave up. That means they paid a fraction of what you supposedly owe. A $5,000 debt might have cost them $500 to acquire.

This matters because it means they have room to negotiate. They're not trying to recover the full amount. They're trying to profit above what they paid.

What People Say About Knight Adjustment Bureau

Knight Adjustment Bureau holds an A- rating with the Better Business Bureau. That sounds fine until you read the complaints.

Common issues reported to the BBB and Consumer Financial Protection Bureau:

• Attempting to collect debts from the wrong person
• Reporting inaccurate balances to credit bureaus
• Difficulty reaching a live representative
• Aggressive or rude phone tactics
• Claiming larger amounts than originally owed

The CFPB complaint database shows hundreds of complaints. Many consumers report that Knight Adjustment Bureau added fees or interest that inflated the original debt. Others say they were contacted about debts they never incurred.

This doesn't mean you shouldn't pay legitimate debts. It means you need to verify what you actually owe before sending money.

Verify the Debt Before You Negotiate

Never negotiate until you've confirmed the debt is yours and the amount is accurate.

You have 30 days from the date of Knight Adjustment Bureau's first written notice to request debt validation. Send a letter by certified mail demanding:

• The original creditor's name
• The original account number
• The date the debt was incurred
• An itemized accounting of the balance (principal, interest, fees)
• Proof that Knight Adjustment Bureau owns the debt or has authority to collect it

Once they receive your validation request, they must stop collection activity until they provide the documents. If they can't validate, they must remove the collection from your credit report.

If the debt is valid but the amount looks inflated, challenge the specific charges. Ask for contracts or statements showing how they calculated interest and fees. Many collectors can't produce this documentation.

How Much Should You Offer Knight Adjustment Bureau?

Start low. Offer 25-30% of the claimed balance as your opening position.

If they claim you owe $6,000, offer $1,500 to $1,800 as a lump sum settlement. They'll counter higher. Most debt collectors settle between 40% and 70% of the balance, depending on how old the debt is and how badly they want to close the file.

Older debts settle for less. If your account has been in collections for two years, Knight Adjustment Bureau paid very little for it. They have more motivation to accept a lower percentage.

Your leverage increases if:

• The statute of limitations is approaching (3-6 years in most states)
• The debt is uncollectible due to your financial situation
• They can't validate all the charges
• You're considering bankruptcy

If you file for bankruptcy, Knight Adjustment Bureau gets nothing. They know this. If you mention you're exploring bankruptcy (and mean it), they often become more flexible.

How to Negotiate Your Settlement

Once you've verified the debt and saved some money, start negotiating.

Step 1: Stop Paying Your Original Creditor

If the debt is already in collections, your original creditor won't accept payments anymore. Even if they would, don't pay them. You're negotiating with Knight Adjustment Bureau now.

Step 2: Save Money for a Lump Sum

Collectors prefer lump sum settlements. They'll accept payment plans, but you'll pay a higher percentage. Save the money you were putting toward minimum payments. Build a settlement fund.

If you owe $10,000 and target a 50% settlement, you need $5,000 saved. If you can only save $200 per month, that's 25 months. Plan accordingly.

Step 3: Call and Make Your Offer

When you have cash ready, call Knight Adjustment Bureau at 801-531-7251. Tell them you want to settle the account. State your offer clearly: "I can pay $2,500 today to settle this $5,000 account in full."

They'll likely counter higher. Let them. Don't immediately raise your offer. Say: "That's more than I have. I can do $2,500, or I'll need to look at other options."

Other options means bankruptcy or letting the statute of limitations run out. They understand this.

Step 4: Get It in Writing

Never send money until you have a settlement agreement in writing. The agreement must state:

• The settlement amount
• That payment satisfies the full debt
• That they'll report the account as "settled" or "paid" to credit bureaus
• That they won't pursue additional collection activity

Request the agreement by email or mail before you pay. If they pressure you to pay before sending paperwork, refuse. Legitimate collectors will accommodate this request.

Step 5: Pay Using a Traceable Method

Pay by check, money order, or bank transfer. Never give Knight Adjustment Bureau direct access to your bank account. If they ask for your routing and account numbers, decline.

Keep copies of everything: the settlement letter, your payment method, proof of funds transfer.

Step 6: Confirm They Update Your Credit Report

After payment, Knight Adjustment Bureau should update your credit report within 30-45 days. Check all three bureaus (Equifax, Experian, TransUnion). The account should show "settled" or "paid."

If they don't update it, send a copy of your settlement agreement to the credit bureaus directly and dispute the listing.

What If They Sue You?

Knight Adjustment Bureau can sue you to collect the debt. If you receive a lawsuit summons, you have a limited time to respond—usually 20-30 days depending on your state.

Do not ignore it. If you don't respond, they win by default. They get a judgment, and then they can garnish your wages or levy your bank account.

Filing an Answer costs little or nothing. You can do it yourself. The Answer disputes their claims and forces them to prove the debt in court. Many collectors don't have the original contract or detailed records. If they can't prove it, they lose.

If you've been sued, check whether bankruptcy makes sense. Chapter 7 bankruptcy stops lawsuits immediately through the automatic stay. If you qualify, it wipes out unsecured debts like credit cards and medical bills.

Use our free bankruptcy screener to see if you're eligible. Takes two minutes.

Will Settling Hurt Your Credit?

Yes, but less than you think.

A settled collection account stays on your credit report for seven years from the date of first delinquency. It shows as "settled" rather than "paid in full," which looks worse to lenders.

That said, your credit is already damaged by the collection account. Settling stops the bleeding. The negative impact fades over time, especially if you rebuild with on-time payments on other accounts.

If your credit score is already below 600, the difference between "unpaid collection" and "settled collection" is minimal. What matters more is removing the debt from your life.

Can You Negotiate a "Pay for Delete"?

Maybe, but it's rare.

A "pay for delete" means Knight Adjustment Bureau removes the collection from your credit report entirely in exchange for payment. This is against credit reporting rules, but some collectors do it quietly.

When negotiating, you can ask: "If I pay this in full today, will you delete the tradeline from my credit report?" They'll either agree or decline. Get any agreement in writing.

If they refuse, don't push. Focus on settling for the lowest amount. You can dispute the credit reporting later if there are inaccuracies.

What If You Can't Afford to Settle?

If you don't have cash for a lump sum, you have two options: negotiate a payment plan or explore bankruptcy.

Payment plans are possible, but you'll pay a higher percentage of the debt,often 70-90%. Knight Adjustment Bureau will require automatic monthly withdrawals. If you miss a payment, the deal breaks and they resume full collection efforts.

Bankruptcy might be the better path if:

• You owe more than $10,000 across multiple creditors
• Your income barely covers living expenses
• Collectors are threatening lawsuits or wage garnishment
• You're using credit cards to pay for groceries

Chapter 7 bankruptcy eliminates unsecured debts in about four months. It stops collection calls, lawsuits, and garnishments. Your credit takes a hit, but if you're already behind on payments, the damage is limited.

Run through our bankruptcy screener to see if you qualify. If you do, filing might save you more than settling individual debts.

Know Your Rights When Dealing with Knight Adjustment Bureau

The Fair Debt Collection Practices Act (FDCPA) protects you. Knight Adjustment Bureau cannot:

• Call you before 8 a.m. Or after 9 p.m.
• Contact you at work if you tell them not to
• Threaten violence, arrest, or legal action they don't intend to take
• Use obscene or abusive language
• Call repeatedly to harass you
• Discuss your debt with anyone other than you, your spouse, or your attorney
• Misrepresent the amount you owe

If they violate the FDCPA, you can sue them for up to $1,000 plus attorney fees. Document every call: date, time, who you spoke with, what they said. If they break the rules, you gain leverage in negotiations.

You can also stop their calls entirely. Send a cease-and-desist letter by certified mail stating you want no further phone contact. They must communicate only by mail after that. This won't erase the debt, but it gives you space to plan your response.

The Bottom Line

Knight Adjustment Bureau isn't special. They're a debt collector trying to make money on accounts they bought cheap. You can negotiate. Start at 25-30% of the balance, get everything in writing, and never pay until you have a signed settlement agreement.

If you're juggling multiple debts or facing lawsuits, consider bankruptcy. It's not shameful. It's a legal tool designed to give people a fresh start. Most people who qualify wish they'd filed sooner.

Want to see if you're eligible? Take our two-minute screener. If you qualify, we'll connect you with a bankruptcy attorney who can file your case and stop Knight Adjustment Bureau for good.