How to Resolve Debt With Diversified Adjustment Service

Diversified Adjustment Service is a legitimate debt collection company. You shouldn’t ignore their calls.

If they’ve contacted you, they believe you owe money to another party. You have rights. You can verify the debt and negotiate a lower settlement.

Here’s how to respond effectively and resolve your debt quickly.

Is Diversified Adjustment Service Legitimate?

Diversified Adjustment Service, Inc. is not a scam. It’s a real debt collection agency based in Coon Rapids, Minnesota.

They may contact you about unpaid credit cards, loans, or medical bills. They often collect debts for companies like T-Mobile and other major creditors.

The company operates legally under federal debt collection laws. However, that doesn’t mean they always follow the rules.

Diversified Adjustment Services Reviews and Complaints

Diversified Adjustment has a mixed reputation among consumers. The Better Business Bureau shows nearly 200 complaints registered against them.

The Consumer Financial Protection Bureau lists over 500 complaints. Common issues include:

• Excessive phone calls throughout the day
• Attempts to collect debts consumers don’t recognize
• Refusing to provide proper debt validation
• Contacting consumers about old or invalid debts

Google reviews average 2 out of 5 stars. Many reviewers claim harassment over debts they don’t owe.

These complaints highlight why you must verify any debt before paying.

Contact Information for Diversified Adjustment

You can reach Diversified Adjustment at 800-279-3733. Their mailing address is P.O. Box 32145, Fridley, MN 55432.

Phone representatives are available during regular business hours. They extend service until 8:00 p.m. Central Time Monday through Thursday.

Save all communications with this company. You’ll need documentation if disputes arise.

Your Rights When Dealing With Diversified Adjustment

The Fair Debt Collection Practices Act protects you from abusive collection tactics. Federal law gives you specific rights.

Debt collectors cannot engage in harassment or unfair practices. Know what’s prohibited so you can identify violations.

What Debt Collectors Cannot Do

Diversified Adjustment must follow strict rules when contacting you. They cannot:

• Call you before 8:00 a.m. or after 9:00 p.m.
• Contact you more than once daily
• Fail to identify themselves as debt collectors
• Call your employer, friends, or family about your debt
• Use threatening, vulgar, or intimidating language
• Threaten arrest for unpaid debts
• Refuse to validate your debt when requested
• Continue calling after you’ve requested written communication only

Any violation of these rules gives you grounds to file a complaint.

How to Report FDCPA Violations

Report harassment to the Federal Trade Commission at 877-382-4357. You can also file complaints through the FTC website.

The Consumer Financial Protection Bureau accepts complaints at 855-411-2372. Their online complaint portal works well too.

Document every interaction with dates, times, and what was said. Written records strengthen your complaint.

How to Verify Your Debt With Diversified Adjustment

Never assume a debt is legitimate just because a collector claims it. Mistakes happen frequently in the debt collection industry.

You have the right to request debt validation. Collectors must provide proof before you pay anything.

Request a Debt Validation Letter

Send a written request for debt validation within 30 days of first contact. Diversified Adjustment must then provide documentation proving:

• The name of your original creditor
• The total amount you allegedly owe
• The date of your last payment
• The age of the debt
• Their legal right to collect this debt

Send your validation request via certified mail with return receipt. Keep copies of everything.

The collector must stop collection attempts until they provide validation. Continuing to collect without validation violates federal law.

Check Your Credit Reports

Pull your credit reports from all three bureaus. Look for the debt Diversified Adjustment claims you owe.

The debt should appear on at least one report. If it doesn’t, the debt may be too old or invalid.

Credit reports also show the original creditor and account details. Compare this information to what Diversified Adjustment tells you.

What to Do If You’re Sued by Diversified Adjustment

A debt collection lawsuit is serious. You must respond quickly to protect your rights.

Many consumers ignore lawsuits out of fear or confusion. That’s the worst thing you can do.

File an Answer to the Lawsuit

Your first step is filing an Answer with the court. An Answer is your official response to the lawsuit.

You typically have 14 to 30 days to respond, depending on your state. Check your summons for the exact deadline.

Missing the deadline allows the court to issue a default judgment. Diversified Adjustment wins automatically without proving their case.

Our partner Solo helps you respond to debt lawsuits quickly and correctly.

Raise Proper Defenses in Your Answer

Your Answer should include defenses against the lawsuit. Common defenses include:

• The debt is past the statute of limitations
• The amount claimed is incorrect
• You already paid this debt
• The debt belongs to someone else
• Diversified Adjustment lacks proof of ownership

Each defense forces Diversified Adjustment to provide evidence. Many collectors can’t produce adequate documentation.

Filing an Answer gives you time to negotiate a settlement. Courts often encourage settlement before trial.

How to Negotiate a Settlement With Diversified Adjustment

You don’t have to pay the full amount Diversified Adjustment claims. Debt collectors regularly accept less than the total balance.

Settling for a reduced amount saves you money. It also resolves the debt faster than lengthy court battles.

Start With a Low Initial Offer

Begin negotiations by offering 30-40% of the total debt. Diversified Adjustment will likely reject this first offer.

The rejection opens the negotiation process. They’ll counter with a higher percentage.

Most debt collectors settle between 40-60% of the original balance. The exact amount depends on several factors.

Older debts typically settle for less. Collectors know older debts are harder to prove in court.

Use Written Communication for All Negotiations

Never negotiate settlements over the phone alone. Always get terms in writing before paying anything.

Written agreements protect you from future collection attempts. Some collectors continue pursuing debts even after verbal agreements.

Your settlement agreement should clearly state:

• The total settlement amount
• The payment schedule
• That this payment satisfies the entire debt
• That Diversified Adjustment will report the debt as settled

Our partner Solo handles settlement negotiations through a secure online platform.

Consider Your Payment Options

You can settle debts through lump-sum payments or payment plans. Lump sums often get you better settlement percentages.

If you can’t pay a lump sum, propose a realistic payment plan. Diversified Adjustment prefers guaranteed monthly payments over nothing.

Never commit to payments you can’t afford. Missing payment plan installments may void your settlement agreement.

Making Payments to Diversified Adjustment

Once you agree on settlement terms, stick to your payment schedule. Missing payments can restart the collection process.

Diversified Adjustment offers online payment options through their website. You can also mail payments to their Minnesota address.

Document Every Payment You Make

Keep proof of every payment to Diversified Adjustment. Save bank statements, canceled checks, and payment confirmations.

Payment documentation protects you if disputes arise later. Some collectors claim non-payment even after receiving funds.

Request a paid-in-full letter after completing your settlement. Keep this letter permanently with your financial records.

Monitor Your Credit Report After Settlement

Diversified Adjustment should update credit bureaus within 30-45 days. The debt should show as “settled” or “paid.”

Settled debts still appear on credit reports for seven years. However, they damage your score less than unpaid collections.

If Diversified Adjustment doesn’t update your credit reports, dispute the error. Send copies of your settlement agreement and payment proof.

Rebuilding Your Credit After Debt Settlement

Settling debt does impact your credit score temporarily. But it’s better than leaving debts unpaid or facing judgments.

You can start rebuilding credit immediately after settling your debt. Focus on positive financial behaviors going forward.

Steps to Improve Your Credit Score

Make all future payments on time. Payment history is the biggest factor in credit scores.

Keep credit card balances below 30% of your limits. Lower utilization improves your score faster.

Don’t close old credit accounts. Length of credit history helps your score.

Our partner Kikoff helps you build credit with small, manageable payments reported to all three bureaus.

Avoid Future Collection Accounts

Create a budget that accounts for all monthly expenses. Track spending to identify areas you can cut.

Build an emergency fund with three to six months of expenses. Emergency savings prevent future debt when unexpected costs arise.

Contact creditors immediately if you can’t make payments. Many offer hardship programs before sending accounts to collections.

When to Seek Professional Help

Some debt situations require professional assistance. You don’t have to handle everything alone.

If Diversified Adjustment has already obtained a judgment, they can garnish wages. Professional help may be necessary to protect your income.

Consider Debt Settlement Services

If you have multiple collection accounts, negotiating individually becomes overwhelming. Professional negotiators handle multiple debts simultaneously.

Debt settlement companies negotiate on your behalf. They often achieve better settlement percentages through industry relationships.

However, these services charge fees. Calculate whether the savings exceed the cost of professional help.

Know When Bankruptcy Makes Sense

If debts are completely unmanageable, bankruptcy may be your best option. Chapter 7 bankruptcy eliminates most unsecured debts.

Chapter 13 bankruptcy creates a repayment plan you can actually afford. Court protection stops all collection activity immediately.

Bankruptcy seriously impacts credit, but it provides a genuine fresh start. Sometimes starting over is better than drowning in debt.

Take Control of Your Debt Situation Today

Diversified Adjustment Service is a legitimate collector. Ignoring them won’t make your debt disappear.

You have rights under federal law. Use those rights to verify your debt and negotiate fair terms.

Respond to lawsuits immediately. File an Answer to protect yourself from default judgments.

Negotiate a settlement you can afford. Get everything in writing before making payments.

Your debt doesn’t define you. Take action today to resolve it and move forward with your financial life.