How To Deal With Halsted Financial Services Debt Collection

Halsted Financial Services is a debt collection agency focused on past-due consumer debts. They collect on personal loans, credit cards, and medical bills.

If Halsted contacts you, ask them to validate the debt first. You have rights and options worth exploring.

What Is Halsted Financial Services?

Halsted Financial Services LLC operates from Skokie, Illinois. They’re a third-party debt collector working with healthcare providers, credit card companies, and payday lenders.

Halsted primarily collects past-due accounts on behalf of creditors and lenders.

Why Is Halsted Financial Services Contacting Me?

Halsted contacts you because you may have an unpaid debt with an original creditor.

Halsted operates differently than most debt collection agencies. Most collectors buy charged-off debts and collect for their own profit. Halsted usually collects on behalf of original creditors, earning a percentage of each collected debt.

Halsted encourages consumers to pay them directly using their online payment system.

If Halsted contacted you but you’re unsure about the debt’s origin, call them at (855) 284-0831.

Is Halsted Financial Services Legit?

Yes, Halsted Financial Services is a legitimate debt collector. The Better Business Bureau gives them a B grade.

Customers rate Halsted 4.67 out of 5 stars across more than 320 reviews. That’s considerably better than most collection agencies.

However, more than 350 consumer complaints were filed against Halsted in the past three years. The Consumer Financial Protection Bureau’s Consumer Complaint Database shows more than 650 complaints since December 2011.

Know Your Rights

Consumer complaints against Halsted allege improper disclosure of debt information to others. Some claim Halsted tried to collect debts not owed. Others report threats of jail time or impersonation of law enforcement.

A debt collector making these statements could be violating the Fair Debt Collection Practices Act. The FDCPA prohibits third-party debt collectors from harassing consumers or making misleading statements.

Under the FDCPA, you have the right to:

• Ask for debt validation in writing within 30 days of first contact

• Tell a debt collector to stop contacting you

• Dispute the debt if you believe it’s incorrect

• Be free from harassment, including repeated calls and threats

• Limit when and how you’re contacted

• Keep your personal information private from third parties

If your rights have been violated, you can:

• File a complaint with the Consumer Financial Protection Bureau or your state attorney general

• Send a cease-and-desist letter to the collector

• Talk to a consumer protection attorney about your options

How Do I Know if I’m Being Scammed?

Halsted Financial Services is legitimate, but fraudsters can use real company names. Scammers trick people into sharing personal information or sending money.

Ask anyone trying to collect a debt to validate it. If you think you’re talking to a scammer, hang up immediately. The longer you talk, the more opportunities they have to manipulate you.

Always verify the debt in writing before sharing any personal information.

Do I Have To Pay Halsted Financial Services?

You might need to pay the debt, but confirm there isn’t a mistake first.

When creditors partner with third-party agencies, errors happen. Debt collectors may try to collect debts already paid or belonging to someone else.

Validate that Halsted can collect the debt from you and the amount is correct.

If Halsted can’t prove the debt is yours, you don’t have to pay them. Tell them in writing to stop contacting you.

If they prove ownership and accuracy, decide what to do next.

Step 1: Send a Debt Verification Letter

Within five days of first contact, Halsted should send you a debt validation letter. If they don’t, you can request one.

The validation letter should contain information about the debt account. It should explain how to dispute the debt if you disagree.

Read your validation letter carefully for information about the 30-day dispute deadline. If you dispute within 30 days, Halsted must cease collection activity until resolved.

If Halsted can’t verify the debt, you don’t need to pay. Tell them to stop contacting you and check your credit report for errors.

If Halsted verifies the debt, decide your next move.

Step 2: Decide What To Do Next

You have options, even though the situation feels stressful. You can dispute the debt or try to settle for less. Ignoring the debt is not recommended.

Option 1: Dispute the Debt

If Halsted validated the debt but you disagree with the amount, dispute it. You can also dispute if you don’t believe the debt is yours.

Double-check your credit report for errors at this point. If you see a mistake, contact the credit bureau reporting it.

Ask them to remove the error by sending a credit dispute letter. The Fair Credit Reporting Act gives you the right to dispute errors.

Option 2: Negotiate the Debt and Make a Settlement Offer

Halsted is often willing to settle for less than the full amount. Debt collectors only get paid if you pay them.

They know you may not be able to pay the debt completely. They want to close collection accounts and have an incentive to work with you.

Learn more in the negotiation section below.

What Happens if I Ignore Halsted Financial Services?

Ignoring Halsted comes with serious negative consequences, including:

• More debt due to interest, fees, and legal costs

• A lower credit score

• A possible lawsuit resulting in wage garnishment

• Continued debt collection efforts

Ignoring debt collectors is never a good idea. Debt collectors can take legal action as long as the statute of limitations hasn’t passed.

Even if it has, collectors might still sue you or continue collection attempts. Knowledge is power, so stay informed and take action.

How To Negotiate a Debt Settlement With Halsted Financial Services in 3 Steps

Navigating debt negotiations with Halsted might feel daunting. Understanding collection dynamics can work in your favor and empower you to act.

You can start negotiation by writing a debt settlement letter. Many people offer 25% or 30% of the original debt initially.

Expect back and forth negotiation. Settling around 50% or 60% is common. Many debt collectors accept 40% to 60% of the original debt.

While collectors sometimes initiate settlement offers, you can start the conversation. Start by making sure the debt is valid.

Step 1: Make Sure the Debt Is Valid

Third-party debt collectors like Halsted must send you a debt validation letter. They have five days from first contact to send it.

A Consumer Financial Protection Bureau debt collection rule requires validation letters. The rule states collectors must notify you of your dispute rights. You get 30 days to dispute.

If you haven’t received a validation letter, ask for one. Read it carefully to make sure:

• The debt belongs to you

• Halsted Financial Services is legally allowed to collect the debt

• The debt amount on the letter is correct

Sometimes people discover they’re victims of identity theft or the creditor has the wrong person. Mistakes happen, so ask questions.

If you need more details or the validation letter appears incorrect, write a debt verification letter.

Step 2: Figure Out What You Can Pay

Once you confirm the debt is yours and the amount is correct, determine payment capacity.

Review your monthly income and expenses to see what you could put toward repayment. Creating a budget helps you compare expenses and debt payments to income.

The goal is determining a realistic payment amount for yourself. If you need help with budgeting, consider free consultation with our partner Cambridge Credit Counseling.

Lump Sum vs. Monthly Payments: Which Is Better?

If you can make a lump-sum payment instead of monthly payments, your settlement offer is more likely to be accepted. You may also negotiate a lower amount.

Are you expecting a work bonus, tax refund, or financial windfall? Consider using it to make a lump-sum payment.

If a payment plan is your only option, make sure the monthly amount fits your budget. The payment should cover the debt while allowing you to meet basic expenses without stress.

Some companies may accept payment plans more readily if you authorize direct bank withdrawal.

Step 3: Make a Settlement Offer to Halsted Financial Services

After determining what you can comfortably pay, write up a settlement offer.

Ask Halsted Financial Services to respond to your letter in writing. Written records ensure you always have proof of the agreement.

Debt collectors usually send settlement agreements by mail. Scan, photograph, or retain the original letter for your records.

Don’t Just Negotiate the Amount… Negotiate Everything

In addition to negotiating the settlement amount, negotiate how collectors report settled accounts. Accounts are usually noted as paid in full, partial payment, or settled.

In your settlement letter, ask them to report your account as paid in full. Paid-in-full reporting can help improve your credit score.

Can You Still Negotiate a Settlement if There’s a Debt Lawsuit Against You?

Yes, you can pursue a debt settlement even if Halsted Financial Services sued you. However, you still need to respond to the lawsuit and comply with court requirements.

Appear online or in person as required by the court. Pay attention to and respond to the lawsuit until you reach a settlement.

Continue until the settlement is submitted to the court or the case is dismissed.

Tips for a Successful Debt Settlement

Settling your debt is easier than you might think. Here are top tips for successful settlement:

• Always get agreements in writing before paying anything

• Never give access to your bank account or share sensitive information

• Keep copies of all correspondence and payment records

• Start with a lower offer than what you can pay

• Be patient and persistent during negotiations

• Request deletion of the account from your credit report

• Confirm the settlement in writing before making payment

Can Halsted Financial Services Sue Me?

While getting sued by a debt collector is possible, Halsted is unlikely to sue you. They don’t own your debt.

What influences a debt collector’s decision to sue? They usually consider:

• The size of the debt

• How much it’ll cost to sue you

• If they can collect interest, court costs, and attorney fees

• How easy wage garnishment would be

• If you have other unpaid debts

• How old the debt is and its statute of limitations

• Applicable state laws relating to creditor rights

If Halsted decides to sue, you’ll learn about the lawsuit when served a complaint and summons. You can receive service by mail or in person.

Even if you disagree with the lawsuit, respond to the complaint. Failing to respond risks losing automatically.

You don’t have to hire an attorney to respond to the complaint.

How To Beat Halsted Financial Services in a Debt Lawsuit

If you’ve received notice of a lawsuit, respond quickly. Failing to respond could mean you automatically lose your case.

If the debt collector wins, they can get a court order allowing wage garnishment. Responding is simpler than you might think.

Many courts provide forms and instructions. File an answer form or seek legal assistance first. Responding protects your rights and allows you to present your defense.

If you’re worried about responding alone but can’t afford a lawyer, consider our partner Solo. They’ve helped over 300,000 people respond to debt lawsuits with a 100% money-back guarantee.

Step 1: Read the Summons and Complaint Carefully

A summons is a court document notifying you of a lawsuit. It usually contains the following information:

• Court name and address

• Parties involved (plaintiff and defendant)

• Case number

• Instructions to the defendant

• Legal consequences if you fail to respond

• The number of days you have to file your answer

Information in a summons varies, especially response deadlines. Read your summons carefully.

A complaint is another court document outlining the plaintiff’s claims against you. You’ll use the complaint information when filling out your answer form.

Step 2: Fill Out an Answer Form and Any Other Required Forms

Don’t ignore a summons and complaint from Halsted Financial Services. Many courts offer blank answer forms, making filing easier.

Google the court name on the summons followed by “answer form” or “court forms.” Carefully read and follow the instructions provided on the documents.

If you can’t find an answer form, contact the court clerk. While they can’t give legal advice, they can direct you to necessary paperwork.

The answer form is your chance to raise affirmative defenses. These are legal statements that could defeat or reduce the plaintiff’s claims.

If you deny any allegation or make affirmative defenses, file your supporting documents with your answer. Include payment records or communications.

Some courts may require additional forms, like a certificate of service. Check the court website or consult the clerk about other required forms.

If you don’t feel comfortable doing this alone, work with our partner Solo for a small fee.

Step 3: File the Answer Form With the Court and Serve on the Plaintiff

The process of filing your answer form varies by court. Typically, you can file in person at the courthouse or send the form by mail.

You may also be able to email or e-file the form. Sometimes there’s a fee to file your answer.

Speak with the court clerk to learn about filing fees or request a waiver. You usually need to deliver a copy of your answer to the person suing you.

You can serve the form by mail using the address listed on the summons. Comply with any specific delivery instructions provided by the court or summons.

How To Recover From Debt and Collections

Having a debt sent to collections is usually a symptom of a greater financial issue. Collections often follow a medical issue, job loss, divorce, or other emergency.

The good news is that no matter what your finances look like right now, you can bounce back.

If you’re struggling with multiple credit card debts and can’t stay afloat, consider speaking with our partner Cambridge Credit Counseling. They can help you understand your options and may suggest a debt management plan.

A debt management plan brings debt payments under control and saves money on interest and fees. They may also discuss bankruptcy for a total fresh start.

You can often negotiate or get help with large medical bills. You can always try renegotiating or refinancing big loans like mortgages or car loans.