Diversified Adjustment Called? Here's Your Exact Next Move

Your phone rings. The caller ID shows an unfamiliar Minnesota number. A voice on the other end says you owe money—possibly to T-Mobile, possibly to a creditor you've never heard of. The company? Diversified Adjustment Service, Inc.

Diversified Adjustment is legitimate. It's a debt collection agency based in Coon Rapids, Minnesota, with contracts to collect consumer debts nationwide. But legitimate doesn't mean trustworthy. The company has racked up nearly 200 complaints with the Better Business Bureau and over 500 with the Consumer Financial Protection Bureau (CFPB). Common grievances: relentless calls, wrong-person errors, and debts that don't exist.

If Diversified Adjustment has contacted you, your first job is verification. Your second is protection. Your third is resolution on terms that don't wreck your finances.

What Diversified Adjustment Service Does

Diversified Adjustment buys or collects debts on behalf of creditors. These debts include:

• Unpaid credit card balances
• Medical bills
• Telecommunications debt (especially T-Mobile accounts)
• Personal loans
• Utility bills

When you default on a debt, the original creditor may sell it to a collection agency like Diversified for pennies on the dollar,often 4 to 10 cents per dollar owed. Diversified then tries to collect the full amount from you. Every dollar they recover is profit after their purchase price.

This business model creates incentives to collect aggressively and sometimes sloppily. Accounts get mixed up. Wrong people get called. Debts already paid resurface as "new" obligations.

Is the Debt Actually Yours?

Before you pay a cent, verify the debt. Diversified Adjustment is required by federal law to send you a written validation notice within five days of their first contact. This notice must include:

• The amount you allegedly owe
• The name of the original creditor
• A statement that you have 30 days to dispute the debt
• Information on how to request verification

If you didn't receive this notice, or if the details don't match your records, send a debt validation letter. Mail it within 30 days of their first contact to protect your rights. Use certified mail with return receipt.

Your letter should state: "I dispute this debt. Please provide verification including the original creditor's name, the original account number, an itemized accounting of the balance, and proof that you are licensed to collect in my state."

Once Diversified receives your dispute, they must stop collection activity until they send verification. If they can't verify, they must cease collection permanently.

Red Flags That the Debt Isn't Yours

Challenge the debt immediately if:

• You never had an account with the creditor they name
• The amount is wildly different from what you remember owing
• You already paid the debt or settled it
• The debt is older than your state's statute of limitations (typically 3-6 years)
• You're a victim of identity theft

Diversified Adjustment has a track record of pursuing debts against the wrong people, particularly with T-Mobile accounts. One consumer review reads: "They called me about a T-Mobile bill I never had. I've been a Verizon customer for 15 years." Another: "They're harassing me for my ex-husband's debt from 2018."

Don't assume they're right just because they're persistent.

Your Rights Under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) governs how debt collectors can behave. Diversified Adjustment cannot:

• Call you before 8 a.m. Or after 9 p.m. In your time zone
• Contact you more than seven times in seven consecutive days about a single debt
• Call your employer, family, or friends about your debt (except to locate you, and only once)
• Threaten arrest, violence, or legal action they don't intend to take
• Use profane or abusive language
• Misrepresent the amount you owe or the legal status of the debt
• Continue contacting you after you send a written cease-and-desist letter

If Diversified Adjustment violates the FDCPA, document every interaction. Note dates, times, names of representatives, and what was said. You can sue for damages up to $1,000 per violation, plus attorney fees. You can also report violations to the CFPB at consumerfinance.gov/complaint or the Federal Trade Commission at 877-382-4357.

How to Settle With Diversified Adjustment

If the debt is valid and within the statute of limitations, you have leverage. Diversified Adjustment bought your debt cheap. They'll often settle for 40-60% of the balance to avoid the cost and risk of a lawsuit.

Step 1: Don't Volunteer Payment

Never agree to pay during the first call. Don't confirm the debt is yours. Don't provide your bank account or employment information. Say only: "Send me written verification. I'll review it and respond in writing."

Step 2: Negotiate in Writing

Once you've verified the debt, respond with a settlement offer. A realistic starting point is 30-40% of the balance, paid in a lump sum. Example letter:

"I acknowledge the debt with [Original Creditor] in the amount of $2,450. Due to financial hardship, I can offer a one-time settlement of $900, payable within 10 days of your written acceptance. This offer is contingent on your agreement to report the account as 'paid in full' to all credit bureaus and provide written confirmation that no further collection activity will occur."

Diversified Adjustment will likely counter. Be ready to go to 50-60% if you can afford it, but don't budge higher than that. Remember: they'd rather take 50% now than gamble on getting 100% through a lawsuit they might lose.

Step 3: Get It in Writing

Once you reach an agreement, demand a settlement letter that specifies:

• The settlement amount
• The payment deadline
• Confirmation that the debt will be marked "settled" or "paid" with credit bureaus
• A statement that Diversified will cease all collection activity

Do not pay until you have this letter. Once you pay, you lose all leverage.

Step 4: Pay With a Method You Can Trace

Use a money order, cashier's check, or online payment platform with confirmation. Never give them access to your checking account. Once the payment clears, request written confirmation that the account is closed.

What If Diversified Adjustment Sues You?

Debt collectors file lawsuits when they believe the debt is large enough to justify legal fees and they think you won't respond. If you're served with a summons, you typically have 20-30 days to file an Answer with the court (the deadline varies by state).

Do not ignore a lawsuit. If you fail to respond, Diversified Adjustment wins a default judgment. They can then garnish your wages, freeze your bank account, or place a lien on your property.

Your Answer Should Include:

• General denial of the allegations (if you genuinely dispute the debt)
• Affirmative defenses such as statute of limitations, improper service, or lack of standing
• A request for proof that Diversified owns the debt and has the right to sue

Debt collectors often can't produce sufficient documentation. They may have purchased your account as part of a bulk portfolio without complete records. If they can't prove ownership or validate the original debt, the case gets dismissed.

If you're facing a lawsuit and need to explore all options, bankruptcy might provide a faster path to relief. Chapter 7 bankruptcy can eliminate unsecured debts like credit cards and medical bills in as little as four months. Use our free screener to see if you qualify.

How Diversified Adjustment Affects Your Credit

A collection account from Diversified Adjustment can tank your credit score by 50-100 points. The damage persists for seven years from the date of first delinquency with the original creditor, not from when Diversified acquired the debt.

Paying the debt doesn't remove it from your credit report. It changes the status from "unpaid collection" to "paid collection," which is marginally better but still negative. Settling for less than the full amount results in a "settled" notation, which also stays for seven years.

Your best bet: negotiate "pay-for-delete" as part of your settlement. Diversified Adjustment may agree to remove the tradeline entirely in exchange for payment. Not all collectors will do this, but it's worth asking. Get any pay-for-delete agreement in writing before you pay.

Contact Information for Diversified Adjustment Service

If you need to reach Diversified Adjustment directly:

• Phone: 800-279-3733 (Monday-Thursday 8 a.m.-8 p.m. CST, Friday 8 a.m.-5 p.m. CST)
• Mailing Address: P.O. Box 32145, Fridley, MN 55432
• Physical Address: 12800 Riverdale Blvd NW, Coon Rapids, MN 55448

All serious correspondence,disputes, settlement offers, cease-and-desist letters,should go in writing to the mailing address via certified mail.

When to Stop Fighting and File Bankruptcy

Sometimes the math just doesn't work. If you're facing multiple collections, lawsuits, or debt that exceeds 40% of your annual income, bankruptcy may be the smarter play.

Chapter 7 bankruptcy eliminates most unsecured debts, including collections from Diversified Adjustment. You keep essential property (car, home equity up to your state's exemption, retirement accounts) and walk away debt-free. The entire process takes about four months.

Chapter 13 bankruptcy lets you repay debts over 3-5 years at a reduced amount, often pennies on the dollar. It stops lawsuits, wage garnishments, and collection calls immediately.

Both options damage your credit short-term, but so does ignoring collections. The difference is bankruptcy gives you a defined endpoint and legal protection. Learn more about filing bankruptcy or take our free 2-minute screener to see if you qualify.

What Happens If You Ignore Diversified Adjustment

Ignoring Diversified Adjustment doesn't make the debt disappear. Here's the likely timeline:

• Weeks 1-4: Daily phone calls, voice messages, and letters
• Months 2-6: Escalating threats of legal action, possible calls to your workplace
• Months 6-12: Lawsuit filed in your local civil court
• After default judgment: Wage garnishment (up to 25% of disposable income), bank account levy, or property lien

The statute of limitations varies by state and debt type, typically ranging from 3-6 years. If the debt is older than your state's limit, Diversified can't sue,but they can still call and report the debt to credit bureaus until the seven-year reporting period ends.

Even if a debt is time-barred, don't make a payment or acknowledge it as yours. Doing so can restart the statute of limitations clock in some states.