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Praxis Financial Solutions, Inc. (PFS) is an Accounts Receivable Management (ARM) and Business Process Outsourcing (BPO) company based in Illinois that specializes in third-party collections. PFS has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA) such as attempting to collect debts not owed and illegal communication tactics. If you have been contacted by PFS, understand your rights before taking action.
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Is Praxis Financial Solutions a scam?
According to the Better Business Bureau (BBB), Praxis Financial Solutions, Inc. was initially incorporated in August 2006 before opening in June 2007. The BBB opened its file four months later, in October 2007. PFS is listed as a collection agency that services the greater Illinois area. Buzzfile estimates PFS’ annual revenue at $12.1 million and the size of its headquarters staff at 45 people.
According to its website, PFS “employs a team of professionals that make certain they understand our clients’ business goals, products, services, processes, and systems…to design recovery programs that meet our clients[‘] exact needs today and embrace tomorrow’s changes.” PFS’ collections division includes clients from the credit card; consumer personal loan; auto deficiency loan; and home mortgage loan industry, with accounts that “range from fresh all the way to latter stage accounts.”
PFS’ third-party collection division for primary, secondary, tertiary, and late stage delinquencies provides probate recovery and claim filing; healthcare debt collection; servicing for pre-legal out-of-statute accounts; low balance and high balance account processing; self-payment counseling and scheduling; debt conflict resolution; credit scoring; skip tracing; bilingual communication services; paper, call, and electronic contact with complete call recording; certified and experienced retrieval experts and support; multiple payment options; and data collection and collation. In addition to collection services, PFS’ BPO services include customer service; order fulfillment and support; billing inquiries; loyalty programs; and customer retention.
PFS cites membership in the Debt Buyers Association (DBA); the Debt Trader Network; and the Association of Credit and Collection Professionals. There is a customer service/complaint link and a link to a consumer pay portal. Their compliance page states a policy of adherence to major state and federal laws, but there are no links or references to consumer protection resources, laws, or agencies.
The BBB has closed 14 complaints against PFS in the past three years, with 2 closed in the past 12 months. Since March 2015, the Consumer Financial Protection Bureau (CFPB) has closed 13 complaints against PFS. Justia lists at least 4 cases of civil litigation naming PFS as a defendant.
Absolutely. Here are some Sample Cases against Praxis Financial Solutions Inc.
In October 2014, in United States District Court for the District of Colorado, a judge issued an Oder Granting Plaintiff’s Motion for Default Judgement in a case alleging PFS had violated the Fair Debt Collections Practices Act (FDCPA). In this case, the plaintiff had incurred a debt in 2012 that later went into default. The defaulted debt was assigned to PFS for collection, and in the year prior to the filing of the civil complaint, the plaintiff spoke to PFS representatives on the telephone, during which time PFS representatives told the plaintiff that: “(1) the account would remain on plaintiff’s credit report indefinitely unless and until paid; (2) plaintiff’s dispute of the Account had to be valid; and (3) plaintiff’s dispute of the account was not valid.”
The plaintiff alleged that PFS had violated the FDCPA by using “false, deceptive, or misleading representation or means in connection with the collection of any debt; …false representation of the ‘character, amount, or legal status of any debt’; and… ‘false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.’” The FDCPA also prohibits “communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed and… the use of ‘unfair or unconscionable means’ to collect a debt.”
PFS failed to appear or offer a defense at this hearing. The judge issued a default judgement in favor of the plaintiff based on PFS’ statement that “the account would remain on plaintiff’s credit report indefinitely.” Because the law requires that delinquent credit information be removed from credit reports after seven years, this statement was sufficient to establish a violation of the FDCPA. However, the judge found that the violation was not sufficiently egregious to warrant the maximum penalty of $1,000, so he awarded a lesser amount of $500. He also granted the plaintiff’s request for attorney fees, but he reduced them by 20% to $2,160 and also awarded the plaintiff the $420 in costs he had sought.
Praxis Financial Solutions, Inc.
7301 N. Lincoln Ave., Suite 220
Lincolnwood, IL. 60712
Understanding your Debt Collection Rights
The Fair Debt Collections Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) are enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). The FDCPA regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt.
The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA). The complaint above illustrates how these laws can be extremely effective tools to hold accountable collection agencies who fail to adhere to their provisions.
These laws also provide individuals with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
Seek legal assistance to find the relief you may be entitled to if you are having difficulty resolving disputes with a debt collection agency.
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The Lemberg Law legal team is committed to holding debt collectors accountable, so complete our form for a FREE case evaluation, or call 844-685-9200.
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