Have an issue with Firstsource? Need help?
Are you being harassed by a debt collector? Is someone from Firstsource texting you daily, calling you, or sending friend requests on social media? Are they threatening to sue? We explain all about Firstsource–whether they are legitimate and what to do if they contact you, especially when the debt isn’t yours.
Firstsource is a debt collector. The company Works internationally across the United States, the United Kingdom, India, and the Philippines. They employ over 28,000 people and provide debt collection services to over 100 Global businesses. The company blends regular human employees with machine learning, Automation, and analytics under the auspices that this makes for a more empathetic and efficient debt collection process. They have a data-driven debt collection approach to better understand individual financial needs for consumers and come to customized Solutions and settlements that are favorable for everyone.
If you owe Firstsource a legitimate debt, yes you should pay them. If you don’t, they have the power to sue you. That said, even though they are a real company, even legitimate companies have been known to sometimes act unfairly and violate things like the Fair Debt Collection Practices Act (FDCPA). So if you have been harassed or treated unfairly, consider filing a complaint or working with an attorney.
Yes, Firstsource is a legitimate company.
Firstsource purchases many types of debt including banking, auto lending, education, insurance, utility, and telecommunication debt.
Don’t assume you can ignore Firstsource. Whether you don’t believe the debt is legitimate, you already paid it, or you are scared, if you ignore them, they will continue to contact you and could eventually sue you. However, companies like Firstsource sometimes make mistakes or violate the most recent FDCPA regulations about when and how they contact you. If this happens, you can share your complaints with outside attorneys, or file complaints with the government. You can get legal help to sue them back if that is insufficient.
Firstsource collects for themselves. They purchase debt from credit card companies on medical providers, and then they try to recover that debt for a profit.
If Firstsource is calling you but you believe you don’t have any debt, send them a request for validation. This is sometimes called the request for verification. It is a legal request to have Firstsource double check the debt. Sometimes they make mistakes and this is a chance for them to realize it. If they can’t prove the legitimacy of the debt and provide you with evidence that it’s yours, they have to stop trying to collect. At this point you can send them a communication called insufficient validation to confirm this.
If you believe you’ve already paid your debt, but Firstsource is still trying to collect, send them a request for validation. At the same time, check your records. Sometimes simple mistakes happen where your credit score doesn’t reflect the debt you paid off, so Firstsource might think they are collecting for the right reasons. That does not necessarily mean Firstsource will validate the debt in accordance with the law. If you continue to have problems you might consider hiring an attorney to help.
As a debt collector, some of the laws that Firstsource must follow include the FCRA, the FDCPA, and the TCPA.
That alphabet soup stands for the Fair Credit Reporting Act, which gives you rights to help ensure your credit report remains accurate; the Fair Debt Collection Practices Act, which protects you from being abused and deceived by debt collectors; and the Telephone Consumer Protection Act, which limits robocalls and other telephone spam.
If you think any of these consumer protection laws may apply to your situation, tell us about it.
If you believe your debt has expired and companies shouldn’t be contacting you about it, send Firstsource a request for validation. This will force them to prove the debt is not expired. At the same time, check your records. The statute of limitations is different for each type of debt and in each state. If you can prove it is expired, you can use this to correct mistakes on your credit score and stop Firstsource. If the debt has expired, you can send them a cease communications notice. An attorney can help you with this.
There are a few ways to settle for less. Firstly, if you can prove financial hardship, you are more likely to qualify for a lesser settlement. Companies like Firstsource often settle for a fraction of the total debt if the alternative is no settlement at all. Secondly, you can use the knowledge that Firstsource often buys debt for pennies on the dollar and their employees make minimum wage against commission. This means you can negotiate with the employees who are calling you for a lesser settlement because they still get a bonus.
If you owe a legitimate debt, you can get rid of Firstsource by entering into a settlement with them. You can, of course, negotiate for a lesser settlement. If you don’t believe you owe the money then send them a request for a validation letter. This will force Firstsource to prove the debt is accurate and legitimate, and if they can’t then they have to stop contacting you. These are all things that attorneys can help you with.
If your debt is current and legitimate, yes they can. However, most companies don’t resort to suing you unless you completely ignore attempts to collect. However, debt collectors like Firstsource are prohibited from suing or threatening to sue consumers for payment on a debt that is past the statute of limitations, although they can still ask for payment past that expiry date.
Firstsource Solutions Limited owns Firstsource.
The current CEO is Vipul Khanna.
Firstsource is headquartered in Mumbai, India.
Firstsource buys debt from telecommunications, banking, healthcare, utility, education, and insurance companies, primarily.
Employees are paid an hourly wage and they get a commission for whatever settlement they reach with you. So, they are financially incentivized to settle with you as quickly as possible (especially if it’s coming up on a payday).
If you have recently checked your credit score and saw something labeled “Firstsource” on your account that means you had an account that was sent to collections. This will show up as a delinquent account unless you settle. If you settle it will show up as “settled” with a zero balance for another seven years. The only way around this is to negotiate for a tradeline deletion as part of your Firstsource settlement.
Having an attorney isn’t a requirement but it certainly makes a lot of things much easier. Attorneys have experience drafting the appropriate letters and can reroute communication to themselves and their offices and deal with issues when they arise.
Legally, the FDCPA uses the word “verify,” but some other organizations use the word “validate.” No matter which word is used, it can mean two things. First, you “validate” a debt by sending a letter to Firstsource officially asking them for information that would confirm the validity of the debt. You or an attorney must do this within 30 days from the first time they contact you.Second, Firstsource then “validates” the debt on their end by providing you with this information. Once they get your letter they have to legally stop any attempts to collect on the debt until they have verified the debt. If they don’t follow the law or they are unable to verify it, they have to stop bothering you. It shouldn’t take them more than 30 days to do this.
It can take anywhere from a few months to a few years depending on a lot of factors like how many accounts they have, whether you legitimately owe the debt or not, whether you are trying to establish financial hardship.
What you offer is based on your financial situation. If you have an account sent to collections, chances are you are under financial strain so you can try to settle for a much smaller percentage of the total debt. On average companies try to reach between 40% and 60% of the original debt.
If you ignore attempts to contact a legitimate debt, yes, they can sue you. However, in order to take money from your bank account they need a default judgment against you after which a judge will give them a court order to use certain methods in order to repay the debt.
You can ignore Firstsource, but you shouldn’t. Even if they have you mistaken for someone else or the debt has expired, it is better to consider legal action and fix the mistake by sending the appropriate validation letters. If you ignore attempts to contact you on legitimate debt, they can sue you.
When debt collection agencies like Firstsource purchase debt from the original lender or from a third-party debt collector, they get your contact information. This includes phone numbers, mailing addresses, and email addresses.
Yes, you can probably pay your debt to Firstsource with a credit card but you might be charged a processing fee for using a credit card.
Long-term, paying off collections will improve your credit. Remember, your credit score functions like a report card. It contains lots of information about what type of credit or debt you have, how much you have, how much you have used, how often you have made payments on that debt, and so on. The three credit bureaus use the same credit report to generate their respective credit scores. If you pay off any debt it will slowly boost your credit score. If you get a tradeline deletion, it will significantly boost your credit score by removing the delinquent account.
Debt goes away once it expires. The expiration date is determined by the type of debt and the state. Not all debt expires. Student debt never expires. This expiration is called a statute of limitations or SOL.
Your debt doesn’t just go away when you file for bankruptcy. You have to work with professionals, usually bankruptcy attorneys, to determine which type of bankruptcy you qualify for. Chapter 13 is the most common for individuals and this is a restructuring or repayment plan. This requires you to come to an agreement with all of your creditors about how much you will be able to repay on a monthly basis for the next 3-5 years. Assuming you make all of your payments on time without missing a payment, any other debt you had prior to the agreement being made (this does not apply to new debt you take on after entering into this agreement), goes away. Chapter 7 requires you to liquidate all of your assets and make a lump sum payment to your creditors after which the remaining debt goes away. This is something you can discuss in more detail with a bankruptcy attorney who has access to your personal financial situation.
For a debt that has already been paid, is expired, or inaccurate, you can contact the credit reporting agencies to get the debt removed from your credit report or edited. If you enter into a settlement agreement with Firstsource, negotiate a tradeline deletion with them to remove it from your credit score.
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