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Why is NCO Financial on My Credit Report?

If you have credit problems, one of the first companies you may run across on your credit report is NCO Financial. This same company may also be listed as as NCO Fin or NCO Credit Services. Regardless of which name you find it under, NCO Financial is definitely a company that you do not want to find in your credit file.

NCO Financial: Background NCO Financial Systems, Inc, is a third-party collections agency, and they report to all three of the credit reporting agencies that determine your credit score. According to their website, they provide accounts receivable management, debt collection and billing services and “customer relation management�. While NCO Financial claims to be committed to high standards of ethics and customer service, online research reveals another, less pleasant side of their business operations, with multiple lawsuits over alleged violations of the Fair Debt Collections Practices Act (FDCPA), and a multitude of negative reviews and complaints all over the web. NCO Financial may conduct legitimate debt collections activity on some accounts, there is an overwhelming amount of data both online and in court records that suggests you should be wellinformed of your rights as a consumer if you decide to deal with them directly.

NCO Financial and Collections Accounts Because they are a third-party debt collection agency, if you see the company listed on your credit file, it is likely a debt that you owed to another creditor. NCO Financial may work on behalf of your original creditor to collect the debt, but more likely than not, the debt was purchased for pennies on the dollar and the original creditor has nothing to do with the process.


Collection accounts on your credit report can mean a big hit to your credit score, and NCO Financial is aware of that fact. Often, their offer letters will come with promises to “update your credit file” after you’ve paid. The only problem is, you may not even owe the debt in the first place.

NCO Financial Pays over $400,000 to Settle Allegations In December of 2008, NCO Financial agreed to a settlement in a case brought against the company by the Texas Attorney General. Rather than admitting that their debt collectors violated the Texas Debt Collections Act, NCO Financial agreed to pay $150,000 in consumer restitution and $250,000 in civil reimbursements and attorney fees. In addition, they also agreed to spend another $300,000 to monitor their Texas debt collections practices. This is just one of many claims concerning NCO Financial that involves contacting people in an attempt to collect debts in a manner that is less than polite, and sometimes downright rude and even illegal. In most instances, consumers are reporting that they call several times a day, regardless of whether or not they’ve been asked to stop. There are also reports of NCO Financial harassing individuals at their place of work, and of continued harassment about debts that are not even owed by the person they’re contacting. More telling than the online anecdotes are the actual lawsuits and settlements paid. The Texas settlement was not a one-time issue, and in fact is just a drop in the bucket compared to some of NCO Financial’s other fines and settlements. According to the Federal Trade Commission’s website, in 2004 NCO Financial had to pay out $1.5 million for violations of the FCRA for reporting inaccurate information to credit bureaus.

Protecting Yourself from NCO Financial Your best bet with challenging a negative listing from NCO Financial may be to contact a professional credit repair specialist, or a credit repair lawyer. In this way, you don’t have to deal with NCO Financial directly, and everything will be documented properly without a lot of time, effort, and stress on your part. However, if you do decide to go the DIY route, make sure you document everything. Send all letters with proof of receipt, and make a note of every phone call, including who you spoke to, and when. If you live in a state that allows single-party consent to recording, record every phone so that you have proof if harassment occurs. If you live in a state that does not allow single-party consent for recording, you may still be able record if you inform the debt collector at the time of the call that you intend to record it. Also, any messages left on your voicemail are allowed as proof of harassment, no matter where you live.


If NCO Financial representatives are being very aggressive and abusive, don’t hesitate to exercise your rights as a consumer. Just because NCO Financial has a listing on your credit file, it doesn’t give them permission to act outside the law. Be informed, carefully document everything, and make sure you only pay what you actually owe.

Why is NCO Financial on My Credit Report  

If you have credit problems, one of the first companies you may run across on your credit report is NCO Financial. This same company may als...

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