How to Beat KLS Financial Services

Hannah Locklear | December 12, 2022

If you received a Summons and Complaint from KLS Financial Services regarding an unpaid debt, you have options. Don’t throw your hands up in despair or waive the white flag of defeat.

Yes, the thought of batting a debt collection company in court can feel daunting, and even a bit overwhelming. Nevertheless, if you proactively prepare, you can beat KLS Financial Services in court. This article explains how to achieve that and everything else you need to know about debt collection lawsuits and KLS Financial Services.

What is KLS Financial Services?

KLS Financial Services is a legit debt collection agency operating out of North Carolina. The agency has been in the debt collection business since 2017. KLS specializes in the collection of delinquent medical bills and commercial collections (like credit card debt).

Below is the contact information, including the phone number, of KLS Financial Services:

KLS Financial Services
991 Aviation Parkway
Suite 500
Morrisville, NC 27560
833-447-3557
info@klsfinancialservice.com

Numerous Consumer Complaints Filed Against KLS Financial Services

KLS Financial Services is not known as a “consumer-friendly” debt collection agency. In fact, quite the opposite is true. Numerous consumer complaints have been filed against the agency alleging violations of the Fair Debt Collection Practices Act (FDCPA).

As of 2022, the Consumer Financial Protection Bureau (CFPB) has received more than 130 complaints against KLS Financial Services in the last ten years. On its Better Business Bureau profile, KLS Financial has more than 20 complaints listed over the last three years.

Here’s an example of a real complaint from KLS Financial’s BBB profile:

“On 8/3/22, I sent a dispute letter to a collection company: KLS Financial Services requesting they validate an alleged debt in the amount of $147.50. KLS Financial Services did not provide any proof that I owed this debt or that they are legally authorized to collect this debt. The collection agency provided a screenshot of an accounts receivable summary with a name of a physician I’ve never seen and no evidence of validation and/or my obligation to pay this debt to this collection agency. The company did not provide any documentation with my signature clearly showing that I agreed to any medical service.”

If you are being harassed by a debt collector affiliated with KLS Financial Services, it is vital to understand that you do not have to endure harassing collection tactics. You have statutory protections and rights under the FDCPA and other federal laws.

The FDCPA can protect you from KLS Financial Services

The FDCPA is a federal law designed to regulate the actions of debt collection agencies. The FDCPA accomplishes this objective by setting forth specific rules and regulations for debt collection practices. For example, the FDCPA prohibits the use of abusive or threatening language and the use of false or misleading information during any debt collection attempts.

Below are some other rules outlined in the FDCPA:

• Debt collectors cannot call before 8 a.m. or after 9 p.m.
• Debt collectors cannot discuss your debt with anyone but you and your lawyer.
• Debt collectors cannot call you at your workplace.
• Debt collectors cannot lie about the amount of a debt.
• Debt collectors cannot threaten to sue you if they don’t have the legal right to do so.
• Debt collectors cannot pretend to be law enforcement or government workers.
• Each time they contact you, debt collectors must disclose that they are calling from a debt collection agency with the intent to collect a debt.

If KLS Financial Services has used any of these tactics while trying to collect a debt from you, report the agency to the CFPB, FTC, and your state’s attorney general’s office.

Multiple Statutory Protections Afforded to Consumers to Protect Them from Debt Collection Harassment

In addition to the FDCPA, consumers have statutory protections from harassing and intimidating debt collection efforts under the Telephone Consumer Protection Act (TCPA) and Fair Credit Reporting Act (FCRA).,

The Telephone Consumer Protection Act (TCPA) protects consumers from being subjected to robocalls. If a debt collector is harassing you with multiple robocalls each day, you may have grounds to file a civil action and pursue compensatory damages of $500 per call.

The Fair Credit Reporting Act (FCRA) sets forth reporting standards to ensure that no information reported to a credit bureau by a debt collector is false or inaccurate. Basically, the FCRA provides you with a statutory mechanism to dispute any inaccuracies found on your credit report. If KLS Financial Services appears on your credit report, they may tell you that they’ll remove the debt from your credit report if you pay the amount owed.. This is commonly known as the “pay for deletion” technique. Please understand that if the original creditor is also on your credit report, along with the debt collection agency, both should be removed from the report if you ultimately decide to pay the amount owed.

Respond to a KLS Financial Services debt lawsuit

If you’ve been sued by KLS Financial Services, you should have received a court Summons and Complaint in the mail. These are the legal documents that initiate a lawsuit. The Summons notifies you of the case, while the Complaint lists the specific allegations made against you.

You must respond to the Summons and Complaint before your state’s deadline in order to avoid a default judgment. With a default judgment granted, KLS Financial may have the right to garnish your wages and seize your property.

You can avoid a default judgment by responding to the case with a written Answer. While drafting your Answer, follow these three steps:

1. Respond to each claim listed in the Complaint. As stated, the Complaint lists the specific claims made against you in order. The first section of your Answer document should focus on responding to each claim in corresponding order by admitting, denying, or denying due to lack of knowledge. Most attorneys recommend denying as many claims as possible in order to force CMS to prove what they’re alleging is true.


2. Assert your affirmative defenses. The next section of your Answer is where you get to tell your side of the story. An affirmative defense is any legal reason you should not lose the case. For example, the statute of limitations is a common affirmative defense to raise in a debt collection lawsuit.


3. File the Answer with the court, and send a copy to Capital Management Services. After you’ve drafted your Answer, be sure to file it before your state’s deadline to avoid a default judgment. You should also send a copy to the attorney representing CMS. Send all documents via USPS certified mail with a return receipt requested.

Draft and file your Answer online, in any state, within minutes.

Below is an example of how to use these three steps to beat KLS Financial Services in court:

Let’s take a look at an example.

To learn more about these three steps, check out this video:

Consider Filing a Counterclaim Against KLS Financial Services to Pursue Compensatory Damages

In addition to responding to a debt collection summons filed by KLS Financial Services, you have the ability to file a counterclaim and pursue compensatory damages from the collection agency. For example, the FDCPA enables consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.

Key Takeaways

In terms of learning how to beat KLS Financial Services, here is a brief summary of what to do if this debt collection agency files a lawsuit against you:

• KLS Financial Services is a legitimate debt collection agency that specializes in medical and commercial debt collection.
• KLS Financial Services doesn’t have the best reputation, and its debt collectors have been known to violate the Fair Debt Collection Practices Act (FDCPA).
• The FDCPA, and other federal laws, can protect you from unfair debt collection methods.
• Respond to a debt collection lawsuit against KLS Financial Services as soon as you receive it.
• In your Answer, you should respond to each claim against you and assert your affirmative defenses. Don’t forget to file the Answer in time and serve the opposing attorney.
• File a counterclaim against KLS Financial if you have proof they have violated the FDCPA when trying to collect from you.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

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