How to Resolve a Debt with Direct Recovery Associates

George Simons | January 09, 2025

Fact-checked by Patrick Austin, J.D.

Patrick Austin
Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Direct Recovery Associates collects debts for creditors. Stay calm, validate the debt, know your rights under the FDCPA, and negotiate or settle proactively. Solo is here to help.

Calls from Direct Recovery Associates may throw you off balance. Instantly, a million questions come buzzing in your head: Is this a legitimate debt collection agency? Are they planning to sue me? Will they ruin my credit score? What rights do I have in this situation?

It's important not to panic when Direct Recovery Associates contacts you. The company's purpose is to get money from you to settle a debt they think you owe. If you lose your cool, you may play right into their trap and end up worsening the situation. Your best reaction is to take a deep breath and stay calm.

Here are the answers to your questions and what you can do to beat Direct Recovery Associates at their own game.

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What is Direct Recovery Associates?

Direct Recovery Associates, LLC is a legitimate company and has been in business for more than 20 years. According to its website, Direct Recovery is an attorney-based debt collection agency. This means that if Direct Recovery gets a hold of your debt, there's a good chance you may end up in court.

Who does Direct Recovery Associates collect for?

As a third–party debt collection agency, Direct Recovery collects on behalf of creditors from all sorts of industries. So, if you've never heard of Direct Recovery Associates before when they contact you about a debt, it's because the debt came from another company that hired Direct Recovery to collect on its behalf.

Just because you don't initially recognize the company's name, doesn't mean that Direct Recovery Associates is a scam. You should take all communications with Direct Recovery seriously. To make sure you're not being contacted by a company impersonating Direct Recovery, check the company's contact info, which is:

Address:5706 Corsa Avenue, Suite 200 Westlake Village, California 91362 USA
Phone number: 818-874-0011
Support email: email@directrecovery.com
Website: https://www.directrecovery.com/

Read Direct Recovery Associates reviews online

If you want to find out what consumers have said about their experience with Direct Recovery Associates and whether it is possible to negotiate a debt collection settlement, then take a moment to read these reviews:

Will Direct Recovery impact my credit score?

Every debt in collection negatively affects your credit. Likely, the debt has already been reported to the credit bureaus by the original creditor before selling it to Direct Recovery. If Direct Recovery Associates credit reports, then you will have their account in addition to the original creditor's account in your report until the debt falls off your credit report in seven years. The presence of a debt collector in your report lowers your credit score. However, Direct Recovery claims that they don't report to the credit bureaus.

Negotiating a debt settlement with Direct Recovery Associates

If you know the debt is yours and will need to be repaid, then you can take proactive steps to try and negotiate a debt settlement. Direct Recovery Associates may be amenable to a settlement for a lesser amount than what is actually owed. Direct Recovery Associates may also agree not to report your account to credit bureaus once you pay the settlement. The debt settlement process can be as simple as these four steps:

  1. Respond to the pending debt collection lawsuit filed by Direct Recovery Associates.
  2. Calculate how much you can afford to pay based on the amount owed.
  3. Send a settlement offer to Direct Recovery Associates and be prepared to engage in a back-and-forth negotiations process.
  4. If you can reach an agreement, then get the debt settlement terms in writing.

To learn more about debt settlement negotiation, check out this video explaining how you can negotiate a debt settlement on your own:

SoloSettle makes it easy to start the debt settlement negotiation process.

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Make an Offer

Direct Recovery Associates cannot violate your rights

As a consumer, you may have one or more complaints against Direct Recovery, and you are clearly not alone. Consumers who aired their grievances each have one or more of these complaints about the collectors from Direct Recovery Associates:

  • They will not provide proof of debt.
  • They are persistent and harassing with calls.
  • They use recorded calls.
  • They resort to threats of arrests.
  • They keep calling the wrong numbers.
  • They don't identify the creditor company they are calling for.
  • They sometimes ask for consumers' Social Security numbers.

Many of these actions are considered violations of the Fair Debt Collection Practices Act (FDCPA), which protects consumers like you from unfair treatment by debt collectors. You should understand your rights under the FDCPA to know how to defend yourself from Direct Recovery Associates.

The FDCPA protects you

Consumers have safeguarded rights under the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) that protect them and govern what a debt collector can and cannot do when contacting them about debt. If you feel harassed by Direct Recovery, they likely have overstepped their mandate.

According to the FDCPA, a debt collector cannot:

  • Bypass your attorney if you have made it clear that they should communicate through an attorney.
  • Call you at work if you have told them you are not permitted to receive such calls at work.
  • Discuss the details of your debt with family or friends.
  • Call you several times in one day.
  • Call you outside the hours of 8:00 a.m. and 9:00 p.m.
  • Collect an expired "zombie" debt.

What if Direct Recovery violates my FDCPA rights?

What if you realize that your rights have been violated? You can take the following steps:

  • File a complaint with the FTC.
  • File a complaint with the Better Business Bureau (BBB).
  • Hire an attorney to sue Direct Recovery.

Although the FTC doesn't handle individual complaints, they monitor several complaints about a business from consumers and eventually take action against them. The BBB, on the other hand, is a welcome resource where your grievances are aired, and Direct Recovery is allowed to respond.

Another available avenue is to defend your rights in court. If you decide to go this way and win, you are entitled to recoup any financial damages and your attorney's fees. This option is viable when you can prove that your consumer rights have been violated. In fact, you can sue Direct Recovery for up to $1,000 per FDCPA violation.

Is Direct Recovery going to sue me?

What if the debt is yours and you can't pay and are scared that Direct Recovery Associates may be coming after you with a lawsuit?

First, the account is placed for debt collection, and the Direct Recovery's client provides information and supporting documentation about the debt. The debt collection program is used to review and process the claim. A demand letter is sent to the debtor via fax, mail, or email, and phone contacts are made.

Next, efforts are made to arrange payment, resolve disputes, and obtain clear commitments for debt resolution. If a payment commitment is obtained, efforts are made to ensure the payments are made. If the debtor does not cooperate, final pre-legal collection attempts are made.

Updates and recommendations are sent to the client, including details on forwarding the claim to affiliated attorneys. If authorized, the claim is sent to attorneys near the debtor for investigation for 60 days. If not authorized, the claim is worked for an additional 60 days before being closed.

Attorneys provide updates and recommendations, and if they recommend legal action, the lawsuit is prepared and filed. If the client does not provide suit requirements or is unwilling to litigate, the attorneys work on the claim for another 60 days before closing it.

The complaint is served, and if the debtor does not respond, attorneys file for default judgment. If an Answer is filed, the discovery process begins, and a trial date is set. If a judgment is awarded in favor, Direct Recovery Associates file for a Writ of Attachment and attempt to locate and verify debtor assets. Bank levies, garnishment orders, liens, etc. are initiated to satisfy the judgment.

So, if you've been sued by Direct Recovery, it's important to respond with a written Answer to avoid default judgment. This may be your easiest way out. You should answer before your state's deadline, which is usually less than 30 days. It takes less than 15 minutes to create, and an attorney reviews it to make sure it's ready for filing. SoloSuit can even file the Answer for you if needed.

Respond to a debt lawsuit against Direct Recovery Associates

On the off chance that Direct Recovery Associates sues you for a debt, you should be ready to defend yourself. You can save a lot of money and stress when you represent yourself, as opposed to hiring an attorney. Use SoloSuit to represent yourself in court and win. Here's how.

Follow these three steps to respond to a debt lawsuit against Direct Recovery Associates:

  1. Answer each claim listed in the Complaint document. Try to deny as many claims as possible, as this forces Direct Recovery Associates to prove all their claims.
  2. Assert your affirmative defenses, which are legal reasons that Direct Recovery Associates does not have a valid case against you.
  3. File your Answer with the court within the deadline, and send a copy to Direct Recovery Associates' attorneys.

Learn more about these three steps in this video:

Communicating with Direct Recovery Associates

What to do now that Direct Recovery is calling you because of a delinquent account? Again, you are not without help. Try one of the following options to free yourself from debt collectors' calls:

  • Send a Debt Validation Letter.
  • Use the 11-word phrase: "Please cease and desist all calls and contact with me immediately."
  • Send a Cease and Desist Letter.

Let's take a closer look at each of these options.

Request that the company validates the debt they are trying to collect. When you send a Debt Validation Letter to Direct Recovery, they are obligated to prove that the debt is yours, that it's accurate, and is not past the statutes of limitations of your state. The Debt Validation Letter also requires the company to report the debt as disputed, and so they should stop any collection calls until the debt is validated.

The 11-word phrase has become popular in the wake of persistent debt collectors' calls. Did you know that you can ask debt collectors to stop calling you? Instead of calls, you can demand that they contact you only in writing. It is good to follow that call up with a written communication asking Direct Recovery to stop calling you.

If Direct Recovery Associates continues contacting you about the debt even after asking them to stop, send a Cease and Desist Letter. Use certified mail so that there is verifiable proof the company received your letter. After receiving your letter, they will stop with the calls and leave you with peace of mind.

Direct Recovery Associates' calls can be intimidating to deal with, but you can stop them. You have rights and endless resources to outsmart debt collectors, no matter their strategy.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

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If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

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Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

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Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

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Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

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Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

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State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

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