Is IC System Legit? How to Settle Your Debt

George Simons | January 10, 2025

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.

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.

Summary: To settle debt with IC System, determine your budget, negotiate a settlement (offer 30–50%), get a written agreement, and ensure payment is reported accurately. Use SoloSettle to negotiate.

IC System is a legit debt collection agency that helps hundreds of creditors collect on thousands of unpaid accounts annually.

Paying bills is a necessary evil of life. If you happen to get behind on your bills, due to job loss or another setback, it can greatly impact your pay schedule. After a certain number of missed payments, you may have debt collectors coming after you. One of those debt collectors might be IC System Inc.

But don’t worry. There’s still a way to resolve your debt. Keep reading to learn more about how to negotiate with IC System and settle your debt for less.

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You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

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What is IC System, Inc?

At first glance, you might think that IC System, Inc is a scam. However, this company is a family-run debt collection agency based out of St. Paul, Minnesota and founded in 1938. Often hired to collect on many different types of debt, I.C Systems most commonly collects on medical, utility bills, and government debts.

Who does IC System Collect for?

As an authorized debt collection agency. IC System, Inc purchases debt from other businesses and attempts to collect the debt from consumers. Typically IC Systems purchases the debt for much less than the original value.

Read IC System reviews online

If you are curious to learn what consumers have said about their experience with IC System on a debt collection matter, then take a moment to read these reviews:

While some people have negative experience with IC System, Solo

“I've paid 2 of my collections with this company (IC System). They were professional, understanding, and had no problem post dating an arrangement for me. I took care of my collections within a timely manner and this company has stayed off of my credit report. My advice to people...if you don't like getting calls from agencies....keep your bills paid. But regardless, I'm glad this company collected my accounts. I don't think any collection agency is a company people say good things about. And I really don't even slightly believe any of the crap people are claiming in these reviews. I've got my perspective from what I've experienced. I've given them personal bank info twice over the phone without hesitation. And they've respected me just fine.”

So, it’s clear that the key to resolving a debt issue with IC System is communication. Communicate your financial situation clearly and see if the IC System debt collector will work with you to amicably resolve your debt. Now, let’s explore more tips on how to negotiate with collectors to settle debt.

How to negotiate with IC System to settle your debt

To avoid going through the stress and time-intensive litigation process, consider negotiating a debt settlement with IC System. Below are three steps you should consider taking to settle debt:

Step 1: Determine how much you can actually pay toward the amount owed

Before commencing settlement negotiations, determine how much you can actually afford to pay in a lump sum. Your calculation should take into consideration your other living expenses. If you don’t have sufficient funds to make a lump sum payment, try to calculate what you could pay in installments.

Step 2: Engage in settlement negotiations with IC System

Once you’ve figured out how much you can repay, the next step is to try and negotiate a settlement. Start by offering a lower percentage of the total debt, typically 30% to 50% of the original amount, and be prepared to negotiate upward. If possible, offer a lump sum payment as creditors are more likely to accept a lower amount if they receive an immediate payment.

Step 3: Get the debt settlement agreement in writing

Before making a payment toward the debt, ensure you receive a written agreement outlining the terms of the settlement. This is known as a debt settlement agreement. The agreement should clearly state that the payment will settle the debt in full and that they will not pursue any further legal action or collections. Additionally, you should request confirmation that the debt collector will report the debt as "settled" or "paid" to credit reporting agencies. Once you have this in writing, proceed with payment.

If you decide to engage in settlement talks, consider using smart tools to help you with the debt settlement negotiation process, like SoloSettle, which is a software that sends and receives settlement offers for you until you come to an agreement with the collector or creditor.

Innovative tools such as SoloSettle can make it much easier to fly solo in the debt settlement process, which can help you both save money and resolve your debts more efficiently than litigation.

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Make an Offer

To learn more about these steps, watch our video guide below:

Steps to respond to a debt collection lawsuit

If you owe a valid debt to IC System and you fail to pay it off, you may find yourself sued in court. You have 14-30 days to respond to the debt Summons and Complaint, depending on which state you're sued in. If you fail to respond in time, then the court will order a default judgment against you. Default judgments declare the amount owed, and eventually allow IC System to collect on that amount by garnishing your wages.

According to the FDCPA, IC System cannot threaten to garnish your wages until an order has been made by the court. To prevent receiving a default judgment in a lawsuit against IC System, you should focus on responding to the lawsuit and fighting them in court.

Responding to a debt lawsuit can be intimidating, and finding a lawyer can be costly and challenging. You can represent yourself in court by following these 3 steps:

Step 1: Respond with a written Answer

The most important part of winning a debt collection lawsuit is to respond. Around 90% of people sued for debt automatically lose their case because they don't know how to respond to the Summons and Complaint. The Complaint lists all the specific allegations against you, and you should respond to each of them with one of the following pleas:

  • Admit: Admit you owe the debt.
  • Deny: This is like saying, “prove it.”
  • Deny due to lack of knowledge: This is like saying, “I don't know.”

SoloSuit makes responding in court easy and simple. You can draft your legal Answer with Solo, for free, in minutes.

Step 2: Assert affirmative defenses

Asserting your affirmative defenses is basically like stating your side of the case. Affirmative defenses are facts claimed by a defendant (in this case, you) that, if proven, defeat the collector's claims. You must list your affirmative defenses in your Answer to the lawsuit, or else they cannot be brought up later in the lawsuit.

Use SoloSuit to make the right affirmative defense and win in court.

Step 3: File the Answer

  • After you've prepared your Answer with responses and affirmative defenses, you need to file it with the court and send a copy to the opposing attorney. Here are some tips on proper filing: Print two copies of your Answer
  • Mail one copy to the court (certified mail)
  • Mail the other copy to the plaintiff's attorney (certified mail)

Solo can help you file an Answer in all 50 states.

Check out this flowchart that outlines all the possible routes a debt lawsuit can take:

Take action

If you get a call from IC System or another debt collector attempting to collect a debt from you, take action. If you insist that the debt does not belong to you and IC Systems keeps calling, then you may be entitled to a countersuit as per the FDCPA. You can win $1,000 per FDCPA violation, plus court costs, attorney fees, and any damages you may have suffered. This often means that the case will be dropped as well. Explore your options with Solo and beat IC Systems today.

Solo can help you file an Answer in all 50 states.

What is the FDCPA?

The Fair Debt Collection Practices Act, or FDCPA, is a law that governs third-party debt collectors. It protects consumers from unethical or abusive debt collections strategies. Enforced by the Federal Trade Commission, the FDCPA prohibits debt collectors from:

  • Calling you before 8 am or after 9 pm
  • Claiming that you owe an amount that is not legally owed or within the original creditor agreement
  • Swearing, raising their voice, calling you names
  • Saying that you can be arrested or sent to jail for not paying your debts
  • Making threats that they cannot legally carry out or have no intention of carrying out
  • Discussing your debt with anyone other than you, your spouse, or your attorney

Violations of the FDCPA are common even though they are illegal. Because of this, debt collectors continue to use them because consumers end up paying. Many consumers would rather pay than deal with harassment and abuse.

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.

Arbitration

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.

Credit

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.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

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.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

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

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

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

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

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.

Other debt resources


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