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Is KLS Financial Services Legit? How to Settle Your Debt

George Simons, JD/MBA Hannah Locklear
Written by George Simons, JD/MBA , Edited by Hannah Locklear
Last updated on May 01, 2026

Summary: To settle debt with KLS Financial Services, validate the debt, review your finances, negotiate a realistic settlement offer, and get the agreement in writing. Use SoloSettle to help with the process.

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 reach a satisfactory resolution with KLS Financial Services. This article explains how to achieve this and provides essential information about debt collection lawsuits and KLS Financial Services.


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What is KLS Financial Services?

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

Ready to resolve your debt? Reach out to KLS Financial and be transparent about your ability to pay. Below is the KLS Financial Services phone number and other contact information:

Read KLS Financial Services review online

You can find more information about KLS Financial Services from the Consumer Financial Protection Bureau (CFPB). The Better Business Bureau (BBB) accredited the company in 2018, and it maintains an A+ rating. You can find additional KLS Financial Services reviews from the Consumer Financial Protection Bureau (CFPB).

Who does KLS Financial Services collect for?

KLS Financial Services collects for commercial, medical, and retail creditors. They also offer a customizable collection process. Seeing KLS Financial Services on a debt collection notice leaves many consumers feeling confused as they’ve never heard of, or done business with KLS. It is important to note that many debt collectors have contracted with creditors to collect debts on behalf of the original creditor.

KLS Financial Services also purchases charged off debts from creditors and attempts to collect on those.

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Know your rights under the FDCPA.

The Fair Debt Collection Practices Act (FDCPA) is a federal law designed to regulate the actions of debt collection agencies. It 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 false or misleading information during 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, document the infraction and report the agency to the CFPB, FTC, and your state’s attorney general’s office.

You have statutory protections as a consumer

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. The FCRA provides 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 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 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:

Step 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 to force CMS to prove what they’re alleging is true.

Step 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 the attorney listed for KLS Financial Services

After you’ve drafted your Answer, be sure to file it before your state’s deadline to avoid a default judgment. 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 one might effectively navigate the legal process when addressing a case involving KLS Financial Services.

Let’s take a look at an example.

Example: Ben is being sued by KLS Financial Services for a $2,000 credit card debt in North Carolina. He uses SoloSuit to draft and file an Answer to the lawsuit. In his Answer document, Ben responds to each claim listed in the Complaint, denying most of them. He also uses the expired statute of limitations as an affirmative defense—the statute of limitations on credit card debt is three years in North Carolina, and Ben hasn’t made any payments in more than four years. Finally, SoloSuit files Ben’s Answer with the court. Ben waits a few months, and he is thrilled when he hears that KLS Financial has dismissed the case entirely.


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

How to settle a debt with KLS Financial Services

Settling a debt can be manageable with the right approach. Here’s a concise guide to settling a debt with KLS Financial Services in 4 steps:

  1. Gather information about your debt with KLS Financial Services. This includes your account number, the amount owed, the date of the last payment, and any correspondence you have from KLS Financial Services.
  2. Review your finances to determine how much you can afford to settle the debt. Take a realistic look at your finances to determine how much you can afford to offer for settlement. Ideally, you should aim for an initial offer that’s at least 30% of the original amount owed. KLS Financial Services may counteroffer, so know the maximum you can afford to pay before you start negotiations.
  3. Make a realistic offer. Don’t offer to settle for more than you can realistically afford, but be sure your offer isn’t so low that KLS Financial won’t take you seriously. Be ready for a counteroffer, because it often takes a bit negotiating before a debt is settled.
  4. Get the settlement agreement in writing and pay it. Once you’ve reached a settlement figure, remember that a Settlement Agreement is only valid one it’s in writing and signed by both parties. Once you have a signed agreement, be sure the KLS Financial also signs it. The last thing to do is fulfill your end of the agreement. Make your payment(s) on time to avoid further collection issues.

SoloSettle can help you navigate the debt settlement process, keep track of correspondence, and ensure you receive a settlement agreement in writing once you’ve reached an agreement with the debt collector.


The following video gives you more ideas on how to negotiate debt without having to hire a debt settlement company or attorney. Check out these expert tips from an attorney on how to negotiate with collectors like KLS Financial Services.

Stand up for your rights outlined in the FDCPA

KLS Financial Services tries to be compliant with federal and state laws on debt collection, especially the Fair Debt Collection Practices Act.

Key takeaways on how to settle debt with KLS Financial Services

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

  • KLS Financial Services is a legitimate debt collection agency specializing 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.
  • Start negotiating as soon as possible to resolve the debt before the lawsuit proceeds through the legal process.
  • Keep track of the lawsuit, show up for all hearings, and provide all required information until the matter is officially resolved and the lawsuit is dropped or complete.
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