How to Settle Debt With State Collection Service

George Simons | January 31, 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: Getting calls from State Collection Service? Stay calm. Validate the debt, know your FDCPA rights, and negotiate a settlement for less. If you’ve been sued, file an Answer into the case to block a default judgment and give yourself the time needed to settle. Use Solo to streamline the settlement process.

Are you receiving multiple phone calls and letters from a debt collector such as State Collection Service? It is perfectly understandable to feel upset and stressed out. State Collection Service is a legitimate debt collection company so you should not ignore their outreach. Rather, learn how to engage with State Collection Service and understand your options. For example, you can proactively reach out to State Collection Service to negotiate a debt settlement.

Settle debt with State Collection Service

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What is State Collection Service?

State Collection Service is a third-party debt collection agency operating out of Madison, Wisconsin. You may be asking yourself, “what is a third-party debt collection agency?” Good question. It basically means State Collection Service collects debt on behalf of other companies.

Who does State Collection Service collect for?

State Collection Service specializes in pursuing unpaid medical debt. This means they routinely collect on delinquent accounts maintained by hospitals, medical centers, and other healthcare organizations.

Read State Collection Service reviews online

If you are looking to learn about what other people have shared regarding their debt collection experience with State Collection Service, then take some time to check out these online reviews:

Objectively speaking, the online reviews of State Collection Service are not all five stars. Nevertheless, there are reviews showing that people can have a generally positive experience communicating with State Collection Service collectors about a debt issue. Take, for example, the review posted by a borrower named Alysa:

“Jeffrey was a very understanding person and had a great life conversation with him. He worked very well with me setting up an appropriate payment plan that works with my income.”

Alysa’s review highlights an important truth - engaging with a debt collector (as opposed to ignoring them) will generally improve your odds of reaching a resolution to your debt collection matter. Alysa contacted SCS and was able to work out a reasonable repayment plan that fit within her income. You may be able to have a similar experience.

Negotiate with State Collection Service and settle your debt

If you were served with a Summons and Complaint from State Collection Service, do not fret. You still have the ability to negotiate a debt settlement with SCS.

It is important to proactively respond to the debt collection lawsuit so you have enough time to engage in settlement negotiations. Also, responding to the lawsuit helps prevent a default judgment being entered against you.

Here are some recommended steps to try and settle a debt with State Collection Service:

  1. After you’ve filed an Answer to the debt collection lawsuit, calculate how much you can pay toward the amount owed without adversely impacting your ability to cover other necessary living expenses. Consider using the following formula: Amount available to settle = (monthly income – monthly costs) + savings)
  2. Once you have your settlement range in mind, reach out State Collection Service and convey your settlement offer, preferably in writing.
  3. Make sure your initial offer is less than the maximum amount you can pay so you have some flexibility to negotiate.
  4. Do not be shocked if they decline your opening offer. This is normal. You should be ready to go through multiple rounds of negotiations.
  5. If you have success and negotiations and reach an amicable debt settlement agreement, make sure to get the terms in writing.

To learn more about these tips and others that may assist you on your journey to settle debt with State Collection Service, watch the following interview with a consumer rights attorney, John Skiba, where he shares the best tips for negotiating debt settlement with collectors:

Know your rights when State Collection Service contacts you

he Fair Debt Collection Practices Act lays out rules and regulations that state what debt collectors can and cannot do. Some of the restrictions on companies such as State Collection Service include:

  • State Collection Service is not allowed to call or contact you at work.
  • State Collection Service is not allowed to use vulgar language when contacting you by phone, email, text, or mail.
  • State Collection Service' collectors cannot make threats about a lawsuit.
  • State Collection Service cannot try to call you at your house before 8 a.m. or after 9 p.m.

Many consumers are unaware of the rules that debt collectors must follow. Debt collectors know most people are ignorant of the provisions of the FDCPA. But once you know the rights that you have, you have a better chance of beating any lawsuit filed against you.

Respond to a debt collection lawsuit against State Collection Service

If State Collection Service elevates the matter to a civil lawsuit, it is vital for you to respond to the Complaint. Do not ignore the lawsuit and hope it disappears. It will not go away. If you do not respond, you will lose by default, which gives State Collection Service the right to garnish your wages or seize your property.

The first step to engaging with State Collection Service in court is to respond to the lawsuit. Follow these three steps:

  1. Respond to each claim listed in the Complaint, and avoid admitting.
  2. Assert your affirmative defenses.
  3. File the Answer in court, and send a copy of the Answer to State Collection Service.

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

Possible Defenses To Utilize In Your Answer

When you give an Answer to the debt collection lawsuit, you have the chance to point out any deficiencies with the allegations in the suit. Also, remember that debt collectors must prove that you owe the money they claim in the complaint. This means State Collection Service must show the following things before you are proven to owe the debt:

  • State Collection Service has the right to sue you.
  • You are the person who owes the debt.
  • You owe the exact amount alleged in the complaint.

If State Collection Service cannot prove the above, there is a high probability you will win in court. You could get the lawsuit thrown out.

Depending on your case, you could say that State Collection Service was unable to file the suit within the statute of limitations. The statute of limitations is the time limit a person or entity has to file suit against someone else.

If the facts of your case show that State Collection Service sued you and the statute of limitations expired, you may file a legal motion to have the suit dismissed with prejudice.

Most importantly, beware that filing the Answer is only the first step to resolving a debt lawsuit. You should also contact State Collection Service to settle the debt before your court date. If you want to fight the lawsuit, be sure to attend all future hearings or trials. Failure to show up will result in a lost case.

Use SoloSettle to negotiate and settle for less.

Overview of What You Should Do If State Collection ServiceTakes You To Court

Here's a summary of what to do if you have a debt collection lawsuit filed against you:

  • Write down details of any phone calls from the debt collector before 8 AM or after 9 PM. Also, note if the debt collector contacts you at work or uses offensive language.
  • Be sure to file an answer within the timeframe the Court gives you.
  • In the Answer, think about raising one or more affirmative defenses, such as the statute of limitations. You also should insist State Collection Service give you proof of the amount owed and that you are the one who is legally responsible for the debt.
  • After you file an Answer, reach out to State Collection Service to negotiate and discuss your options. They will probably work with you to settle or set up a payment plan that fits your financial needs.

The above are effective strategies that can help you beat State Collection Service in court. Also, think about filing a counterclaim if the debt collector violated the FDCPA. We wish you the best of luck!

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