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Is Commonwealth Financial Systems Legit?

Sarah Edwards | February 03, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

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: If you’ve been getting scary texts, calls, and letters from Commonwealth Financial Systems, you should know that the company has been shut down by the Consumer Financial Protection Bureau. SoloSuit explains the situation.

If you’ve ever gotten a call from a debt collector, you know that sense of dread and panic that starts to take over the second you hear who’s on the line. It’s tempting to just hang up and wish the whole thing away.

Normally, that tactic doesn’t work, but with Commonwealth Financial Systems Inc., it will. As of December 15, 2023, the company has been shut down for illegal debt collection practices. Here’s what happened and what it can teach you about dealing with other collection agencies.

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What is Commonwealth Financial Systems?

Is Commonwealth Financial Systems legit? Not anymore. Commonwealth Financial Systems in Dickson, PA, was a debt collection agency specializing in medical debt collection.

Although the Consumer Financial Protection Bureau (CFPB) shut it down in 2023, Commonwealth’s website was still up as of January 5, 2024. The officially published Commonwealth Financial Systems phone number is 800-848-2170.

We decided to see if the company’s Better Business Bureau (BBB) profile was still up. As of January 5, 2024, it was. However, a banner on the page explained how and why it was shut down. In case you were wondering, Commonwealth Financial Systems has ratings averaging one out of five stars, and its BBB rating is F.

Commonwealth Financial used illegal methods to collect debt

Even before it was shown to be breaking the law, this company wasn’t exactly everyone’s favorite. There was no shortage of Commonwealth Financial Systems Reddit posts complaining that the company was still trying to recover accounts that were being disputed.

Eventually, the CFPB discovered that Commonwealth was breaking two separate, very important laws: the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).

All of the company’s violations came about because Commonwealth wasn’t properly handling disputed debts. It violated the FCRA by not adequately investigating disputed debts and by failing to tell credit bureaus and other consumer reporting companies that certain debts were being actively disputed.

In a similar vein, Commonwealth Financial Systems, Inc. violated the FDCPA by refusing to validate debts when consumers asked. Under the FDCPA, a consumer has the right to ask a debt collector to validate the debt (to prove the consumer owes it).

Once a consumer makes that request, the company may not continue trying to collect until the debt has been validated. Commonwealth Financial Systems wasn’t just refusing to validate debt — it was continuing to try to collect it, too!

Learn more: How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

The CFPB crackdown: A warning to debt collectors everywhere

It’s always a good day when a scammy debt collector is held accountable. The Consumer Financial Protection Bureau (CFPB) is authorized to take action against any companies violating the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, or both. On December 15, 2023, the CFPB issued a three-part enforcement:

Commonwealth Financial Systems must permanently shut down

In a win for consumers everywhere, the CFPB ordered Commonwealth to close. That means it can’t buy or sell debt (or help anyone else buy or sell debt).

Commonwealth Financial must tell credit bureaus to delete collection accounts

Debt collectors report to credit bureaus and similar agencies, and it looks like some of Commonwealth’s reporting was downright false. CFPB has ordered the company to tell consumer reporting agencies to delete all Commonwealth collection accounts.

Commonwealth Financial must pay a $95,000 fine

Finally, the CFPB ordered Commonwealth to pay $95,000 to the CFPB victim relief fund. Judging from all the negative Commonwealth Financial Systems reviews out there, the victims definitely deserve it!

What can you learn from Commonwealth’s fall?

If you’ve previously been harassed by Commonwealth Financial Systems, Inc., you’re probably breathing a sigh of relief right now. But this company’s demise illustrates why it’s so important to know your rights as a consumer.

You saw above that Commonwealth refused to validate debt when asked. Under the FDCPA, a collection agency must validate your alleged debt if you ask. If they can’t prove you owe it, you don’t have to pay.

Unfortunately, many people panic and pay up as soon as a debt collector calls. And in this situation, it probably means that countless people paid the Commonwealth Financial Systems price when they didn’t need to. Some people paid debts they possibly never even owed in the first place.

If you want to make sure you never pay more than you legally have to, you should always make a debt collector prove you owe what they say you do. You must formally make this request with something called a Debt Validation Letter. In that letter, make sure you ask for the following:

  • The name of the original creditor (the person or company you owed money to before it was sent to collections).
  • How much you allegedly owe the creditor.
  • A copy of the signed contract between you and the original creditor.
  • The last transaction made on your account.
  • Proof that the debt collection agency in question is legally authorized to collect the debt.
  • Proof that the debt collection agency can legally operate in your state of residence.

SoloSuit’s Debt Validation Letter template makes standing up to debt collectors easy.

Once a debt collection company gets your Debt Validation Letter, it legally can’t contact you about the debt until it proves you owe it. That’s where Commonwealth Financial Systems broke the law. Here’s an example of how it works.

Example: Chris keeps getting phone calls about a $200 medical bill. He doesn’t think he owes it, so he sends the collection agency a Debt Validation Letter. The company stops contacting him, and he never hears about the debt again. Had he not sent that letter, the company could have continued harassing him, and it may have even filed a lawsuit.


It’s important to understand that sending a Debt Validation Letter is only a viable strategy if a debt collector has not yet filed a lawsuit against you. If you’ve already been sued, you can likely settle the suit for less than you owe.

Settle your debt collection lawsuit with SoloSettle from SoloSuit.

Save your money — know your rights!

We can all rest a little easier at night knowing that Commonwealth Financial Systems Inc. can no longer harass hardworking consumers. Knowledge is power, and understanding your rights under the FDCPA might just save you some cash in the long run.

Check out SoloSuit’s video on how to make a Debt Validation letter in two simple steps!

George Simons

George Simons, JD/MBA

Co-Founder of SoloSuit

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. With more than a decade’s worth of experience in legal tech, research, and writing, George has dedicated his career to empowering individuals through innovative legal solutions.


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