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Better Business Bureau St. Louis advises consumers to be alert to calls and mailers from Advance Dispute Services, a St. Louis debt collection company. Consumers reported to BBB that they received no written notification or documentation from the company alerting them of the debt, were subjected to high-pressure collection tactics, failed to honor cease and desist requests, and provided poor customer service.
Advance Dispute Services has an “F” rating, the lowest on BBB’s scale, due to recent unanswered complaints. The business also has received negative customer reviews. The business is using an address near downtown St. Louis.
“If a debt collector threatens to sue you if you don’t pay immediately, that is a sign they are not legitimate,” said Michelle L. Corey, BBB St. Louis president and CEO. “If the debt collector can’t give you in writing information about how much you owe and to whom you owe the money, they are most likely violating the law.”
A woman from Brooklyn, New York, told BBB she paid Advance Dispute Services $200 in July 2023 after she said she received a call from the business. The woman said she was told she was in arrears on payment to a credit line. She said the Advance Dispute Services representative demanded money and said that if the woman failed to pay she would be subpoenaed.
“I was so scared,” the woman told BBB. “They had a lot of my information, so I figured they were real.”
The woman paid the money via an electronic payment app. After sending the money, the woman contacted the credit company and was told she was in good standing and that the company had never heard of Advance Dispute Services.
A woman from Bishop, California, told BBB that she received a call from an Advance Dispute Services representative in March 2023 about an outstanding debt on a credit card. The woman said the company demanded an immediate payment of more than $2,000 or the debt would nearly double.
The woman said she paid the debt with a credit card and received a receipt, but the information on the receipt did not match the information for the disputed credit card account. She was able to get the charge to Advance Dispute Services reversed.
“They are very convincing on the phone,” the woman told BBB. “I was scared they were going to serve me, so I just paid it.”
A woman from Alta Loma, California, said she received a call from an Advance Dispute Services representative in June 2023 and was told she would be sued if she didn’t make an allegedly unpaid credit card balance. The woman said the company demanded $3,000.
The woman asked for a letter to describe the charges she allegedly owed. She consulted with legal counsel, who suggested it was not a legitimate debt. The woman also checked with the credit card company and was told she did not owe them.
“The worst part about this is how they made me feel,” the woman told BBB.
Advance Dispute Services is not registered with the Missouri Secretary of State. A website or social media presence for the business was not found.
BBB attempts to reach Advance Dispute Services for comment failed, and the business did not respond to a BBB letter regarding how it plans to address its pattern of customer complaints.
BBB offers these tips for consumers approached by debt collectors:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org or by calling 888-996-3887.
- Ask the debt collector to provide an official “validation notice” of the debt. Debt collectors are required by law to provide this information in writing. The notice must include the debt amount, the creditor's name, and a statement of your rights. If the debt collector won’t provide the information, do not deal with them.
- If the debt collector contacts you by phone, ask the caller for their name, collection agency, extension number, and department. Then, look up the contact information for the collection agency to confirm its validity. Call and ask to speak to the representative at their extension.
- The agency should be able to give you a timeline on which you can pay, and they will let you call them back or send payment through another method later.
- You cannot be jailed for owing a debt, and a debt collection agency cannot contact law enforcement to arrest you.
- Know your rights by visiting the FTC’s website at ftc.gov. Learn more about the FTC’s Fair Debt Collection Practices Act.
- If you feel like you have been misled, file a complaint with BBB and the state’s attorney general’s office.
