Consumer Adj Co or Consumer Adjustment Company, commonly known as CACi, appears on your credit report when they're collecting an unpaid debt on behalf of another creditor or have purchased your debt from the original lender. This collection entry can drop your credit score by 50-100 points and remain on your report for up to seven years. However, there are proven strategies to remove it and that’s through debt validation, disputes, or settlement negotiations.
Disclaimer: This article is for educational purposes only and does not express negative views about Consumer Adjustment Company (Consumer Adj Co/CACi) or debt collection agencies. We acknowledge that debt collectors serve a legitimate business purpose in the financial industry.
The information provided is based on consumer rights under federal law, including the FDCPA and FCRA. This content is not legal advice. Individual results may vary. We recommend consulting with qualified professionals for specific guidance and encourage consumers to work cooperatively with legitimate debt collectors to resolve valid debts.
When you check your credit report and see "Consumer Adj Co" or "CACi" listed as a collection account, this entry can damage your credit score and make it harder to get loans, credit cards, or even rent an apartment.
There are proven strategies to remove this negative mark and restore your financial standing.
What is Consumer Adj Co on My Credit Report?
The Truth About This Collection Agency
Consumer Adjustment Company, commonly known as CACi, is a third-party debt collection agency that has been operating since 1967. Consumer Adjustment Company, Inc. (CACi) is a debt collection agency that collects different types of debt on behalf of creditors like medical bills, credit card debt, and other utilities. When you see this name on your credit report, it means they're trying to collect a debt on behalf of another company.
Unlike original creditors who lend you money directly, Consumer Adjustment Company purchases debts or gets hired to collect them. They might be chasing you for old medical bills, unpaid credit card balances, utility bills, or other consumer debts.
Related Content: How Medical Debt Can Impact Your Credit Score
The scary part? Sometimes they pursue debts that aren't even yours or have already been paid.
But here's what most people don't know, just because they're on your credit report doesn't mean you're stuck with them forever...
How Consumer Adjustment Company Gets on Your Credit Report
The process usually starts when you miss payments on an original debt. After 90-180 days of non-payment, the original creditor might "charge off" your debt and either sell it to CACi or hire them to collect it. Once they acquire your debt, they report it to the credit bureaus as a collection account.
This collection entry can stay on your credit report for up to seven years from the date of first delinquency. This can drop your credit score by 50-100 points or more, depending on your current credit profile. The impact is especially harsh if you previously had good credit.
Recommended Read: How to Remove FCR Services From Your Credit Report (Step-by-Step Guide)
Who Does CACi Collect For?
As we mentioned earlier, this debt collection agency is hired to collect unpaid debts on behalf of various creditors. CACi (Consumer Adjustment Company, Inc.) often works with different businesses to collect outstanding balances owed by consumers like:
- Medical facilities and hospitals
- Credit card companies
- Utility companies
- Retail stores
- Telecommunications companies
- Financial institutions
They also purchase debt portfolios from debt buyers, which means they might be collecting on very old debts that have changed hands multiple times. This creates opportunities for errors and disputes that consumers can use to challenge the debt.
The Hidden Impact of Collections on Your Financial Life
Beyond the Credit Score Damage
Took a 19 point hit, 21 on EQ. This real consumer experience shows how quickly collections can devastate your credit score. But the damage goes far beyond numbers on a report.
When Consumer Adjustment Company appears on your credit report, you might face:
- Higher interest rates on loans and credit cards
- Difficulty qualifying for mortgages or auto loans
- Increased insurance premiums
- Security deposits for utilities and phone service
- Rejection for rental applications
- Employment screening issues for certain jobs
- Difficulty opening new bank accounts
Collection accounts can impact your credit score for up to seven years, so address them promptly. The longer you wait, the more damage accumulates to your financial reputation.
The Psychological Toll
Living with collections affects your mental health beyond just money concerns. Constant worry about your credit, fear of applying for credit, and stress from collection calls can impact your daily life. Many people avoid checking their credit reports because they're afraid of what they'll find.
Understanding your rights and having a plan can transform this overwhelming situation into a manageable process with clear steps.
Advanced Debt Validation Strategies That Actually Work
The 30-Day Validation Window
Most people miss this opportunity. When Consumer Adj Co first contacts you, they must send a validation notice within five days. You then have 30 days to request debt validation in writing. This requires asking for specific documentation that many collection agencies can't provide.
Your validation request should demand:
- Original signed contract or agreement
- Complete payment history
- Documentation of the debt's transfer to Consumer Adjustment Company
- Proof of their legal authority to collect
- Calculation of current balance including fees and interest
Many collection agencies, including CACi, work with purchased debt portfolios where original documentation is incomplete or missing. If they cannot validate the debt properly according to these requirements, they must remove it from your credit report.
The Documentation Gap Strategy
Use an advanced tactic that most credit repair guides don't mention like challenge the chain of custody. Debts often change hands multiple times before reaching Consumer Adj Co. Each transfer requires proper documentation.
Request:
- Bills of sale for debt purchase
- Assignment agreements
- Authorization to collect in your state
- License verification for debt collection
If any link in this chain is broken or undocumented, you have grounds for removal. This strategy works particularly well with older debts that have been sold multiple times.
If they do provide validation, there are still additional strategies to explore.
The FDCPA Violation Approach
The Fair Debt Collection Practices Act (FDCPA) gives you significant power over debt collectors. Consumer Adj Co must follow strict rules, and violations can result in debt removal plus monetary damages up to $1,000.
Common FDCPA violations include:
- Calling before 8 AM or after 9 PM
- Contacting you at work after being told it's not allowed
- Discussing your debt with third parties
- Using threatening or abusive language
- Misrepresenting the debt amount or legal consequences
- Continuing to contact you after a cease and desist letter
Document every interaction with the Consumer Adjustment Company. Record phone calls (where legal), save voicemails, and keep all written correspondence. FDCPA violations not only provide leverage for debt removal but can also result in them paying you.
Proven Dispute Strategies for Credit Bureau Removal
The Triple-Dispute Method
This advanced strategy involves disputing the Consumer Adj Co entry with all three credit bureaus simultaneously, but using different grounds for each dispute. This prevents the bureaus from sharing verification information and increases your chances of removal.
- For Experian, dispute the account balance
- For Equifax, dispute the date of first delinquency
- For TransUnion, dispute the account ownership
Each bureau must independently verify the information with CACi. If they can't verify all details consistently, the entry must be removed from that bureau's report.
The Method of Verification Dispute
This lesser-known strategy challenges how the credit bureau verified the information rather than the information itself. Request:
- Who verified the information
- What method was used for verification
- When the verification occurred
- What documentation was reviewed
Credit bureaus often use automated systems that don't actually verify details with collection agencies. When you demand specifics about their verification process, they often can't provide adequate documentation, leading to removal.
Timing Your Disputes Strategically
Most people dispute randomly, but smart consumers time their disputes strategically. File disputes during busy periods when bureaus are overwhelmed:
- Early January (post-holiday backlog)
- Late December (end-of-year rush)
- Around major holidays
- During known system maintenance periods
Overwhelmed bureaus are more likely to remove disputed items rather than spend time on thorough investigations.
But if disputes fail, you still have effective negotiation options.
Settlement and Payment Strategies That Protect Your Credit
The Pay-for-Delete Negotiation
Despite credit bureaus claiming otherwise, pay-for-delete agreements are common and legal. This involves negotiating with Consumer Adjustment Company to remove the collection entry in exchange for payment. The key is getting the agreement in writing before making any payment.
Effective pay-for-delete negotiation steps:
- Start with an offer of 20-30% of the balance
- Demand written agreement before payment
- Specify removal from all three credit bureaus
- Include timeline for removal (usually 30-45 days)
- Keep all documentation for follow-up
Consumer Adj Co is more likely to agree to pay-for-delete near the end of their fiscal quarters when they need to meet collection targets. You can settle your debt for less if you time your negotiation accordingly.
The Goodwill Letter Strategy
If you've already paid Consumer Adj Co but they haven't removed the entry, a goodwill letter can be effective. This involves writing a professional letter explaining your circumstances and requesting removal as a gesture of goodwill.
Key elements of effective goodwill letters:
- Take responsibility without admitting legal liability
- Explain legitimate hardship that caused the debt
- Highlight positive payment history since resolution
- Request specific action (removal from credit reports)
- Include supporting documentation
Send goodwill letters to multiple departments within CACi. Different managers have different authority levels and attitudes toward goodwill removals.
Partial Settlement Tactics
If you can't afford full payment, partial settlements can still be effective. Consumer Adj Co often purchases debts for pennies on the dollar, so even small settlements can be profitable for them.
Negotiation tactics:
- Never accept the first offer
- Request all terms in writing
- Insist on "paid in full" rather than "settled" reporting
- Get removal agreements before payment
- Use certified funds for final payment
Remember: Never give Consumer Adj Co electronic access to your bank account. Use money orders or certified checks for payment.
When Consumer Adj Co Won't Cooperate
Escalation Strategies
If the Consumer Adjustment Company refuses to validate the debt, won't negotiate removal, or continues reporting inaccurate information, escalation becomes necessary. File complaints with:
- Consumer Financial Protection Bureau (CFPB)
- Your state attorney general's office
- Better Business Bureau
- State regulatory agencies
These complaints often prompt rapid response from Consumer Adj Co because regulatory attention can be costly and time-consuming for them.
Legal Action Considerations
In some cases, legal action against Consumer Adj Co may be warranted. Consider consulting with a consumer protection attorney if:
- They refuse to validate a debt you don't owe
- They continue collection efforts after validation requests
- They violate FDCPA provisions repeatedly
- They report inaccurate information after being notified
Many consumer protection attorneys work on contingency, meaning you don't pay unless you win. FDCPA violations can result in up to $1,000 in damages plus attorney fees.
Final Option: Cease and Desist
If all other methods fail, you can send a cease and desist letter to stop all communication from Consumer Adj Co. Once they receive this letter, they can only contact you to:
- Confirm they're stopping collection efforts
- Notify you of specific legal action
This does not eliminate the debt or remove it from your credit report. It only stops communication. Use this option carefully and only when other strategies have failed.
Protecting Yourself from Future Collection Issues
Monitoring and Prevention
Once you've dealt with Consumer Adj Co, prevent future collection problems by:
- Monitoring your credit reports monthly
- Setting up credit monitoring alerts
- Addressing payment issues before they become collections
- Understanding your rights under federal and state law
- Keeping detailed records of all debt-related communications
Building Positive Credit
While removing negative items is important, building positive credit history is equally crucial. After removing Consumer Adj Co from your credit report:
- Pay all bills on time consistently
- Keep credit utilization below 30%
- Maintain older credit accounts
- Consider secured credit cards if needed
- Avoid closing old credit accounts
Documentation Best Practices
Always maintain detailed records when dealing with debt collectors:
- Date and time of all communications
- Names of representatives you speak with
- Summary of conversations
- Copies of all written correspondence
- Payment confirmations and receipts
- Credit report copies showing removal
This documentation protects you if the collection reappears on your credit report or if Consumer Adj Co attempts future collection efforts.
Your credit score does not have to be permanently damaged by CACi. With the right strategies and persistence, you can remove this negative mark and rebuild your financial reputation. The key is taking action quickly and using proven methods that protect your rights while achieving your goals.
Take Action Against Consumer Adj Co Now!
Every day Consumer Adj Co remains on your credit report is another day of potential credit damage. Start implementing these strategies today to take control of your financial future.