Contacted by Capital Management Services? Here’s What to Do Next

If you just got a letter or call from Capital Management Services (often shortened to CMS), take a breath. You’re not the first person to search things like:

• “Capital Management Services debt collection”
• “Is Capital Management Services legit?”
• “How to deal with Capital Management Services”
• “Capital Management Services lawsuit”
• “Capital Management Services reviews / complaints”

This guide walks you through who they are, why they’re contacting you, what happens if you ignore them, and realistic ways to resolve it—without panic.

Who is Capital Management Services?

Capital Management Services, LP (CMS) is a legitimate third-party debt collection agency based in Buffalo, New York. They’ve been operating since 2000 but are not BBB accredited. According to the Better Business Bureau, they have 30 complaints in the last 3 years and 11 in the past 12 months.

What they collect: CMS handles both consumer and commercial accounts, working with major credit card issuers like Citi, Discover, and Capital One. That means you may hear from them whether you fell behind on a personal credit card or even a small business account.

Legal history: CMS has faced multiple consumer lawsuits. They were part of a $75.5 million TCPA class-action settlement over unlawful autodialed calls. In Heredia v. CMS, the court confirmed they are a bona fide debt collector subject to FDCPA regulations (Justia summary).

Why Are They Contacting You?

The most common path looks like this:

1. You fell behind on a credit card or loan.
2. The account was charged off or assigned to a debt collector or debt purchaser.
3. CMS was brought in to collect on the creditor’s behalf.

They may contact you by letter, phone, or even automated calls. If you don’t recognize the debt, you have the right to request validation—proof that the debt is yours and that CMS has the authority to collect.

PRO TIP: Don’t just take their word for it. Send a written debt validation request within 30 days of first contact. They must pause collection until they send you details showing the original creditor, account, and balance.

What Happens If You Ignore Them?

Ignoring CMS usually makes things worse:

• More calls and letters. They’ll keep trying to collect.
• Lawsuit risk. CMS or the creditor they represent could sue. If you don’t respond, you could end up with a default judgment.
• Enforcement actions. With a judgment, they could pursue wage garnishment, bank levy, or property liens (depending on state laws).
• Credit damage. Collection accounts can stay on your credit report for up to 7 years from the original delinquency date.

PRO TIP: Never ignore a court summons. If you’re served, file an Answer before the deadline. Even if you’re not sure what to write, responding prevents an automatic judgment and gives you time to validate, negotiate, or defend.

Can You Settle with Capital Management Services?

Yes. Many accounts can be settled for less than the full balance, especially with a lump-sum payment. Settlement percentages vary, but consumers often resolve accounts in the 40–60% range, depending on creditor policies, balance age, and your circumstances.

Key steps:

1. Validate first. Make sure the debt is accurate and within your state’s statute of limitations.
2. Negotiate deliberately. Don’t jump at the first offer. Start below your maximum budget.
3. Get it in writing. Never send money without a written settlement agreement confirming the debt will be considered resolved.
4. Track your credit. Expect the entry on your credit report to say “settled” or “paid in full for less than the balance,” not disappear.

DIY vs. Hiring Help

DIY (Do-It-Yourself): Works best if you only have one or two accounts and feel confident managing validation letters, deadlines, and negotiation.

Hiring help: Smarter if you’re juggling multiple accounts, facing lawsuit risk, or just overwhelmed by calls and letters.

At Donaldson Williams, we’ve been negotiating with agencies like CMS since 2006. We work on a contingency basis (No Results, No Fees) and keep you updated every step of the way.

Common Questions About Capital Management Services

Is CMS a scam?
No. They are a real collection agency. But that doesn’t mean every claim is accurate—always request validation.

Will they sue me?
They can. Whether they do depends on the balance, the creditor, and your responsiveness.

Can they garnish my wages or levy my bank account?
Only if they sue and win a judgment in court. Without that, they can’t garnish or seize assets.

Can I pay my original creditor instead?
Usually no. If CMS has the account, you’ll need to resolve it through them.

What about complaints and reviews?
CMS has dozens of consumer complaints filed with the BBB and CFPB. Common issues include debt validation, credit reporting, and communication practices.

What to Do Next

1. Collect documents. Keep copies of collection letters, original creditor statements, and recent credit reports.
2. Send a validation request. Don’t pay until the debt is confirmed.
3. Check the statute of limitations. Old debts may be “time-barred” in your state.
4. Decide your path: DIY vs. professional help.
5. If negotiating yourself: Get all agreements in writing before paying.
6. If you want help: Donaldson Williams can step in, handle CMS directly, and work to reduce what you owe.