A free service of AAA Capital Funding, Inc., your mortgage source since 1997.Free from AAA Capital Funding

Get pre-approvedCall 888-601-8344

Collection agency

Commonwealth Financial Systems on your credit report

Reviewed · 2 sources

Short answer

Commonwealth Financial Systems is a collection agency. On a credit report it can also appear as Commonwealth Financial Systems, Inc.. You have the right to ask it to validate a debt, and to dispute anything on your credit report that is inaccurate.

Who Commonwealth Financial Systems is

Commonwealth Financial Systems is a Pennsylvania-based third-party debt collection company that collected past-due medical debts, according to the CFPB. A December 2023 CFPB order permanently bars it from collecting, buying or selling debt and from consumer reporting.

How its accounts show on your credit report

The CFPB's order requires Commonwealth to ask every credit bureau it reported to delete collection accounts for affected consumers. If a Commonwealth collection is still on your report, dispute it with the bureau and cite the order.

Public enforcement actions

DateAgencyWhat happened
December 15, 2023CFPBThe CFPB permanently barred the company from debt collection, debt buying, debt selling and consumer reporting, ordered it to ask the credit bureaus to delete collection accounts for affected consumers, and imposed a $95,000 civil money penalty. Read it

How to ask Commonwealth Financial Systems to validate a debt

Commonwealth is barred from collecting. If you are contacted about a debt Commonwealth once handled, ask the company contacting you for validation and the name of the current owner.

Ask within 30 days of the first notice and the collector has to pause collecting until it sends verification. The letter builder writes a validation request for free.

What to do if this name is on your report

  1. Pull all three reports. Get them free at AnnualCreditReport.com and find the account, its balance and its date of first delinquency.
  2. Check the dates and the amount. A collection can report for 7 years from the original delinquency, not from when the collector bought it. A newer date can mean re-aging.
  3. Ask for validation if you don't recognize it. Send the request in writing and keep a copy.
  4. Dispute what is wrong. Dispute with each bureau that shows an inaccurate item, and with the collector directly.
  5. Decide on payment with the facts in hand. Read should you pay a collection before you agree to anything.

Guides that go deeper

Sources

  1. Commonwealth Financial Systems, Inc. (2023), Consumer Financial Protection Bureau
  2. 12 CFR 1006.34: Notice for validation of debts, eCFR

Spot an error? Tell us and we'll fix it.