Jefferson Capital Systems is a debt-buyer creditor that we commonly see when defending consumers in student loan lawsuits as well as vacating default judgments. They primarily use Forster and Garbus, a debt collection law firm to collect on, initiate lawsuits and conduct judgment enforcement once they win the lawsuit whether on default or on the merits. However, recently we are starting to see Jefferson Capital buy non-student loan debt such as credit card debt. We are also seeing lawsuits filed by the in-house attorneys at Jefferson Capital Systems.
Jefferson Capital Systems can buy debt from a variety of original creditors and debt buyers. They often buy student loan debt from Sallie Mae/Navient. It is easier to defend against Jefferson Capital because the burden to prove that they are the rightful owner of the debt is on them. They must provide important evidence such as the bill of sale and chain-of-title showing proper assignment of the debt. If they cannot provide this evidence then the case may be dismissed. Hearsay is another critical aspect that can be used to attack Jefferson’s case. Jefferson Capital has to provide a witness that will be able to testify to having personal knowledge of the business records they are trying to introduce into evidence. We find that many debt-buyers simply have a standard form that is rubber-stamped by one individual alleging such personal knowledge. Doing so is not enough to meet the hearsay requirements.
Finally, Jefferson Capital Systems is commonly willing to negotiate an affordable settlement that can range from 50% - 75% off of the balance in consumer debt matters. Using affirmative defenses to make it difficult for Jefferson Capital to prove the steps discussed above is good leverage to obtain the best settlement possible.