If National Credit Adjusters has appeared on your credit report, in your mailbox, or on your phone, you are dealing with a debt buyer and collection agency that has been one of the more controversial players in the distressed consumer debt industry. National Credit Adjusters, LLC, commonly known as NCA, is a privately held company based in Hutchinson, Kansas that specializes in purchasing and servicing defaulted consumer debts, particularly from the online lending and installment loan sectors.
NCA has faced significant regulatory action from both federal and state agencies, including a settlement with the Consumer Financial Protection Bureau and fines from New York City and the Arkansas Attorney General. Understanding who this company is, how they operate, and what your rights are when they contact you is critical for protecting yourself.
Company Overview
National Credit Adjusters, LLC was originally founded in 1959 and was later reorganized and incorporated in 2002 under its current structure. The company is headquartered at 327 West 4th Avenue, Hutchinson, Kansas 67501, with a mailing address of P.O. Box 3023, Hutchinson, KS 67504. NCA also maintains operations in Arizona and Jamaica.
The company's former CEO was Bradley Hochstein, who was permanently barred from working in any business that collects, buys, or sells consumer debt as part of the 2018 CFPB settlement. NCA has estimated annual revenue of approximately $21.6 million and employs roughly 200 people.
NCA is a member of Receivables Management Association International (RMAI) and ACA International, and holds RMAI Certified Receivables Business designation. The company describes its mission as bringing integrity, professionalism, and compliance to debt servicing.
Contact Information
Main phone: (888) 768-0674
Alternative phone: (800) 286-5427
Email: info@ncaks.com
Physical address: 327 W. 4th Ave, Hutchinson, KS 67501
Mailing address: P.O. Box 3023, Hutchinson, KS 67504
Website: ncaks.com
How National Credit Adjusters Operates
NCA operates primarily as a debt buyer, which means they purchase portfolios of defaulted consumer accounts from original creditors at a fraction of the face value. Once NCA owns the debt, they become the new creditor and collect the full balance for their own account rather than on behalf of another company.
This is an important distinction for consumers. When NCA contacts you, they are not representing the original lender. They own your account outright. Any payment you make goes to NCA, not to the original creditor. And because NCA purchased the debt at a steep discount, they have significant margin to negotiate settlements below the face value of the account.
NCA's primary area of acquisition has been consumer installment loans and online lending accounts. This means a substantial portion of the debts they collect originated with online lenders, payday loan companies, and installment loan providers. They also handle retail and financial services accounts.
In addition to collecting on debts they own, NCA sometimes assigns accounts to third-party collection agencies or law firms for day-to-day collection activity and legal escalation. If a different collection company contacts you about a debt owned by NCA, that company is acting as NCA's agent.
For consumers trying to understand how debt ownership works in the collection process, ACB's article on what is the difference between a creditor and a collector explains the distinction and what it means for your rights.
CFPB Enforcement Action
In July 2018, the Consumer Financial Protection Bureau announced a settlement with National Credit Adjusters and its former CEO, Bradley Hochstein. The CFPB found that NCA had used a network of debt collection companies to collect consumer debt on its behalf, and that some of those companies engaged in unlawful practices that harmed consumers.
The specific violations the CFPB identified included representing that consumers owed more than they were legally required to pay and threatening consumers and their family members with lawsuits, visits from process servers, and arrest, when neither NCA nor the collection companies intended or had the legal authority to take those actions. The CFPB found that NCA and Hochstein continued placing debt with these companies despite having knowledge or reckless disregard of the illegal practices.
Under the terms of the consent order, NCA was barred from certain collection practices and required to pay a $500,000 civil money penalty, with an additional $2.5 million suspended. Hochstein was permanently barred from working in any business that collects, buys, or sells consumer debt and was required to pay a $300,000 penalty, with an additional $2.7 million suspended.
The full consent order is available on the CFPB's website.
Additional Regulatory Actions
New York City Fines
The New York City Department of Consumer Affairs fined 23 debt collectors for illegally collecting on high-interest payday loans. National Credit Adjusters was identified as the "worst offender" and paid over $900,000 in fines for these violations. The payday loan debts NCA was attempting to collect were deemed unlawful under New York's usury laws, which prohibit lending at interest rates above the state's statutory cap.
Arkansas Attorney General Action
The Arkansas Attorney General called NCA's practices "usurious" and "unconscionable" in connection with NCA's attempts to collect over $2 million in payday loans and high-interest installment loans. These loans violated Arkansas's constitution, which caps interest rates and prohibits predatory lending.
Consumer Complaints
The CFPB has received over 1,000 complaints related to National Credit Adjusters since 2013. Common complaint themes include attempts to collect debts consumers do not believe they owe, failure to provide adequate debt validation, collection on debts that may have originated from unlawful lending practices, aggressive collection tactics including threats, and inaccurate credit reporting.
The BBB has also recorded significant complaints, with common issues involving billing and collection practices and customer service.
What to Do If NCA Contacts You
Determine Whether the Original Debt Was Lawful
This step is particularly important with National Credit Adjusters because of their history of purchasing payday and high-interest installment loan debt. Many states have usury laws that cap interest rates and restrict certain types of lending. If the original debt was an unlawful loan under your state's laws, you may not owe the balance at all, regardless of who currently owns it. If you believe the debt originated from an illegal or predatory loan, consult with a consumer protection attorney in your state.
Request Validation
Under the Fair Debt Collection Practices Act, you have the right to request written validation of the debt within 30 days of NCA's first contact. Because NCA purchases debts that have often changed hands multiple times, the documentation may be incomplete or inaccurate. Request the name of the original creditor, the original account number, the date of last payment, the original balance, and a complete chain of assignment showing how NCA acquired the debt. ACB's article on what is a validation notice and why do I need one explains this process in detail.
Check the Statute of Limitations
Determine whether the statute of limitations has expired on the debt in your state. If the debt is time-barred, NCA cannot legally sue you to collect it. Be cautious about making any payment or acknowledging the debt, as these actions can restart the statute of limitations in many states.
Review Your Credit Report
Check your credit reports from all three major bureaus through AnnualCreditReport.com to see whether NCA has reported the account. If the information is inaccurate, you can dispute it directly with the credit bureaus. Common inaccuracies in debt buyer accounts include incorrect balances, wrong dates of first delinquency, and missing original creditor information. ACB's article on how long does a collection stay on my credit report explains the reporting timeline.
Negotiate a Settlement
If the debt is legitimate and you want to resolve it, NCA is likely open to settlement negotiations. As a debt buyer that purchased the account at a steep discount, NCA can accept significantly less than the face value and still profit. Consumers have reported settling NCA accounts for 20% to 50% of the stated balance depending on the circumstances. Get any settlement agreement in writing before sending payment. ACB's article on how to pay a debt collection agency covers the full settlement process.
Be Aware of Lawsuit Risk
Unlike some collection agencies, NCA has the legal standing to sue you because they own the debt. If you receive a summons or complaint related to an NCA account, do not ignore it. Failing to respond results in a default judgment that enables wage garnishment, bank levies, and property liens depending on your state's laws. ACB's article on what happens if I am sued by a collection agency explains how to respond.
How NCA Compares to ACB
National Credit Adjusters and Advanced Collection Bureau occupy fundamentally different positions in the collection industry. NCA is a debt buyer that purchases defaulted consumer accounts and collects for its own benefit. ACB is a contingency-based collection agency that collects on behalf of its clients, primarily landlords, property managers, healthcare providers, and small businesses, without purchasing or owning the debt.
ACB differentiates itself with twice-monthly credit bureau reporting, a strict policy of never charging interest on debts in its care, and a compliance-first approach. ACB has not faced CFPB enforcement actions or state regulatory penalties. For businesses evaluating collection partners, ACB's article on the pros and cons of contingency-only collection agencies provides a framework for comparing collection models.
Filing a Complaint
If you believe National Credit Adjusters has violated your rights, you can file a complaint with the following agencies.
The Consumer Financial Protection Bureau accepts complaints online and by phone at (855) 411-2372.
The Federal Trade Commission accepts fraud and consumer protection complaints.
The Kansas Attorney General's Consumer Protection Division can be reached at (800) 432-2310.
If you are dealing with a debt and need a collection partner that prioritizes compliance, contact Advanced Collection Bureau at (321) 633-4999 or visit advancedcb.com.
