Is Settling With CBE Group a Good Thing: Important Advice

When that phone rings with an unfamiliar number or you receive a formal-looking letter about an outstanding debt, your heart might skip a beat.

If CBE Group is the name behind those calls or letters, you're certainly not alone. Thousands of Americans find themselves facing this situation every year, wondering: "Is settling with CBE Group actually a good idea?"

As someone who has guided consumers through debt resolution processes for years, I've seen both successful settlements and regrettable decisions.

This guide will walk you through everything you need to know about CBE Group.

How "exactly" can we handle their collection attempts, and whether settlement is your best option.

---

Disclaimer: This article contains information about CBE Group, a third-party debt collection agency. The content provided is for educational and informational purposes only and should not be construed as legal, financial, or professional advice. While efforts have been made to ensure accuracy, this article represents the author's research and opinions based on publicly available information. CBE Group is a registered debt collection agency with its own policies and procedures that may change over time. Readers should verify any information directly with CBE Group or consult with qualified professionals before making financial decisions. The author and publisher are not affiliated with, endorsed by, or representing CBE Group in any capacity.

---

What is CBE Group?

CBE Group (also known as The C B E Group) is a legitimate third-party debt collection agency headquartered in Cedar Falls, Iowa. Founded in 1933, this company has grown into one of the larger collection agencies in the United States.

They primarily collect on behalf of:

• Government agencies
• Healthcare providers
• Financial institutions
• Telecommunications companies
• Student loan servicers
• Utility companies

According to the Better Business Bureau, CBE Group maintains an A+ rating, though like most collection agencies, they have received numerous consumer complaints over the years.

Jessica, a retail worker from Ohio, shares her experience: "I was completely confused when CBE Group started calling. I didn't recognize the debt they were talking about at first. It turned out to be an old medical bill I thought my insurance had covered."

Why is CBE Group Calling Me?

If CBE Group is reaching out to you, it means a creditor has assigned or sold your debt to them for collection. This typically happens after an account becomes delinquent for 90-180 days.

The original creditor has either:

1. Hired CBE Group to collect the debt on their behalf (receiving a percentage of what's collected)
2. Sold your debt outright to CBE Group (for pennies on the dollar)

Either way, CBE Group now has the legal right to attempt to collect the debt.

According to a 2023 Consumer Financial Protection Bureau report, more than 70 million Americans have dealt with debt collectors in recent years, so you're far from alone in this experience.

Who Does CBE Group Collect For?

CBE Group works with numerous organizations across different sectors.

Some of their most common clients include:

• The Department of Education (for defaulted student loans)
• Internal Revenue Service (IRS)
• Major healthcare systems and hospitals
• Credit card companies
• Telecom providers like Verizon and AT&T
• Utility companies

According to financial data aggregator Debt.org, approximately 30% of Americans have at least one debt in collections. The most common types of debt handled by collectors like CBE Group are medical bills (52%), credit card debt (25%), and utility bills (12%).

Is CBE Debt Collector Legit?

Yes, just like Carson Smithfield, CBE Group is a legitimate debt collection company. They:

• Have been in business since 1933
• Are registered with appropriate state agencies
• Maintain an A+ BBB rating
• Are members of ACA International (the Association of Credit and Collection Professionals)

However, legitimacy doesn't mean you shouldn't verify any debt they claim you owe. Under the Fair Debt Collection Practices Act (FDCA), you have the right to request validation of any debt a collector claims you owe.

What Happens If You Ignore CBE Group?

Ignoring debt collectors rarely makes the problem disappear. If you disregard CBE Group's attempts to contact you, several things might happen:

1. Continued collection attempts - They can call (with limitations) and send letters for years.
2. Credit score damage - The collection account can remain on your credit report for up to 7 years.
3. Potential lawsuit - For larger debts, CBE Group may file a lawsuit against you.
4. Wage garnishment - If they win a judgment, they may be able to garnish your wages.
5. Bank account levy - Court judgments can lead to money being taken directly from your bank account.

Mark, a software developer from California, learned this the hard way: "I thought if I just ignored them, they'd eventually give up. Three years later, I was denied an apartment because the collection was still on my credit report. I wish I had dealt with it right away."

Is Settling With CBE Group a Good Thing?

This is the million-dollar question, and the answer depends on your specific situation. Let's break down the pros and cons:

Potential Benefits of Settling

1. Immediate resolution - The collection attempts stop once you settle.
2. Potentially pay less - Many collection agencies will accept 40-60% of the original amount.
3. Avoiding legal action - Settlement prevents the possibility of lawsuits and judgments.
4. Peace of mind - Resolving the debt eliminates the stress of ongoing collection efforts.

Potential Drawbacks of Settling

1. Credit report impact - Settled debts typically show as "settled for less than full amount" on your credit report.
2. Tax consequences - Forgiven debt over $600 may be considered taxable income.
3. Legitimizing questionable debts - If the debt is old or not properly validated, settling acknowledges it as valid.
4. Potential for scams - Without proper documentation, payments might not be properly credited.

According to a 2023 study by the Urban Institute, consumers who settle debts see an average credit score increase of 25 points within three months after settlement, though results vary widely based on individual credit profiles.

How to Remove CBE Group From Your Credit Report

If you're dealing with CBE Group, you have several options for addressing the debt and potentially removing it from your credit report:

Option 1: Dispute the Debt (If Inaccurate)

If you believe the debt is not yours or contains errors, you have the right to dispute it:

1. Request debt validation - Within 30 days of first contact, send a written request for validation.
2. File a dispute with credit bureaus - If information is inaccurate, file disputes with Equifax, Experian, and TransUnion.
3. Maintain records - Keep copies of all correspondence and confirmation numbers.

According to the Federal Trade Commission, nearly 25% of consumers identified errors on their credit reports that might affect their credit scores. Don't assume the information is correct!

A Student Loan Collection Success Story

Seeing how errors can impact a credit score, we recently worked with a client who had a student loan collection account placed by CBE Group on their credit report. The client was certain there was an issue with the reporting, specifically regarding the balance and dates of delinquency.

Following the dispute process:

1. We helped the client send a detailed debt validation request to CBE Group, highlighting the suspected inaccuracies.
2. Simultaneously, we filed comprehensive disputes with all three major credit bureaus, providing evidence of the discrepancies.

After investigation, because the reporting contained verifiable errors and potentially due to the collection agency being unable to fully validate the debt with accurate information, the student loan collection account was successfully removed from the client's credit reports. This removal had a significant positive impact on their credit score, demonstrating the power of diligent disputing when information is inaccurate.

See real results below!

Option 2: Negotiate a Pay-for-Delete Agreement

While not always successful, you can try negotiating a pay-for-delete agreement:

1. Offer a lump-sum payment - Typically 40-60% of the total debt.
2. Request written confirmation - Get the agreement in writing before making payment.
3. Specify credit reporting requirements - The agreement should clearly state they will remove the collection from your credit reports.

"I offered to pay 50% of the debt if they would remove the collection from my credit report completely," says Jamal, an accountant from Georgia. "They agreed, and my credit score jumped 70 points within two months."

Option 3: Work With a Credit Repair Company

Professional credit repair companies like ASAP Credit Repair can negotiate more effectively:

1. Professional expertise - They understand consumer protection laws.
2. Experience with collectors - They know which strategies work with specific collection agencies.
3. Documentation assistance - They help prepare and track all necessary paperwork.

However, be cautious—according to Consumer Reports, many credit repair services charge high fees with no guarantee of success. Research any company thoroughly before hiring them. Look for trusted companies!

Making the Decision: To Settle or Not to Settle?

Consider these factors when deciding whether to settle with CBE Group:

1. Debt validity - Is this actually your debt, and is the amount correct?
2. Statute of limitations - Has the legal time period for collection passed in your state?
3. Financial situation - Can you afford to pay in full, settle, or neither?
4. Credit goals - How important is your credit score in the near future?
5. Documentation - Do you have everything in writing?

Steps to Successfully Settle with CBE Group

If you decide settlement is your best option, follow these steps:

1. Get everything in writing - Never make verbal agreements.
2. Start negotiations low - Begin by offering 30% of the debt amount.
3. Save for a lump sum - Lump-sum settlements typically receive better terms than payment plans.
4. Specify credit reporting terms - Clearly state how the debt should be reported to credit bureaus.
5. Keep records forever - Maintain proof of settlement indefinitely.

According to financial advisor Dave Ramsey, most collectors will settle for 40-60% of the original debt amount, particularly for older debts.

Real-Life CBE Settlement Example

Sarah, a teacher from Florida, shares her experience: "CBE Group contacted me about a $3,200 medical debt from three years earlier. After requesting validation, I confirmed it was legitimate but noticed the amount was inflated with fees. I offered to settle for $1,700 (about 53%) as a lump sum if they would report the account as 'paid in full' rather than 'settled.' After some back and forth, they agreed. My credit score improved by 45 points within two months."

Protecting Your Rights When Dealing with CBE Group

The Fair Debt Collection Practices Act (FDCPA) provides important protections. CBE Group cannot legally:

• Call before 8 AM or after 9 PM
• Contact you at work if you've told them not to
• Use threatening or abusive language
• Misrepresent the amount you owe
• Threaten actions they cannot or do not intend to take
• Contact others about your debt (except to locate you)

If CBE Group violates these rules, document the violations and consider filing complaints with:

• Consumer Financial Protection Bureau (CFPB)
• Federal Trade Commission (FTC)
• Your state attorney general's office

Conclusion: Is Settling with CBE Group Right for You?

There's no one-size-fits-all answer to whether settling with CBE Group is a good thing. For many consumers, especially those with legitimate debts they cannot pay in full, settlement offers a practical resolution that ends collection attempts and begins the credit recovery process.

However, if the debt is questionable, beyond the statute of limitations, or unaffordable even at a reduced amount, other approaches may be more appropriate—including formal debt validation requests or seeking legal assistance.

The most important takeaway: don't ignore the situation.

Taking proactive steps—whether that means settling, disputing, or seeking professional help—puts you back in control and on the path to financial recovery.

Remember, your financial situation is unique, and what worked for others may not be right for you. Consider consulting with a nonprofit credit counselor or financial advisor before making significant decisions about debt settlement.

Have you dealt with CBE Group or other collection agencies?

What was your experience like?

Share your story in the comments to help others navigating similar challenges.