Dealing with student loan debt can be stressful, especially when your account is sent to a collection agency like Credit Adjustments Inc. Many borrowers first hear about this company through unexpected calls or letters demanding payment on loans they may not even realize are delinquent. If you’ve recently received a message or call from CAI, understanding who they are, what they do, and how to handle the situation can help you take control of your student loan debt and protect your rights.
This in-depth guide explains everything you need to know about the agency — their connection to student loans, your legal protections under federal law, and practical steps to end unwanted collection harassment.
Who Is Credit Adjustments Inc?
Credit Adjustments Inc is a third-party debt collection agency headquartered in Defiance, Ohio. Founded in 1967, the company has grown into a major provider of accounts receivable management services, working with educational institutions, healthcare providers, and government agencies.
For student loan borrowers, CAI is often involved when federal student loans enter default. In these cases, the U.S. Department of Education assigns accounts to external agencies like CAI to recover the unpaid balance.
The company’s stated mission is to “deliver respect while collecting results,” but many consumers have shared experiences suggesting otherwise. Complaints commonly involve aggressive phone calls, failure to validate debts, or difficulties making payments through official channels.
📌 Their main office is located at:
330 Florence Street, Defiance, Ohio 43512
and the the company number often associated with student loan collections is 📞 1-800-347-5460.
Why Is Credit Adjustments Inc Contacting You?
If Credit Adjustments Inc has contacted you, it’s likely because one or more of your student loans have gone into default. When a federal loan remains unpaid for 270 days (roughly nine months), it is considered in default. At that point, the Department of Education can transfer your loan to a private collection agency to pursue repayment.
Here’s what typically happens before CAI becomes involved:
- 👉 Missed Payments – If you miss several consecutive payments, your loan servicer reports delinquency to the Department of Education.
- 👉 Default Notification – You’ll receive a letter explaining your loan is in default and subject to collection.
- 👉 Assignment to a Collection Agency – The Department of Education assigns the account to a contractor such as CAI.
- 👉 Collection Activity Begins – You may start receiving phone calls, letters, or emails demanding payment.
It’s essential to verify the legitimacy of any communication you receive before making a payment. Unfortunately, debt collection scams are common, and scammers often impersonate legitimate agencies like CAI.
Is Credit Adjustments Inc Legitimate?
Yes, CAI is a legitimate debt collection company, not a scam. They are licensed to operate in all 50 states and have worked under contract with the Department of Education for many years to collect overdue federal student loans. However, being legitimate doesn’t mean their collection practices are always fair or accurate.
Many borrowers report confusing or aggressive interactions with representatives, leading to feelings of intimidation or harassment. That’s where your legal protections come in.
Your Rights Under the Fair Debt Collection Practices Act (FDCPA)
Whether you owe the debt or not, you are protected under the Fair Debt Collection Practices Act (FDCPA). This federal law regulates how debt collectors like CAI can interact with consumers.
Under the FDCPA, Credit Adjustments Inc Cannot:
- ➡️ Call you before 8:00 a.m. or after 9:00 p.m.
- ➡️ Contact you at work if you tell them not to.
- ➡️ Use obscene or abusive language.
- ➡️ Threaten arrest, lawsuits, or wage garnishment without legal grounds.
- ➡️ Contact friends, family, or employers about your debt.
- ➡️ Continue to contact you after you’ve sent a written cease-and-desist request.
- ➡️ Misrepresent how much you owe or who owns your loan.
If you believe CAI has violated any of these rules, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), your state attorney general’s office, or even sue the agency in federal court for damages.
Understanding Student Loan Collections and Default
When your federal student loan goes into default, the consequences are serious. Beyond collection calls from Credit Adjustments Inc, default can affect nearly every aspect of your financial life.
Effects of Default:
- ✅ Credit Score Damage: Defaults are reported to the major credit bureaus, significantly lowering your credit score.
- ✅ Wage Garnishment: The government can automatically take up to 15% of your disposable income without going to court.
- ✅ Tax Refund Seizure: Your federal tax refunds can be withheld to repay the debt.
- ✅ Social Security Offset: For older borrowers, Social Security benefits may be partially withheld.
- ✅ Loss of Federal Aid Eligibility: You may lose access to financial aid, deferment, and forbearance options.
CAI typically contacts borrowers to prevent or resolve these consequences through loan rehabilitation, consolidation, or payment arrangements.
How to Verify and Validate a Debt from CAI
If you receive a call or letter from Credit Adjustments Inc, don’t panic—and don’t rush to make a payment. Always verify the debt first.
Here’s how to do it safely:
- ➤ Request Written Validation:
Under the FDCPA, you have the right to receive written verification of the debt within five days of the first contact. This letter should include the original creditor’s name, the amount owed, and proof that CAI has authority to collect it. - ➤ Compare with Your Loan Records:
Check your studentaid.gov account or contact your loan servicer to confirm that your debt was indeed transferred to collections. - ➤ Avoid Sharing Personal Information:
Never provide sensitive details (like your Social Security number or bank account) until you confirm the agency’s legitimacy. - ➤ Keep Records:
Save all letters, emails, and notes from calls. Documentation can protect you if a dispute arises later.
How to Make a Payment Safely
If you’ve verified that your student loan account is legitimately assigned to CAI and you’re ready to make a payment, proceed carefully.
You can make a payment through:
- ✔️ The official website: www.credit-adjustments.com
- ✔️ By phone using the verified CAI number: 📞 1-800-347-5460
- ✔️ By mailing a payment to their Defiance, Ohio address
Never send money to a third-party payment site or an unverified link sent through text or email. Scammers often create lookalike domains to deceive borrowers.
If you’re unsure, contact the Department of Education directly to confirm payment instructions.
Options to Get Out of Student Loan Default
You have several options to resolve your student loan default and end collection activity from Credit Adjustments Inc:
✅ 1. Loan Rehabilitation
This program allows you to make nine affordable monthly payments within ten months. Once completed, the default status is removed from your credit report. CAI can help you set up the rehabilitation plan, but always confirm details with the Department of Education.
✅ 2. Loan Consolidation
You can consolidate your defaulted loan into a new Direct Consolidation Loan, which restores eligibility for federal benefits and transfers your loan back to a standard servicer instead of collections.
✅ 3. Settlement
In rare cases, you can negotiate a lump-sum payment for less than the total balance owed. This is called a student loan settlement, but it’s usually reserved for borrowers who can pay a significant portion upfront.
How to Stop Harassment from Credit Adjustments Inc
If you’re experiencing frequent calls, threats, or rude treatment from collectors, you can take steps to stop the harassment:
- ➜ Send a Cease-and-Desist Letter
Write a formal letter requesting that all communications cease. Once received, the agency can only contact you to confirm compliance or notify you of legal action. - ➜ File Complaints
Report abusive behavior to the CFPB or FTC. Include dates, times, and the content of calls if possible. - ➜ Consult a Consumer Rights Attorney
Many attorneys specialize in debt collection harassment and will take your case with no upfront fees. If the agency violates your rights, you may be entitled to up to $1,000 in damages under federal law. - ➜ Block or Filter Calls
Use your phone’s call-blocking features while maintaining a record of all communications.
Remember, you are not obligated to tolerate harassment, even if you owe the debt.
Common Complaints from Borrowers
While The Agency promotes professionalism, numerous borrowers have shared negative experiences, such as:
- ➡️ Repeated calls throughout the day, even after requests to stop
- ➡️ Failure to provide written proof of the debt
- ➡️ Miscommunication about payment options or loan status
- ➡️ Rude or dismissive customer service
- ➡️ Incorrect information reported to credit bureaus
If you’ve experienced any of these issues, document everything and consider seeking legal assistance.
Legal Cases Involving CAI
Over the years, CAI has faced several lawsuits for alleged violations of the FDCPA. In one notable case filed in the Southern District of Florida, a borrower accused the company of leaving over a dozen voicemail messages within 78 days — all of which failed to identify the caller as a debt collector, violating federal law.
Although the company argued that the messages were intended for the borrower’s spouse, the court determined that the company could still be liable for improper communication practices.
Cases like this demonstrate how seriously the law treats collection harassment — and how borrowers can hold agencies accountable.
Protecting Yourself as a Student Loan Borrower
Here are key strategies to protect yourself when dealing with CAI:
- 👉 Stay Informed:
Understand your rights under the FDCPA, the Fair Credit Reporting Act (FCRA), and the Higher Education Act. - 👉 Communicate in Writing:
Whenever possible, correspond via mail or email to create a paper trail. - 👉 Verify Everything:
Confirm the debt, the amount, and the collector’s authority before agreeing to pay. - 👉 Avoid Over-the-Phone Commitments:
Don’t provide payment details or personal information during your first call. - 👉 Seek Free Legal Advice:
Many consumer rights attorneys offer free consultations and can stop illegal collection activity immediately.
Contact Information for CAI
If you need to contact the company directly for verification or payment purposes, use only these official details:
📌 330 Florence Street
Defiance, OH 43512
📞 Phone: 1-800-347-5460
🌐 Website: www.credit-adjustments.com
Frequently Asked Questions
1. Is CAI legit or a scam❓
It’s a legitimate company that collects defaulted student loans and medical debts, though complaints about its conduct are common.
2. Why is CAI contacting me❓
You likely have a defaulted student loan assigned by the Department of Education for recovery.
3. Can I make a payment directly to CAI❓
Yes, but only through verified channels such as their website or official phone line.
4. How can I stop Credit Adjustments Inc harassment❓
Send a written cease-and-desist notice and file complaints with the CFPB if harassment continues.
5. What should I do if the debt isn’t mine❓
Dispute it in writing within 30 days of the first contact and request official validation.
Final Thoughts
Being contacted by Credit Adjustments Inc can be intimidating, but it doesn’t have to be. Whether you owe the debt or not, you have clear rights and options. Start by verifying your debt, understanding your repayment alternatives, and refusing to tolerate any form of harassment.
For student loan borrowers, the most effective way to move forward is through rehabilitation or consolidation, which can restore eligibility for federal programs and stop collection efforts.
If CAI crosses the line, remember that laws like the FDCPA exist to protect you. You don’t have to face harassment alone — help is available, and you may even be entitled to compensation.
