Is American Financial Credit Services Hurting Your Credit?

American Financial Credit Services, Inc. is a collection agency specializing in debts owed to local governments. If AFCS has contacted you, the account may involve unpaid personal property taxes, business property taxes, vehicle taxes, or another county or municipal obligation.

AFCS is a legitimate company, but that doesn’t guarantee the balance is accurate. Tax records sometimes contain errors involving ownership, payments, exemptions, assessed values, and added fees.

Before paying, confirm the debt with the government office that assigned it to AFCS.

Who Is American Financial Credit Services?

American Financial Credit Services, commonly called AFCS, is a third-party collection agency based in Indianapolis, Indiana. The company was incorporated in Indiana in 1993.

Unlike collection agencies that primarily handle credit cards, medical bills, or student accounts, AFCS specializes in delinquent government debt. It works with counties, municipalities, and tax offices in several states.

The company may collect:

• Personal property taxes
• Business property taxes
• Mobile home taxes
• Boat and motor vehicle taxes
• Other county or municipal debts

AFCS has an A+ rating from the Better Business Bureau but isn’t BBB-accredited. A BBB rating doesn’t prove that every account collected by the company is accurate.

Why Is AFCS Contacting You?

AFCS is probably contacting you because a government office assigned it a delinquent account. The debt may still be owned by the county or municipality, with AFCS acting as the collector.

A collection notice should identify the government agency and explain what you supposedly owe. If it doesn’t, ask AFCS for:

• The name of the government agency
• The type of tax or obligation
• The relevant tax year
• The original balance
• All penalties, interest, and collection fees
• The property, vehicle, or business connected to the account
• A record of payments already credited

Contact the government office separately using a phone number from its official records. Do not rely only on the number included in a collection letter.

Can AFCS Hurt Your Credit?

AFCS could hurt your credit if it reports a collection account to Equifax, Experian, or TransUnion. However, receiving a letter or phone call doesn’t mean the account appears on your credit reports.

Check all three reports and look for:

• American Financial Credit Services
• AFCS
• The county or government agency
• A collection account connected to the same balance

If you find an account, check the balance, dates, original creditor, payment status, and identifying information.

The three major credit bureaus no longer include tax liens on standard consumer credit reports. However, a separately reported collection account may be treated differently. Do not assume the account is absent without checking your reports.

An accurate negative account generally can’t be removed simply because it hurts your score. Inaccurate, duplicated, outdated, or unverifiable information can be disputed.

Verify the Tax Record Before Paying

The amount AFCS requests may include the original tax, interest, penalties, administrative costs, and collection fees.

Contact the county treasurer, tax collector, assessor, auditor, or other government office responsible for the account. Ask it to confirm:

• Why the tax was assessed
• Which property or account it covers
• Whether you were responsible during that tax year
• How the current balance was calculated
• Whether earlier payments were credited
• Whether AFCS is authorized to collect it
• Whether you can pay the government office directly

Ownership errors are especially important. If the debt involves a vehicle, boat, mobile home, business, or other property you no longer owned, gather records showing when ownership ended.

Useful evidence may include a bill of sale, title transfer, registration record, closing statement, payment receipt, or business dissolution document.

Request Written Account Information

Ask AFCS to provide a written, itemized explanation before you pay or agree to a payment plan.

Your request should ask for:

• The government agency claiming the debt
• The account or parcel number
• The applicable tax year
• The original amount owed
• An itemized list of fees and interest
• Records showing why you are responsible
• Copies of earlier notices
• The current payment status

Send important correspondence using certified mail or another trackable method. Keep copies of everything you send and receive.

Federal debt-validation rules may not apply to every account AFCS handles. The Fair Debt Collection Practices Act generally covers obligations arising from personal, family, or household transactions. Government taxes and business debts may fall outside that definition.

State collection and consumer-protection laws may still apply.

How to Dispute AFCS on Your Credit Report

If AFCS appears on your credit reports and the information is wrong, dispute it with each credit bureau reporting the account.

Possible grounds for a dispute include:

• The account isn’t yours
• You didn’t own the property during that tax year
• The balance is incorrect
• You already paid the debt
• The government office canceled or corrected the assessment
• The same account appears more than once
• The payment status hasn’t been updated
• AFCS can’t verify the reported information

Identify the specific error and include copies of supporting records. Avoid sending a generic dispute that doesn’t explain what is wrong.

You can also send the dispute directly to AFCS. Ask the company to investigate the account and correct or delete any information it can’t verify.

Do not dispute accurate information merely because it is negative. Credit bureaus aren’t required to remove a valid account solely because it lowers your credit score.

What to Do if You Already Paid

If you paid the government office or AFCS but collection attempts continue, send proof to both parties.

Include your receipt, payment date, amount, account number, and any confirmation showing the balance was satisfied. Ask the government office to notify AFCS and request written confirmation that the account now has a zero balance.

If the account appears on your credit reports, check that the balance and payment status have been updated.

Paying a legitimate debt doesn’t guarantee that a collection account will disappear. It should, however, be reported accurately.

Can You Set Up a Payment Plan?

AFCS may offer payment plans, depending on the rules established by the government agency.

Before agreeing, request written confirmation of:

• The total amount owed
• Your monthly payment
• The due dates
• Continuing interest or penalties
• Processing and collection fees
• What happens if you miss a payment
• When the account will be considered resolved

Do not provide payment information until you have verified the account and confirmed you are dealing with AFCS.

How Long Can AFCS Collect the Debt?

There’s no single statute of limitations for every account handled by AFCS. Government tax obligations may follow different rules from credit cards, loans, and medical debts.

The collection period may depend on the state, local government, type of tax, tax year, and whether a lien or judgment exists.

Do not apply Indiana’s statute of limitations simply because AFCS is based there. The laws connected to the government agency and underlying obligation are more likely to control.

If the debt is old, ask the government office to explain its authority to continue collecting it.

Your Options for Resolving an AFCS Account

Once you verify the debt, you can:

• Pay the balance and obtain a receipt.
• Request a written payment plan.
• Challenge an incorrect tax assessment with the government office.
• Dispute inaccurate credit reporting.
• Consult a consumer or tax attorney if the account involves a lien, lawsuit, seizure, or large balance.

How to Contact American Financial Credit Services

Handle important communication in writing whenever possible.

Address:
American Financial Credit Services, Inc.
10333 N. Meridian Street, Suite 270
Indianapolis, IN 46290

Mailing address:
P.O. Box 4746
Carmel, IN 46082

Local phone: (317) 705-4237
Toll-free phone: (888) 317-2327

Bottom Line

American Financial Credit Services is a legitimate collection agency specializing in delinquent government obligations, especially personal property taxes.

If AFCS contacts you, confirm the account with the county or municipality before paying. Check the tax year, ownership records, payment history, penalties, and fees.

If AFCS appears on your credit report, dispute any information that is inaccurate, duplicated, outdated, or unverifiable. If the debt is valid, ask about payment options and get every agreement in writing.