Constar Financial Services settled a class action in January 2026 over a September 2024 data breach that exposed personal consumer information. The settlement covers all US individuals whose data was potentially compromised and allows claims of up to $1,000 for documented losses.
If you have ever had an account with Constar or received a breach notification from them or Empereon Marketing, check whether you qualify for settlement benefits before doing anything else.
This guide covers who Constar is, what the breach settlement means, and how to respond to any collection account.
Who Is Constar Financial Services?
Constar Financial Services, LLC is a Phoenix, Arizona debt collection agency founded in 1997. The company operates under several names: Empereon-Constar, Empereon Marketing LLC, and Constar Collections. They maintain offices in Phoenix, Aurora Colorado, and Tijuana Mexico.
Constar is not BBB-accredited and collects as both a first-party servicer and a third-party collector. Their confirmed account types include student loans and campus receivables, credit card balances, auto loan deficiencies, and medical accounts. America’s Consumer Lawyer confirms Constar is not known for suing consumers.
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The September 2024 Data Breach Settlement
In September 2024, Constar Financial Services and Empereon Marketing suffered a cyberattack that exposed personally identifying consumer information. A class action alleged the companies failed to protect sensitive consumer data. The settlement received preliminary court approval on January 15, 2026.
The settlement covers all US individuals whose information was potentially compromised, including anyone who received a breach notification from either company. Class members can claim up to $1,000 for documented losses including dispute fees, credit monitoring costs, and identity theft insurance. Compensation for up to four hours of lost time is also available.
If you received a breach notification from Constar or Empereon Marketing, submit a claim through the settlement process before engaging on any collection matter.
Refusal to Provide Written Payment Plan Documentation
A documented 2016 CFPB complaint describes a full-time student who was notified by Constar that they had assumed management of her student loans. Because she was enrolled full-time, she requested a deferment. Constar denied the request. She then negotiated a monthly payment amount with Constar.
When she asked for written verification of the agreed payment plan, Constar representatives told her they could not provide documentation until she either made a payment first or provided her bank account information. Representatives stated this was an internal policy and refused to explain further.
Requiring payment or bank account information before providing written confirmation of a payment agreement is a documented FDCPA concern. A consumer should be able to review and confirm any payment arrangement in writing before providing financial account details. If Constar is conditioning written confirmation on upfront payment or bank access, document the demand and file a CFPB complaint immediately.
The Multiple Name Confusion Problem
Constar Financial Services may appear on credit reports or correspondence under several names. Before disputing or paying, confirm which entity is contacting you.
Constar Financial Services, LLC is the debt collection entity. Empereon Marketing, LLC is the affiliated telemarketing and business process outsourcing company. Empereon-Constar is the combined brand name. All three operate from the same Phoenix headquarters and are covered by the same data breach settlement.
When disputing a Constar credit report entry, search under all three names across all three credit bureaus to ensure you capture every related tradeline.
Threatening Actions They Cannot Take
Documented FDCPA complaint categories against Constar include misrepresentation and threatening to take actions that cannot legally be taken. America’s Consumer Lawyer specifically confirms Constar does not sue consumers. Any threat of wage garnishment without a court judgment is a specific FDCPA violation worth documenting and reporting immediately.
What Constar Cannot Do Under Federal Law
The FDCPA applies to Constar Financial Services. Under federal law, they cannot:
- Condition written payment plan documentation on upfront payment or bank account disclosure: A documented 2016 CFPB complaint.
- Deny student loan deferment requests without legal basis: A documented CFPB complaint involving a full-time enrolled student.
- Threaten legal actions they do not intend to take: A documented FDCPA complaint category; America’s Consumer Lawyer confirms Constar does not sue consumers.
- Use misrepresentation to collect debts: A documented FDCPA complaint category.
- Call outside permitted hours: Contact is only allowed between 8 a.m. and 9 p.m. in your time zone.
File complaints at consumerfinance.gov. Arizona residents can also file with the Arizona Attorney General’s Consumer Information and Complaints unit.
Verify Before Paying Anything
Send a written debt validation request by certified mail within 30 days of first contact. Ask for the original creditor, the account number, the balance at referral, and whether Constar is acting as a first-party servicer or third-party collector on your specific account.
For student loan accounts, verify directly with the original lender or servicer whether Constar has authority to negotiate deferments, forbearances, or payment plans on your behalf.
How to Check Your Credit Report for Constar Errors
Pull your credit reports from all three bureaus at AnnualCreditReport.com. Search under Constar Financial Services, Empereon-Constar, Empereon Marketing, and Constar Collections. Is the original creditor identified? Is the balance accurate? Is the account type one you recognize?
Any inaccuracy is grounds for a dispute with each credit bureau.
How Long Can Constar Legally Pursue the Debt?
Arizona has a 6-year statute of limitations on most consumer debts. The relevant state is typically where you currently reside.
Your Options for Resolving a Constar Account
Once you have verified the debt:
- Check data breach settlement eligibility first: If you received a breach notification, submit a claim before engaging on any collection matter.
- Demand written payment plan documentation before providing bank information: Constar’s documented pattern of conditioning documentation on payment or bank access is not a legal requirement.
- Verify student loan deferment rights independently: Contact the original lender or the Department of Education before accepting Constar’s determination on deferment eligibility.
- Dispute if inaccurate: If the balance is wrong or the account is unrecognized, dispute with all three credit bureaus.
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How to Contact Constar Financial Services
Handle all communication in writing:
- Address: Constar Financial Services, LLC, 10400 N 25th Ave, Suite 100, Phoenix, AZ 85021
- Phone: (602) 889-3655
Bottom Line
Constar Financial Services settled a 2024 data breach class action in January 2026. If you received a breach notification, check settlement eligibility before engaging on any collection matter.
Their most documented operational issue is conditioning written payment plan confirmation on upfront payment or bank account disclosure. Get any payment agreement in writing before providing financial information.
Brooke Banks is a personal finance writer specializing in credit, debt, and smart money management. She helps readers understand their rights, build better credit, and make confident financial decisions with clear, practical advice.