Credit Adjustment Board on Your Credit Report: What to Know

Credit Adjustment Board, Inc. has been collecting debts in Virginia and across the country since 1957. They operate exclusively as a third-party contingency collector, meaning they do not purchase debt portfolios. They collect on behalf of healthcare providers, commercial businesses, government agencies, and property management companies.

A federal court found against CAB in 1998 for a collection letter that buried the validation notice in smaller type beneath urgent payment demands. That case established the specific complaint pattern that consumers should watch for in CAB correspondence today.

This guide covers who Credit Adjustment Board is, their documented legal history, and how to respond if they have contacted you.

Who Is Credit Adjustment Board?

Credit Adjustment Board, Inc. (CAB) is a third-party debt collection agency founded in 1957 and incorporated in 1961, headquartered in Richmond, Virginia. The BBB has maintained a profile on CAB since 1967. The company has approximately 25 employees and estimated annual revenue of $2.4 million.

CAB collects for healthcare providers, commercial and industrial businesses, government agencies, gas and HVAC companies, property management companies, and transportation and logistics firms. They have been named in at least five federal lawsuits across Virginia, Maryland, and Missouri courts.

The CFPB has closed 15 complaints involving CAB since May 2015. The BBB has closed 13 complaints in the preceding three years as of the most recent reporting period.

The 1998 Federal Case: Burying the Validation Notice

The most documented CAB case is Morgan et al. v. Credit Adjustment Board, Inc., decided by the U.S. District Court for the Eastern District of Virginia in March 1998 (999 F. Supp. 803). The plaintiffs were a husband and wife who each received a CAB letter attempting to collect small medical debts owed to Radiology Associates of Richmond. Her balance was $7.77. His was $3.05.

Both letters opened with: “An important matter demanding your immediate attention has been reported to this office.” The letter then gave the consumers seven calendar days to respond and stated in bold: “IMPORTANT: To stop further action, pay your account in full.”

CAB included the required FDCPA validation notice in the same letter, but placed it below the urgent payment demands in smaller, single-spaced type. The court found this formatting overshadowed the consumer’s right to dispute and request validation within 30 days. The court granted summary judgment for both plaintiffs and awarded each $300 plus court costs and attorney fees.

If you have received a CAB letter that leads with urgent payment language, check whether the validation notice is equally prominent. If the dispute rights appear below bold payment demands in smaller type, that letter follows the same structure that a federal court found unlawful in 1998.

Additional Federal Lawsuits on Record

Beyond the 1998 Morgan ruling, CAB has been named in at least four additional federal cases. Grassi et al. v. Credit Adjustment Board (Case No. 3:09-cv-00619) was filed in the Eastern District of Virginia in 2009. Priestley v. Credit Adjustment Board (Case No. 1:14-cv-03173) was filed in the District of Maryland in 2014. Parsons v. Credit Adjustment Board (Case No. 3:17-cv-00262) was filed in the Eastern District of Virginia in 2017.

The consistent presence of FDCPA-based litigation across two decades and multiple districts reflects a documented pattern of complaint, not isolated incidents.

What CAB Cannot Do Under Federal Law

Based on their documented case history and confirmed complaint patterns:

• Overshadow or contradict the validation notice in a collection letter: The Morgan court found that placing urgent payment demands above the validation notice in larger, bolder type violated FDCPA Section 1692g. CAB’s letters must give dispute rights equal prominence.
• Threaten to take actions they cannot or do not intend to take: Documented CFPB and BBB complaints cite CAB for threatening legal action. Under FDCPA Section 1692e(5), a threat is only lawful if the collector actually intends to follow through.
• Attempt to collect debts not owed: Both the BBB and CFPB complaint records include CAB reporting accounts that consumers did not recognize or had already resolved.
• Call before 8 a.m. or after 9 p.m.: Documented phone harassment complaints against CAB include calls outside permitted hours.
• Disclose debt information to third parties: Complaint records include CAB contacting family members and neighbors about consumer accounts.

Virginia residents can file complaints with the Virginia Attorney General’s Consumer Protection Section in addition to the CFPB.

Verify the Debt Before Paying Anything

Send a written validation request by certified mail within 30 days of first contact. Ask CAB to confirm the original creditor name, the account number, the balance at the time of referral, and a full itemized breakdown of any fees.

For medical accounts, compare the claimed balance against your explanation of benefits from your insurer. Radiology, hospital, and outpatient balances are frequently subject to insurance adjustments that collection agencies do not always reflect in the claimed amount.

For commercial or government debts, request the original contract or invoice that supports the amount claimed.

How to Check Your Credit Report for CAB Entries

Pull all three credit reports and search for “Credit Adjustment Board” and “CAB.” Confirm the original creditor is identified clearly, that the balance matches what the original creditor shows at charge-off, and that the date of first delinquency has not been altered to make the account appear more recent than it is.

If the balance on your report includes fees beyond the original amount, request the contractual basis for each fee before disputing or paying.

How Long Can CAB Legally Pursue the Debt?

Virginia, where CAB is headquartered, has a 5-year statute of limitations on written contracts. The relevant statute of limitations is typically the state where you currently reside, not necessarily Virginia. Check your state’s specific limit before engaging with CAB on any account that may be several years old.

Your Options for Resolving a CAB Account

• Review the letter format before responding: If the validation notice in your CAB letter is buried in smaller type beneath bold payment demands, document the formatting. That specific structure was found unlawful in Morgan v. Credit Adjustment Board in 1998.
• Validate before paying any medical balance: CAB’s primary client base includes healthcare providers. Insurance adjustments frequently reduce what is actually owed. Request itemized validation before paying.
• File a complaint if threats do not match actions: If CAB threatened a lawsuit but took no legal action, CFPB and Virginia AG complaints are both available avenues.
• Dispute inaccurate entries directly with all three bureaus: BBB complaints show CAB has reported accounts consumers did not owe. A formal bureau dispute triggers a legal investigation obligation.

How to Contact Credit Adjustment Board

• Address: Credit Adjustment Board, Inc., 8002 Discovery Drive, Suite 311, Richmond, VA 23229
• Phone: (804) 649-0761 or (800) 882-0761

Bottom Line

Credit Adjustment Board has a documented federal court loss on record for sending collection letters that buried consumers’ dispute rights beneath urgent payment demands in 1998. The same formatting issue remains the primary thing to check in any letter you receive from them today.

Before responding to CAB by phone or making any payment, send a written validation request and compare the claimed balance to the original creditor’s records. For healthcare accounts especially, insurance adjustments are often not reflected in what CAB claims you owe.