If Credit Adjustments Inc (CAI) has appeared on your credit report, the company no longer exists. Credit Adjustments Inc rebranded as Mammoth Tech, Inc. in March 2021, lost its primary government contract, and closed its doors in early 2022 after firing approximately 520 employees. The BBB lists Mammoth Tech as out of business.
An account from Credit Adjustments Inc on your credit report is an old account from a defunct company. This guide explains what happened and how to respond.
Who Was Credit Adjustments Inc?
Credit Adjustments, Inc. (CAI) was a third-party debt collection agency founded in 1964 in Defiance, Ohio. At its peak the company employed over 500 people across multiple locations including Defiance Ohio, Manchester New Hampshire, and other sites around the country.
In 2015, CAI was awarded a U.S. Department of Education Default Collection Services contract, one of only 11 companies to receive that designation. They received a five-year renewal in October 2019. Federal student loan collection became their primary business, generating contracts valued at approximately $70 million at peak.
On March 8, 2021, CAI formally rebranded as Mammoth Tech, Inc. In early 2022, the company closed all operations.
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Why CAI Is No Longer Operating
The company’s collapse followed a cascade of interconnected problems. The Department of Education contract was lost around 2020, which observers attribute in part to the Biden administration’s suspension of federal student loan collection during the pandemic. Without the DOE contract, the company’s primary revenue source disappeared.
Despite receiving $4 million in Paycheck Protection Program funding in 2020 to retain employees, the company subsequently fired approximately 520 workers in early 2022 without providing the 60-day advance notice required by the federal Worker Adjustment and Retraining Notification Act. A class action was filed in Ohio federal court on behalf of all affected workers.
Additional legal judgments followed. A staffing agency obtained a $1 million judgment against the company. A management company obtained a $181,000 judgment. Mammoth’s Manchester, New Hampshire landlord sued for unpaid rent. Two disability discrimination lawsuits were filed by former pregnant employees.
What a CAI Account on Your Report Actually Means
Because Credit Adjustments Inc and its successor Mammoth Tech are no longer operating, an account from either entity on your credit report has specific implications. The company cannot be contacted to validate the debt. The company cannot accept payment. The company cannot agree to a pay-for-delete arrangement.
The standard strategies, such as calling the collector, negotiating a settlement, or arranging a pay-for-delete, do not apply here in the same way. The most effective approach is disputing the account directly with each credit bureau.
Federal Student Loan Accounts Specifically
If the CAI account relates to a federal student loan, your primary resource is the Department of Education, not Credit Adjustments. Visit StudentAid.gov to check your loan status, which servicer currently holds the loan, and whether the account is showing as in default.
If CAI collected on a federal student loan and a default record remains on your credit report despite the account’s current status at the Department of Education, that discrepancy is grounds for a dispute. The Department of Education’s current servicer is the relevant contact, not CAI.
Medical Debt Accounts
If the CAI account traces to a hospital or medical provider, contact that original provider directly. Because the company no longer exists, the original provider either has the account back on their own books or it was transferred to another collector before CAI closed.
If the account transferred to a new collector, that collector should be listed as the current creditor on your credit report. If CAI or Mammoth Tech still appears as the current creditor and the company is out of business, dispute that entry with each credit bureau as reporting by a defunct entity.
How to Dispute a CAI Account
Pull your credit reports from all three bureaus at AnnualCreditReport.com. For any entry showing Credit Adjustments Inc or Mammoth Tech as the current creditor, file a dispute with each credit bureau noting:
- The company is no longer operating and listed as out of business by the BBB.
- The account cannot be validated by a non-operating entity.
- If the account was transferred, the current creditor listed is inaccurate.
Credit bureaus are required to investigate disputes within 30 days. A defunct collector with no ability to respond to a verification request significantly strengthens the dispute.
The WARN Act and PPP Issues
The class action filed against Mammoth Tech for WARN Act violations and the judgments from the staffing agency and management company are relevant context but do not directly affect consumer accounts. These cases involved employment obligations, not the underlying debts CAI was collecting.
If you were a Mammoth Tech employee owed back pay or vacation time, those claims were part of the WARN Act litigation, not the consumer debt collection process.
What If Another Collector Is Now Pursuing the Same Debt?
If a different collection agency is now contacting you about a debt that was previously with CAI, the new collector must start the validation process from scratch. They must send a validation notice within five days of first contact and honor your 30-day right to dispute. The prior collection history with CAI does not transfer your validation rights to the new collector.
Send a fresh written debt validation request to the new collector by certified mail immediately.
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How Long Can This Debt Be Reported?
Collection accounts can remain on credit reports for seven years from the original date of delinquency, regardless of whether the collector still exists. The clock does not reset when a company closes or rebrands. If the original delinquency date on the CAI account is approaching seven years old, the account should be aging off your report naturally.
Ohio has a 6-year statute of limitations on most consumer debts. If the debt is past that window, no successor entity can successfully sue you to collect it.
Bottom Line
Credit Adjustments Inc rebranded as Mammoth Tech and then collapsed in early 2022 following the loss of its Department of Education contract and a series of lawsuits. The company is out of business and cannot validate, negotiate, or collect on any account.
Dispute any CAI or Mammoth Tech entry with the credit bureaus directly. If a new collector has taken over the account, send a fresh validation request before engaging further. For federal student loans, verify current status at StudentAid.gov.
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.