Palisades Collection, LLC: What to Do If They Contact You

If Palisades Collection or Palisades Acquisition XVI appears on your credit report, or if you have an old judgment from them in your name, you’re dealing with a collector whose active lawsuit filings have slowed considerably in recent years. Palisades is a subsidiary of Asta Funding, which went private in 2020 and has shifted focus away from consumer debt collection.

That history matters because Palisades has a documented record of suing consumers on debts past the statute of limitations. Some of those judgments have already been vacated through legal action, and others may still be challengeable today.

This guide walks through who Palisades is, why they may be on your report, and what to do next.

Who Is Palisades Collection?

Palisades Collection, LLC is a debt buyer based in Englewood Cliffs, New Jersey. The company is a subsidiary of Asta Funding, Inc., which was founded in 1994 and went private in September 2020 after delisting from NASDAQ. A related entity, Palisades Acquisition XVI, LLC, holds separate debt portfolios and is also part of the Asta Funding group.

Palisades has a significant legal history. In 2015, the New York Attorney General reached a settlement with Asta Funding, requiring the company to vacate more than 300 improperly obtained judgments totaling $1.7 million and pay $100,000 in penalties for suing on debts past the statute of limitations.

In 2020, a separate $3.9 million class action settlement covered consumers sued in New York City Civil Court over AT&T Wireless debts that were similarly time-barred. The company has been named in 591 federal lawsuits, most alleging FDCPA violations.

Why Palisades Is on Your Credit Report

Palisades bought charged-off debt portfolios at steep discounts and then attempted to collect the full balance. The debts they purchased typically came from:

• Credit card issuers: HSBC and other major card companies.
• Wireless carriers: AT&T Wireless and similar telecom providers.
• Banks and lenders: Unpaid personal loans and bank accounts.
• Healthcare providers: Medical and dental bills.

Since Asta Funding has shifted away from consumer debt collection, most Palisades accounts on credit reports today are older. Some are legacy accounts approaching the seven-year reporting limit. Others are tied to court judgments that may still be active even though the underlying collection activity has slowed.

Your Rights Under Federal Law

Two federal laws protect you when dealing with Palisades. Given their documented history of pursuing time-barred debt, these rules carry real weight here.

The Fair Debt Collection Practices Act (FDCPA) regulates collector conduct. Under the FDCPA, Palisades cannot:

• Threaten arrest or jail: Unpaid consumer debt is not a criminal matter.
• Call at odd hours: Contact is only allowed between 8 a.m. and 9 p.m. in your time zone.
• Contact you at work after you say stop: Once you tell them, they have to stop.
• Use harassing language: Profanity and repeated calls meant to annoy violate the law.
• Sue on time-barred debt: Both NY settlements directly addressed this pattern.
• Lie about what you owe: Misrepresenting amounts or consequences is prohibited.

The Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate information. If Palisades violates either law, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.

How to Verify a Palisades Debt Before Paying

Don’t pay or admit the debt is yours until you’ve verified it. With Palisades, the age of most active accounts makes documentation gaps common, and past regulatory actions confirm the company’s history of pursuing debts they couldn’t properly substantiate.

Send a written debt validation request by certified mail within 30 days of first contact. Ask for the original creditor, the balance at charge-off, payment history, and the chain of ownership from the original creditor to Palisades. Given the age of most Palisades accounts, complete records are often unavailable.

How to Check Your Credit Report for Errors

Pull your credit reports from all three bureaus at AnnualCreditReport.com. Look at how Palisades is reporting the account. Is the balance correct? Is the account date accurate? Is it listed under the right original creditor? Does it appear more than once?

Any inaccuracy is grounds for a dispute. File disputes directly with each credit bureau showing incorrect information. The bureau has 30 days to investigate, and if they can’t verify the information, they have to remove or correct it.

How the Statute of Limitations Affects Old Debt

Every state has a statute of limitations on debt, which is the window of time a creditor can sue you to collect. Once that window closes, the debt is time-barred. Palisades has been specifically sanctioned for suing on time-barred debt, so this rule matters especially here.

Limits vary by state and type of debt, with most consumer debts falling in the 3 to 6 year range. If Palisades obtained a judgment against you on a time-barred debt, that judgment itself may be challengeable. A consumer protection attorney can help determine whether you qualify under either the 2015 NY settlement, the 2020 AT&T class action, or similar grounds in your state.

Your Options for Handling a Palisades Account

Once you’ve verified the debt, you generally have four paths forward:

• Pay in full: Resolves the account, but doesn’t automatically remove it from your credit report.
• Negotiate a settlement: Palisades often accepts a fraction of the balance, especially on older accounts. Get any agreement in writing.
• Request a pay-for-delete: Some collectors agree to remove the account in exchange for payment. Get it in writing.
• Wait it out: Many Palisades accounts are close to the seven-year reporting limit. If the statute of limitations has passed and the account is aging off soon, doing nothing may be reasonable.

Can Palisades Collection Sue You?

Palisades files fewer new lawsuits than they did in years past, but they can still sue on debts within the statute of limitations. More commonly, the issue is an old Palisades judgment that was already entered years ago.

In states like New York, money judgments can be enforced for up to 20 years and accrue significant annual interest. If an old Palisades judgment is affecting you through wage garnishment, bank levies, or property liens, consult a consumer protection attorney about whether the judgment qualifies for vacatur under past settlements or other grounds. Old improperly obtained judgments have been overturned in exactly this kind of review.

How to Contact Palisades Collection

Handle all communication in writing whenever possible. Phone calls leave you without a record. Here’s how to reach them:

• Mailing address: Palisades Collection, LLC, 210 Sylvan Avenue, Englewood Cliffs, NJ 07632
• Phone: (800) 991-9367

Because Asta Funding has shifted its business focus, some older contact paths may no longer be active. Use the return address on any recent correspondence you’ve received.

Final Thoughts

Palisades Collection is winding down as an active collector, but old Palisades accounts and judgments continue to affect people’s credit and finances. The company’s documented history of suing on time-barred debt has already resulted in hundreds of judgments being vacated, which means old Palisades actions against you may still be worth challenging.

Verify what’s on your report, check the age of any judgments, and consult an attorney if you’re facing enforcement from a Palisades judgment that might qualify for vacatur.