Have you been contacted by Fundbox regarding an outstanding debt? Here’s how to find out if this company is legitimate, how to handle communications with them, and how to resolve your Fundbox collection debt in the best way possible.
Who is Fundbox?
Fundbox is a financial technology (fintech) company that provides working capital solutions to small and medium-sized businesses (SMBs). Founded in 2013, Fundbox is particularly known for offering lines of credit and invoice financing to help businesses manage cash flow challenges.
Is Fundbox Legitimate?
Fundbox is a legitimate company that provides financial services to small and medium-sized businesses.
Fundbox Reviews and Complaints
Fundbox is accredited by the Better Business Bureau (BBB) and holds an A+ rating. It also has an average customer review of 4.67 out of 5 stars, based on 276 reviews.
That said, the company does have some customer complaints. Customers have reported problems such as incorrect penalties on credit line accounts, unexpected account closures, and difficulties in updating payment information after changing banks.
Dealing with Fundbox
If you’re a Fundbox customer, it’s important to understand how to communicate effectively with the company, especially if you’re dealing with an outstanding debt or other issues.
What Should I Do If I Receive a Letter or Call from Fundbox?
If you receive a letter or call from Fundbox, especially pertaining to a financial obligation or issue with your account, it’s crucial to handle the situation appropriately. Here are the steps you can take:
1. Understand the Purpose of the Communication
First, you need to understand why Fundbox is contacting you. Common reasons may include updates regarding your account or credit line status, requests for additional documentation or information, or notifications of potential account closure or action.
2. Verify the Authenticity
Before taking any action, it’s important to ensure the communication is genuinely from Fundbox. There are scammers out there that may pretend to be a lender like Fundbox in order to gain access to your sensitive personal and financial information.
Be sure to check the sender’s email address or phone number, and cross-reference any account numbers in the communication with your Fundbox records. If you’re unsure whether the communication is legitimate, contact Fundbox directly using the official contact information on your statements or their website.
3. Gather Your Information
Before responding, it can be helpful to collect all relevant details about your account, including copies of recent statements, your payment history and current balance, and any correspondence or agreements with Fundbox.
4. Respond Promptly
Don’t put off getting back to Fundbox. It may be tempting to avoid the situation, but ignoring their communications could lead to worse financial consequences down the road. You shouldn’t necessarily agree to any changes to your contract or admit to an outstanding debt, but you should follow up promptly and emphasize your willingness to work out a solution. Then, consider contacting a debt relief lawyer to help you navigate how to proceed.
5. Document All Communications
Be sure to keep a record of all correspondence, including copies of letters and emails, as well as notes on phone conversations, including dates, times, and the names of representatives. This documentation can be helpful if there are disputes or further issues.
Knowing Your Rights With Fundbox
When dealing with Fundbox or any financial institution regarding a past due debt, you have specific rights under federal and state laws. Understanding these rights can help you handle the situation effectively and protect yourself from unfair or illegal practices.
Here are some examples of important rights you have:
- Right to Accurate Information: The Truth in Lending Act (TILA) ensures you are entitled to clear and accurate information about your loan terms, including interest rates, fees, and repayment schedules. Fundbox must provide transparent account statements and records of all transactions.
- Right to Fair Credit Reporting: If your account is reported to credit bureaus, the creditor must ensure the information is accurate and timely, and correct any errors promptly if notified. You can dispute inaccurate credit report entries directly with credit bureaus under the Fair Credit Reporting Act (FCRA).
- Right to Verification of Debt: If a debt collector contacts you about a past-due debt, you have the right to request validation of the debt. If third-party collection is involved, you can request written proof of the debt, including details about the original amount, payments made, and the creditor’s identity under the Fair Debt Collection Practices Act (FDCPA).
- Right to Dispute: You have the right to dispute any inaccuracies or errors in your account or debt records. Disputes must be submitted in writing to the creditor or collection agency, MCA company or debt collection law firm or any debt collector acting on its behalf. The debt collection agency must investigate your claim and provide a response.
- Right to Be Free from Harassment: Under the FDCPA, you are protected from harassment by debt collectors, including repeated or late-night phone calls, abusive language, or threats. If Fundbox itself is attempting to collect a consumer based debt, they must adhere to fair business practices under this law.
Common Legal Issues with Fundbox
As a lender, there may be instances when legal issues arise between Fundbox and its customers, especially when there is a past-due debt involved. Here are some of the most common legal issues Fundbox customers may face:
- Disputes Over Debt Amounts: Customers may disagree with the amount Fundbox claims is owed, particularly if there are disputed fees, interest, or penalties. If this is the case, review your account statements and loan agreement. Request detailed documentation from Fundbox to validate the debt.
- Inaccurate Credit Reporting: In some cases, a creditor may report a past due debt or default inaccurately to credit bureaus — or you may believe that to be the case. You can always dispute the error with both the creditor and the credit reporting agencies under the Fair Credit Reporting Act.
- Breach of Contract: If you fall behind on payments, Fundbox may allege that you breached your contract by failing to meet repayment terms or other obligations.
What Happens If You Get Sued by Fundbox
If you’re sued by Fundbox, it’s critical to respond quickly and understand your legal rights and options. Ignoring the lawsuit could result in a judgment against you, so take steps to address the situation and work toward a resolution. Consulting an experienced debt relief attorney is highly recommended to protect you.
1. The Lawsuit Process
You will receive a legal document notifying you of a debt lawsuit (the “summons”) and detailing Fundbox’s claims (the “complaint”). Fundbox will file the lawsuit in a court with jurisdiction over your location or business.
2. Your Response
You must file a response (an “answer”) to the lawsuit within the timeframe specified in the summons, which is often 20-30 days. Failing to respond may result in a default judgment in Fundbox’s favor.
If you believe that the claims Fundbox is making against you are incorrect, you may want to fight the lawsuit. Common debt defenses may include:
- The debt amount is incorrect.
- The statute of limitations has expired.
- Fundbox lacks proper documentation or legal standing.
If you do, in fact, owe what Fundbox is claiming, you might consider settling out of court. In this case, it’s a good idea to hire an attorney who deals with Fundbox regularly. Negotiating a settlement takes time, patience, and skill; an attorney will have the expertise to secure the best possible deal.
3. Possible Outcomes
If the breach of contract lawsuit does go to court, there are a few potential outcomes, depending on the details of the case and how you respond:
- Judgment Against You: If Fundbox wins, the court may issue a judgment requiring you to pay the debt. Fundbox could pursue wage garnishment, bank levies, or UCC or other liens to collect the judgment.
- Case Dismissal: If you successfully defend yourself, the court may dismiss the case.
- Settlement Agreement: Many lawsuits are resolved through negotiated settlements.
4. Filing a Counterclaim
If you believe Fundbox violated your rights and breached the contract you have with them(e.g., through illegal collections practices or inaccurate credit reporting), you may be able to file a counterclaim against them.
How to Negotiate with Fundbox
Negotiating with Fundbox regarding an MCA debt can help you find a resolution that works for both parties. Here’s a step-by-step guide:
1. Understand Your Debt
First, you need to have a solid understanding of your current debt situation. Start by gathering all relevant details about your debt, including:
- The original loan or funding amount.
- Payments made to date.
- Any fees, penalties, or accrued interest.
Ensure the debt amount is accurate by requesting a detailed account statement from Fundbox.
2. Assess Your Financial Situation
Based on your budget, determine how much you can realistically afford to pay toward your MCA debt. Also consider whether a lump-sum payment or a payment plan is more feasible for your budget.
3. Present Your Case
When you’re ready, reach out to Fundbox through an experienced debt settlement attorney to discuss how to move forward. Be honest about your financial challenges and explain why you are unable to pay the full amount.
Then propose a reasonable debt settlement amount or payment plan based on your financial capacity. Use any supporting documents, such as proof of income reduction or unexpected expenses, to strengthen your case.
4. Negotiate Terms
You have a few options for what type of agreement you want to negotiate. The right one will depend on the amount of your debt, your financial resources, and what Fundbox will ultimately agree to.
- Lump-Sum Settlement: Offer to pay a reduced amount in full, which may be more appealing to Fundbox than prolonged repayment.
- Payment Plan: Propose a schedule with smaller, manageable installments over an extended period.
- Waiver of Fees: Request that accumulated late fees or penalties be waived as part of the settlement.
5. Get Everything in Writing
Ensure any agreement you reach with Fundbox is documented in writing and signed by both parties. Confirm the terms include the MCA settlement amount or payment schedule, and a clause stating that the debt will be considered settled once the agreed payments are made.
Fundbox phone number and address
You can contact Fundbox through the following methods:
- Phone: (855) 572-7707
- Email: support@fundbox.com
- Address: 5760 Legacy Dr, Ste B3-535, Plano, TX 75024
Fundbox’s support team is available Monday through Friday, from 8:00 AM to 7:00 PM ET.
How Can a Debt Settlement Attorney Help?
A debt settlement attorney can be a key resource when dealing with a collections account or an MCA debt lawsuit. They can negotiate with creditors to potentially reduce the debt amount, provide legal guidance, represent you in court if needed, assist in validating the claimed debt, and ensure any settlement agreements are in your best interest.
Tayne Law Group offers a free phone consultation with one of our experienced debt relief attorneys. Whether you’re struggling to keep up with your Fundbox payments, have a debt in collections, or have been sued by Fundbox, there’s a good chance that we can help. Contact our offices by calling (866) 890-7337 or fill out our short contact form. We never share or sell your information and all conversations are confidential
