Diversified Consultants, Inc. (DCI) closed permanently on April 30, 2020. The Jacksonville-based debt collector filed Chapter 11 bankruptcy on April 17, 2020 in the Middle District of Florida (Case No. 3:20-bk-01311) and laid off all 250 employees. CEO Charlotte Zehnder confirmed in a written notice to the state of Florida that the closure was “complete and final.”
If you are getting calls today from someone claiming to be Diversified Consultants, those calls are either from a scammer or from a different collection agency that purchased DCI’s debt portfolio. Either way, you have rights.
If a DCI tradeline is still showing on your credit report, or a new collector is contacting you about a debt that originated with DCI, call +1-844-638-1122 for a free case review. The Wood Firm PLLC works on contingency. The collector pays our fees if we win.
Also searched as: Diversified Consultants Inc, DCI, Diversified Consultants Company, Diversifed Consultants, Diversified Receivables, Diversified Collections, and Diversified Debt Collector. Not to be confused with Diversified Adjustment Service (DASI) or Diversified Consumer Services, which are separate active companies.
Key Takeaways
- Diversified Consultants, Inc. permanently closed on April 30, 2020 after filing Chapter 11 bankruptcy. Last address: 10550 Deerwood Park Blvd, Suite 309, Jacksonville, FL 32256. Founded 1992. 250 employees laid off.
- DCI was a telecom-specific collector handling debts for AT&T, Verizon, Sprint, T-Mobile, cable, satellite, and utility companies. Over 4,000 CFPB complaints by 2018.
- Major lawsuits before closure included Hudson v. DCI (illegally pulling credit reports on bankrupt consumers), Muhlstock v. DCI (TCPA robocall violations), and Laccinole v. DCI (22 calls after a stop request).
- If you have a DCI tradeline on your credit report, it can be disputed and often deleted because the original creditor no longer exists to validate it.
- If a current collector is calling you about a former DCI account, you may be entitled to up to $1,000 per FDCPA violation. The Wood Firm PLLC works on contingency.
Free Case Review: +1-844-638-1122
What Happened to Diversified Consultants?
Diversified Consultants, Inc. filed Chapter 11 bankruptcy on April 17, 2020 in the U.S. Bankruptcy Court for the Middle District of Florida (Case No. 3:20-bk-01311). The company’s bankruptcy petition stated it did not expect to have sufficient assets to pay unsecured creditors.
On March 25, 2020, DCI filed a Worker Adjustment and Retraining Notification with the state of Florida announcing the closure of its Jacksonville headquarters and the layoff of all 250 employees. CEO Charlotte Zehnder wrote that the closure was “complete and final” and would affect all DCI employees and executives. The layoffs began April 1 and finished April 30, 2020.
At the time of closure, DCI had just one office remaining: 10550 Deerwood Park Blvd, Suite 309, Jacksonville, FL 32256. Branch offices in Louisville, Kentucky and Tualatin, Oregon had already been closed. The company’s website went offline and has not returned.
Founded in 1992, Diversified Consultants spent 28 years as one of the largest telecom-focused collection agencies in the United States. By the time it closed, it had accumulated over 4,000 CFPB complaints and had been named in dozens of FDCPA, TCPA, and FCRA lawsuits.
Who Is Actually Calling You About a “DCI” Debt?
If you are getting calls today from someone claiming to represent Diversified Consultants, one of three things is happening:
Scenario 1: A different collector bought the debt. When a collection agency closes, its debt portfolio is typically sold to other collectors at pennies on the dollar. The new owner may still reference the original DCI account number, but the new collector is the one calling you. They are subject to the same federal protections as DCI was, and they must identify themselves clearly.
Scenario 2: Someone is impersonating DCI. Scam collectors sometimes use the names of defunct agencies because consumers recognize them. Verify the caller’s identity, business address, and licensing before paying anything. Real collectors must provide a written validation notice within five days of first contact.
Scenario 3: You have an old DCI tradeline on your credit report. Tradelines from defunct collectors can linger for years. The collector that closed cannot respond to disputes, which means a credit bureau dispute often results in the tradeline being deleted entirely.
Whichever scenario applies, document every call. Get the caller’s full company name, address, and the original creditor. Then request debt validation in writing.
Old DCI Account Still on Your Credit Report?
Whether You Owe the Debt or Not, We Can Help You
A defunct collector cannot validate a disputed tradeline. You may be entitled to:
- Deletion of the inaccurate DCI tradeline
- Up to $1,000 per FDCPA violation by the new collector
- Attorney fees paid by the collector if we win
We work on contingency. You pay nothing unless we win.
FREE Case Review: +1-844-638-1122
The Lawsuits That Helped Bring Down DCI
Before closing, Diversified Consultants was named in multiple federal lawsuits across the country. The pattern of allegations reveals why the company drew so much consumer protection attention.
Hudson v. Diversified Consultants, Inc. (2016). Class action alleging DCI illegally obtained consumer credit reports for debts that had already been discharged in Chapter 7 bankruptcy. Pulling a credit report without a “permissible purpose” violates the Fair Credit Reporting Act.
Muhlstock v. Diversified Consultants Inc. (2017). Proposed class action alleging DCI used autodialers to call cellular phones without identifying itself as a debt collector, violating both the TCPA and the FDCPA.
Pinyuk v. Diversified Consultants, Inc. (2017). FDCPA case alleging DCI failed to clearly identify the creditor in collection notices, specifically referencing ambiguous language about “VERIZON” without specifying which Verizon entity owned the debt.
Pennzello v. Diversified Consultants Inc. (2017). Class action alleging DCI failed to accurately communicate the total balance, including unspecified “Total Non-Interest Charges or Fees Since Charge-Off.”
Marjorie H. v. Diversified Consultants (2018). An Indiana woman sued DCI alleging illegal, harassing, and inaccurate calls about a $495 AT&T debt she did not owe.
Laccinole v. Diversified Consultants, Inc. (2019). A consumer filed 22 separate complaints (later consolidated) about repeated calls to his cellphone after he requested DCI stop calling.
One additional case widely reported in consumer protection circles: DCI was found to have placed over 150 “wrong number” robocalls to a 17-year-old student who had no debt at all.
By 2018, the CFPB had recorded over 4,000 complaints against Diversified Consultants. Review the top FDCPA violations to see how these allegations match the most common patterns.
What DCI Collected and Why It Matters Today
Diversified Consultants was a telecom-specific collector. Its primary clients included:
- Wireless carriers: AT&T, Verizon, Sprint, T-Mobile
- Landline carriers
- Cable and satellite providers
- Utility companies
- Security service companies
This focus matters because telecom debts have specific quirks under federal law. Telecom early-termination fees, equipment charges, and final-bill disputes are some of the most common sources of credit reporting errors.
If a DCI tradeline on your credit report relates to a phone, internet, or cable account you disputed at the time, you may have grounds for a credit dispute today even years after the account was placed.
How to Remove a DCI Tradeline From Your Credit Report
This is the single most useful thing former DCI debtors can do today. Because DCI no longer exists, it cannot respond to disputes from credit bureaus. Under the Fair Credit Reporting Act, if a furnisher cannot verify a disputed item within 30 days, the bureau must delete it.
Step 1: Pull All Three Credit Reports
Free at AnnualCreditReport.com. Look for any tradeline listing “Diversified Consultants,” “DCI,” or any of the related telecom creditors that DCI typically reported under.
Step 2: Dispute in Writing With Each Bureau
File a written dispute with Equifax, Experian, and TransUnion separately. State that the furnisher (Diversified Consultants, Inc.) is no longer in business as of April 30, 2020 (Chapter 11 bankruptcy, Case No. 3:20-bk-01311, Middle District of Florida). Request deletion based on inability to verify.
Step 3: Wait 30 Days
The bureaus have 30 days to respond. In many documented cases, defunct DCI tradelines have been deleted because the bureaus could not get verification from the closed company.
Step 4: If a New Collector Appears
If the debt was sold and a new collector adds a new tradeline, you have the same dispute rights against the new collector. The new collector must produce its own validation, including chain of title documentation showing how it acquired the debt from DCI’s bankruptcy estate.
Your Rights If a New Collector Is Calling About a DCI Account
The new collector is bound by the same federal laws DCI was: the FDCPA, FCRA, and TCPA.
You can request debt validation within 30 days of first contact. The new collector must prove the debt is yours and produce documentation of how it acquired the account.
The collector cannot call your workplace after you tell them to stop, contact your family to discuss your debt, threaten garnishment without a court judgment, or threaten lawsuits they do not intend to file.
Telecom debts also typically have a 4-year statute of limitations as written contracts under the Federal Communications Act. If the original DCI account was placed before 2020, the underlying telecom debt may already be time-barred, depending on your state. Collecting on time-barred debt without disclosure can itself be a federal violation.
How The Wood Firm PLLC Helps
When a defunct collector’s tradeline lingers on your credit report, when a new collector calls about a former DCI account without proper validation, or when any collector continues contact after you have requested they stop, those are actionable claims under the FDCPA, FCRA, and TCPA.
The Wood Firm PLLC has handled these cases exclusively since 2011. Never represented a creditor. You pay nothing upfront. Contact stops within 48 hours of legal notice. Learn about how we work for you and why clients choose us. Read the attorney profile.
Real Cases We Have Handled With Defunct or Acquired Debt Portfolios
Client identities are protected.
- Defunct collector tradeline. A client had a tradeline on their credit report from a collector that had gone out of business. The Wood Firm PLLC pursued FCRA claims for inaccurate reporting and obtained deletion plus damages.
- Repeat-collection on a sold portfolio. A client was contacted by a new collector about a telecom debt previously collected by a defunct agency. The new collector could not produce chain-of-title documentation. The Wood Firm PLLC obtained dismissal of the collection and statutory damages.
- Wrong-person collection. A client received calls about a telecom debt belonging to someone with a similar name. The Wood Firm PLLC documented the wrong-person calls as FDCPA violations and recovered damages.
DCI Tradeline Hurting Your Credit?
Whether You Owe the Debt or Not, We Can Help You
Free Consultation – No Upfront Costs – Collector Pays Our Fees
Frequently Asked Questions About Diversified Consultants
Is Diversified Consultants still in business?
No. Diversified Consultants, Inc. permanently closed on April 30, 2020 after filing Chapter 11 bankruptcy in the Middle District of Florida (Case No. 3:20-bk-01311). All 250 employees were laid off. The closure was “complete and final” according to the CEO.
Why is someone calling me from Diversified Consultants then?
Either a different collector purchased DCI’s debt portfolio and is referencing the old account, or someone is impersonating the defunct company. Verify the caller’s actual company name, address, and request written debt validation before paying anything.
Can I still owe a Diversified Consultants debt?
The original telecom debt (AT&T, Verizon, Sprint, etc.) may still exist if it was sold or transferred. But DCI itself cannot collect. If the new collector cannot prove chain of title from DCI’s bankruptcy estate, the debt may not be enforceable.
How do I remove a DCI account from my credit report?
File a written dispute with each credit bureau citing DCI’s April 2020 bankruptcy and inability to verify. Because DCI cannot respond to verification requests, many disputed DCI tradelines are deleted within 30 days.
What did Diversified Consultants collect?
Telecom debt. Wireless (AT&T, Verizon, Sprint, T-Mobile), landline, cable, satellite, utilities, and security services. DCI was a telecom-specific collector for 28 years.
What lawsuits were filed against DCI?
Major cases include Hudson v. DCI (illegally pulling credit reports on bankrupt consumers), Muhlstock v. DCI (TCPA robocalls), Pinyuk v. DCI (failure to identify Verizon as creditor), Pennzello v. DCI (inaccurate balance disclosure), and Laccinole v. DCI (calls after a stop request). DCI accumulated over 4,000 CFPB complaints.
Can I sue Diversified Consultants now?
Generally no. A defunct company in Chapter 11 with no assets to pay unsecured creditors cannot be sued effectively. However, if a new collector that purchased DCI’s portfolio has violated your rights, you can sue that new collector.
How can The Wood Firm PLLC help?
We can pursue FCRA claims to remove inaccurate DCI tradelines from your credit report and FDCPA/TCPA claims against any new collector that violated your rights while collecting on a former DCI account.
Take Action Today
If a Diversified Consultants tradeline is still hurting your credit, or a new collector is calling about an old DCI account without proper documentation, you have enforceable rights. The Wood Firm PLLC has handled consumer protection cases exclusively since 2011, works on contingency, and makes the collector pay the legal fees if we win.
Call +1-844-638-1122 for a free case review. Browse our list of collection agencies, review our practice areas, or file with the CFPB.
