◖ DawnLedger
Answer

Is Caddis Funding legit -- and how should I handle them?

Yes -- Caddis Funding, LLC is a legitimate, passive debt buyer based in Greenville, South Carolina, not a scam. It buys portfolios of charged-off unsecured consumer accounts -- typically credit cards and consumer loans that an original creditor gave up on and sold -- but it does not usually contact consumers directly. Instead, as a passive buyer it places its accounts with outside collection servicers and law firms to do the collecting, and Caddis-owned accounts are frequently serviced by InvestiNet, LLC. That business model creates the single most important thing to understand: because Caddis PURCHASED the account, the name that owns your debt (Caddis Funding) is frequently different from the agency or law firm that actually calls, writes, or sues you. That "two names" gap is your leverage. Before you pay or admit anything, demand the chain of title -- the bill of sale, the assignment, and account-level records -- proving that Caddis actually owns YOUR specific account and that the balance is correct. First, confirm you have the right company by checking that the exact name and the Greenville, South Carolina address on your letter or lawsuit match; a passive buyer's name can look unfamiliar precisely because you never did business with it directly. Caddis is a member of the receivables-industry trade association, but membership does not remove any of your rights. Send a written validation request within 30 days demanding the amount and the original creditor, and don't admit the debt on a call. Check the statute of limitations, because these are often old, resold accounts that may be time-barred -- and remember a single payment or a written promise to pay can restart the clock, so don't reset a time-barred debt by accident; if it's too old to sue on, raise a time-barred defense. If you're served with a summons, never ignore it: file a written answer by the deadline, because a default judgment is what enables wage garnishment, a bank levy, or a lien. A genuinely-owed unsecured balance, once validated and within the statute of limitations, can often be settled in writing -- get any agreement in writing before you pay, and note that a forgiven balance over $600 can trigger a 1099-C. Finally, watch for impostor red flags: anyone demanding payment by gift cards, wire, or crypto, or threatening arrest, is running a scam and is not Caddis.

DW
By Dana Whitfield — Personal finance writer

Short answer

Yes, Caddis Funding, LLC is legit -- a real, passive debt buyer based in Greenville, South Carolina, not a scam. It buys charged-off unsecured accounts and then places them with outside servicers and law firms to collect. Confirm the exact name and Greenville address, demand the chain of title proving it owns your account, send a 30-day written validation, and never ignore a summons.

Who they are

Caddis Funding, LLC is a passive debt buyer: it buys portfolios of charged-off unsecured consumer accounts -- credit cards and consumer loans -- from original creditors, then places them with third parties to collect rather than contacting you itself. It is a member of the receivables-industry trade association, a routine industry signal that does not change your rights.

The two names: make it prove it owns your account

Because Caddis bought the debt, the owner's name (Caddis Funding) is often different from the servicer actually contacting you -- Caddis accounts are frequently serviced by InvestiNet. That gap is your leverage.

Check the statute of limitations

Debt buyers often collect on old, resold accounts that may already be time-barred. Check the statute of limitations before you respond.

If you're sued -- and how to settle

Never ignore a summons. File a written answer by the deadline, or a default judgment can lead to wage garnishment, a bank levy, or a lien. Like any debt buyer -- Portfolio Recovery Associates included -- a purchaser must first prove it owns the debt. A genuinely-owed unsecured balance, once validated and within the statute of limitations, can often be settled in writing, sometimes even after a case is filed; get any agreement in writing before you pay, and a forgiven balance over $600 may trigger a 1099-C. Watch for impostor red flags: demands for gift cards, wire, or crypto, or threats of arrest, are scams -- not Caddis.

This page is general information, not legal or tax advice. Your rights and timelines vary by state; consider consulting a qualified attorney, a nonprofit credit counselor, or legal aid.

Keep reading