Did Lyon Collection Services contact you with repeated calls, unclear messages, or aggressive collection tactics? Debt collectors can contact you about valid debts, but federal and state laws limit harassment, misleading statements, and improper communication.
Consumer Rights Law Firm PLLC has helped consumers fight illegal debt collection practices since 2010. A+ BBB rated. Call (877) 700-5790 for a free case review. You pay nothing upfront, and if Lyon violated your rights, they may be responsible for your legal fees.
Who Is Lyon Collection Services?
Lyon Collection Services, Inc. is the debt-recovery arm of Lyon Mercantile Group, a Las Vegas-based operation that traces its roots to 1876 and markets itself as a specialist in commercial collections and accounts receivable management “across all business industries.” In plain terms, Lyon is hired by companies to collect unpaid invoices from other companies, and it is a founding member of the Commercial Collection Agencies of America, a trade body that certifies bonded, compliance-audited agencies.
Lyon Collection Services, key facts:
- Legal name: Lyon Collection Services, Inc. (part of Lyon Mercantile Group Ltd.)
- Headquarters: 7924 W Sahara Ave, Las Vegas, NV 89117
- New York office: 352 Seventh Ave, New York, NY 10001
- Phone: 800-935-5966 and (702) 838-6100
- Email: info@lyoncredit.com
- Website: lyoncredit.com
- In business as a brand since: 1876
- Primary focus: Commercial (business-to-business) debt recovery
- BBB status: Not BBB accredited
- Type of collector: Third-party agency, retained by creditors
Read that focus line twice, because it drives the rest of this article. A collector whose bread and butter is business debt sits in a different legal box than the medical and card collectors most harassment guides describe. When clients come to us about Lyon, the first thing our attorneys establish is whose debt it really is, since that determines whether the Fair Debt Collection Practices Act even enters the picture.
Is Lyon Collection Services a Scam or a Real Company?
Lyon is a genuine, long-running, bonded collection agency, not a fly-by-night operation, and its paper trail backs that up. It maintains offices in Nevada and New York, publishes state-required collection notices for both, keeps collected funds in a separate client trust account as its trade-group code demands, and has existed under the Lyon name far longer than any collector you are likely to deal with. Nevada licenses collection agencies under NRS Chapter 649, and New York City licenses debt collectors through its Department of Consumer and Worker Protection, so Lyon operates inside a regulated framework rather than outside it.
None of that means every letter or call is flawless. A company can be old, bonded, and licensed and still send a notice that misstates your rights, which is precisely what one federal lawsuit accuses Lyon of doing. So treat “is it real” and “is it doing this correctly” as two separate questions. If you are unsure a call is even connected to a debt you owe, do not confirm account numbers or hand over a Social Security number on the phone. Ask for it in writing first, and use the steps near the end of this guide.
Why Is Lyon Collection Services Contacting Me?
Lyon is contacting you because a creditor placed an unpaid account with the agency, and given Lyon’s book of business, that account is often a commercial one, an invoice your company never paid, a personal guarantee you signed for a business obligation, or a vendor balance that slipped past 60 days. Lyon openly tells its clients to place accounts early and to send over invoices, credit applications, and signed personal guarantees, which tells you a lot about the kind of paper it works.
That said, Lyon does handle some personal accounts too, and the difference matters enormously to you. In many of the matters we review, the confusion is not whether the money is owed but which hat you were wearing when the debt arose. A personal medical bill or a consumer credit balance is a “consumer debt” protected by federal law. An unpaid business invoice generally is not. One point consumers and small-business owners often miss is that signing a personal guarantee can blur that line, and whether the guarantee turns a business debt into a personally protected one is a fact-specific question worth asking a lawyer about.
Lyon Collection Services BBB Complaints
Source: Better Business Bureau profileÂ
Lyon Collection Services Better Business Bureau profile shows a single complaint filed in the past three years and zero customer reviews, and the company is not BBB accredited. Compared with consumer-facing collectors that rack up dozens of complaints a year, that is a remarkably thin record, and it lines up with an agency that spends most of its time chasing businesses rather than individuals.
The one published complaint, filed on September 2, 2024, is itself a business dispute rather than a phone-harassment story. The complainant wrote that “this debt does not belong to my business or any transactions associated with my business,” said they had filed a police report, and demanded the account be treated as fraudulent and deleted. Lyon responded that the “claim has been closed” and stated it had not reported the matter to any credit bureau. We frequently see this pattern with commercial collectors, where the flashpoint is a disputed or misattributed account rather than the abusive call volume you find with medical debt buyers.
The Lawsuit That Best Explains Lyon’s Legal Risk
For Lyon, the clearest window into its collection conduct is not a review site but a federal docket. In Pomerantz v. Lyon Collection Services, Inc., No. 2:18-cv-15219-MCA-LDW, a New Jersey consumer filed a proposed class action in the U.S. District Court for the District of New Jersey on October 23, 2018, alleging that a Lyon collection letter violated the Fair Debt Collection Practices Act by muddying her validation and dispute rights. The complaint centers on a single sentence in an August 2018 notice, which read:
“If you request of this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from the current creditor.”
The suit argues that opening with “if” made the writing requirement sound optional and left the consumer unsure how to properly exercise her rights, a defect courts have taken seriously in FDCPA “validation notice” cases. What makes this case so telling is what it is not: it is not about screaming collectors or 3 a.m. calls. It is about the precise wording of a letter. Our attorneys evaluate exactly this kind of claim, because a defective notice is a strict-liability problem, meaning the consumer does not have to prove any collector meant harm, only that the language fell short of what the statute requires.
We have limited that discussion to what the public court filing states, and the allegations in a complaint are claims, not proven findings. Full docket documents are available through PACER. Even so, the lesson for anyone holding a Lyon letter is concrete: keep it, read the validation paragraph closely, and have someone check whether it actually spells out your rights.
How Lyon Reaches People, and Where the Lines Are
Because Lyon leans commercial, the contact you experience may look less like relentless cell-phone dialing and more like formal letters, invoices, skip-traced phone calls, and notices tied to its investigation division, which searches public records such as judgments, tax liens, and UCC filings. Lyon advertises that its collector and legal communications are logged and viewable online, which is a client-facing feature but also tells you the company documents its outreach.
Whatever the channel, the boundaries depend on the nature of the debt. If the account is a consumer debt, federal law caps the timing and manner of contact and forbids a long list of tactics. If it is a business debt, those specific federal limits usually do not apply, though state law, contract terms, and rules against fraud and defamation still do. The practical takeaway is that “can they do that” almost always circles back to the same fork: personal debt or business debt.
Is This Harassment, and What Are Your Rights?
Yes. Debt collectors cannot use repeated or improper contact to pressure, harass, or embarrass you. If they do, federal law provides several protections that may allow you to challenge those collection practices.
Where Lyon-Style Conduct Can Cross the Line
| Conduct | Why it matters | Governing law | What you may recover |
|---|---|---|---|
| A validation notice that muddles your dispute rights | Central claim in the Pomerantz case | FDCPA Sec. 809 | Up to $1,000 statutory damages plus fees, on consumer debts |
| Calling outside 8 a.m. to 9 p.m. | Timing limits on consumer-debt calls | FDCPA Sec. 805 | Statutory damages plus fees |
| Telling a third party about your debt | Privacy protection on consumer debts | FDCPA Sec. 805(b) | Statutory damages plus fees |
| Overstating the balance or adding phantom fees | Bars false or misleading representations | FDCPA Sec. 807 | Statutory damages plus fees |
| Chasing a debt that is not yours | Raised in Lyon’s lone BBB complaint | FDCPA Sec. 809 and state law | Damages plus deletion and fees |
| Threats or deception on a business debt | FDCPA may not apply, but state law can | State collection and consumer-fraud statutes | Varies by state |
When a consumer debt is involved and Lyon breaks one of these rules, the statute shifts the legal bill onto the collector. In other words, if they violated the law, their conduct pays for your lawyer, not your wallet.
Can You Sue Lyon Collection Services?
Yes, if the account is a consumer debt and Lyon violated the FDCPA, the TCPA, or the FCRA, you can bring a claim, and the Pomerantz filing shows consumers doing exactly that over something as small as a poorly worded sentence. On a consumer debt, the FDCPA lets you recover up to $1,000 in statutory damages for the violation itself, plus any actual losses, plus attorney fees and costs paid by the collector. You do not need to have paid the debt or even to still owe it.
If the debt is commercial, a federal FDCPA suit usually is not the right vehicle, but that does not leave you defenseless. Depending on your state, you may have claims for deceptive practices, for collecting an amount not owed, or for reporting errors, and a consumer-rights attorney can tell you quickly which path fits. The most useful evidence in either scenario is the same: the letters Lyon sent, an envelope or notice showing dates, a log of any calls, and anything showing the debt was misidentified or already resolved.
What To Do If Lyon Contacts You
Rather than react in the moment, work through these steps in order and you will protect both your peace and your leverage.
- Pin down the debt type first. Decide whether this is a personal obligation or a business one, because that single fact determines which rights you can invoke. If a personal guarantee is involved, flag it for a lawyer.
- Demand it in writing. Send a debt validation letter asking Lyon to identify the creditor, the amount, and the basis for the claim. Keep a copy and proof of mailing, and never verify your identity with a Social Security number over the phone.
- Save every letter. For Lyon specifically, the notice itself can be the evidence. Photograph or file each letter and note the postmark, since the Pomerantz case turned on letter wording.
- Correct your reports. If an entry appears, dispute inaccuracies with the bureaus and, for a business account wrongly on a personal report, say so clearly in the dispute.
- Get a read from an attorney before paying under pressure. A short, free consultation can tell you whether the FDCPA applies, whether the notice was defective, and who ends up paying the fees.
Consumer Rights Law Firm PLLC
Consumer Rights Law Firm PLLC is a law firm that specializes in helping clients who are facing harassment from debt collectors in any form, including telephone communication. We treat every client as a person with unique needs and stories, ensuring a personalized and compassionate approach. Our firm has helped thousands of clients facing debt collection harassment, building a strong track record of success. Rather than suffer alone, contact our office to begin the process to stop the Lyon Collection Services harassment. Our office has been assisting consumers since 2010. We have an A+ rating with the Better Business Bureau.
If you are interested in learning more about how to safeguard yourself and prevent harassment from Lyon Collection Services, call us at 877-700-5790.
Success Stories
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