How to deal with Collection Agency - Portfolio Recovery Associates???

[CraigC80]

Looking for some advice on dealing with this collection agency Portfolio Recovery Associates. Same old story, I went thru some very hard times about 4 years ago and now im dealing with the consequences.

Recently Ive been contacted by Portfolio Recovery Associates regarding TWO accounts that they have purchased and are now trying to contact me about settling debt.

One of the accounts is an old GE Bank Credit Card (Walmart) that is out of the Statue of Limitations in my state. (im in Texas and I believe the SOL is 4 years on debt.) The letter that I received regarding that account is has this text written on the bottom: "Because of the age of your debt, we will not sue you for it and we will not report it to any credit reporting agency."

The letter also states that they bought the debt from "ARROW FINANCIAL SERVICES LLC", so I assume it should be out of the SOL.

The most recent letter has stated that I owe around $650 but they will settle for 3 options:

1.) I pay $251.00 straight out

2.) I oay $47.00 for 6 months

3.) I pay $26.00 for 12 months

Since this debt is so old, and isnt being reported to credit agencies then whats the point of settling with them? And If I remember correctly, the credit line on that card was only $200 or something.

My question on this one is, how can I figure out if it is actually out of SOL and if it is then how can I stop them from contacting me about it or have them shut down that account. Debt Validation? Cease & Desist Communications on this account? I have read that a cease & desist increases the probability of getting sued but since the letter states they CANT sue me then would it hurt to send the C&D to shut them up on that account?

Now, the second account that they have is an old Capital One Bank credit card account which according to the mail document was purchased directly from Capital One. This account was purchased in 2013 and from one brief conversation I had with one of the reps on the phone, they said the last activity was from 2011.

I have since ignored all calls as they have increased after accidentally speaking to them once. I am unsure if this is outside the statute of limitations since I dont recall when I ceased to make payments and it got charged off. Unless it just now was charged off and Portfolio Recovery Associates just now got their hands on it. I am currently in the process of obtaining my credit report to see whats actually there and if both of these debts are reporting.

On this account, they claim I owe something between $800-$1000 but I know for sure that this card was another low credit line of something like $250. A letter states I owe $850 but on the phone the rep said something like $1100. It seems they are increasing the amount due with every communication.

My question on this one is how can I clarify what exactly I should owe, whether or not it is within the SOL, and whether I should make a deal with them. Also, should I start this off with a Debt Validation Letter and just go from there? Is the probability of being sued for this one higher since it may not be out of SOL yet? Its a relatively low amount so I dont see the need for getting lawyers involved. Even though they purchased the debt in 2013, I am almost certain that its been charged off since at least 2011.

I have not yet received the "deal" letter on this account as they were just able to get ahold of me via phone. Ive been receiving random letters from CA's but I usually read them over quick and throw them away. They somehow dug up my cell number so now the calls are coming in more and more frequently.

So thats the collection agency drama, please send any helpful advice. This is just the beginning of fixing the debt hole that I got into back when i fell on hard times but hopefully with some helpful tips and tricks it will get all figured out.

I will continue to update this post as I move through the processes of dealing with all of this so hopefully it will help someone else who may be in the same issue.

Thanks in advance to anyone who can help!

[ICANHASMUNY?]

first account; send them a FOAD letter

 

Second account - is Crap one still on your reports too? what is listed as the DOFD -?

 

the charge off date would be 180 days past your DOFD

[CraigC80]

Thanks for that info.

 

Yes, the CAP1 account is listed on all 3 credit reports as SOLD TO PORTFOLIO RECOVERY ASSOCIATES

Last Payment Made: 9/14/2010

Pay Status: Charged off

Date Closed: 5/08/2011

Date Updated: 12/07/2013

 

According to one of the letters I received, Portfolio Recovery Associates bought the Debt 11/19/2013

 

From the data on my credit report I am still within the 4 year window of SOL in Texas so my aim is to fight them to lower the debt owed and pay it off. Pay for delete or whatever I can do to get it gone.

 

As for the GE Bank Account, I will DEFINITELY send them a FOAD letter to stop with that account.

 

Another thing, I dont see Portfolio Recovery Associates on any of my credit reports as any negative hits. There are a few OTHER CA's but PRA is not there. Most accounts are still listed negative from the original creditors but the CAP1 stands alone. What does this mean? Anything at all?

[tmcgill]

Your Question:

My question on this one is, how can I figure out if it is actually out of SOL and if it is then how can I stop them from contacting me about it or have them shut down that account. Debt Validation? Cease & Desist Communications on this account?

 

My Response: Yes, DV. That will put a lid on the calls until they validate. I'm a TX resident, and the SOL is 4 years, and although you can't legally be sued for the debt, they can still add it on your credit reports if it is within the 7 year timeline from the charge off date.

 

Your Question:

My question on this one is how can I clarify what exactly I should owe, whether or not it is within the SOL . . .

 

My Response: DV this one as well. I would call Capitol One and tell them you are trying to verify information about an account you had with them. Try to find out when they charged it off and the amt. This will help if you decide to negotiate a payoff or pay for delete. If will also help you verify if PRA re-aged it on your credit reports. Note: I usually call from Google Voice but never my personal cell phone or landline phone.

Edited March 23, 2014 by tmcgill

[CraigC80]

Thanks for that info @tmcgill

 

The first account with GE Bank is definitely out of the 4 year SOL here in Texas. Its not even listed on any of my credit reports.

Someone from another forum said to send them a letter stating I refuse to pay this and do not contact me again regarding this account then list the account number.

Or would a DV be better in shutting them up since they probably cant dig up that info. And if calls still remain regarding that account, cant i sue them for bugging about it since its SOL?

 

In regards to the CAP1 account, this will definitely need a DV as I already have the charge off date that is listed on my credit reports. (a DV at least to buy me some more time and check for errors on their part)

Charge off 05/2011 - amount $800. From that date it looks like it sat around in collection status til 09/2011 which it was "purchased by another lender" then the amount due gradually increased from $800 to $850 up to 02/2012. At that point, its listed at amount due $850 for 21 months up to 12/2013 where it says "Transfer to another office" . Im assuming thats when PRA took over the debt, as I dont remember who else had it and they notified me on an invoice that they "purchased the debt from CAP1 on 11/2013". It definitely within SOL and its on my credit reports listed as CAP1 Account without PRA being listed as a negative hit. (other than, that is who purchased the debt.)

 

Once I send the DV to PRA and get a response is there a way to fight to negotiate a payoff PLUS delete from my credit record? All I want to do is negotiate a lower payout, get the negative account off my record AND not get sued in the process. From some research it seems that PRA and Cap1 in general LOVE to sue even for amounts less than mine.

 

And yea, I have a google voice number that I was using for all these old credit cards and bills back then. Havent checked it in years and just got on the other day to see over 500 calls, mostly robo calls from PRA and CA's on all sorts of stuff.... insane

[ICANHASMUNY?]

Your Question:

My question on this one is, how can I figure out if it is actually out of SOL and if it is then how can I stop them from contacting me about it or have them shut down that account. Debt Validation? Cease & Desist Communications on this account?

 

My Response: Yes, DV. That will put a lid on the calls until they validate. I'm a TX resident, and the SOL is 4 years, and although you can't legally be sued for the debt, they can still add it on your credit reports if it is within the 7 year timeline from the charge off date.

 

Your Question:

My question on this one is how can I clarify what exactly I should owe, whether or not it is within the SOL . . .

 

My Response: DV this one as well. I would call Capitol One and tell them you are trying to verify information about an account you had with them. Try to find out when they charged it off and the amt. This will help if you decide to negotiate a payoff or pay for delete. If will also help you verify if PRA re-aged it on your credit reports. Note: I usually call from Google Voice but never my personal cell phone or landline phone.

 

Not the greatest advice for dealing with a Junk debt buyer.

 

FOAD on the first account

 

for the second account, use either

 

1) the " need more information letter " by the CFPB. much better than the std DV's floating about. or;

 

2) the Texas DV in this thread. http://creditboards.com/forums/index.php?showtopic=240327&hl=

 

 

Dont contact Crap one yet

 

if crap one is still showing a balance due or a charge off, dispute it thru the CRA's

 

delete old addresses first.

[Credit0007]

Sorry they are harassing you. They tried those games with me and I turned around and called them so many time to harass them that they took my number out of their system.

[CraigC80]

 

Your Question:

My question on this one is, how can I figure out if it is actually out of SOL and if it is then how can I stop them from contacting me about it or have them shut down that account. Debt Validation? Cease & Desist Communications on this account?

 

My Response: Yes, DV. That will put a lid on the calls until they validate. I'm a TX resident, and the SOL is 4 years, and although you can't legally be sued for the debt, they can still add it on your credit reports if it is within the 7 year timeline from the charge off date.

 

Your Question:

My question on this one is how can I clarify what exactly I should owe, whether or not it is within the SOL . . .

 

My Response: DV this one as well. I would call Capitol One and tell them you are trying to verify information about an account you had with them. Try to find out when they charged it off and the amt. This will help if you decide to negotiate a payoff or pay for delete. If will also help you verify if PRA re-aged it on your credit reports. Note: I usually call from Google Voice but never my personal cell phone or landline phone.

 

Not the greatest advice for dealing with a Junk debt buyer.

 

FOAD on the first account

yea, screw this one.

 

for the second account, use either

 

1) the " need more information letter " by the CFPB. much better than the std DV's floating about. or;

 

2) the Texas DV in this thread. http://creditboards.com/forums/index.php?showtopic=240327&hl=

Thanks for the info on this Texas DV another forum mentioned the same thing. However, I cant figure out what portion of that letter I can use. Is there a Texas DV with the code logistics that i can just copy/past into my letter?

And in regards to the Texas DV, what exactly is the difference from a regular DV?

 

Dont contact Crap one yet

I dont see a need to since they are the ones that are providing the information on my CR. The CA Portfolio Recovery Associates bought the debt but its still reporting as CAP1 on my CR

 

if crap one is still showing a balance due or a charge off, dispute it thru the CRA's

 

it is definitely still showing a charge off. but it is within the SOL. the DOFD will be at 4 years by the end of this year so they have the remainder of the year to try to make a move and sue me for it if we dont make a deal for some reason.

 

delete old addresses first.

I see a TON of old and incorrect addresses on my credit report. the address I had when I signed up for the CAP1 account is there, so how does deleting addresses help me? The CA knows my current address as well as I have received mail from them.

 

 

Thank you so much

[CraigC80]

 

 

2) the Texas DV in this thread. http://creditboards.com/forums/index.php?showtopic=240327&hl=

 

Nevermind, I found a Texas DV letter sample.

Do you think this letter would be good a good DV to send via CMRR and see what move they make? Do I even need to reference the FDCPA in the DV? Or will the TFC 392.202 suffice?

 

 

 

March 1, 2014

Account Reference #:

To whom It may concern,

I request validation of this debt per Texas Finance Code Section 392.202 which requires a debt collection agency or credit bureau to provide the alleged debtor with specific information concerning their debt including but not limited to:

For the purpose of validation provide me with:

·The name and address of the original creditor

·The original date of default or non-payment of the debt with original creditor

·The date the debt was transferred from the original creditor to the third party debt collector

·The original balance

·The current balance

·Any fees added by your agency. Sec. 392.303 (a)(2)

·Texas Surety bond information as required by Sec. 392.101

Please note Transunion, Experian, and Equifax are bonded in the state of Texas and are required to comply with Texas Finance Code. If a debt collector has failed to respond to your debt validation request, then they have essentially admitted, per Texas Finance Code 392.202((2), that the debt in question is inaccurate.

Per this requirement you must delete this trade line if you do not have sufficient time to complete an investigation to validate this debt in 30 days according to Sec. 392.202 (d)(1)

Also per Texas Finance Code 392.202 Correction of third -party debt collector’s or credit bureau’s files.

I request immediate notification by mail if this alleged debt is sold or transferred per Sec. 392.301 (a)(4).

Please reply with your response via US MAIL.

Please note I am fully prepared to pursue my rights for the harm this inaccuracy has done to me. Sec. 392.403. CIVIL REMEDIES. (a)

A person may sue for:

(1) injunctive relief to prevent or restrain a violation of this chapter; and

(2) actual damages sustained as a result of a violation of this chapter.

 

Regards,

Me

Address

City, State, Zip

 

 

\

 

[tmcgill]

1. The Texas Finance Code. When you DV, the CA must respond in 30 days. If they fail to respond, the debt is considered inaccurate, and must be removed from your credit reports.The difference is the TFC imposes expanded requirements for validation - http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.392.htm. (You noted those items in your letter)

 

2. Old Addresses: You can try disputing them, but check your report(s) to see if there are account entries linked to them. If they are, they'll still show up.

 

3. Creditor Lawsuits: There is no wage garnishment here in TX, so we don't get the same volume of JDB lawsuits going after paychecks.

Edited March 24, 2014 by tmcgill

[TX-Bluebonnet]

1. The Texas Finance Code. When you DV, the CA must respond in 30 days. If they fail to respond, the debt is considered inaccurate, and must be removed from your credit reports.The difference is the TFC imposes expanded requirements for validation - http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.392.htm. (You noted those items in your letter) Be sure to read it carefully. It's not an automatic deletion, you have to actually specify that in the letter.

 

2. Old Addresses: You can try disputing them, but check your report(s) to see if there are account entries linked to them. If they are, they'll still show up.

 

3. Creditor Lawsuits: There is no wage garnishment here in TX, so we don't get the same volume of JDB lawsuits going after paychecks.

[tmcgill]

Thanks TX-Bluebonnet for that important notation.

[JunkBuyersWorstNightmare]

Sorry they are harassing you. They tried those games with me and I turned around and called them so many time to harass them that they took my number out of their system.

 

[CraigC80]

 

 

3. Creditor Lawsuits: There is no wage garnishment here in TX, so we don't get the same volume of JDB lawsuits going after paychecks.

 

 

In regards to Creditor Lawsuits by CA's, I have been notified by many people that I shouldnt be worried about being sued for this debt since its such a small amount and taking me to court over it would cost more than just trying to keep calling and sending me bills. AND as @tmcgill mentioned, JDB lawsuits are in smaller volume in Texas since there is no wage garnishment.

 

Therefore, since this debt will be out of SOL by the end of the year, I may just wait it out and only contact them in writing if they get more aggressive down the line and threaten suit. Otherwise, I will keep going on about my life and start fixing the errors on my credit report instead. No sense in trying to make a deal if they wont pay for delete or wont budge on a better price. By end of year it will definitely be out of SOL then it will sit on my credit report for the next 3 years til it drops but Ive honestly got worse thing to worry about than that.

 

Good idea? Since its so close to SOL should I even begin contacting back and forth until things get serious and IF they get serious? Or just lay low and let them keep mailing deals and calling til it maxes out of the SOL.

Again, moderately low debt ($850 with CAP1 that has inflated to a little over $1000) and in Texas. After reviewing my CR thoroughly, paying for delete of this card account isnt going to help my CR all that much. I honestly may be better off going rogue and then sending them a FOAD letter once that time comes.

 

Thoughts? At least I know if they do choose to make a move I am armed with my Texas DV and a handful of other tactics to wheel and deal if I really need to.

 

Edited March 24, 2014 by CraigC80

[ICANHASMUNY?]

 

 

3. Creditor Lawsuits: There is no wage garnishment here in TX, so we don't get the same volume of JDB lawsuits going after paychecks.

 

That's right, - when they win a lawsuit , they just send the local sheriff out to seize all your possessions and sell them .

[tmcgill]

I've observed here in TX we don't get the same type of lawsuits. I have friends in OH and KY, and lawsuits for wage attachments are more common, as those states have a longer state SOL.

 

It has to be worth their while to file. They can't garnish wages, so there has to be something that is worth their while to attach.

 

I've heard of something similar, but that individual owned an auto repair shop and had not paid county business taxes. The Dallas County sheriff showed up to seize the automobiles in the shop. Anyone know of TX case where the sheriff seized possessions to sell?

Edited March 24, 2014 by tmcgill

[ICANHASMUNY?]

lots of TX post about JDB's on CB and elsehwere.

 

have you checked the court dockets in every county or what?

[tmcgill]

No, but was interested in reading about those situations in TX where the Sheriff has come and seized property . . . what was the debt amount, etc.?

My son works for a JDB [unfortunately] and he said depending on the debt amount, they do an assets check before litigation to determine if there is anything worth seizing, and if it is legally feasible to obtain based on TX state law.

Edited March 24, 2014 by tmcgill

[CraigC80]

I've observed here in TX we don't get the same type of lawsuits. I have friends in OH and KY, and lawsuits for wage attachments are more common, as those states have a longer state SOL.

 

It has to be worth their while to file. They can't garnish wages, so there has to be something that is worth their while to attach.

 

Well, in that case I might just let it sit til the SOL runs out and vanish for a bit longer. The charge off amount was only $770 which has been inflated of course, BUT thats no where near high enough as in not paying property taxes to have them come after me for personal possessions.

 

I move alot so they just finally dug up my most recent address and phone number to get ahold of me about it again after a year or two of silence.

 

I've heard of something similar, but that individual owned an auto repair shop and had not paid county business taxes. The Dallas County sheriff showed up to seize the automobiles in the shop. Anyone know of TX case where the sheriff seized possessions to sell?

[tmcgill]

Knowing PRA, they won't sue for that amount, but will just mess around with your credit reports.

If I recall, I had to go after them for some re-aged entries from 1998 accounts on my reports.

[ICANHASMUNY?]

Knowing PRA, they won't sue for that amount, but will just mess around with your credit reports.

If I recall, I had to go after them for some re-aged entries from 1998 accounts on my reports.

 

don't count on it. they robo file complaint's all the time. counting an default judgments.

 

if yoiu don't answer the letters or DV, them they like it even better; figuring you won't show up in court.

[CraigC80]

This most recent letter I have from PRA is just stating that they bought the debt and will be handling collections from that point. They include a balance due and the number to call so they can "help me figure out the best plan for my budget" if i cant pay the balance in full....

 

I suppose I'll hit them with a Texas Style DV and see what they respond with.

[tmcgill]

Boom! Hit 'em with the DV.

[rkegal2005]

Does anyone know where I can find the statutes for Virginia?

[funkiehouse]

Does anyone know where I can find the statutes for Virginia?

 

http://creditboards.com/forums/index.php?showtopic=18157