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Letter from law firm representing Portfolio Recovery assoc

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Living in Texas and law firm has Texas address. Was contacted by Rausch Sturm law firm who say they are representing portfolio recovery associates. 

They list the original owner of debt as Barclays credit card so I know it’s real. I want to pay the debt.  It isn’t past the 4 year statute in Texas because original debt is from 2016. 

However, They do not indicate an offer. They just indicate I can contact them via phone or mail to discuss options.

Should I wait till they make an offer? Should I call them or write a letter? I’ve seen websites discussing advantages of both calling and mailing so I’m not sure. 

I can afford to pay as much as 2000 of the listed 10k. Or can I do some kind of hardship payment plan?  The law firm haven’t offered either option. Portfolio Recovery did, but I guess these guys have the debt now, so should I make a first offer or wait? 

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I am sure that before someone gives you any advice, they are going to want more your situation such as: Do you have any assets that they can attach a judgement to ? Your job situation are you currently working and can afford a reasonable payment? Bankruptcy ? Maybe it would be in your best interest to contact a lawyer. There are many options available just be patient and follow the advice of others here that will offer you valuable advice. "JUST DON'T PANIC". Good luck.

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Barclay's has arbitration in their agreements; I would file for it before they sue. PRA is so bad at refusing arb AAA won't even take any cases involving them anymore. They paid maybe $300 for the account, and the initial fees for them in arb are 4-5K. 98% chance they won't pay up. If they refuse, you can have a lot of fun with them, and usually you'll be getting a check, not them.

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5 hours ago, twotrouble said:

I am sure that before someone gives you any advice, they are going to want more your situation such as: Do you have any assets that they can attach a judgement to ? Your job situation are you currently working and can afford a reasonable payment? Bankruptcy ? Maybe it would be in your best interest to contact a lawyer. There are many options available just be patient and follow the advice of others here that will offer you valuable advice. "JUST DON'T PANIC". Good luck.

I can afford some kind of payment plan but a lump sum of more than 2k is out of the question—I can’t afford more than that amount. 

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31 minutes ago, legaleagle2012 said:

Barclay's has arbitration in their agreements; I would file for it before they sue. PRA is so bad at refusing arb AAA won't even take any cases involving them anymore. They paid maybe $300 for the account, and the initial fees for them in arb are 4-5K. 98% chance they won't pay up. If they refuse, you can have a lot of fun with them, and usually you'll be getting a check, not them.

How would I file this kind of letter? Is there a template to follow? 

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I read in the Barclays card agreement: “As permitted by applicable law, you agree to pay all collection expenses actually incurred by us in the collection of amounts you owe under this Agreement (including court or arbitration costs and the fees of any collection agency to which we refer your Account) and, in the event we refer your Account after your default to an attorney who is not our regularly salaried employee, you agree to pay the reasonable fees of such attorney.” 

So if I file for arbitration and the conclusion is that I do have to pay, will I end up paying more than the original 10k debt? 

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Do you have any assets that they can get a judgement? Can they garnish wages from your job? Are you judgement proof ? There are several types of bankruptcies that you may talk to an attorney about. 

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1 hour ago, twotrouble said:

Do you have any assets that they can get a judgement? Can they garnish wages from your job? Are you judgement proof ? There are several types of bankruptcies that you may talk to an attorney about. 

I’d much rather settle the account than declare bankruptcy or get sued.  How do I approach them? Or do I wait for them to make an offer for settlement? 

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On 12/4/2018 at 8:03 AM, SentMol said:

How would I file this kind of letter? Is there a template to follow? 

Read the pinned topic on arbitration.  You file on line. You need the credit card agreement, too.

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On 12/4/2018 at 5:11 AM, SentMol said:

I read in the Barclays card agreement: “As permitted by applicable law, you agree to pay all collection expenses actually incurred by us in the collection of amounts you owe under this Agreement (including court or arbitration costs and the fees of any collection agency to which we refer your Account) and, in the event we refer your Account after your default to an attorney who is not our regularly salaried employee, you agree to pay the reasonable fees of such attorney.” 

So if I file for arbitration and the conclusion is that I do have to pay, will I end up paying more than the original 10k debt? 

Bumping for this, since I’m curious too. The above quote is from the “Default/Collection Costs” section of the Barclays Cardmember Agreement. (Underline is mine.)


However, the following appears in the Arbitration Clause: “Under no circumstances will we seek from you payment or reimbursement of any fees that we incur in connection with arbitration.”  (Again, my underline)
 

Does one override the other? And what is the applicable law by which paying the collections fees is permitted?

Edited by maudie

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Once one party invokes arbitration, they are accepting the rules of the arbitration forum. All the contract is good for at that point is to establish that a valid arb clause exists. 

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