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Portfolio Recovery Associates - Acct Transferred to litigation dept (New Jersey)


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I have posted in the past as I was going through a handfull of settlements.  I was fortunate to settle 4 of 6 for an average of 35%.  However, I ran out of $ and have just been dodging calls from Portfolio Recovery Associates for a few months now hoping to run into a bit more cash to work a ettlement out.

Unfortunately, I have not been able to scrape together enough to make an offer.


Original debtor is US Bank

Debt at present is $7700


PRA must have purchased the debt and I did have contact with them by phone, last contact being in late Feb or early March of this year.  They called my work I asked to remove my work # and then I called back to try and lowball them which was declined.  I noted I'd call back and have not.  They have been calling non-stop on my cell and ome and have sent a few letters.


Latest letter is:

SECOND NOTICE: Account Transferred to Litigation Department


It states they want to settle for what amounts to 80% "to avoid potential legal action".  

This is an inflated balance due to late fees, my last payment was in Feb 2012.


It goes on to state... "if not resolved and legal action is taken against you, a judgment may ultimately be obtained and our local attorney may take action that is legally availablein you state to collect debt to enforce any such judgment against you as permitted by state law.  Please contact our office no later than 7/5/13 to discuss how we can work together to resolve the account.  We reserve the right to withdrawor modify this offer at a later date if no payments or payment arrangements are made by 7/5/13"


I would settle the account as it is valid if I had the funds and could negotiate it down to 40% or lower (pref 15%-25%).  However, with mortagge issues and a potential divorce, I can't see having the funds available anytime in the immediate future.  Bankruptcy is simply not an option due to the field of work I am in.  After years of being irresponsible, I am trying to clean up my messes once an for all.

Any advice how to prolong a this to avoid any judgment being enforeced.  I basically need to bide more time, ideally 6 months, before I can make an honest effort as settling this.  I have one more to do that I have yet to have any legal ramifications on for a bit less money and will need to address that at some point as well.


Any help is appreciated and as it seems like I need to respond by 7/5, time is of the essence.




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Send them a debt validation. They have given you 30 days to respond. They are calling you constantly. In your debt validation, tell them calls are inconveinent, so please contact you by written communication only. They will not be allowed to contact you at all untill they send you the validation, if they do, it is an fdcpa violation.

Start there. They may end up just filing suit, but we will show you what to do next should that happen.

Make sure and send it certified mail RRR.

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Thanks for the prompt reply.  

Do I jeopordize settling the account by sending a DV?  If they file suit how would that affect ability to settle?

Ultimately, I do not want to have a default judgment on my credit report.  Especially as I seek new/better employ and for fear of wage garnishment.

I will be digging through forums for a good DV template on hand assuming I send.

I hope the fact that this is a "SECOND NOTICE" doesn't affect timing of me sending a DV.


Thx again..

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It might be too late to send them a debt validation letter and expect a proper DV response if this is the second notice.  However, you never lose your right to debt validation, and if they send something, they could be tipping their hand on what they have.  It's still worth sending, in my opinion.  

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Hi, and thanks for your response.


Will sending a DV letter by the 7/5 deadline they noted at least put off them filing a judgment against me?


Ultimately, I am looking to, at a miuimum, buy some time until I can gather funds to negotiate a settlement as the debt is valid (though fees were tacked on since last payment in Feb 2012. Note - last contact with them being Feb 2013.


Additionally, I have settled 4 accts in the past year, 3 of which show as "settled" in some way shape or form on my credit report.

The 4th was settled and refunded as part of a class action w Americasn Express Centurion, and has since completely disappeared off my report :)


That said, I am also unsure of the affect those setlements would have regarding future negotiations. (not clear if anyone has specifics with this particualr agency).


I really appreciate the replies.

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I ran through the site for Sample DV letters and found these:





The first one is very detailed and almost comes off as threatening.

The second one is very general and while I can adjust is to say I was notified by mail, I am not clear if it is too general.

I also have known about the debt spoke to PRA via phone in Feb 2013.


  • Opinions on which letter to go with for my situation?


  • Will sending this letter halt a judgment based on this Second letter notifying me it will be assigned to an attorney for possible litigation if I do not respond by 7/5


  • Should I follow up with a phone call verbally requesting a DV as well as noting I sent it in print.  Again, I am trying to halt the possibility of judgment being entered against me.


Sorry for the flurry of posts, I figured I have a few peoples ears and appreciate the feedback as I would need to act on this soon.



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Hi, and thanks for your response.


Will sending a DV letter by the 7/5 deadline they noted at least put off them filing a judgment against me?

No.  They need to send you a summons and go through the whole court procedure to get a judgment against you.  



Really, all you need to do is send one letter: 


Debt Collector Address



Re: Account xxxxx


Dear Debt Collector,


Regarding Account xxxx, I dispute the validity of this debt. 




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If PRA has pulled your credit report and they see multiple "settled" entries they are likely to know you are wanting to settle. When PRA pays 5% for a debt known to be in default or possibly not even valid and with minimal to no documentation it would make sense for them to settle vs. filing a lawsuit against someone. Especially if they have identified that "someone" as an aggressive an engaged party.


If they know you are wanting to settle and have done so with others I would expect them to hold out for a higher %. If you can convince them that you or your attorney are a litigation threat then that number will likely come down. My negotiations don't include writing a check to a junk debt buyer so I am unqualified to provide more than a logical inference based on experience dealing with PRA and CAs. Unfortunately the behavior of some JDBs defies all logic and that is when we can occasionally see some nice case law develop.


I use DV letters to document potential statutory violations and gather information. Others use it as a simple dispute and/or cease & desist. To each their own.


My previous comments on settling: http://www.creditinfocenter.com/community/topic/318308-portfolio-nightmare-begins/?p=1230999


The best settlement deal is typically going to go to the more tenacious aggressive party with nothing to lose and either no fear of court or commitment to play it out there. The least favorable settlement numbers are likely reserved for those with spotless credit, decent garnishable income and accessible assets.


To a significant degree your settlement % is likely to be related to how unattractive or attractive a target you are perceived to be by a JDB/CA and their minions. YMMV

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Admin, Credator, thanks for commenting.  I wrote up a very basic DV letter, pretty much what admin wrote above.

I have not sent yet.


To note, in reading the letter they sent me closely, I see the Seller, Merchant, and Original Creditor is clearly listed as U.S. Bank National Association ND.

Creditor who debt is owed is Portfolio Recovery Associates, LLC.

The Balance is also listed.


Based on above, I take it this still doesn't suffice as all info I'd need for a DV request and thus make that request moot. ??


As for Credator's comments, I was concerned as well with regard to previous settlement listed on my credit report (3).  I also have 2 open debts in collections (including this), and during myI  previous settlement process with other creditors I was using this as leverage to settle with one vs the other as I had limited funds to put towards settlements.  Hoping I can prolong PRA long enough, gather some cash and try doing same.


Not educated enough to know what a DV will do with regard to time and stalling.  But as I do not have the funds at present, not sure what else I can do.

I had heard making a good faith payment to restart the clock (6 months) was a good stall tactic, but I believe this is meant to do prior to charge off.



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