Robert Nashville/Savannah

Portfolio Recovery - Problems with Paying in Full?

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Hello everyone,

 

It's been a LONG time since I've been on this site! :)

 

Quick question...I'm helping a friend clean up her outstanding debts and while most of the ones have been very old and easy to deal with (old, our of statue, etc) but she has one that is less than $1,000 owed to PRA that is well within statute and based on what I know of PRA I see no point in attempting to negotiate anything with them other than a settlement (although shell probably pay in full).

 

My question is this, for those who have settled or paid in full, has there been any problems with PRA not keeping up its end?  By that I mean such things as PRA not making the correct notation on the debtor's credit report or perhaps "selling" the remaining debt off to some other debt buyer?

 

Did you ask specifically for a letter or some other confirmation of the settlement or payment in full and if so, what was it and did they comply?

 

Did you send in a money order or pay by debit card (or prepaid card), etc.?

 

Any other info you can supply would be appreciated...I'm just trying to keep her out of court and it seems that PRA is more than happy to go after a debt even this small and since she truly does owe the debt I don't see any benefit to letting it get that far.

 

Thanks!

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My question is this, for those who have settled or paid in full, has there been any problems with PRA not keeping up its end?  By that I mean such things as PRA not making the correct notation on the debtor's credit report or perhaps "selling" the remaining debt off to some other debt buyer?

 

If the consumer believes the crap PRA spews on the phone and simply sends them money:  yes there are HUGE problems with getting them to abide by what they lie about.  If you give them a well drafted settlement agreement:  NO.  

 

Did you ask specifically for a letter or some other confirmation of the settlement or payment in full and if so, what was it and did they comply?

 

The 3 times I have done a settlement/PFD I have sent my own settlement offer in writing and only when I received back a signed copy did I fulfill the terms.  I would NOT rely on any settlement PRA promised.

 

Did you send in a money order or pay by debit card (or prepaid card), etc.?

 

I always paid by money order.  

 

Before sending one red cent to those bottom feeders I would make darn sure that her account is not one of the ones that they agreed to cease collecting on as part of their settlement with the CFPB over their collection tactics.

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PRA doesn't do PFD. I have NEVER heard of anybody getting a PFD from these scumbags.

I guess I didn't explain myself well...she isn't asking for or expecting a PFD.  The debt will either be settled or paid in full and it's likely going to be paid in full.  The debt is legitimate and it's pretty recent (less than two years old) and PRA has had it about about 6 months judging from her credit report and when she started getting letters from PRA.

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Before sending one red cent to those bottom feeders I would make darn sure that her account is not one of the ones that they agreed to cease collecting on as part of their settlement with the CFPB over their collection tactics.

 

I contacted the CFPB how to figure out if my case was one of the affected ones and was told that it was up to PRA (and Encore in my case) to determine and then let me know.  Talk about leaving the Fox in charge of the hen house....

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Before sending one red cent to those bottom feeders I would make darn sure that her account is not one of the ones that they agreed to cease collecting on as part of their settlement with the CFPB over their collection tactics.

 

I contacted the CFPB how to figure out if my case was one of the affected ones and was told that it was up to PRA (and Encore in my case) to determine and then let me know.  Talk about leaving the Fox in charge of the hen house....

 

And have they/Encore figured it out for you yet? :)

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Are you aware that making a partial payment or paying in full can make your scores go DOWN ?  The reason for that is the payment is more recent than the collection itself. Also, PRA literally paid pennies on the dollar for the collection. They are NOT entitled to anything in regards to a payment.

 

If you make a partial payment there will be a notation placed on your credit reports that you paid less than the full amount of the collection.

 

Also, just remember if a CA mouth is moving they are lying.

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Hello everyone,

... based on what I know of PRA I see no point in attempting to negotiate anything with them other than a settlement (although shell probably pay in full).

If you know anything about them then you should know to never initiate a conversation with them at all and by all means do not offer to settle with them.   I have yet to see even one case where a JDB can prove that they own the debt they are attempting to collect on.   Record any phone calls you receive from them and keep a record of the date and time of each call so you can rack up a FDCPA violation.  If they eventually file a lawsuit then you will have the ways and means for a dismissal.  

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First off, a bad debt that is settled or paid in full does not cause your score to go down anymore. FICO changed their algorithm when it was made clear to them that this was a problem (either that or someone with 2 functioning brain cells finally got a job at Fair Issac).

As for collectors, they are lying if their lips are moving and they are forming words (coherent or not). The best way to pay on a debt that they hold (if you want to) is to demand a letter stating that such and such amount will settle the debt in full and that you will not pay until you receive such a letter. If they refuse, then that is enough talking to that collector because if they do not have a high enough IQ to understand that sending the letter will get them money, they do not have a high enough IQ to continue dealing with them. At this point you can call them as often as you want, making the same offer. Eventually, you will get a collector with a high enough IQ to understand what is going on.

When you do pay them, use a money order and send it overnight mail.

The worst that can happen is that they sue the person and at that point, she can negotiate with the attorney for a settlement.

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What good is a letter saying the debt is paid in full AFTER full payment is made ? That is crazy to even think of paying a JDB in full !!

 

Also, when it comes to a JDB or CA you NEVER under any circumstance call and talk to them. Everything is done in writing and sent Certified Mail IF you deal with them at all !!

 

You sound more like a JDB or CA for even suggesting things like this. By the way your score can go down when payment is made because its a more recent transaction than the collection.

 

Why would you want to spend more money and send any payment overnight mail ?

 

Again, this is EXACTLY what a JDB or CA would say.

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@Corvetteman

 

 

What good is a letter saying the debt is paid in full AFTER full payment is made ? That is crazy to even think of paying a JDB in full !!

 

Also, when it comes to a JDB or CA you NEVER under any circumstance call and talk to them. Everything is done in writing and sent Certified Mail IF you deal with them at all !!

 

You sound more like a JDB or CA for even suggesting things like this. By the way your score can go down when payment is made because its a more recent transaction than the collection.

 

 

 

@WhoCares1000 has been posting for years on this site and is definitely not a CA or JDB.

 

In regard to a letter stating that a debt is paid in full, he is not suggesting that the OP pay the entire amount.  He said "to demand a letter stating that such and such amount will settle the debt in full."  For instance, if the debt is $1000 and the settled amount is $100, that settlement amount will be considered payment in full.

 

Some consumers handle phone calls with debt collectors just fine.  However, it's best to record the calls. 

 

 

Why would you want to spend more money and send any payment overnight mail ?

 

Again, this is EXACTLY what a JDB or CA would say.

 

 

Actually, a CA or JDB would suggest that you pay over the phone providing them with your debit card or checking account number.  There is nothing wrong with it if a consumer wants to send a payment by overnight mail in order to done with the CA.

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You NEVER need to talk on the phone to a CA or JDB. You and he are giving bad advice. Also, there are a lot of states that do NOT allow 2 way recording. You wouldn't have to record anything because you don't talk to CA or JDB on the phone. Now if you just want to hear the message when they call that is fine.

 

Just because he has posted for years he couldn't be a CA or JDB ? Why is he giving bad advice since he has been here so long ?

 

EVERY credit book out there including the ones sold here at Credit Infocenter says don't talk to CA or JDB.

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@Corvetteman

 

Some people prefer to talk to a CA or JDB.  Those people usually do so in order to attempt to catch the CA violating the FDCPA, and there are those who have been successful in doing so.  If one is not comfortable with talking to a CA, then he most certainly should not do so.  It depends upon the person.

 

In a 2-person state (requires both parties to know that a call is being recorded), if a recording on the JDB's end informs that the call is being recorded, you can then record as well because the JDB already knows it's being recorded.

 

If it is your opinion that he's giving bad advice then don't follow it.  The OP can decide for himself if he prefers to talk to a CA or not.

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Some people in MOST cases do NOT want to talk to a CA. Also, its the CA that tries to trip a person up when talking about a collection.

 

Also, if you do tell a JDB you are recording this conversation in most cases they hang up.

 

Its just not my opinion in regards to collections.  I have stated facts that easily can be verified.

 

Have a good night

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@Corvetteman

Whether to talk to or pay a CA/JDB is the decision that an individual poster has to make. I am not here to judge anyone and will tell anyone that they are doing the wrong thing and should do it this way. There are some people that feel they have an obligation to pay a debt or need to do so for a reason known usually only by them. Others will not give a JDB a dime until forced to, even of a debt they are 100% sure they owe. I am willing to help both types of persons wherever I can without pushing my moral judgement on them. This includes those whom other do not agree with.

As to what I posted, It might be fun to be on the other end of the harassment where you are harassing the CA/JDB rather than them harassing you. It might be fun to offer the CA/JDB money only to have them refuse, even if you do so 5 times a day. If a person wants to pay/settle a debt, they need to talk to the CA at some point. As for the letter, my advise is to get the letter BEFORE the payment is made. I would not send a dime to any CA/JDB until I had a letter in hand saying that the payment settles the debt.

In regards to paying in full vs settlement, again that is the choice of the debtor, not yours or my choice. As for payment method, I would never suggest check by phone or any other method that allows a creditor that you have an adversarial relationship with access to your bank account. That is foolish. I say overnight mail because they, you are assured that the payment gets to the creditor within the time specified for the agreement and you have all the delivery notification stuff you need. You certainly can send the payment CMRRR in the regular mail. Just make sure you get proof they received the payment.

As far as me being a CA or JDB owner, that is for you and other posters to decide. Not me and I will not answer that question.

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Okay folks,

First of all, I appreciate all the responses.

Second, while this may shock some of you, she isn't interested in her FICO score, “sticking it” to PRA and/or avoiding paying/gaining income by “racking up” violations. 

Some wonder why would she is willing to pay? Because the debt is legitimate and is owed and well within statute…it was a credit card that she stopped paying on when she lost her job about a year and a half ago. The debt was sold to PRA. Currently, it is being reported correctly (both by the OC and by PRA) on all three of her credit reports and I'd suggest that whatever damage has been done has been done and nothing is going to change that.

I realize she could try to delay thing...refuse to pay and hope PRA goes away...she could offer to pay just a few pennies on the dollar to settle the debt…I realize she could wait to see if they sue and then hope they can’t substantiate the debt or make some costly (for them) mistake…for those who want to or are willing to do that I think that’s fine but bear in mind that not everyone wants to go through that hassle; especially for a relatively small debt. Obviously things would be different if she didn’t have the funds to pay but that is not a concern. So, and while I know many of you detest giving ANY money to a junk debt buyer, she is likely going to pay the debt in full and avoid all the potential hassle and get on with life.

All I’m trying to help her with is, given PRA’s proclivity for suing even on debts this small (less than $800); is do whatever we can make sure that once paid it’s DONE; to protect her from being sued and making sure the PRA accurately reports the debt as being paid in full and put this behind her for good.

It looks to me, based on the responses here and some other reading, that a money order for the full amount included in a well-worded letter (sent CMRRR) may be the best way to get this paid and done. However, If anyone has any better suggestions and/or any really good sample letter to include with the payment I’d appreciate hearing from you.

Thanks!!!

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The letter should be fine then for the payment. She needs to get a money order however and make sure to attach the money order receipt to the letter and keep that for the rest of her natural life because you can be sure this will come up. Also, send the money order in the mail in a way that she gets proof that it was delivered (and maybe even fill out an affidavit of mailing) to show that the mailed out the money order.

Beyond that, if they decide to sue after being paid, you then have a violation and payday this person. You cannot stop PRA from suing or from selling the debt anyways but you can protect yourself from that.

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