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Filed in small claims against Portfolio Recovery Associates


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It's been about two weeks. I know they got the summons. They have yet to contact me and our court date is going to be in two weeks. The amount in question is less than $1000. My hope is a settlement featuring a deletion + payment for an FDCPA violation in exchange for dismissal with prejudice. Has anyone dealt with PRA in the past? How open are they to settlements?

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Yeah, there are way too many holes here to begin to give any sort of answer. What is the nature of the violation? Several violations or just one? When did these violations happen?  What is the amount of the debt? 

I can tell you that small claims courts are almost always clueless about FDCPA matters (and JDBs know this), so you likely have an uphill battle ahead of you there, even if you had ironclad violations. 

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  • Portfolio Recovery Associates bought a Capital One Bank delinquent account in the amount of $727.
  • I unsuccessfully tried to negotiate a pay for delete
  • I filed a complaint in small claims court for misrepresenting the amount of the debt
  • My goal is to get a deletion + statutory damages in exchange for dismissing the lawsuit.  I would be happy with just a deletion though.
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Are lawyers permitted in your small claims court? How formal is that court? Can you request Discovery? 

Their willingness to settle is directly proportional to how much pressure you can apply. If they have no legal costs, and you can't request Discovery, you have very little leverage. And regardless of the formality of the court, with only one possible violation against them, they have the bona fide error defense available to them.

10 years ago you could have expected a phone call to settle this as a nuisance claim. JDBs have clamped down and are fighting back much more aggressively than they once did. It's quite possible they won't try to settle and just defend this lawsuit. 

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On 8/25/2018 at 10:22 AM, creditsamurai said:
  • Portfolio Recovery Associates bought a Capital One Bank delinquent account in the amount of $727.
  • I unsuccessfully tried to negotiate a pay for delete
  • I filed a complaint in small claims court for misrepresenting the amount of the debt
  • My goal is to get a deletion + statutory damages in exchange for dismissing the lawsuit.  I would be happy with just a deletion though.

 Is the debt still within the SOL?

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1 hour ago, creditsamurai said:

They have sent several statements all with with different account totals.

Are they copies of statements from the original creditor?  If so, then they could have a bona fide error defense that they relied on the OC records when they sent a demand for payment.

1 hour ago, creditsamurai said:

Also, they re-aged the debt.

How?  If you are stating this because the date they opened the account on your credit report is different that is NOT re-aging.  They cannot report any date prior to their purchase and it does not change the DOFD for credit reporting.  

1 hour ago, creditsamurai said:

So far, they have deleted the tradeline, but no one has responded to the summons. 

They are not required to respond to the summons any more than a consumer is to one they send when suing for a debt.  They can elect a default judgment if they wish.

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14 minutes ago, creditsamurai said:

Got a call from PRA today. We have settled. The tradeline will be deleted with no 1099 issued in exchange for me withdrawing the suit. 

This is fairly typical.  It's not uncommon for a JDB to settle when the amount of the debt doesn't make it worth a fight.

Congratulations!  :twothumbsup:

Please note that I'm not attempting to rain on your parade.  I've dealt with a number of JDBs and not one of them has ever issued a 1099.   I'm honestly not sure how often JDBs  ever issue a 1099. 

I'm very glad glad they deleted the TL.  That's a goodie.  :-)

 

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  • 2 years later...

I think I got 4 or 5 1099c from PRA all have the same "incident date" on them...I have not told my husband anything about the debts and the 2 lawsuits (one OC one JDB, both dismissed after date set for trial-going to be writing a book or two about it) so I just put the 1099s in with the other stuff from debt collectors (have file for each) and if it comes up, then I will dispute them.

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57 minutes ago, WhoCares1000 said:

Ummm, if you do not include that income in this year's taxes, it is going to trigger an audit by the computers. The 1099-Cs are filed with the IRS too so they know about them. You have to dispute them now, not later and that might mean discussing this with your husband.

I can attest to this from experience.  
 

I was under water when I got my 1099C forms, so I didn’t pay any taxes.  That raised a red flag with the IRS, so I had to send information with all my assets and liabilities to show that I was, in fact, under water.  
 

I did all the tax stuff so I could’ve kept the information from my wife.  But I didn’t.  We had a lot going on.  Some of the debts were my cards, some were her cards and some were joint.  She even had to show up in court a few times.  
 

My wife was very happy to have me take the lead in fighting off the debts, and going along with whatever I planned.  For the most part it worked out extremely well, and our marriage has been quite a bit stronger as a result.  

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3 hours ago, BackFromTheDebt said:

I can attest to this from experience.  
 

I was under water when I got my 1099C forms, so I didn’t pay any taxes.  That raised a red flag with the IRS, so I had to send information with all my assets and liabilities to show that I was, in fact, under water.  
 

I did all the tax stuff so I could’ve kept the information from my wife.  But I didn’t.  We had a lot going on.  Some of the debts were my cards, some were her cards and some were joint.  She even had to show up in court a few times.  
 

My wife was very happy to have me take the lead in fighting off the debts, and going along with whatever I planned.  For the most part it worked out extremely well, and our marriage has been quite a bit stronger as a result.  

If I were in this situation, I would make up a balance sheet and include a copy with my tax filing and a copy with records. This way, if the audit did happen, I would have it accessible within 5 minutes.

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