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Need advice! Portfolio Recovery transferred to litigation.


Justmyluck724
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I have an account with Portfolio Recovery. Balance $1800. The SOL on this account expires in 4 months: I just received a letter stating my account has been transferred to their litigation department but no attorney has reviewed the file. I don’t know if I should go ahead and make payment arrangements at this point or what I should do since I’m so close to the SOL. The SOL in my state is 3 years and the last payment was made in August of 2016. Has anyone received a letter from Portfolio showing it was transferred to litigation and not later been sued? Any advice is greatly appreciated!

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First off, if you made a full payment in Aug 2016, the the DOFD would be sometime in September 2016. Plus, this being only the 2nd of April. I would go on a safer limb and state that you have 6 months before the SOL runs out, not 4.

In any case, if this is the first time you heard from PRA, then prepare a validation letter (1 sentence is all you need) and send that to PRA CMRRR Green Card on about the 21st day after receiving this letter. That could buy you a couple of months off the clock.

The next question is, who is the original creditor? If the OC is a bank with an arbitration clause in their agreement, you should immediately study up on that while waiting for their reply to you validation letter and they file in court. If you can get the court to compel arbitration, PRA will run for the hills because it will cost them $5000 to collect a $1800 debt that they paid about $100 - $150 for.

It is way too early to discuss settlement now, especially if you will have to make payments rather than settle in a lump sum. Take what you think you will pay them monthly and put those funds aside. This way, you can offer a decent settlement if they do sue you and you don't want to be bothered with going through the motions.

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Thank you for your reply. The original creditor is Capital One. I was under the assumption the SOL started on the date of last payment. Is it 30 days after? Also you said the validation letter only needs to be one sentence? Can you give me an example of what that should say? Thanks so much!

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3 hours ago, Justmyluck724 said:

Thank you for your reply. The original creditor is Capital One. I was under the assumption the SOL started on the date of last payment. Is it 30 days after? Also you said the validation letter only needs to be one sentence? Can you give me an example of what that should say? Thanks so much!

For the letter:

To whom it may concern,

I dispute this debt and demand validation of the said debt.

Sincerely,
JustMyLuck724

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If you had paid August's payment when it was due then the first payment you missed was September's.

Also, this being Capital One, arbitration is off the table. I would suggest saving up some money and if they sue you than offer a settlement. Send the DV anyways simply because it is another hoop (albeit small one) that they have to jump through before they sue you and might buy you a month or 2.

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6 hours ago, Justmyluck724 said:

Has anyone received a letter from Portfolio showing it was transferred to litigation and not later been sued?

Not PRA, but Cavalry and Midland always sued after those letters.

27 minutes ago, WhoCares1000 said:

Send the DV anyways simply because it is another hoop (albeit small one) that they have to jump through before they sue you and might buy you a month or 2.

I am the lone voice, out in the wilderness, on this one. I think all a DV does is let them know that their original letter reached the right person - then all they need to do is mail their minimal validation business, log in to county website to file suit and dispatch process server to the place where they now know you are. It's not going to buy any time, but what do I know?

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12 hours ago, Goody_Ouchless said:

I am the lone voice, out in the wilderness, on this one. I think all a DV does is let them know that their original letter reached the right person - then all they need to do is mail their minimal validation business, log in to county website to file suit and dispatch process server to the place where they now know you are. It's not going to buy any time, but what do I know?

I am of the opinion that they will sue anyways regardless of whether you send the DV or not, they will sue you because the worse thing is that you are not at the address and they have to dismiss the case for lack of service. I would rather make them jump through even the low hoop.

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Perusal of dockets shows a substantial percentage of all cases are dismissed due to lack of service. If I'm swamped with cases to file, I go after the rubes that have not mastered the art of "not being seen," and toss the others on a "maybe later" pile. I then sort the first pile, prioritizing those with the "cut-and-past" letter that demands video of every purchase.

 

 

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