Sued by PRA using Rausch attorney in Texas

[TDnTex]

Was served last night 1/21/2020 for a debt of $800. I’ve been actively making payments on account with Rausch Straum who is attorney for PORTFOLIO RECOVERY. I called rausch as soon as I was served and ask why I was being sued when payments were up to date. I was informed I missed January 2020 payment but the suit was filed in October ? and I had no idea about it. The debt is from Synchony/Amazon card. I own the debt and that is why I’ve been making payments. Since the suit was filed in Oct for $826.61 I’ve made 2 payments and owe $746.61 , which rep for Rausch acknowledged. I’m so confused and no idea where to start. Header on court papers read “Citation Personal Service “  and state I have not paid on the account since January 9th of 2018. Any and all info welcome on where to start 

 

[BackFromTheDebt]

There are several ways to handle this.

1. You can simply stop paying, and file a MTC arbitration.  Synchrony has an excellent arbitration agreement.  This depends on what agreement you have with Rausch.  SOME agreements you may have signed may include a consent judgment, which means they can simply file for a judgment in the court if you stop paying.  If you didn't, then not paying and filing for arbitration would probably work.  

2. Rausch doesn't like it if you have counter claims against them, especially if arbitration is involved.  That makes them unhappy.  You could contact them, mention the claims you have against them for false information in the suit, and demand a mutual walkaway, which means you don't pay any more, and you don't sue them for FDCPA violations.  This can be done in conjunction with #1.  The agreement should state that the account is marked paid off for less than full value.  This is better for your credit report than just having it sit there with a balance.  

3. You could work out an agreement with Rausch whereby they agree to dismiss the case and in exchange you resume payments.  This is the worst for you financially, but would be slightly better for your credit report than #2.  The difference in your credit score between #2 and #3 is small, though.  Both would show the account as paid off, and both would have derogatories.  

4.  You could try a variation of #2 in which the account is deleted.  I doubt this will happen.

5. There is a chance you could work out a variation of #3 in which the account would be deleted.  This would mean you make all your payments, then they delete the account.  This would be the best for your credit rating.  

[TDnTex]

Thank you so much for your helpful response @backfromthedbt . I’m going to email the attorney on my lunch break. The humiliation of it all is starting to turn to anger. The anger makes me want to not pay another penny to them. I’ll need to check my emotions before any email is sent though ? again, thank you!

[Impress]

Portfolio Recovery automatically deletes once you have paid them as agreed.  Even if you settle for less than what you owe.