Help responding to Letter from Rausch Sturm on behalf of PRA

[debtman555]

A few years a ago, I made some bad credit card decisions and let an $8k debt go to collections.  I stopped receiving calls about it after some time, so I was hoping that I bought some time, since my address and phone number changed (for unrelated reasons).  Well things took a turn when I received a letter from Rausch Sturm on behalf of Porfolio Recovery Associates who purchased my debt.  It says that if I don't respond within 30 days, it will be considered valid and they will obtain a judgment against me.

After researching, the first course of action seemed to be to request debt verification.  However, the letter plainly states what the amount of the original debt is, and where it was accrued by naming the credit card company.  I was originally hoping that since they sent this on behalf of a 3rd party debt buyer that it was all a show and they just wanted to scare me.  My plan was to just call their bluff and let it go until the last few days of the 30 day time period, and then try to negotiate.  Now, After reading some reviews of Rausch Sturm, I'm honestly terrified that  no matter what, I'm gonna get sued.  It seems like there isn't much negotiation that can be done with these guys, since they have to go back and forth with the debt buyers and are willing to sue.

I'd greatly appreciate any help with how to approach this.  I want to make payments but I obviously don't want to have to pay more than I have to, or face a lawsuit. My credit is already very poor and I'm only getting by since I'm working from home, so I don't have to make a car payment anymore.  I can come up with $1k - $2k up front depending on if there will be another stimulus check, but otherwise I'm pretty much broke. 

Any help is greatly appreciated.  Thanks.

[BackFromTheDebt]

You are correct.  They generally sue.  

The DV does buy you some time.  Wait until about a week before the DV is due, then send the DV letter.  It usually takes a few weeks for them to respond.  They usually give you a little time after that to negotiate, then they sue.  

We can't really help you, because we don't know the original creditor, nor your state.  If the original account has an arbitration agreement, you can probably beat this.  PRA rarely follows into arbitration (although nothing is 100% certain. Occasionally they do.)  

We also don't know if there are any possible counter claims.  

Give us a little more information

[debtman555]

18 hours ago, BackFromTheDebt said:

You are correct.  They generally sue.  

The DV does buy you some time.  Wait until about a week before the DV is due, then send the DV letter.  It usually takes a few weeks for them to respond.  They usually give you a little time after that to negotiate, then they sue.  

We can't really help you, because we don't know the original creditor, nor your state.  If the original account has an arbitration agreement, you can probably beat this.  PRA rarely follows into arbitration (although nothing is 100% certain. Occasionally they do.)  

We also don't know if there are any possible counter claims.  

Give us a little more information

Thanks for your info that's helpful to know.

I'm in Rhode Island, and the original creditor is Barclay.  Where would I find if I have an arbitration agreement or counter claims?

Also, how lenient are they on the 30 days for me to respond?  I only ask because USPS has been very slow and they're a bit far from me, so I worry if I send it via a letter that it won't get there in time.

Edited January 26, 2021 by debtman555
additional info

[admin]

1 hour ago, debtman555 said:

Thanks for your info that's helpful to know.

I'm in Rhode Island, and the original creditor is Barclay.  Where would I find if I have an arbitration agreement or counter claims?

Also, how lenient are they on the 30 days for me to respond?  I only ask because USPS has been very slow and they're a bit far from me, so I worry if I send it via a letter that it won't get there in time.

Here is where to start looking for card agreements:   https://www.consumerfinance.gov/credit-cards/agreements/ or www.cardmemberagreements.org.

They're not lenient - the law says 30 days.  Why not send your debt validation letter via USPS priority mail?  You get a receipt and it's guaranteed to be delivered in 2-3 days.  I think it still costs $14.95. 

[debtman555]

Thanks for the links.  There is an arbitration section for Barclays but I'm not exactly sure what I'm looking for.  I will do my own research, as I hate to keep asking questions about the smaller details.  At the bottom of that section it says in bold: ARBITRATION WITH RESPECT TO A CLAIM IS BINDING AND NEITHER YOU NOR WE WILL HAVE THE RIGHT TO LITIGATE THAT CLAIM THROUGH A COURT.

The letter I received was dated December 29th, but I didn't receive it about 2 weeks after that, so I wasn't sure if it's 30 days from the date it was posted or when I actually received it.  They did provide an email to contact for disputes so is there any reason not to go that route and request future contact through certified mail?  I do not have a car or a printer, which is why my original plan was to simply call and negotiate or ignore and hope for the best which in retrospect was not smart. 

Thanks again for any insight you can provide.

The language is confusing to me but it looks like there is an arbitration agreement according to this:

Quote

At the election of either you or us, any claim, dispute or controversy (“Claim”) by either you or us against the other, arising from or relating in any way to this Agreement or your Account, or their establishment, or any transaction or activity on your Account, including (without limitation) Claims based on contract, tort (including intentional torts), fraud, agency, negligence, statutory or regulatory provisions or any other source of law and (except as otherwise specifically provided in this Agreement) Claims regarding the applicability of this arbitration provision or the validity of the entire Agreement, shall be resolved exclusively by arbitration. For purposes of this provision, “you” includes yourself, any authorized user on the Account, and any of your agents, beneficiaries or assigns, or anyone acting on behalf of the foregoing, and “we” or “us” includes our employees, parents, subsidiaries, affiliates, beneficiaries, agents and assigns, and to the extent included in a proceeding in which Barclays is a party, its service providers and marketing partners. Any Claims sought to be made or remedies sought to be obtained as part of any class action, private attorney general or other representative action (hereafter all included in the term “class action”) shall be subject to arbitration, and arbitrated on an individual basis between you and us, not on a class or representative or other collective basis.

 

[nobk4me]

When did you last pay on this debt?  The reason I ask is Barclays uses Delaware law, where the statute of limitations is 3 years.  But that only helps if your state has a borrowing statute.  I don't know anything about RI law.

[debtman555]

2 hours ago, nobk4me said:

When did you last pay on this debt?  The reason I ask is Barclays uses Delaware law, where the statute of limitations is 3 years.  But that only helps if your state has a borrowing statute.  I don't know anything about RI law.

The last payment was January 2019.

After doing a lot more research and getting pointed in the right direction from you folks, I think I may just call and try to settle.  The motion to arbitrate sounds appealing but the stress of having to go to court and also having a judgment on my record is deterring me. 

Honestly I have no problem paying a monthly payment if it's $100 or less, so I have two final questions unless anyone has anymore advice before I break:

- The date on the letter they sent me saying I have 30 days to respond was December 29th.  Is the 30 day time limit the time from that date or from when I received it?

- If I go to their website and see what my monthly payment would be, does that completely close the door to negotiating/can they use that against me? 

[BackFromTheDebt]

18 hours ago, admin said:

Here is where to start looking for card agreements:   https://www.consumerfinance.gov/credit-cards/agreements/ or www.cardmemberagreements.org.

They're not lenient - the law says 30 days.  Why not send your debt validation letter via USPS priority mail?  You get a receipt and it's guaranteed to be delivered in 2-3 days.  I think it still costs $14.95. 

That's an idea.  I usually send it CMRRR.  That way if they claim they didn't get it, I have the green card.  But with the less reliable post office these days, priority mail might be a better option.  

[BackFromTheDebt]

14 hours ago, debtman555 said:

The last payment was January 2019.

After doing a lot more research and getting pointed in the right direction from you folks, I think I may just call and try to settle.  The motion to arbitrate sounds appealing but the stress of having to go to court and also having a judgment on my record is deterring me. 

Honestly I have no problem paying a monthly payment if it's $100 or less, so I have two final questions unless anyone has anymore advice before I break:

- The date on the letter they sent me saying I have 30 days to respond was December 29th.  Is the 30 day time limit the time from that date or from when I received it?

- If I go to their website and see what my monthly payment would be, does that completely close the door to negotiating/can they use that against me? 

The goal is to do what is best for YOU.  

Going to their website probably won't hurt you.  

One possibility is to try to negotiate, but have arbitration as a backup.  Nobody likes to go to court, but many of us have forced ourselves to go to court to get into arbitration.  

There will only be a judgment on your record if you lose.  Not if you win.  

There is another option, which many here do not like, but avoids court.  That is to file in arbitration before they sue.  As a first step, mention in the DV letter that you are electing arbitration.  They might ignore you, or they might demand you initiate by such and such a time or else they will sue.