Dispute Portfolio Recovery Associates On Your Credit Report
Seeing a negative charge on your credit report is an awful experience. But don’t panic. If you’ve got a charge from Portfolio Recovery Associates, we can help you dispute the charge and get Portfolio Recovery services removed from your credit report. Read on for how to restore your good credit today.
How does Portfolio Recovery Associates work?
Portfolio Recovery services operate under a slightly different business model than other collection agencies. Portfolio Recovery collection services buy old debts in bulk from companies who have charged off the accounts. So, when the original creditor has been unable to collect a debt, they write it off, calling it a charge off. But, companies can legally sell charge-offs to third-party collection agencies.
Portfolio Recovery Associates is one of those third party agencies. Portfolio Recovery will buy charge off debts for minuscule amounts, gambling with the chances of collecting the debt for more than they bought it for. Whatever the difference is between the original purchase price and what the debtor pays is Portfolio Recovery’s profit.
How can you remove Portfolio Recovery from your credit report?
Any time you get a call or a letter from a collection agency like Portfolio Recovery Associates, always let them know that you’re aware of your rights under the Fair Debt Collection Practices Act and that all future communications will take place via mail. This will prevent the collection agency from deploying questionable tactics against you to pressure you into paying off the debt at your expense.
One of the biggest mistakes people make when dealing with collection agencies is agreeing to payments over the phone. If you do this, the collection agency has no incentive to follow through with their part of the bargain. Getting everything in writing protects you from further headaches. You need a paper trail anytime you get involved with a collection agency.
3 Effective Steps to Remove Portfolio Recovery from Your Credit Report
1. Make Portfolio Recovery prove that the debt is yours.
One of the quickest and easiest ways to remove a debt is to make the agency prove the debt is yours. It’s a common occurrence for debt to get assigned to the wrong person, or for the agency to not have a clear paper trail of where the debt originated. This is especially true with third party collection agencies like Portfolio Recovery. Under the Act listed above, it’s your right to request debt validation.
Please be aware that you only have 30 days from the first time Portfolio Recovery contacted you to request debt validation. Click here for a sample validation letter. Send it to the agency as soon as you can so you are well within the 30-day time limit. If they can’t validate the debt, they are legally obliged to remove it from your credit report.
2. Offer Payment for Removal
Sometimes, your efforts to validate the debt won’t work, and you’ll be responsible for paying it off. What you can do is offer to make a payment to get the collection removed from your report. So basically, there’s a good chance you won’t have to pay the debt off in full to restore your credit.
With third-party collections like Portfolio Recovery services, they bought your debt for pennies on the dollar. Their profit margin is higher than other collection agencies. It’s more than likely that you’ll be able to successfully negotiate with them for a lower payment than the original debt. Start with half of what they’re asking and go from there.
But remember – get everything in writing before you make a payment! Follow up in 30 days with them too, to make sure they’ve upheld their end of the bargain and have removed the debt from your report. If they haven’t, write them another letter demanding that they remove the debt.
3. Work with a Professional
Handling a debt collection dispute can be time-consuming. It can also be stressful. But thankfully, there are attorneys and legal professionals who can act as your advocate with Portfolio Recovery Associates. Also, these pros can get your debt removed much more quickly than you can. Don’t hesitate to reach out to a credit repair agency today and restore your good credit.