I got a letter in the mail today from Portfolio Recovery Associates concerning a credit card debt that is extremely old. It's basically giving me 3 options for paying back a balance of $1,965.47. My issue is this. While I don't know exactly how old the debt is, I recently browsed my credit reports with all 3 bureaus and nothing shows up as a negative. There is nothing referring to this debt or any debt in this amount on my CR. After having researched what I could on Portfolio Recovery Associates, it seems they have a bad reputation for pulling crap like this. I know the SOL for my state (PA) is 4 years and without a doubt I haven't paid them or anyone towards this account within that time. While, moralistically, I would like to pay this off, I don't know if I can trust them. I now know that nothing of this is showing up on my credit report which means that it's at least 7 years old, correct? Also, if I do pay off what they're offering, won't it STILL reappear on my report as a paid off collections? I know it sounds awful to say, but at that point what sense does it make to pay it? I want to do the right thing, but it seems they set it up to get their money AND screw you over as well. What type of letter(s), if any, should I send them? Cease and desist? Validation of debt? Anything else? Just looking for suggestions on how to go about handling this. I just received it in the mail today and haven't heard from or received anything from them prior. Help?
Update:I greatly appreciate all the answers people. I just want to know if I should just let this pass without responding AT ALL since it's not showing up on my credit report or if I should write a cease and desist letter or validation of debt letter ASAP?
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Verified answer
They are betting you don't know the law. If you make any kind (verbal or otherwise) of arrangement to pay or if you make any kind of payment, no matter how small, that is an indication to the courts that you acknowledge the debt, the SOL resets to day one - you pay. If you fail to respond to a summons for a court appearance, they win by default - you pay.
See this site for good info:
http://www.fair-debt-collection.com/sitemap-1.html
I'm from the school that if the debt is yours, pay it. But I'm also from the school that I pay my original creditor, not a third party collection agency. I have no contract with them - it's with my original creditor.
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Portfolio Recovery Associates?
I got a letter in the mail today from Portfolio Recovery Associates concerning a credit card debt that is extremely old. It's basically giving me 3 options for paying back a balance of $1,965.47. My issue is this. While I don't know exactly how old the debt is, I recently browsed my...
Technically, a debt collector can come after you forever for defaulted debt...however, once the statute of limitations is up, which it has in your case...they've lost the power to successfully take legal action. Per the Fair Debt Collection Practices Act, you can send them a "cease communications" letter and that will be all that you need to do. Per this law they must cease collection activity.
Send the collection agency a letter via Certified Mail + Return Receipt (NOT regular mail) stating:
Per the Fair Debt Collection Practices Act, cease all communications with me about this alleged debt. This letter has been mailed via Certified Mail with Return Receipt. Receipt of this letter is being officially time stamped.
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Paying this debt back won't do anything to your credit being that the debt is so old.....The only thing that you'd be achieving is making this firm richer and yourself poorer. Regarding the post above from Dan., you can no longer pay the original creditor when the debt has been sold to a 3rd party collection agency.
Portfolio Recover is a notoriously vicious and awful debt collection agency. They don't deserve one penny. If you're consumed with guilt and grief over this old debt, then make a donation to the St. Jude's Children's Hospital instead.
Derogatory items age off your credit report 7-1/2 years from the date of first deficienct. Nothing restarts that clock. Paying this debt will not cause it to show up on your credit report.
Since you know this debt is beyond the SOL, you can just send the collection agency a certified, return receipt letter telling them to cease all contact as the debt is not valid and beyond the SOL. They have to stop contacting you but will probably sell the debt to another zombie debt collector and you may have to send a second cease letter to the next collection agency.
Do not talk to them on the phone or give them ANY personal info. Portfolio Recovery is not known for following the rules.
If it has reached a third party collection, you do not ever have to pay. The original lender has written it off as collectable. I worked for Portfolio Recovery and left because they promote kids to manager, our VP Senior ops executive , one operations manager, and four or five "managers" loved to Lord over us. I was actually very nice to people, if they paid, fine, if not, moved on. No threats from me, that behavior came from the afore mentioned bosses. Not the way we were trained. The owners don't like those kind of collection efforts. I heard he fired all the top people in the office here in TN after I left.
My mom got scammed once:
A company called her telling her she owed an old debt.
They offered to settle for only 30% of the debt.
She quickly grabbed her Discover Card and gave them all her account information and was charged.
She never knew any better, because she didn't know to check her credit reports.
If it's not there - you don't pay.
If they ever call, tell them to go fly a kite - don't ever admit it is even you...
Just throw the stupid letter you got with their *offer* away! Why do you want to dig up something that isn't even affecting you anymore? Do you WANT them to screw you over? Believe me, if you give them an inch they are going to take a mile!
This debt is time barred for anything. Let it stay dead! Do not call them, do not write them, just ignore their correspondence!!!
They have been hounding me for 10 years for a debt not mine. My credit is perfect so I just ignore the notices they constantly send.
I just started paying them. I think its kind of cool to be paying for what I have done to myself. they will make deals with them. you can pay them when u want to. Yes, they seems like pests but frankly they want their money. they called me, I called and changed my number. They even sent letters but I started to read those letter. so yes deal it is. they re not so bad.