Have you ever received a letter about due/outstanding debt from a debt collecting company like portfolio recovery associates?
Or have come across their name on your credit standing report for an old debt that has already been settled with the creditor?
Such a situation make you cringe bad and desire to get rid of it and clear your credit standing report as soon as possible.
But before actually trying to get away from them, you need to know about them first.
Portfolio Recovery Associates are the most significant debt collectors with around 40,000 employees on public traders in the stock exchange.
For gaining handsome profits, they make purchases of large chunks of debt from lending companies at steep discount rates with the hopes that they’ll collect it.
Such lending companies have a trail of record of bad(non-received) debt on their books of accounts that they could not collect. Meanwhile, the creditors try as much as they can to collect that debt but eventually in some instances they are not able to do so for various reasons.
So to a bit recover their loss, the creditors bundle those accounts and sell them for pennies on the dollar to other debt collecting companies.
Anyways, to clear your record from them, follow these directions.
Debt Validation Letter:
The Fair Debt Collection Practices Act bounds the collecting companies to provide evidence and prove that their claim is correct and they possess a right to collect it.
In this circumstance, the debt validation letter doesn’t fall into details and asks merely the creditors to validate that the debt they are anticipating is going to be paid to them as a legal obligation.
As a result of this, they may not be able to provide the accurate documentation for the debt validation since they are not the real creditors.
The letter may also remain non-responded for 30 days. In this way, all the misinformation have to be removed by them from your credit report since the credit bureaus have a 30 days deadline for showing a response.
But sometimes, things may not be in your favor when these situations do not make much difference on the creditors. So do not worry. Look up for the next step.
Bring them on negotiations terms. Do not be agreed on the first offer of settlement they present. Begin with a low amount and raise it when needed.
Also, do not mistake providing them with your account details as they may end up deducting debt money from your bank. Just give them a cheque with only the negotiated amount mentioned.
Most importantly, keep every record written as the debt collecting agencies may agree over specific terms, receive payments and then act as if they have not even received any payment at first place. Also when corresponding through emails, save all return receipts for proper paperwork. Keeping a phone conversation record as a backup is a stupid idea.
But what if despite all the negotiations and bargaining they do not remove that false crediting, send threats of legal action soon in case of no implementation.
Look For Professional Help:
The process of recovering your credit standing portfolio may be very exhausting and time-consuming. Therefore, you can consider hiring professional’s help in the related field who complete your work in a better way.
Do not let that outstanding debt remain on your credit report. Try recovering portfolio of your credit standing after all.