Performant Recovery Inc. is one of the biggest third-party collection agencies, headquartered in Livermore, California. This aggressive debt collector services a variety of types of consumer debt including: state and federal tax debt, defaulted student loans, heathcare, and more. Performant Recovery was founded in 1976, but up until 2012, they were known as Diversified Collection Services.
It’s mission critical that you fully understand your rights when dealing with aggressive debt collectors. The Fair Debt Collection Practices Act (FDCPA) is the legislation that provides you with these rights and it also governs how exactly debt collectors are supposed to behave.
Performant Recovery Inc.
333 North Canyons Parkway, Suite 100
Livermore, CA 94551
Phone number: 1-866-201-0580
The first key when dealing with Performant Recovery is to grasp the legal collection tactics they have at their disposal. In addition to the harassing phone calls and letters demanding payment, they’ll also report negative information on your credit report, damaging your credit score.
Moreover, if they’re unable to collect payment from you, after about six months they’ll sell your account to yet another collection agency. This new debt collector will begin the constant stream of phone calls, threatening letters, and will report additional negative information on your credit report.
The most common result when consumers ignore debt in collections is a civil lawsuit. Yes, the debt collectors will eventually sue you for repayment and this can result in a judgement against you. Which can potentially cause your wages to be garnished, depending upon your state of residence.
It’s vital that you address this issue with Performant Recovery and the sooner the better. However, avoid the second most common mistake and falsely believe that just paying them will improve your credit score.
The unfortunate truth is most consumers are horrified to discover that paying off debt in collections frequently causes their credit score to drop. This is because the credit scoring algorithm sees that paid collection mark as recent activity, rather than financial responsibility.
4 Steps To Fight Performant Recovery
1. Account Validation
The most effective weapon to deal with Performant Recovery is to request account validation. This is your right granted by the FDCPA. Performant Recovery will have to respond by providing you with the paperwork, documents, and evidence that proves this is your account and they own the collection rights for it.
If they don’t validate your account, then you’re no longer legally responsible for repayment. Further, they’re supposed to notify the credit bureaus to have them remove collections from credit report files regarding this account. This is not an uncommon result from requesting account validation.
Please, make your request using written correspondence and certified mail. The unavoidable truth is the Federal Trade Commission (FTC) regularly issues fines to debt collectors and many of these fines are for ignoring consumer validation requests.
2. Statute of Limitations
The statute of limitations is the legal time frame for which you’re responsible for repayment of a debt. Once this time period expires then the debt is forgiven. This applies to many types of consumer accounts such as: medical collections, credit card charge offs, repossessions, and more.
Typically the time window is seven years from the first date of delinquency. However it will vary from state to state so please examine your local listings and keep in mind it doesn’t apply to every type of debt, but the vast majority of types it does.
If your account has been validated by Performant Recovery it’s important to look at the age of the original debt. One of the common predatory practices in the debt collection industry is to re-age consumer accounts. This enables them to continue contacting you for payment, along with destroying your credit worthiness.
3. Negotiate a Settlement Agreement
If your account is valid and within the legal time frame, you’ll next want to negotiate a settlement agreement with Performant Recovery. It’s wise to negotiate to settle your account for much less than the total balance.
You’ll typically be able to reach an agreement in the ballpark of 10% to 40% of your total balance. For example with a $1,000 debt, you may be able to settle the account for just 20% or $200. This is because Performant Recovery purchased the collection rights to your debt for just pennies on the dollar.
As part of your settlement agreement, it’s vital that you get Performant Recovery to agree that in exchange for your payment they’ll stop reporting your account information to the three major credit bureaus. If you neglect this part, once you make payment the only thing that will change is the item on your credit report to a paid collection. This is not a positive credit building item to have.
4. Remove Performant Recovery From Credit Reports
You see by getting Performant Recovery to agree to stop reporting your account information to the three credit bureaus we can then remove this item from your credit report. This will require you to exercise additional rights granted by the Fair Credit Reporting Act (FCRA).
This legislation says you can challenge and dispute any item on your credit reports. You can file your dispute online, by mail, and over the phone. Once the credit bureaus get your dispute and find it valid they’ll investigate the item by contacting Performant Recovery and asking for verification.
As per your settlement agreement, Performant Recovery won’t verify your account with the credit bureaus, and in accordance with the FCRA, the credit bureaus must remove an item from your credit report that can’t be verified. You see negative listings are kryptonite to your credit score and by working to get a clear credit history you’re taking the most effective steps to getting a score you truly deserve.
Look, your credit score is exactly like your Grade Point Average (GPA) in glory school days past. It doesn’t matter if you’re acing all your courses, if you’re failing The Art of Walking, because that one negative mark is going to mess up your overall GPA.
Your credit score is exactly the same, and this is why it’s so imperative to clean up credit report dings, blemishes, and remove any negative items. We encourage our members to consider professional, legal, and legitimate credit repair companies to help with this process.
Because in 2016 alone, over 9 million negative items were removed from consumer’s credit reports. One of the best firms is The Credit Pros. They’ve helped client’s successfully remove collections, late payments, charge offs, judgements, liens, and many more negative credit report items.
Get a free credit consultation with a certified FICO professional by calling toll-free 1-877-418-7596. And for more tips, techniques, and strategies about how to improve credit score with Dan Willis, sign up for our free newsletter and join our congregation.
Get a FREE Credit Consultation