Pioneer Credit Recovery is an aggressive and very large collection agency. They’re headquartered in New York and have additional offices in New Jersey, Florida, and Indiana. According to their website, they employ over 1000 people.
Pioneer Credit Recovery will collect a variety of consumer types of debt, but specialize in government contracts. For instance, they’ll collect upon defaulted student loans, taxes, court fees, etc.
It’s mission critical that you fully understand your consumer rights when dealing with aggressive debt collectors. You see in 2015 the federal government terminated one of their contracts with Pioneer Credit Recovery because they were providing borrowers with “inaccurate information at unacceptably high rates.”
In other words, just because Pioneer Credit Recovery is contacting you about payment on a government debt, be it court fees or defaulted student loans, that doesn’t mean they’re following the rules, regulations, or the law. In fact, Pioneer Credit Recovery is a subsidiary company of Navient Corporation who paid $97 million to settle allegations from the federal government claiming they overcharged military service members.
The Fair Debt Collection Practices Act (FDCPA) is the legislation that’s supposed to regulate the debt collection industry. This law is worth reviewing because it clearly says exactly how debt collectors can behave when contacting alleged debtors.
The unavoidable truth is debt and credit laws in our country are much like the drug laws. They exist but they’re rarely followed and violated constantly with virtual impunity. First, let us share the two most common deadly sins when dealing with aggressive debt collectors.
Look, many folks believe if they just pay off an old debt that will somehow improve your credit score. It makes sense, but it ain’t anywhere close to reality. Will discuss the exact procedure of paying off collections, and so you will fix bad credit and get a better credit score in a moment.
The second deadly sin is to just ignore debt in collections, believing they’ll just disappear like a fart in the wind. Many of these individuals are shocked and horrified to discover they’ve been sued and have a judgement against them.
You see, a credit judgement will decimate your credit score and overnight. Further depending upon your state of residence it can cause your wages to be garnished, liens placed against you, and even your assets to be seized.
Pioneer Credit Recovery Inc.
26 Edward St.
Arcade, NY 14009
Phone number: 1-585-237-7000
4 Keys To Exercise Your Consumer Rights
1. Request Debt Validation
The most effective weapon at your disposal is to request debt validation on your account with Pioneer Credit Recovery. This is your right under the FDCPA and it will require them to furnish you the documents and evidence that proves this is your account.
If they’re unable to validate your debt, then you’re no longer legally responsible for repayment. Moreover they’re suppose to notify the three major credit bureaus to have them remove collections from credit report, concerning this account.
2. The Fine Print
If your account is validated you’ll next want to review the documents that Pioneer Credit Recovery sends you, because the statute of limitations is at play. This is a law that says how long consumers are legally responsible for payment on a debt.
The statute of limitations doesn’t apply to every type of consumer debt, but most of them. Additionally you’ll need to investigate your local law because it does vary from state to state. Typically it’ll be about seven years from the first date of delinquency.
Once this time window expires then by law the debt is forgiven and you’re no longer legally responsible for payment. One of the dirty debt collection secrets is to illegally re-age consumer accounts. This way they can continue to report negative information on your credit report and try to collect payment.
3. Negotiate a Settlement
If your account is valid and within the statute of limitations, you’ll next want to enter into negotiations with Pioneer Credit Recovery to settle your debt. The first note is to always negotiate to settle your debt for much less than the total balance due.
Often you can negotiate to settle the account for as little as 10% up to 40% of the total. For example with a $1000 debt you may be able to settle for a mere $300 or 30%. Generally it’ll depend upon the age of your account, the older the debt the less you’ll need to pay.
It’s vital that you don’t just pay, first, you must get Pioneer Credit Recovery to agree that in exchange for your payment, they’ll stop reporting your account information to all three credit bureaus. If you forget this step, then upon making payment the only thing that will change is the status of the collection on your credit report, it’ll change to a paid collection.
This is still a negative, derogatory listing and instead we want to clear bad credit listings from your credit reports. This is the only guaranteed way to repair credit score information and transform this number into an asset for your life.
4. Credit Bureau Dispute
With the agreement that Pioneer Credit Recovery will stop reporting your account information, then you can make payment. Now we’re going to exercise your consumer rights granted by the Fair Credit Reporting Act (FCRA).
This legislation is what enables you to challenge questionable listings on your credit report. You’ll need to file a dispute with all three of the major credit bureaus, assuming Pioneer Credit Recovery is reporting negative information on all three of your credit reports.
You can file your credit dispute online, over the phone, and by mail. Once the credit bureaus get your dispute and find it valid, then they’ll investigate the item. They’ll contact Pioneer Credit Recovery and request verification of the account and the relevant details such as amount and dates.
This is why you need the agreement, because with it your account won’t be verified during the credit bureaus investigation. And in compliance with the FCRA any item that can’t be verified must be removed from your credit report. This is how to clear credit report dings and blemishes.
The big challenge that virtually every consumer faces isn’t in knowing their consumer rights, but in exercising them. You see, the debt collection industry is fined every year and big money by the Federal Trade Commission (FTC) for violating consumer rights and the FDCPA.
In fact the FTC has also fined the credit bureaus multiple times for violating consumer rights and the FCRA. These laws are akin to having David’s slingshot while going into battle against Goliath, you got a chance. But many consumer’s are defeated miserably and they’re left claiming you have to just live with a bad credit for seven long, expensive, and embarrassing years.
Or falsely believe that it’s somehow illegal to remove so called accurate bad credit from your credit history. As if there will be a SWAT team busting down your door in the middle of the night because you disputed an item on your credit report, that you knew to be accurate.
It’s all scare tactics and the result of millions of dollars invested in public relations by the credit bureaus, to discourage Americans from doing anything to better their credit situation. Stop the madness and take control of your financial future.
At the end of the day, your credit score is exactly like your Grade Point Average (GPA) in school days past. It makes no difference if you’re acing all your courses, but failing The Art of Walking, because that one negative mark is going to jack up your overall GPA. This principle is equally true of your credit score, and why it’s so important to clean credit report dings, blemishes, and negative items.
We encourage our members to consider professional, legal, and effective credit repair companies to help. 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 your credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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