Have you gotten harassing phone calls from Portfolio Recovery Associates? Or did they send you a letter demanding payment? Portfolio Recovery is a large collection agency based in Norfolk, Virginia. According to their website they employ over 3,000 people and are a market leader in debt collections.
Portfolio Recovery Associates LLC
120 Corporate Boulevard
Norfolk, VA 23502
Phone number: 1-888-772-7326
4 Tips to Dealing With Portfolio Recovery Associates
1. Look At The Dates On Your Account
There is a statute of limitations on most consumer debts of seven years. In other words, if your debt is older than seven years, you’re likely no longer legally responsible to repay it. And it is no longer suppose to be on your credit report.
2. Ask For Validation Of Your Debt
When you request that your debt is validated. It is going to require that Portfolio Recovery proves they legally own your debt and can collect payment on it. Frequently collection agencies are unable or just unwilling to comply with this. If this happens:
- You don’t have to pay the debt
- And the credit bureaus should be notified to erase bad credit information about this account
3. Negotiate A Settlement Payment
A common mistake many consumers make is by just paying off an old debt. They believe this is how to build credit, but that is not entirely accurate. Let’s use an example, if you just pay Portfolio Recovery Associates.
They are going to notify the credit bureaus and request that your collection listing be changed to a paid collection. This is only slightly better for your credit rating. Instead, you should negotiate to pay less than the total amount due.
And in exchange for your payment, you must get Portfolio Recovery to agree to stop reporting your account information to the credit bureaus. Then after you make your settlement payment, you can dispute the collection item on your credit reports.
The credit bureaus will investigate your dispute by contacting Portfolio Recovery and asking them to verify your debt account information. As part of your settlement agreement, Portfolio Recovery will not verify your debt with the credit bureaus.
This will result in the credit bureaus removing collections from credit report information about this account. This is in compliance with the Fair Credit Reporting Act a federal law, passed by Congress.
4. Avoid Getting Sued
If you neglect to settle this matter with Portfolio Recovery Associates. Then they can:
- File a civil lawsuit against you which could result in a judgment against you.
- Or they could sell your account to another collection agency that will report more bad credit and start contacting you for repayment.
You can deal with Portfolio Recovery on your own, however you may find it helpful to get help with a professional credit repair firm. There are a number of legit credit repair services. However, it is important to do your research before you hire someone to help you.
But don’t just hand over the total amount of your debt to Portfolio Recovery Associates. Instead protect yourself, your rights, and your credit report. Get a free credit consultation by calling toll-free 1-877-418-7596. For more tips and strategies with Dan Willis sign up for our free newsletter.
Get a FREE Credit Consultation 1-877-418-7596