Complaint Review: Portfolio Recovery Associates - Norfolk Virginia

I just wanted an understandable explanation from an actual attorney who has experience in this field.

I just wanted an understandable explanation from an actual attorney who has experience in this field.

I just wanted an understandable explanation from an actual attorney who has experience in this field.

I just wanted an understandable explanation from an actual attorney who has experience in this field.

It's per the IRS 1099-C instructions under number 8 that lists: When Is a Debt Canceled A debt is canceled on the date an identifiable event occurs. An identifiable event is: 8. The expiration of nonpayment testing period. This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31 plus any time when the creditor was precluded from collection activity by a stay in bankruptcy or similar bar under state or local law. The creditor can rebut the occurrence of this identifiable event if: a. The creditor (or a third-party collection agency) has engaged in significant bona fide collection activity during the 12-month period ending on December 31 or b. Facts and circumstances that exist on January 31 following the end of the 36-month period indicate that the debt was not canceled. ----------------------- I would assume the reason they allow the third party be allowed to issue 1009-C because they are acting in the capacity of agent for the original creditor, but I may be wrong.

Good to see you back. You stated: "In regards to the 1099-C issue raised by another rebuttalist, this is not a scam. In fact, a failure to file a 1099-C and claim forgiven debt as income is a violation of the Internal Revenue Code. In other words, if someone extends you money, goods, or services on credit, and later agrees to accept a lesser amount in satisfaction of the debt, the difference in the amount of the original debt and the settlement is INCOME, and must be claimed as such on your tax returns." I asked a question about this in another thread hoping you'd stop by. How can a collector - who did not extend any money, goods, or service on credit - issue a 1099-C, much less for an exorbitant amount?

However, I believe the point the other rebuttaler (sp?) was making that it was a bogus debt to begin with and PCA is sending the IRS and the "recipient" 1099s claiming debt relief. These are rotten bottom feeding scum to nth degree.

Aside from the various other issues raised in this complaint, which I may attempt to address later, Robert's rebuttal was spot on. In regards to the payment of a debt, NO court in the U.S. will find a valid contract based in "acceptance by silence." In regards to the 1099-C issue raised by another rebuttalist, this is not a scam. In fact, a failure to file a 1099-C and claim forgiven debt as income is a violation of the Internal Revenue Code. In other words, if someone extends you money, goods, or services on credit, and later agrees to accept a lesser amount in satisfaction of the debt, the difference in the amount of the original debt and the settlement is INCOME, and must be claimed as such on your tax returns.

PRA has proven themselves to be running something along the lines of a RICO scam. Watch your mail for your 1099-C form declaring that amount as taxable income. Go ahead and type in Portfolio Recovery ASSociates in the seach box of this site and settle down for a nice long read. These shysters are pulling every trick in the book. I should specify every illegal trick. Perhaps part of their business is above board and done properly but I will see it when I believe it. This is not a company you can expect proper treatment from. I am suing them over my fake debt that they dreamt up and sent me a 1099-C for. The only thing that company will respond to is going to be the Feds. Until that happens, we have to individually sue the heck out of them for each and every breach of the law. My attorney mentioned "class action" to me but hasn't gotten back to me about it yet. One thing is sure, well two, one being that PRA will NOT follow laws, and two, they need to be put out of business. Personally I think it is a racketeering influenced corrupt organization but I'm not a US Attorney so I can't do anything about it myself. Oh, and don't expect anything from the FTC. They just send you a big fat envelope with a copy of the law PRA is violating stating they do not represent individual citizens in disputes. So it's up to each of us who has been victimized by this awful company to fight them until their doors close, their coffers are emptied into our wallets (and our attorneys'), and their corporate directors are marched out in handcuffs. I await that day with much patience. JDB Victim (of PRA)

Dear All: I'm new to this site and have recently been contacted by Portfolio Recovery regarding a date that I can't seem to match up with anything on my credit report. I'm going to be requesting validation, though your comments don't incline me to expect much. They are the only collection agency that I've ever heard of that would call on a Sunday night (not yet sure whether that's legal in VA, still looking into that, since it's technically permissible under the Fair Debt Collection Practices Act). I have heard a good deal about them being a Junk Debt Buyer, paying a penny or so per dollar of debt and trying to collect on debts after the statute of limitations to collect has expired. I would encourage all to file reports not only with the FTC (though this is very important) but also with the Better Business Bureau of which PRA is actually a member. According to their report they've gotten well over 300 complaints. You can view the report and file a complaint at (http://us.bbb.org). I haven't used that for PRA (yet) but have had success getting resolutions in two other instances in dealing with companies that were trying to rip me off.

you claim to have consulted with an attorney, so WHY did you bother to make a "settlement" offer on a debt that WAS NOT yours? Seems to me your "attorney" should have advised you to DISPUTE the debt as not yours, rather than offer a settlement. Also, most courts (around here in NY) will not go along with a "no-action" opt-IN contract - you notify me that you don't agree otherwise we have a contract. It doesn't work that way. If that were so, I could send you a certified letter stating: ""You agree to pay me $100,000 and you will make monthly installments of $1000, beginning April 15, 2008, and continuing until the $100,000 is paid in full. If you don't respond by midnight April 14, 2008 this contract is binding and I'll expect the first payment on April 15, 2008 and all subsequent payments as stated above. Failure to pay me as scheduled will force me to seek civil juducial remedies."" NO COURT is going to enforce this! Run that by your attorney and let us know what he tells you (pssst. I have a letter ready to mail! LOL) BTW, Florida is an "ALL PARTIES MUST CONCENT" to legally record a telephone call. So, even if you recorded the call, you would have had to have obtained their permission to record it for the recording to be admissable in court. Further, if you make the recording public you can be face criminal and civil liabilities. You might want to consult with another "attorney" (perhaps an attorney who's office isn't across from the beer tap.)