Stacey
Dallas,#2Consumer Comment
Sat, March 14, 2009
DO NOT talk to them on the phone here is some info from www.budhibbs.com Bud Says Consumer Comments Below Portfolio Recovery Associates, (PRA) bottom feeders with deep pockets, have apparently figured out how to get blood from a turnip. They collect on accounts dating back to the 90's -- accounts so out of statute that most consumers can't even remember if they even existed. These vultures live off the grief and (in some cases) the time barred debts of unsophisticated consumers. Like most of the bottom feeders out there, PRA and Anchor are fighting the density of junk debt buyers who have flooded the market. To say the price for accounts has gone up is an under-statement. PRA is paying more just like everyone else to stay on top of the market. One of PRA's favorite tricks is to use the IRS to collect for them. They issue the debtor a 1099C for the amount of the debt, then charge the full amount off as a loss. We've heard cases of other agencies collecting later on the same debt. Could PRA be charging off the full amount, then selling the account to another junk debt buyer? The poor consumer gets screwed in more ways than one. First, he's paid a questionable debt via a settlement to PRA - perhaps 60% on a debt they most likely couldn't have proven in court. Secondly, his taxes are hit when the IRS waves this 1099C in his face. They are effectively collecting for PRA at this point, since PRA took the loss (100%) of something they paid only pennies on the dollar for. Third, the consumer has to face the debt again when the junk debt buyer comes after him anew. Hopefully, the IRS will catch onto this scam. PRA is a publicly traded company, so one would think they wouldn't be able to get away with this type of financial accounting for very long without some preying eyes. send them a cease communications letter via certified mail with return receipt requested - keep copies of all these documents Find out if your State requires debt collectors to file a Surety Bond Texas does and any debt collector that does not file a bond is subject to fines and penalties under Texas Law (learned that in court when I sued one of these bottom feeders) Good luck and fight back