Delete Portfolio Recovery From Your Credit Report: Surefire Steps
By Sandra Pearsons
Last updated 9/17/2019
Summary: Follow these surefire steps to remove Portfolio Recovery collections agency from your credit report.
Have you recently noticed a sketchy entry on your credit report?
Do you apparently owe money to someone called Portfolio Recovery or Portfolio RC?
Are you getting harassing calls?
I’m about to explain who they are, how to make them stop calling, and most importantly, how to remove them from your credit report.
Important: This article provides DIY methods for removing Portfolio Recovery from your credit file. If you don't have the time or patience to work on your credit, we highly recommend our #1 credit repair company, Credit Saint.
What is Portfolio Recovery Associates LLC?
You know that credit card bill you didn’t pay? The bank kept calling, you kept avoiding the call, and then...it suddenly stopped.
You breathed a cautious sigh of relief, hoping they finally gave up on you.
Well, they sort of did.
Unfortunately, that doesn’t mean you’re off the hook. If a creditor isn’t getting anywhere with trying to collect a debt, they eventually “charge it off”.
And what does that mean?
It means they sell the debt to a collections agency. They get some money for their trouble, and the collection agency becomes responsible for getting payment.
That’s what Portfolio Recovery, or Portfolio Recovery Associates LLC is— they are a collections agency.
They’ve paid money to buy your debt, and you better believe they’ll try their hardest to make you pay so they can turn a profit.
They will use every means possible to collect the debt from you, including harassing phone calls, letters, and even lawsuits.
Of course, this means your credit report now says you owe money to Portfolio Recovery Associates, LLC.
This is a nasty red flag that hurts your credit score. You want to banish it as soon as possible.
Here’s how you do it.
Stop Calls from Portfolio Recovery NOW
Calls from debt collectors range from super-annoying to nerve-wracking. If you’re sick of phone calls from Portfolio Recovery Associates LLC, there’s a simple solution:
Request that all further communication be in writing.
Yup, that’s it. There’s no catch.
Once a debt collector contacts you, they have five days to provide a debt validation letter.
Written communication has a couple of benefits:
You can tell them this over the phone, but it’s best to make your request in writing, via certified mail.
If Portfolio Recovery Associates, LLC fails to comply with your request, you can send a cease and desist letter.
This basically tells them not to communicate with you further.
Once they’ve received a cease and desist letter, they can only contact you one more time, to notify you of the action they plan to take.
Turn the Tables: Make Them Verify the Debt
When a collection agency is hounding you, it feels like they have all the power.
You need to take that power back.
Here’s the deal:
Under the Fair Debt Collection Practices Act, once a debt collector contacts you, they have five days to provide a debt validation letter containing the following info:
Let’s zero in on points 3 and 4. You have the right to dispute the debt, and you should.
For one thing, you might be unsure if the debt is yours. You might believe you owe less than they’re saying. Either way, you need that cleared up.
But let’s say you know the debt is yours. The more important issue is whether they know it’s yours.
Because guess what?
If they can’t prove it’s yours, they can’t report it to the credit bureau.
Believe it or not, they might not be able to come up with that proof. Remember, Portfolio Recovery Services purchased your debt, in bulk with a bunch of other debt, from the original creditor.
Who knows what was lost in the shuffle?
The onus is on them to provide proof. If they can’t, they’re required by law to remove it from your credit report.
So how do you go about disputing? You send your own letter.
Do not do it over the phone. It has to be in writing!
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Send it via certified mail with a return receipt so you:
We recommend working with a pro to make sure you do it right.
Credit Saint, our #1 recommended credit repair company, can set you up with a kick-ass dispute letter that will cover all your bases.
Strike a Deal: Portfolio Recovery Pay for Delete
If it turns out Portfolio Recovery Services is able to verify the debt, negotiating a settlement could be your next step.
You have two goals:
- 1Pay as little as possible to make it go away
- 2Get it off your credit report
Here’s what they’re not going to tell you upfront: they may be willing to accept a partial payment to settle your debt.
Don't take any collection agency for their word. You must get everything in writing or it won't be valid.
Why would they do this?
Portfolio Recovery likely purchased your debt from the original creditor for cheap.
Sure, they want you to pay it in full, but if they didn’t pay a lot, they can still turn a profit if you pay a fraction of the debt.
The important thing for you to understand is that paying the debt doesn’t mean it gets deleted from your credit report.
If you simply pay it, it will still show on your report as a paid collection. Translation? It will continue to hurt your credit score.
You need to negotiate a deal, in writing, for a Portfolio Recovery pay for delete settlement.
They should send you a Portfolio Recovery settlement offer stipulating how much you’ll pay, and that the debt will be removed from your credit report once you pay.
Be sure to get your Portfolio Recovery settlement offer in writing as there has been many complaints filed against them for saying one thing and doing the other.
Again, Credit Saint can guide you through this process and make sure you get it right.
Portfolio Recovery Lawsuit
PR has a long history of aggressively using any tactic necessary to collect their debt, including lawsuits.
If you find yourself in a Portfolio Recovery Associates Lawsuit it is best to respond to the complaint.
Failure to respond to the Portfolio Recovery complaints or go to court will result in a summary judgment being levied against you.
This judgment can be used to garnish your wages and in some states, they may be able to take your stuff and sell it to settle the debt.
However, Portfolio Recovery LLC has had its own share of lawsuits filed against them for violations of the Telephone Consumer Protection Act (TCPA).
A Porfolio Recovery Associates class action lawsuit seems to be filed every couple of months in different states against them for TCPA violations.
The TCPA protects consumers from a laundry list of predatory practices, such as, continuing to make collection calls to someone who has requested all communications to be in writing.
Portfolio Recovery Associates, LLC have lost multiple lawsuits in the past couple of years due to violations of the TCPA.
"Under the TCPA, business entities who call consumers without their consent can be liable for up to $1,500 per violation." According to Top Class Actions.
Portfolio Recovery Associates Refund Check
If you have been involved in one of the many class action Portfolio Recovery Lawsuit than you may be expecting a refund check.
These checks are actually settlements from the Portfolio Recovery Associates lawsuit, technically they are not refunds.
Keep up with your member class on Facebook to find out when your Portfolio Recovery Associates refund check or settlement check will be in the mail.
I hope you found these tips for removing Portfolio Recovery from your credit report helpful.
If you’re ready to start rebuilding your credit, check out our definitive guide here.