If you are here, you may have gotten some form of contact from a company called Portfolio Recovery Associates. With so many scams, you may be wondering, “Should I pay Portfolio Recovery Associates?” This answer will depend on if the debt is yours.
Portfolio Recovery Associates can be a challenging collection agency to work with but is much easier when you are prepared. Continue reading to learn everything you need to know when dealing with and paying Portfolio Recovery Associates.
What Is Portfolio Recovery Associates?
Portfolio Recovery Associates LLC is a leading debt collection agency. It has been around since 1996, based in Norfolk, Virginia. Generally, debt recovery associates and companies work directly with creditors and purchase the debt for a fee.
Portfolio Recovery services are a little different from other debt collection agencies because they are considered a “debt buyer.” They purchase the debts from creditors for a lesser amount than what was originally owed. The benefit for the original creditor is receiving a chunk of money immediately. Portfolio Recovery Associates then benefits from seeking the full amount from the debtor.
Once the transaction is complete, Portfolio Recovery Associates becomes the primary creditor. They aim to get as much as they can from the debtor to get a bigger profit. Because they are more eager to get the full amount, they can be a little more challenging to work with than other debt collectors.
Contact Information For Portfolio Recovery Associates
Portfolio Recovery Address: 120 Corporate Boulevard Norfolk, VA 23502
Portfolio Recovery Associates is legit. In fact, despite their low customer rating, they have an “A+” rating from the Better Business Bureau.
Not only are they legitimate, but they have become one of the leading collecting agencies. They have over 5,000 employees, and they operate worldwide.
If you get a call from Portfolio Recovery Associates, it is important not to ignore their call and write them off as a scam. You should never assume a debt collection agency is a scammer.
When you get notified from a collection agency, do your research and know your legal rights.
Who May Hear From The Portfolio Recovery Associates?
If you’re reading this article, you may have gotten some form of notification from this company. This means you may have past-due debts from a business or institution.
Debts may include:
Credit card companies
Should I Pay Portfolio Recovery Associates?
One mistake consumers may make is paying as soon as they get a call from a debt collector. You may think by settling your debt that you can remove them from your life, or you may choose to go for a Portfolio Recovery Associates pay for delete option so that they immediately remove your debt from your credit records. But by paying immediately, you risk paying for a debt that you may not even owe.
On the opposite end of the spectrum, some people will block their calls and ignore them. You don’t want to do this either, as you risk getting a Portfolio Recovery Associates lawsuit.
Dealing with a collection agency is stressful, and it can be challenging to know exactly what to do. Your best bet for handling the situation lies somewhere in the middle.
Before you do anything, learn what your legal rights are.
After doing your research, make sure to let them know that you know what your federal rights are. Reference the FDCPA and a couple of previsions of the law so they know they can’t pull a fast one on you.
Determine if the Debt Is Yours
The one time we will suggest you do not pay Portfolio Recovery Associates is if you determine that the debt isn’t yours. They aren’t a scam, but they can sometimes receive information that isn’t accurate or up-to-date.
Collection agencies buy debts in bulk and aren’t particularly concerned with lining out all of the details before contacting you. This is why you need to double-check to ensure that you owe anything at all.
A couple of reasons the debt would not be yours:
A case of mistaken identity
Your social security number is similar to the actual debtor
Like every debt collection agency, Portfolio Recovery Associates is required by law to provide you with debt validation. This includes the original creditor, the amount of debt owed, when it’s due, and other important information.
Ask about this when you first contact a collection agency. If they cannot provide the information or determine that contacting you was an error, Portfolio Recovery Associates must correct the information that was reported to the credit bureaus.
You will have 30 days from the first contact to demand this validation, so be sure to do so as soon as you can. If you wait, it could make disputing anything an even bigger challenge.
If they cannot prove that the debt belongs to you, demand that they stop contacting you and clear the negative information from your credit report.
Should I Pay Portfolio Recovery Associates if the Debt Is Mine?
The short answer is yes. After determining that the debt is, in fact, yours, you have a couple of options when it comes to payment.
Make a full payment
Negotiate a payment plan
Offer a full payment in exchange for a reduced total amount
Offer to set up a payment plan in exchange for a reduced total amount
At the end of the day, remember that Portfolio Recovery Associates will want to make their money as soon as possible. This fact can be one benefit in your favor.
Typically, you can tell a collection agency that you will be willing to pay as long as they reduce the total amount owed. Because they want to be paid, there is a good chance they accept less.
Start by offering to completely pay the collection if they reduce it by 50% of the total amount. They may say no, but you can negotiate from there.
Once you and Portfolio Recovery Associates have an agreement, get the plan in writing before sending payment. Ensure that the letter is extremely specific and discloses the amount that was agreed upon. By not getting this information in writing, Portfolio Recovery Associates will likely take the payment, then continue harassing you for the original balance.
Other Tips for Dealing With Portfolio Recovery Associates
One of the best ways to ensure that everything discussed is in writing is to only contact through mail. While it may seem like more of a hassle, there are other benefits to this form of communication with a collection agency.
These benefits include:
Reducing or possibly eliminating the constant irritating calls
Provides a paper trail, which will be your biggest asset if you have to go to court
Not only is the final decision in writing, but every detail will be
Avoid Giving Bank Account Information
Even if they make it seem like the only way to pay is through your bank account or prapay.com (their payment website), that isn’t true. You have every right to pay via check in the mail.
Frequently Asked Questions About Portfolio Recovery Associates
Will Portfolio Recovery Associates Sue?
It is possible that you may be sued by a debt collector such as Portfolio Recovery Associates. If this happens, it may be time to consult a lawyer for legal help.
A Portfolio Recovery settlement is possible, but they may decide to take you to court even if you settle.
If the debt owed is a significant amount or causes a big hit to your credit score, consulting an attorney can help deal with Portfolio Recovery Associates.
Can I Negotiate With Portfolio Recovery Associates?
Yes, you can, and you should. When providing your initial payment offer, they will more than likely offer a significantly lower percentage taken off your total amount.
You do not have to give in to the first offer they give you. Start with a 50% removal of the amount owed and work from there. Hopefully, you will be able to find a middle ground to agree upon.
If you have a debt that is old, you will have an even better chance of getting a large chunk taken off of what you owe. Usually, once your debt is seven years old, it will fall off of your credit report. So, you have some leverage, as they know they only have a short period of time to get anything from you at all.
Is It Better to Pay a Full or Partial Amount to Portfolio Recovery Associates?
It is always better to try to negotiate to pay a smaller amount than what you owe. Even if you cannot make the full payment upfront, you should be able to come to an agreement.
Take a look at your finances before contacting Portfolio Recovery Associates. After all, you don’t want to dig yourself too deep and find yourself in new debt. If paying a large amount at once will hurt you financially, don’t do it.
Once you determine how much you can pay initially and per month, you can start the negotiation process. Tell them what you are willing to settle for and what you are able to pay each month. Get this payment plan in writing.
How Do I Get Rid of Portfolio Recovery Associates?
As much as you try and block their calls, they will always find a way to contact you. It can feel so overwhelming getting harassed by debt collectors.
To make them go away, you will need to come to an agreement with them. It will be your best bet to stop the intrusive phone calls.
By remembering your legal rights and giving them your options for payment, you will have more control over the conversation.
Portfolio Recovery Associates is a legitimate debt collector that may contact you if you owe money to a creditor.
Though many people ask themselves, “Should I pay portfolio recovery associates?” The answer can be tricky. First, determine if the debt owed is yours or not. Keep in mind that they can be more difficult to work with than other collection agencies, so it is crucial to prepare yourself.
Research your legal rights within the Fair Debt Collection Practices Act (FDCPA). Though it may be a daunting task, you can finally rid them for your life by finding a way to settle.
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