Is this a scam or what? I keep getting these calls asking do you know (some name) I can't even understand the person on the phone. I get calls from these numbers all the time but no message is left. I have great credit and do not owe anyone anything. What is the point of these calls? Does anyone know? I am mystified at why there is no message if this is a collection agency, don't they want people to pay them? Just fed up and think it must be another scam!
Portfolio Recovery Associates may not be a scam per se, but they are notorious for hounding people for debts they do not owe, including those which belong to someone else, have been discharged in bankruptcy, have already been paid and are beyond the statute of limitations. They are a junk debt buyer who buys charged-off debts for pennies on the dollar:
As Lamet has already posted, the sale and resale of time-barred debts needs to be outlawed. Period:
A firm aims to collect at least twice what it paid for the debt to cover costs," points out the Star-Tribune. "Anything beyond that is profit." Successful debt-buying firms enjoy very impressive profit margins. Portfolio Recovery Associates, a Virginia debt buyer, reported a 16 percent net margin last year; for Encore Capital Group of San Diego, last year brought a 10 percent net profit. By way of contrast, Wal-Mart's profit margin last year was 3.5 percent.
The "distressed receivables" market is immense, and bundled debts are constantly repackaged and re-sold. It's quite common for people to be contacted by multiple collection agencies demanding payment on the same long-forgotten debt, which may have been sold and repackaged several times after being written off by the original creditor.
Is it any wonder then, why PRA (and the other junk debt buyers financed by banksters) are so ruthless and relentless in their pursuit of time-barred and charged-off debts?
Here's the deal: If PRA or another junk debt buyer calls you regarding a charged-off debt in which the statute of limitations has expired, simply tell them that you do NOT discuss legal matters over the phone and hang up. STAY OFF THE PHONE! And, don't argue with them. YOU control the caller (not the other way around). And, if they become verbally abusive or make illegal threats of incarceration, threatening to send the sheriff out by XX time if you don't pay up, threatening to "ruin" your credit (and other such B.S.), report them to the Federal Trade Commission and your State's Attorney General's office or Consumer Protection Agency. Also, if they threaten physical violence, report them to your local law enforcement.
What did I just say?: Stay OFF the phone.
ONE more time: Stay OFF the phone!!
Why? Because their ONLY interest is to get unsuspecting and unsophisticated consumers to admit ON record that they owe the alleged debt (whether they do or not) and extract a token payment which automatically reages it. Don't let this happen. STAY OFF THE PHONE!
It bears repeating: STAY OFF THE PHONE! (This CANNOT be emphasized enough). These junk debt buyers depend on the ignorance of consumers to make their millions...legitimately or not. The debt collection industry has become the "Wild, Wild West", and until (or IF) our government stops kissing the backsides of the ARM industry and banksters who bankroll millions to lobby against any kind of meaninful debt collection reform, it is up to US to protect ourselves. We have to be proactive and
use what existing consumer protection laws that are on the books (as weak as they are) to our
benefit, in order to protect ourselves. Simply complaining and relying on others to do it for us has not, does not and will NOT work anymore.
And, for those of you who out there who tell us to simply "pay our bills"---get A life. This is NOT a discussion about whether or not we should "pay our bills". This is ALL about consumer's rights under the current laws...and the collection of time-barred debts are NOT enforceable in a court of law.
The BEST way to deal with PRA and the other junk debt buyers is IN writing. If you get a phone call or letter from them, do NOT ignore it. That is the WORST thing you can do! Otherwise they will *assume* that you owe the alleged debt, sue and get a judgment against you. Then, check the statute of limitations for the enforcement of collection of debts in your State:
Then, send them this letter VIA certified mail with return receipt requested. It is IMPERATIVE that you respond immediately to their letter or phone call. If you wait longer than 30 days, you may find yourself face-to-face with a process server. Keep copies of everything, including any correspondence you may have had with the FTC, your State's AG's office or Office of Consumer Affairs:
Today's Date
Your Name
Your Address
Collector's Name
Collector's Address
VIA CERTIFIED MAIL
RE: [insert account number or name of account or name of debt]:
Dear [insert collector's name or company name],
This letter is in response to your [letter dated xx-xx-2005] (copy enclosed) or [phone call on xx-xx-2005], concerning the collection of the above referenced [account or date].
I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.
This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.
Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.
Though this may stop them from calliing or writing you, it will not stop them from collecting the alleged debt through the IRS, which they are using as their "surrogate" collectors. They are utilizing the 1099-C for this purpose, claiming it as a "forgiven" debt. Don't be surprised if you receive this form at tax time. **IF YOU RECEIVE A 1099-C ON A TIME-BARRED DEBT YOU HAVE ALREADY DISPUTED WITH PRA OR ANOTHER JDB, DISPUTE IT WITH THE IRS IMMEDIATELY!** If you don't, you will wind up possibly paying taxes on it you do NOT owe! The IRS does, can AND will investigate your dispute of a 1099-C on a charged-off debt. Once they begin their investigation, they will send you a letter acknowledging receipt of your dispute paperwork. They will then demand documentation from the JDB to support their charge-off claim. *IF THE IRS DOES NOT RECEIVE THIS DOCUMENTATION WITHIN THE REQUIRED TIME FRAME, THE JDB DEFAULTS AND YOU WIN.*
For more on your consumer rights under the FDCPA, go to:
Caller IDs:
407-347-4014 - Central Florida: Metro Orlando
620-662-1492 - S Kansas: Wichita
620-662-8870 - S Kansas: Wichita
757-961-3544 - E Virginia: Tidewater
757-864-0020 - E Virginia: Tidewater
731-984-7690 - W Tennessee: outside Memphis metro area
731-215-8010 - W Tennessee: outside Memphis metro area
205-423-4020 - Central Alabama
They are bottom feeders that buy OLD debts, most often paid off or written off by the original lenders. They make thier money off of people not knowing the law because 99.99% of the time the debt is past its staute of limitations.
Make sure you check what those limits are as they vary state by state. Also note, if you pay them even a penny, that statute of limitation is null and void and the debt becomes good again!! hence DO NOT PAY THEM ONE RED CENT!!! I am in the process of finding out how I can stop them from calling, but at this time all I can say is that the debts they say you have have been written off already, if not paid off!!!
To stop the calls, you need an address then all you have to do is to send them a certified letter telling them basically the following as I have mailed to many harassing callers. It stops them until the next bottom dwellers buy the debt.
I am disputing this alleged debt. According to the Fair Debt Collection Practice Act, 15USC16982g(b), I am requesting that you prove that this is in fact my debt, that it is the correct balance and that YOU are legally authorized to try and collect this debt.
This is not a request for verification or proof of my mailing address, but a request for validation. Please provide me with the following evidence:
Name and address of the ORIGINAL Creditor
Name, address and account number on file for alleged debtor.
Amount of the ALLEGED debt
Date that the account ORIGINALLY became payable
Date that the account ORIGINALLY became delinquent
Verifiable proof that I have a contract to pay you
Any agreement with my signature where I have agreed to pay the creditor
A copy of all statements while this account was open
Any documents providing you with the authority to collect this alleged debt.
I will require ALL of the above mentioned documents within 30 days. According to the FDCPA all correspondence should be in writing . No further phone calls should be made and if they are, they will be recorded and reported to the FTC and the Attorney General’s Office.
be very careful sending your cancelled checks to any debt collector - you never know if they are legit and they could get your bank acct info and rob you blind!