Some questions about Pioneer Recovery [repayment agreement] [creditor]
Background: Almost three years ago I had a large credit card account go delinquent. I worked out a repayment agreement and agreed to a monthly payment to be taken out of my checking account each month automatically by the creditor. I did pretty good but was not perfect. About a year ago, the account got to 120 days late. Since then I have been perfect in making my payments. For some reason, without calling or writing, they failed to take the August payment out of my account as agreed. The next day they charged it off. On September 7, they called and I worked out a settlement with their Recovery department. They were to take out the first payment on the settlement this Friday.
Update: Last night I got a call from Portfolio Recovery saying they had purchased the debt from the CC company on September 8, the day after my settlement agreement with the OC, and knew nothing of a settlement. I just listened and said I had to research the issue. I pulled my credit report this morning and they pulled a hard inquiry yesterday but are not reporting the account yet. The CSR said they would not report it. The OC is now reporting a $0 balance, charge off.
I know that I need to immediately do a DV to Portfolio. I have not yet received a letter from them but they said they mailed one last Friday. And, I plan on calling the OC and finding out what happened to our agreement. And it will be recorded.
Now some questions:
1. Why would the OC sell it to a CA after working out a settlement agreement?
2. Does Portfolio report to the CRA's on accounts they purchased?
3. Since this was sold within a week or so of chargeoff, is this a typical deal where the CA paid pennies on the dollar, or do they have real money invested? If so, any idea how much? Any guesses?
4. Why would the OC sell the debt this quickly without trying to get a CA to collect on a commission first?
5. Can I expect Portfolio to validate, ignore my request, or send it on to another CA? Or, will they sue?
6. Assuming that they can validate, any ideas what I can reasonably expect to settle with them for?
Thanks for any comments
Reply:Well, you can expect your rights to be violated by the CA….
they probably paid 10 cents on the dollar or thereabouts
you've GOT to go to radio shack and buy a phone recorder (if legal in your state)…ANYTHING they say on the phone NEVER HAPPENED…unless YOU can prove it
Reply:BOA/MBNA said they noted the settlement agreement in the file, but the CSR failed to set up the payments in the system. So it was their fault that it was sent to the collection agency. I am waiting for a call back from the CSR to see what happened. BOA/MBNA did say it was sold to Portfolio Recovery.
So, does anyone have any answers to the questions I originally posted on what I can expect from Portfolio? I figure the DV will buy me some time, but I need some idea what to expect. And, in these circumstances, is this an instance of them buying a recent chargeoff for a reasonable price, or is it the purchase of a junk debt for pennies on the dollar?
BOA/MBNA just called back and said the payments were in the system and the account should not have been sold to Portfolio. He will have a manager call me after 12.
Reply:I would probably contact the OC and ask them why they're violating the agreement
Reply:Date of first delinquency was about this time three years ago. Our SOL is four years. I never brought the account current. I opted out and all the old addresses are gone.
Reply:What is the DofD?
Did you ever bring the Acct. current?
What is your State SOL?
http://whychat.5u.com/States/states.html
Have you opted out and deleted old addresses from your CR?
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