How To Remove Portfolio Recovery From Credit Report

Have you lately seen a negative item on your credit report labeled Portfolio Recovery or Portfolio RC, or received a phone call or a letter from them requesting payment?

When creditors come up short, they sell the debt to collection organizations like Portfolio Recovery. Most collection companies disclose the debt to credit bureaus so that you have collections on your credit record, which is bad.

If you notice Portfolio Recovery on your credit report, you can take steps to remove portfolio recovery from your credit report before it affects your credit score. 

What are Portfolio Recovery Associates?

Portfolio Recovery Associates, often known as Portfolio Recovery, is one of the world’s largest debt-collecting firms. This collection organization buys old debt from businesses and attempts to collect it. Because the debt is usually old, they may purchase it very cheaply.

Portfolio Recovery Associates, LLC, founded in 1996, is a branch of the debt collection firm PRA Group, Inc. They buy many types of consumer debt, such as credit cards and automobile loan debt.

How Does Portfolio Recovery Associate Work?

Portfolio Recovery purchases several accounts containing old debt from businesses that have decided to give up and “charge off” the accounts.

In other words, if the original or initial creditor cannot collect on a loan, the obligation will be written off as a loss. This is known as a charge-off. Companies can still make a little profit by selling existing debt to third-party collection firms. Portfolio Recovery Associates, LLC enters the scene here.

Portfolio Recovery will pay cents on the dollar for an old debt. Portfolio Recovery, then, becomes the debt collector by acquiring previous debt, betting that it can collect and profit from the debt.

Portfolio Recovery Associates, LLC is not a pyramid scheme. If you receive contact from this Virginia-based debt collection agency, it is because you owe the agency money, and the firm has a strong motive to collect on your debt.

How To Remove Portfolio Recovery From Credit Report

If they believes you have an unpaid debt, they will contact you by phone, email, or letter. The purpose debt collectors contact you is simple: they aim to put you under pressure to pay.

Regrettably, their staff will continue approaching you until you pay the debt, establish that it is not yours, or make agreements with them (or with your original creditor).

Don’t make the mistake of ignoring debt collection agencies like Portfolio Recovery Associates—you might wind up being sued and having your wages garnished. It’s better to interact with them strategically to avoid paying or obtaining the greatest bargain possible.

To begin, you may stop Portfolio Recovery Associates from contacting you (at least temporarily) by sending them a debt verification letter.

1. Send a Debt Verification Letter

A debt verification letter is a request which compels a debt collector to submit further proof of a debt. You must submit it all within thirty days of their initial contact. It should be noted that they should have first provided you a debt validation letter demonstrating you owe the amount, as required by law.

Third-party debt collection companies, such as Portfolio Recovery Associates, are obligated by federal law to stop contacting you once you submit a debt verification letter.

You should never pay a debt that you do not acknowledge. Asking Portfolio Recovery Associates to submit paperwork can assist you in determining whether or not this is a valid obligation that you must pay. It’s a simple approach to determine whether the debt collector is a hoax.

If Portfolio Recovery Associates cannot offer more information regarding the debt (which is typically the case), they are forced to erase it from your records.

2. Try And Negotiate With Portfolio Recovery Associates

Unfortunately, eliminating them from your credit record will be extremely tough if the debt is real and less than seven years old (although not impossible).

At this time, your best option is just to pay the loan. Because newer credit scoring models disregard paid-off collection accounts, paying off your collection will increase your credit score even though you can’t delete the item.

When you pay, however, there are two recorded over the past bargaining techniques you may take to eliminate Portfolio Recovery Associates off your credit report:

• You might be able to persuade Portfolio Recovery Associates to erase the bad mark in exchange for the loan being paid off. Send them a pay-for-delete letter to start conversations on these lines.
  
• After you have paid your debt off, you might attempt this alternative technique. Once the account has been paid off, you can write Portfolio Recovery Associates a goodwill letter requesting that they sympathize with your circumstances and erase the notation from your credit report as a courtesy.

3. Wait For Seven Years For The Collection To Fall Off

Your last (and probably not-so-good) option is to wait seven years to complete so the debt automatically falls off your credit report. 

Sadly, most collection accounts remain on your credit record for seven years after your initial missed payment. The loan will stay on your credit record even if you repay them

Know Your Rights

The Fair Debt Collection Practices Act (FDCPA) defines debtors’ rights and debt collectors’ duties. Here are a few highlights.

• Debt collection agencies may not use profanity or threaten to damage you, your character, or your property.
  
• Debt collectors should identify themselves and the firm they work for. They are not permitted to pose as law enforcement and other officials.
  
• A debt collector may not intimidate or threaten you with incarceration or asset confiscation.
  
• A debt collection agency is prohibited from contacting you before 8 a.m. or after 9 p.m.
  
• A debt collector can not contact you at work.
  
• If you have an attorney, the collector must consult with him or her.
  
• A debt collection agency may not interact with or inform your friends or family about your debts.

If you suspect a debt collector is violating any law, you can complain about them to the FTC, the Consumer Financial Protection Bureau, and your state’s attorney general.

Final Word

Portfolio Recovery Associates is a debt collection service that collects extremely overdue loans that lenders have charged off, transferred, or sold.

Collection agencies will not leave you alone. They will continue to bother you, and you may wind up in court. It is not an option to flee.

Take the initiative instead. Understand your rights and how to negotiate with debt collectors. You can manage the process and issue if you are attentive and proactive. It won’t be a nice experience, but it will be much nicer if you’re in control!

If you want to have a professional handle it and be done with it, we recommend checking out Lexington Law Credit Repair. They will take care of your credit, help you remove portfolio recovery from your credit report, and they normally eliminate bad items faster than you would if you tried to do it alone.