Welcome to our comprehensive guide on resolving hurtful accounts and improving your credit score. In this article, we will address the concerns associated with Portfolio Recovery and provide you with effective strategies to delete a Portfolio Recovery collection account from your credit report. At Cambio, we understand the impact that hurtful accounts like collections can have on your creditworthiness. We’re here to help you get out of collections so you can improve your credit score!
Understanding Portfolio Recovery
What is Portfolio Recovery?
Portfolio Recovery is a prominent name in the debt collection industry. As an affiliate of Portfolio Recovery Associates LLC (PRA), they specialize in acquiring and collecting consumer debts. Resolving hurtful accounts from Portfolio Recovery is crucial to improving your credit score and financial well-being.
Why is Portfolio Recovery Calling Me?
Receiving calls from any collection agency can be unsettling. These calls are typically made to collect outstanding debts owed by consumers. If you’re receiving calls from Portfolio Recovery Associates, they are likely claiming you have an unsettled debt that they now own or are currently servicing. Keep in mind, many collection agencies make mistakes and it’s important to verify and validate that Portfolio Recovery Associates are not infringing upon your rights.
A History of Collection Misconduct
It’s common to wonder if Portfolio Recovery is a scam. When an unknown number calls you asking for payment, it is only logical to be wary. Portfolio Recovery is a legitimate collection agency. However, they have consistently made headlines for breaking the law. For example, in March of 2023, the Consumer Financial Protection Bureau (CFPB) called on courts to require Portfolio Recovery Associates LLC pay over $24 million in restitution for allegedly violating past court orders, as well as failing to investigate consumer disputes.
In 2015, the company was found to be engaging in the following illegal collection practices:
- Collection debt outside of the statute of limitations (the amount of time a debt can legally be collected)
- Collecting debt from consumers with no legal basis
- Making misleading or false statement
- Filing false affidavits
The CFPB charged the agency with making tens of thousands of false claims against consumers without the required documentation to support these claims. This misconduct is why it is so important to validate any debt on your credit report that is reported by Portfolio Recovery. Here are the steps to take to delete a misreported account from your credit report.
Introducing Cambio: Your Credit Score Solution
Cambio is an app designed to empower individuals in their journey to improve credit scores quickly. Our user-friendly platform offers a range of features to assist you in resolving hurtful accounts, including those from Portfolio Recovery. With Cambio, you can take control of your credit and pave the way for a brighter financial future. Click here to get started.
Or read on to get started on your own. Reach out whenever you need help!
Validating a Collection Account
The first thing to do when you notice a collection account on your credit report is to obtain proof that the collection agency is legally and fairly collecting a debt. The Fair Debt Collection Practices Act (FDCPA) gives you the right to request written verification of any debt being reported on your credit report. First, mail this debt validation letter template to Portfolio Recovery Associates.
This debt validation letter will requires the collection agency to mail you written proof that you owe the debt they’re collecting. If they cannot provide this proof within 30 days, they must remove the debt from your credit report.
The Power of Disputes
As mentioned above, it is possible the collection account should not be on your report in the first place. Any account can be disputed with the credit bureaus without negatively impacting your credit score. This dispute will ensure the credit bureaus investigate the account and, if they find that it is indeed inaccurate, it could be removed from your credit report completely. A deleted collection account could improve your credit score by as much as 100 points!
To dispute a collection account on your own, mail this free collection dispute template to each of the three credit bureaus. If you’d like Cambio to do this step for you, download the Cambio app and we’ll take care of it.
Here are some best practices when sending a dispute letter to the credit bureaus:
– Only dispute items you believe are inaccurate.
– Send your dispute via mail. This is because letter disputes are processed differently than online disputes.
– Add any copies of evidence that support your dispute. This could include receipts, police reports, etc.
The Power of Pay-for-Delete with Portfolio Recovery
If either of the above strategies do not remove the account from your credit report, it’s likely the debt is valid. In this case, you can try what’s called a pay for delete. This is a strategy in which you negotiate with your creditor to have them remove the account from your credit report upon payment. It’s important to get any agreement in writing.
Download our free Pay to Delete PDF Template to do this strategy on your own. Or, download Cambio today to get some extra help.
Keep these best practices in mind when negotiating a “Pay for delete” with a collections agency:
– Only agree to payments you can truly afford
– Never admit ownership of the debt
– Do not make payment until you receive a signed agreement letter from the collection agency before making any payments. Otherwise, they have no legal obligation to remove the debt from your credit report upon payment.
Should I Pay Portfolio Recovery Associates?
The decision of whether to pay Portfolio Recovery is a common dilemma. Assessing your financial situation and considering the long-term benefits is crucial. Cambio can provide guidance and support throughout the decision-making process, helping you make an informed choice that aligns with your credit goals and overall financial well-being.
Conclusion
Deleting Portfolio Recovery from your credit report is a significant step towards improving your credit score and overall financial well-being. At Cambio, we understand the challenges associated with resolving hurtful accounts, and we’re here to support you every step of the way. Our user-friendly app and expert guidance can help you achieve your credit goals, including successfully navigating through the impact of Portfolio Recovery.
Remember, with Cambio, you have the power to take control of your credit and pave the way for a brighter financial future. Say goodbye to the burden of Portfolio Recovery and embrace a fresh start. Install the Cambio app today and let us help you delete Portfolio Recovery from your credit report, one step at a time.
