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Portfolio Recovery - unverified - wrong balance

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Anonymous
Not applicable

Portfolio Recovery - unverified - wrong balance

I have a collections item from Portfolio Recovery Associates. I sent them a debt validation letter in early November and never heard back. The balance they are claiming is much higher than the original creditor every reported.  I've contacted the original creditor and PRA by phone and tried to get some info about how they are comming up with this  balance, but each says the other has all the records.    I found the PRA complaints email address and am wanting to send something off tonight. Will including a copy of the DV letter I mailed more than 90 days ago. If that doesn't take care of this how can I get verification of what this balance is supposed to be made up of?  I've read debt validation is supposed to include " a list of charges amounting to the balance owed" but can't find any more details (case, law, rule number etc) or how to enforce it. 

 

Thanks.

Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: Portfolio Recovery - unverified - wrong balance

A DV request under the FDCPA imposes no requirement to or period for sending the requested validation.

If the DV is timely, meaning sent either without prior dunning notice or within 30 days of dunning notice, its effect is to impose a cease collection bar, which remains in effect until such time as the debt collector chooses to send validation.

 

They can choose to cease further collection activities and not respond.

 

As for the amount asserted to be owed by the debt collector exceeding the amount previously owed to the creditor, FDCPA 808(1) permits a debt collector to also collect on amounts in addition to the principal amount of the debt, including interest or other fees, if the contract that created the debt explicitly authorizes such amounts or is otherwise permitted by law.  It is common for the amount of the debt to increase as it remains unpaid.

Message 2 of 7
Anonymous
Not applicable

Re: Portfolio Recovery - unverified - wrong balance

Thanks for the info. Pretty sure DVs can also be used to remove negative items in the CA doesn't respond though.  Will double check on this.  My main question is how do I get a breakdown of what charges/interest/fees are making up the balance they are claiming?  Especially on an older account when they claim they don't have the records. There must be a way. Otherwise a creditor could just say anyone with an abandoned account owed X amount and never have to prove how or why they owe it other than that they had an account in their name....

Message 3 of 7
Anonymous
Not applicable

Re: Portfolio Recovery - unverified - wrong balance


@Anonymous wrote:

I have a collections item from Portfolio Recovery Associates. I sent them a debt validation letter in early November and never heard back. The balance they are claiming is much higher than the original creditor every reported.  I've contacted the original creditor and PRA by phone and tried to get some info about how they are comming up with this  balance, but each says the other has all the records.    I found the PRA complaints email address and am wanting to send something off tonight. Will including a copy of the DV letter I mailed more than 90 days ago. If that doesn't take care of this how can I get verification of what this balance is supposed to be made up of?  I've read debt validation is supposed to include " a list of charges amounting to the balance owed" but can't find any more details (case, law, rule number etc) or how to enforce it. 

 

Thanks.


In this situation, I would advise to attempt to dispute the item off of your credit reports.  If they can't provide info to you, perhaps they also won't provide info to the CRA when asked in conenction with your dispute.  And if they don't respond to the CRA, off it goes.

 

Good Luck!

Message 4 of 7
RobertEG
Legendary Contributor

Re: Portfolio Recovery - unverified - wrong balance

FDCPA 809(b) does not list an itemization of the debt as a requirement in a debt validation request.

As with any interpretation of a broad or vague statute, it is left to the courts to interpret the intent on a case-by-case basis.

Some jurisdictions have case law supporting the interpretation that a DV request can impose a requirment to provide an itemization of the asserted debt, while other jurisdictions do not.

 

The DV process is not, and was never intended to be, a full legal fact-finding process requiring full supporting documentation/evidence.

The same applies to the dispute process under the FCRA.

Sections 809 and 611 require an investigation and a verification based on that investigation.  They do not specifically require that the debt collector "prove" the amount of the debt in order to verify the debt or accuracy of their reporting to a CRA.

 

A consumer always has the ability, if they contest the debt, to bring their own civil action, which then provides the ability to use the pre-trial discovery process to compel the production of all relevant evidence, such as an itemization of the asserted debt.

That will likely require consideration by the court of the contract that created the debt in order to determine whether any asserted amount complies with the provisions of FDCPA 808(1).

Message 5 of 7
srodier
Valued Member

Re: Portfolio Recovery - unverified - wrong balance

If I were you I would submit a complaint with CFPB. Had 3 accounts removed through them for the exact same thing in the last month.

Message 6 of 7
dragonfly66
Frequent Contributor

Re: Portfolio Recovery - unverified - wrong balance


@Anonymous wrote:

I have a collections item from Portfolio Recovery Associates. I sent them a debt validation letter in early November and never heard back. The balance they are claiming is much higher than the original creditor every reported.  I've contacted the original creditor and PRA by phone and tried to get some info about how they are comming up with this  balance, but each says the other has all the records.    I found the PRA complaints email address and am wanting to send something off tonight. Will including a copy of the DV letter I mailed more than 90 days ago. If that doesn't take care of this how can I get verification of what this balance is supposed to be made up of?  I've read debt validation is supposed to include " a list of charges amounting to the balance owed" but can't find any more details (case, law, rule number etc) or how to enforce it. 

 

Thanks.


I'm a little confused by the highlighted language above.  If you sent them a DV letter and they never responded, did Portfolio subsequently report this to the credit bureas?  I'm  just curious as to why you would fight them on the amount if they can't validate the debt anyway, and they aren't reporting it.

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