Portfolio Recovery up to no good

[miguy22]

Let's be honest.

Portfolio Recovery is trying to contact my mom for a settled account from 1996 that she paid I believe 60% of a balance and the card closed out. The bank issuing the card went bankrupt a few years later, she received a letter notifying her of that activity.

She received a phone call yesterday trying to get information out of her to which she has no clue about these things. She thinks just ignoring them will do the trick but I know what goes on with these people and I'd like to know how to handle this type of situtation.

At first I thought DV them, but they provided no account to her. We live in Michigan, SOL is 7 years. Any ideas?

[MarineVietVet]

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@miguy22 wrote:

Let's be honest.

Portfolio Recovery is trying to contact my mom for a settled account from 1996 that she paid I believe 60% of a balance and the card closed out. The bank issuing the card went bankrupt a few years later, she received a letter notifying her of that activity.

She received a phone call yesterday trying to get information out of her to which she has no clue about these things. She thinks just ignoring them will do the trick but I know what goes on with these people and I'd like to know how to handle this type of situtation.

At first I thought DV them, but they provided no account to her. We live in Michigan, SOL is 7 years. Any ideas?

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Since they contacted her they now have 5 days to send a dunning letter to her or they are in violation. Once she receives that dunning letter I think a DV would be appropriate. They probably won't be able to validate and will go away.

She can also send them a letter telling them to cease all further communication with her per FDCPA 805(c):

(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collec­tor shall not communicate further with the consumer with respect to such debt, except—

(1) to advise the consumer that the debt collector’s further efforts are being terminated;

(2) to notify the consumer that the debt collector or credi­tor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified rem­edy.

If such notice from the consumer is made by mail, notifica­tion shall be complete upon receipt.

[RobertEG]

I would first determine whether or not the debt collector owns the debt.  The debt collector cannot assign or sell a debt that they dont own.

If the OC went bankrupt, the debt you owed to them would have  been an asset on their books when the BK was discharged.  What happpened to the debt?

DONT talk to the debt collector, period.

[miguy22]

As far as she knows the only debt was with the OC who was a bank that issued the credit card at the time. She was not able to pay all her bills at the time so she made settlements with her open accounts at the time. This particular bank took 60% ish of the balance and closed the account out then sent her a closed account letter. Shortly after they sent her another letter to say they filed bankruptcy and were notifying her of the activity but that was it.

Now years later, Portfolio has the info and is trying to collect on it as I've read they do. She owes no other debt and has nothing on her credit report so when they called she answered just to see what business they had, she got the info and told them it was taken care of and to stop calling. I've not heard that they called back since but I'm sure something will surface now that they have a lead on an old debt.

I just want to make sure she keeps away from them but is also able to take care of the situation before it does go somewhere.

[RobertEG]

If your settlement with them constituted legal payment in full, even though for less than the full amount, then any collection contract they had with a debt collector should have been updated to $0 legal balance owed.  No legal debt for you to pay.

From the day this debt collector made intitial communication, they were required to have provided, within 5-days, a formal, written collection (dunning) notice, informing you of who they are, who the OC was, the amount of the debt, and how to request debt validation.  FDCPA 809(a).

If they call again, I would tell them only one thing.  That they are now in violation of FDCPA 809(a), and until they provide formal collection notice, you have nothing more to say to them.  Click!

[CCOCD]

Be wary of Portfolio Recovery.I have several caller I.D. pictures from them for my lawyer.They call from several states and it doesn't always say Portfolio Recovery on the phone.

[IOBA]

My two cents...it sounds like the OC accepted settlement, but did not agree to the debt being considered paid in full.   They left the balance on their books, as a potential asset.   When the OC filed for BK, the trustee had to notify everyone who owed money to the OC what was going.

As part of the BK, the assets on the books (to include her 40% ish that was left on the books fairly or unfairly) were sold off to help pay the OC's bills.   

Who knows how long it took or where the 40%ish remaining balance journeyed before stopping at Portfolio.

Does your mom have a letter saying the OC would accept settlement as paid in full?

The other suggestions mentioned by other posters are great ideas too which should help.

[miguy22]

Yeah my mom would be a credit collector's worse nightmare, she is somewhat of a hoarder and 61, so she's saved every letter she's received since has been able to write one.

I'm having her dig around today just to make sure she can find it if we have to end up fighting anything but there has been no contact since the initial phone call from Portfolio and there has been no letter. I myself am still trying to work with them on a GW for my baddie they held but it looks like my email contact might have been a dud as I've got no response. His e-mail might be the way to go though if things escalate with my mom and I need to disupte for her, so at least I have that extra card in my back pocket.