topic Re: Settlement, SOL and PRA in Rebuilding Your Credit

Settlement, SOL and PRA

Anonymous — Mon, 03 Dec 2018 20:10:14 GMT

I have an unpaid collection with Portfolio Recovery Associates that will fall off in August 2020. DOFD is 9/1/13. In the past, I did not have the funds to pay off this debt, but now I do. I live in Pennsylvania and believe the statute of limitations has expired. PRA offered me settlement deals even stating that they would not sue me for the debt, but I've been afraid of entering a payment agreement and resetting the SOL.

My situation has changed, as I mentioned before I am now in a position where I could settle and pay the debt. I am also preparing to purchase my first home next year and I understand that I may need to pay the collection in order to be approved. How does this work exactly? If I settle and PRA deletes the tradeline in approximately 30 days, that would be ideal. However, what if I settle and they don't delete the tradeline, would the SOL reset? And could they sue me?

Re: Settlement, SOL and PRA

Anonymous — Mon, 03 Dec 2018 21:12:57 GMT

From what their website says they do request it from the CRA to remove it. I would still request it in a letter. There for if it’s not removed you would have leverage.

Re: Settlement, SOL and PRA

RobertEG — Mon, 03 Dec 2018 21:39:32 GMT

If you discharge the debt, regardless of whether you pay in full of they accept a settlement for less, there is no longer any debt.

If it is clear that they have accepted whatever you pay as satisfaction of the debt, then there is no longer any issue of SOL.

A statute of limitations only applies to the ability to bring civil action, which goes away once the debt is discharged.

If, by SOL, you are referring to the credit report exclusion of their reported collection, credit report exclusion is unrelated to statute of limitations for civil action. The exclusion period under FCRA 605(c) for collections is no later than 7 years plus 180 days from DOFD, and applies regardless of whether the debt is paid, unpaid, or under a repayment plan. There is no reset of the credit report exclusion period based on any issues of payment of the debt.

Re: Settlement, SOL and PRA

Anonymous — Tue, 04 Dec 2018 13:43:11 GMT

Hi RobertEG, thank you for clearing up about the settlement and SOL. I was concerned about the SOL resetting not the reporting, but that does make sense if the debt is settled then there's no longer an issue for SOL. My next question would be, how to contact PRA and talk to them about a settlement without resetting the SOL if they do not accept the arrangement? If I call (or write) and say it's my debt and I'd like to make a payment to settle, would that reset the SOL if they do not accept the terms?

Thank you in advance for your assistance.

Re: Settlement, SOL and PRA

RobertEG — Tue, 04 Dec 2018 16:05:26 GMT

When you contact the creditor, make it clear that you are not admitting the legitimacy of the debt, but only seeking to clear up the issue by possible settlement with them.

Re: Settlement, SOL and PRA

Caardvark — Tue, 04 Dec 2018 16:28:20 GMT

I have a little experience with them as I recently negotiated a PFD with Portfolio Recovery (for 40% of the balance). Here are my thoughts:

Regarding your question about "resetting the SOL", simply avoid acknowledging the debt is yours. I went a step further and made a point to tell them several times during the call that the debt was not mine (though in my case it truly wasn't). This should suffice.
You can reach them by calling their main number (800)-772-1413
If you are willing to pay >55% of the balance, I don't think you'll have any problem settling on the first call. Just stick to your guns. Bear in mind the CSR who answers the phone will not have the authority to accept. But, they'll escalate to someone who does
If you want to settle for less than ~55% it might take more time. You'll know because you'll hit a brick wall with them and they'll tell you "that's the best we can do". This happened with me. I told them the following:
1. I'm not hiding. You have my phone number and I'm willing to settle and pay "Today"
2. I'm willing to wait it out if they don't
3. The SOL has passed. Therefore, they have no recourse and 40% is better than 0%
4. I went about my life and they called me again about 2-3 weeks later (on October 31st). I had to go through the spiel again but stuck to my guns and they accepted

Other comments:

I was always nice but always firm
I reiterated my talking points to each person when escalated
The front line CSR always had a little attitude but once escalated they were very nice and easy to deal with
It's possible the day (last day of the month) may have contributed to their willingness to settle for 40%. Assuming they have quotas or earn commission/bonus it might have been a factor

Re: Settlement, SOL and PRA

Anonymous — Mon, 07 Jan 2019 17:54:37 GMT

Hi Caardvark, wanted to thank you for sharing your thoughts. Prior to new years, I called the number you provided, spoke with someone and reached a settlement of 50%. They said I would receive a receipt in approximately 10 days (expecting the letter sometime this week) and then within 30 days of the payment being received, they will send a notification to the CRAs to remove the tradeline. So far, Transunion and Experian alerted that the balance changed and it's reporting as $0 balance.

Re: Settlement, SOL and PRA

Caardvark — Wed, 30 Jan 2019 18:23:09 GMT

@jmg5100

Finally saw your reeponse. Thanks.

How'd everything workout. Has it been 30 days yet? If so, I assume (crossing fingers) the account has been deleted?

Re: Settlement, SOL and PRA

Anonymous — Wed, 30 Jan 2019 18:25:37 GMT

Hi all, I wanted to share another update. PRA did send the letter stating now that the account was settled, they would notify to CRAs to delete the tradeline from my report. So far Transunion reported that the collection was removed and my score jumped up. I'm still waiting for Equifax and Experian to update.

Re: Settlement, SOL and PRA

Anonymous — Wed, 30 Jan 2019 18:32:33 GMT

Crazy, I just came on to post another update

Yes, Transunion reported that the collection was removed and my score got a significant bump. Almost felt like crying tears of joy because I thought this would remain on my reports for another year. Still waiting on Experian and Equifax to report. Thank you again for your help.

Re: Settlement, SOL and PRA

Caardvark — Wed, 30 Jan 2019 18:47:07 GMT

Congrats! Yes, it is a tremendous feeling!

TU and EX were within a day or two of one another but EQ took a little longer. So... don't panic if it it takes them another week.

Re: Settlement, SOL and PRA

Anonymous — Mon, 04 Feb 2019 14:05:53 GMT

Thank you! Yesterday my EX score increased, but I didn’t get notification that the collection was removed, so I’m hoping to receive that update either today or tomorrow.