topic Re: Collection reporting after assigned to an Attorney in Rebuilding Your Credit

Collection reporting after assigned to an Attorney

azidovsky — Sat, 20 Feb 2021 17:46:31 GMT

I have 2 collections with Portfolio Recovery. According to their website, they delete when the debt is satisfied. I paid them in December and they have not deleted. I called them yesterday and they referred me to their attorney's office that I paid the account with. I actually made a settlement with the attorney, made the payment and Portfolio is reporting the difference as the amount deliquent. They said it is up to the attorney and not them. Does this mean they no longer own the debt, and if I did pay the attorney shouldn't they delete it because they no longer own the debt. Any advice?

Thank you!

Re: Collection reporting after assigned to an Attorney

thornback — Sat, 20 Feb 2021 18:06:53 GMT

HI and welcome to the forums!

Portfolio (PRA) is generally very good at deleting after a debt is satisfied. Usually, they will first update the tradeline to reflect payment and then delete the following reporting cycle -- this process is usually complete within 60 days but can sometimes take a bit longer. This may just be a matter of waiting for the deletion to occur and whomever you spoke with at PRA that told you it's 'up to the attorney' simply had not idea of what they spoke (attorney's wouldn't be able to delete the collection tradeline, only PRA can do that). When was the tradeline updated on your credit reports to reflect the payment made to the attorney?

PRA still owns the debt -- the attorney was simply negotiating on their behalf since they pursued legal action. It's also possible that when the attorney reported your payment to PRA, that they did not indicate that payment was the negotiated settlment amount to satisfy the debt in full. Do you have any written documentation from your negotiations with the attorney that states the debt would be considered satisfied if you paid x amount? If not, then I'd suggest you reach out to the attorney and request something in writing that reflects your agreement. This way, if the collection isnt' deleted within the next 30 days, you can provide your settlement agreement to PRA as proof that the debt was satisfied.

Re: Collection reporting after assigned to an Attorney

azidovsky — Sat, 20 Feb 2021 18:27:19 GMT

Thornback, thank you for your response. I paid the Attorney Dec 23rd and Portfolio updated in early January a balance of $117 (this was the "leftover" after payoff amount). When I spoke with the rep from Portfolio yesterday she couldn't get me off the phone fast enough and referred me back to them. I logged into my account this morning and I do not see that collection account listed at all on the Portfolio website. I do see my other account (this was a judgment that I just completed paying off) and that account says paid in full.

Maybe it is just timing and I am not patient enough, but I will call the attorney's office because I didn't get it in writing. Thank you!

Re: Collection reporting after assigned to an Attorney

thornback — Sat, 20 Feb 2021 18:34:54 GMT

@azidovsky wrote:
Thornback, thank you for your response. I paid the Attorney Dec 23rd and Portfolio updated in early January a balance of $117 (this was the "leftover" after payoff amount). When I spoke with the rep from Portfolio yesterday she couldn't get me off the phone fast enough and referred me back to them. I logged into my account this morning and I do not see that collection account listed at all on the Portfolio website. I do see my other account (this was a judgment that I just completed paying off) and that account says paid in full.

Maybe it is just timing and I am not patient enough, but I will call the attorney's office because I didn't get it in writing. Thank you!

Patience is the hardest part... lol. Yea, see what documentation you can get from the attorney (it's good to have/keep a record of all paid debts anyway - even if you end up not needing it for this specific issue) and then try to give the removal till at least the end of Feb. before you reach out to PRA again. I'm thinking this is just a matter of a slow deletion.