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Advice on Portfolio Recovery

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Advice on Portfolio Recovery

Looking for advice on a collection from Portfolio Recovery that is on my report. I believe they purchased this debt in 2016 (possibly from another collection agency) The original debt is from 2013 from CIT Bank (I believe possibly a Dell account). The have been reporting from 2016 to current for this account. Need advice on whether to wait for it to drop off or try to contact to possible settle, and if so how to go about it. They have stopped contacting me about the debt and I am afraid to contact them as I don't want to bring it up again if it will just drop off. I had another account from them where they filed a suit in 2016. I retained a lawyer and after a lengthy negotiation they settled for half. I never dealt with them the lawyer took care of it and I just wrote a check.

 

I am currently in the process of rebuilding my credit and besides a few late payments in 2015 this is the only derogatory mark I have left. My score is sitting at around 650 and I have reason to believe this is holding it back around 40 points. I have brought my credit usage way down from ~80% to 43% and when all cards report this month it will be under 30%. I just got approved for the Discover IT cashback (first card since 2011, and only 2nd HP showing on my report)

 

There seems to be a mixed bag of results with them. Some negotiating ~60% with them and getting it removed, some paying and not getting it removed, and them some not getting anywhere at all. I'm fine with paying them a portion of it, but would like it removed or at least showing a $0 balance on my report if I do.

 

 

Message 1 of 16
15 REPLIES 15
Contributor

Re: Advice on Portfolio Recovery

Hi

I dnt no if your aware.
PR has a new reporting policy.
Once you settle and pay they will delete from all 3 bureaus.
Send u confirmation letter.
A month ago I called agreed on a settlement offer paid
Within 30 days account was removed
It just how long it takes the bureaus to update
And yes this would boost scores
Also will no longer report
I hd really good service and very timely response
Good luck
Message 2 of 16
Super Contributor

Re: Advice on Portfolio Recovery

If the debt is more than 2 yrs old which it looks like. PR will delete it from your reports after paid. Jump on it! Good Luck!





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC at 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game. Pay it Forward!
Message 3 of 16
Frequent Contributor

Re: Advice on Portfolio Recovery

Yep what each of the previous Fico members have stated is correct.

Jump on this PFD now!  PR will delete (they did mine during my rebuild).

 


Starting Score: EX 551|TU 565|EQ 556
Current Score: EX 551|TU 565|EQ 556
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Message 4 of 16
Frequent Contributor

Re: Advice on Portfolio Recovery

My 2 cents:

 

  • PRA will definitely PFD so, it may be the best course of action
  • However, depending on the amount of the debt AND whether it is still within the SOL, it may be better to wait
  • If you do reach out to them, DO NOT acknowledge the debt is yours. It could reset the SOL
  • Your wiggle room to negotiate the settlement will be somewhat dependent upon
    • whether the debt is in/out of the SOL
    • your urgency/patience
  • If the debt is out of the SOL and you are willing to be patient (1-2 months) you should be able to negotiate a PFD settlement of 40-45% of the balance. 
  • If the debt is within the SOL and/or you need to delete it more quickly, you'll likely end up paying more (55-65%)
  • Depending on the severity of your previous late payments, you may or may not see much benefit from the PFD. How many late payments did you have and what were the severity (e.g. 30-days, 60-days, 90-days, 120-days...)

Message 5 of 16
Frequent Contributor

Re: Advice on Portfolio Recovery

From reading the boards, it appears that PRA updates the tradeline to show current prior to the deletion by the CRA.  How does the update to current effect the credit score?  Asking for a friend..LOL

Starting FICO 8 December 2017

FICO 8 as of 1/16/20



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Message 6 of 16
Established Contributor

Re: Advice on Portfolio Recovery

They will delete no matter how old the collection is 30 days after your payment. 






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Message 7 of 16
Member

Re: Advice on Portfolio Recovery

If it's originally from 2013, everything (original lender and collections agency) should drop off in 2020, so is it worth it to do anything other than let it drop off?

 

The problem I have with PFD is that it doesn't change the fact that you have a chargeoff with the original lender, which still hurts your score. How much of a jump do people that have done PFD see in their scores?

Message 8 of 16
Moderator

Re: Advice on Portfolio Recovery


@ProudMoney wrote:

If it's originally from 2013, everything (original lender and collections agency) should drop off in 2020, so is it worth it to do anything other than let it drop off?

 

The problem I have with PFD is that it doesn't change the fact that you have a chargeoff with the original lender, which still hurts your score. How much of a jump do people that have done PFD see in their scores?


If the OC has sold it and is reporting 0 then they are not going to report any payments made to the CA/JDB so it will remain aging as Fico calculates from the status update date. If your CA is reporting monthly its keeping you Fico down some points where a PFD would actually return those points to you. If the debt is past SOL then you can settle it for less than full balance. It would depend whether or not you want an increased score now or not opposed to waiting for it to reach CRTP max. Welcome to the board Smiley Happy

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Message 9 of 16
Member

Re: Advice on Portfolio Recovery


@gdale6 wrote:

@ProudMoney wrote:

If it's originally from 2013, everything (original lender and collections agency) should drop off in 2020, so is it worth it to do anything other than let it drop off?

 

The problem I have with PFD is that it doesn't change the fact that you have a chargeoff with the original lender, which still hurts your score. How much of a jump do people that have done PFD see in their scores?


If the OC has sold it and is reporting 0 then they are not going to report any payments made to the CA/JDB so it will remain aging as Fico calculates from the status update date. If your CA is reporting monthly its keeping you Fico down some points where a PFD would actually return those points to you. If the debt is past SOL then you can settle it for less than full balance. It would depend whether or not you want an increased score now or not opposed to waiting for it to reach CRTP max. Welcome to the board Smiley Happy


Yes, getting rid of the CA tradeline is going to help, I just wonder if it's going to make much of a difference on a derogatory mark that is set to fall off in a year anyway. Wondering if it's worth the money in this case. I can see how it would be worth it on a more recent chargeoff, because you've got longer to wait for it to fall off and you've got both the original creditor and the collections agency reporting negative info.

 

Would love to hear any experiences people have had in terms of just how many points they've seen their scores rise from doing a PFD, given the fact that the original creditor's chargeoff is still factored into their scores.

Message 10 of 16
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