Performant Recovery Inc.

[comebackkid15]

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Well, seems like I just got a notice about a debt from 2011 State Tax Delinquency for $2k and its now in the hands of Performant Recovery. 

While this is bothersome, it has yet to be reported to my CR, so the clock is ticking to stop disaster.

I would like to know if anyone's dealt with these people and if making a deal to settle for less and avoid taking a hit on the CR is possible? Can try to dispute totally, but dont want to take chance it may still come back or worse.

[mycreditscoreisfair]

The first step is to determine if this is a legitimate debt that you owe. If it is, there's nothing to dispute and you should just make a plan to pay it. If it isn't legitimate, then go through the dispute process.

The next step would be to determine who actually owns the debt. Your state either sold the debt to Performant Recovery or contracted them to recover the debt. If the debt is still owned by the state, then I would contact them directly to make the payment or to set up a payment plan.

If the debt is owned by Performant, you're going to have to deal with them. From a quick google search, they don't appear to be the greatest debt collection agency out there. So, hopefully you can just go through the state or have the means to pay/settle.

If it were me, I would decide how much I could pay or what payment plan would work and contact the state. Best case, they take your payments or set up a plan. Worst case they'll tell you to call Performant.

[Anonymous]

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@comebackkid15 wrote:

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Well, seems like I just got a notice about a debt from 2011 State Tax Delinquency for $2k and its now in the hands of Performant Recovery. 

While this is bothersome, it has yet to be reported to my CR, so the clock is ticking to stop disaster.

I would like to know if anyone's dealt with these people and if making a deal to settle for less and avoid taking a hit on the CR is possible? Can try to dispute totally, but dont want to take chance it may still come back or worse.

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Performant doesnt report tax collections to your CRs. I have a few of these from Performant. The State or the IRS owns the debt and it is completelt legit for them to "outsource" these tax collections (which will haunt you for forever and a day) for assistance. It is generally for people that have dodge these owed taxes for sometime and feel like they have become "uncollectable" and use them to track you down one way or another.

If you do not want to deal with Performant, you simply tell them you will not work with them, but then you will need to work with the state or the IRS. I would not dispute these guys, I would handle the tax situation as they could eventually garnish you, place liens, levy bank accounts, keep your taxes, etc. I have had all of this happen and it is no fun.

[comebackkid15]

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@Anonymous wrote

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Performant doesnt report tax collections to your CRs. I have a few of these from Performant. The State or the IRS owns the debt and it is completelt legit for them to "outsource" these tax collections (which will haunt you for forever and a day) for assistance. It is generally for people that have dodge these owed taxes for sometime and feel like they have become "uncollectable" and use them to track you down one way or another.

If you do not want to deal with Performant, you simply tell them you will not work with them, but then you will need to work with the state or the IRS. I would not dispute these guys, I would handle the tax situation as they could eventually garnish you, place liens, levy bank accounts, keep your taxes, etc. I have had all of this happen and it is no fun.

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 Well, if that's the case that the State is using these guys to collect, yeah I'd be HAPPY to deal with the State instead...eyeroll,  lol.

All kidding aside, I'll try to contact the State Revenue dept and see if they can work out something...or even if they'll even try. 

But final follow up- you're saying that Proformant won't or cant report this to CRA after 30 days? Not trying to dodge or anything, just want to make sure I can keep ANY baddies like that from parking on my report fir another 7 years!

[Anonymous]

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@comebackkid15 wrote:

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@Anonymous wrote

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Performant doesnt report tax collections to your CRs. I have a few of these from Performant. The State or the IRS owns the debt and it is completelt legit for them to "outsource" these tax collections (which will haunt you for forever and a day) for assistance. It is generally for people that have dodge these owed taxes for sometime and feel like they have become "uncollectable" and use them to track you down one way or another.

If you do not want to deal with Performant, you simply tell them you will not work with them, but then you will need to work with the state or the IRS. I would not dispute these guys, I would handle the tax situation as they could eventually garnish you, place liens, levy bank accounts, keep your taxes, etc. I have had all of this happen and it is no fun.

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 Well, if that's the case that the State is using these guys to collect, yeah I'd be HAPPY to deal with the State instead...eyeroll,  lol.

All kidding aside, I'll try to contact the State Revenue dept and see if they can work out something...or even if they'll even try. 

But final follow up- you're saying that Proformant won't or cant report this to CRA after 30 days? Not trying to dodge or anything, just want to make sure I can keep ANY baddies like that from parking on my report fir another 7 years!

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I dont believe it is a "can't" situation, but I would have to ask @RobertEG . I know judgements are no longer listed (popular for taxes). I am just saying they "haven't", yet. I got notified maybe 6-9 months ago.

[gdale6]

Any debts from 2011 are to late to report they would be past the 7.5 yr max time to report on your credit. I would settle it though the state can continue to collect forever and they still can use laws to seize any refunds you may have coming and even your bank account without getting a judgment.

[Anonymous]

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@gdale6 wrote:

Any debts from 2011 are to late to report they would be past the 7.5 yr max time to report on your credit. I would settle it though the state can continue to collect forever and they still can use laws to seize any refunds you may have coming and even your bank account without getting a judgment.

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I will say taxes can be kinda tricky. I waited the 10 years from when they were due...you know so I no longer owed them, but apparently they do not become "delinquent" until they assess, as that is when they say they are actually trying to start "collecting" and when the 10 year clock starts. I am not sure how any of that actually work when it comes to reporting. Does the DoFD start when taxes are due or when they finally assess? They can apparently take as long as they want to assess, like decades, if they wanted. 

Just like with, say, may utility bill that is in collections. DoFD, actual DoFD, was year(s) prior to what is listed on my credit reports, but apparently since it is not reported monthly to the bureaus, they use the date that it went to collections. I feel like I could potentially go thru the work of proving DoFD, but I do not think it would actually matter, I think they use a different time measurement system for utilities.

Also, like with the higher education act, fed backed loans are not required to have lates removed from the bureaus until they are repaid (this is not common in practice), but certainly is an option for the bureaus to not age out Fed Loans that have defaulted after 7 years or lates. I might be a little muddy on this one, but at least most of it is accurate, I believe.

Who knows if there are separate and specific provisions for taxes in reporting.

I am carrying on, but these are just my thoughts on it, not to say it is the truth or what it "should" be, but what I have experienced and that others DPs have also supported.

I am certainly at least grateful that judgements are no longer listed! 3 majors off my CRs in 2017 that I was definitely glad to see go!

[comebackkid15]

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@gdale6 wrote:

Any debts from 2011 are to late to report they would be past the 7.5 yr max time to report on your credit. I would settle it though the state can continue to collect forever and they still can use laws to seize any refunds you may have coming and even your bank account without getting a judgment.

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I have no problem to settle...its getting THEM to accept less without having to sign over my blackened soul as well.

But whom to deal with that's more likely to deal...Proformant or the State? That be the kink.

[Anonymous]

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@comebackkid15 wrote:

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@gdale6 wrote:

Any debts from 2011 are to late to report they would be past the 7.5 yr max time to report on your credit. I would settle it though the state can continue to collect forever and they still can use laws to seize any refunds you may have coming and even your bank account without getting a judgment.

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I have no problem to settle...its getting THEM to accept less without having to sign over my blackened soul as well.

But whom to deal with that's more likely to deal...Proformant or the State? That be the kink.

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That is an excellent question! If you get to the answer before me, please share! I am planning tackling taxes this year once I get my SLs all in order (rehabs are done, but I have to get repayment plans orgainzed once transferred to servicers), so I will follow up with which is the better path.

In the bit of research I have done, I am only slightly leaning towards the IRS/State because it seems like the repayment plans are a tad more flexible and may be able to settle up for less perhaps easier/for less? I am not sure how entirely flexible Performant can be as an outside collector for the taxes and what their repayment options are. I will have to do more research and then start making calls.

Apparently the State/IRS will not deal with you if you have been assigned to one of their CAs. You have to refuse/decline to work with the CA...so I guess it will be important to feel out the best move before making a totally wrong one! I tried running repayment scenarios thru the IRS and was previously able to, but now the owed taxes are blocked from being settled/repaid directly to the IRS. I am currently forced to work with Performamt until I refuse to.

[RobertEG]

Either the state or federal governments can place tax liens for unpaid taxes, and up until 2017, each of the big-3 CRAs were routinely doing their own reviews of those public records, and including tax liens in their credit files/reports.

The attys general of several states brought civil action against the CRAs for numerous issues, one of which was the inclusion by the CRAs of many inaccurate public record documents in their credit reports, of which tax liens and civil judgments were a primary focus.

In settlement of that civil suit, the big-3 CRAs formally agreed to remove all tax liens and civil judgments that did not at least include either an express showing of the consumer's DOB of SSN.   The CRAs have subsequently established a policy under their National Consumer Assistance Plan for removal of all civil judgments and tax liens.  

Thus, inclusion of tax liens per se is no longer an issue.

However, the settlement agreement and the CRA's National Consumer Assistance Plan did not expressly extend to debt collectors who might also have obtained authority to collection tax liens or civil judgments, and thus collections are not included in the CRA policy of exclusion of tax liens and civil judgments per se.

If you have either and become aware of a debt collector attempting to collect a tax lien or civil judgment debt, you can contact them an offer to pay in exchange for their agreement not to report to a CRA.   If they agree, you then have an established non-reporting contract that is legally enforceable.