I owe a debt to Citi Bank that went unpaid for a while because life got tough. Two years later, I’m trying to get back on track. I called Portfolio Recovery to set up a payment plan since I can’t pay in full. But they insist on a routing number and won’t accept debit cards. They said it’s because I live in Massachusetts, and they can’t email me the agreement, only fax or mail it.
This feels off. I’ve been told not to give out my full bank details because they could take more than agreed. The rep I spoke to, who gave her name as Rebecca Rose (sounds fake, right?), said I could renegotiate later.
What do you think? Should I be worried about giving them my bank info?
I used to work as a debt collector. First, ignore what Dave Ramsey says about dealing with collections. His advice can be outdated and not helpful in modern situations. Second, call the agency again and ask someone else why they won’t take a debit card or send an email. It might be due to a Massachusetts law, but double-check what they’re saying.
Using ACH payments isn’t necessarily risky, but you could open a separate bank account just for this purpose. That way, you protect your main account.
@Adi
Thanks! I’ve realized Dave’s advice is a bit outdated. He talks like it’s still the early 2000s, saying things like “just tell them to sue you.” I didn’t follow that advice, but I did end up getting sued anyway and got a letter from the sheriff.
It’s definitely time to find a better way to handle this.
Open a new bank account online and only use it for these payments. Don’t give them your main bank account info under any circumstances. It’s just safer that way.
Portfolio Recovery has a bad reputation. Do not give them access to your main checking account. Open a second account and only keep enough money in it for payments.
Have you tried paying on the Portfolio Recovery website? I make my monthly payments there using my debit card. Not sure why they wouldn’t let you do the same.
Jagger said:
Have you tried paying on the Portfolio Recovery website? I make my monthly payments there using my debit card. Not sure why they wouldn’t let you do the same.
I’m in Massachusetts too, and most debt collectors I’ve dealt with accept credit or debit cards. Maybe this is just their policy, not a state law.
I had a similar experience with Portfolio Recovery years ago. They wouldn’t accept anything but bank info, so I told them I’d only pay when they accepted checks or online payments. Eventually, I opened a free account just for them. That way, they could only access what I deposited.