I just got a summons for a $3300 debt with Portfolio Recovery. I do owe it, and I even got a notice from my credit card company saying they sold it to them. Should I call and try to settle? Is that the best way to handle this?
Get a debt lawyer. Portfolio Recovery was after me a while back, and my lawyer got them to drop the case in a week.
Shan said:
Get a debt lawyer. Portfolio Recovery was after me a while back, and my lawyer got them to drop the case in a week.
Yeah, and don’t contact them until you talk to a lawyer first. No calls, no texts, no emails. Let a lawyer handle it.
But don’t ignore the summons. You need to respond before the deadline.
Portfolio Recovery is one of the worst collection agencies out there. They’ll do anything to get their money.
Kari said:
Portfolio Recovery is one of the worst collection agencies out there. They’ll do anything to get their money.
Honestly, LVNV is even worse in my experience.
Kari said:
Portfolio Recovery is one of the worst collection agencies out there. They’ll do anything to get their money.
They don’t always have proof of ownership for the debt. Ask for the bill of sale from the original creditor. If they can’t provide it, you might be able to get the case dismissed.
In court, it’s not about whether you owe the debt. It’s about whether they can prove it.
If you call them, do not admit to anything. That can be used against you.
Even if you want to settle, file a response to the summons first. You can find templates online.
@Blake
If you agree to a settlement and pay it, do you still have to file a response?
Jonah said:
@Blake
If you agree to a settlement and pay it, do you still have to file a response?
Yes. Settlements take time to process, sometimes over a month. Meanwhile, your deadline to respond to the summons is usually 2-3 weeks. It’s better to file a response just to be safe.
Some of these comments are making it sound more extreme than it is. My dad had a case with Portfolio Recovery, and the judge just set up a payment plan for him.
Nyx said:
Some of these comments are making it sound more extreme than it is. My dad had a case with Portfolio Recovery, and the judge just set up a payment plan for him.
And no judgments?
Your credit already took the hit when the original creditor wrote off the debt. Portfolio Recovery bought it for way less than what you owe, so they will probably settle for a percentage of it.
Val said:
Your credit already took the hit when the original creditor wrote off the debt. Portfolio Recovery bought it for way less than what you owe, so they will probably settle for a percentage of it.
Yep, offer them 50 cents on the dollar and don’t budge.
@Jagger
If OP can get them to accept 30%, even better.
Val said:
@Jagger
If OP can get them to accept 30%, even better.
50% would be my absolute max though.
I called to negotiate, but they’re only willing to go down to $2800. Is that normal?
Hal said:
I called to negotiate, but they’re only willing to go down to $2800. Is that normal?
That’s pretty standard. They don’t have to settle at all. They could take it to court, get a judgment, and collect the full amount.
Ignore the advice that says ‘never go above 50%.’ Start low, but be realistic about what they might accept.
If you’re not sure what to do, it’s worth talking to a lawyer. Many offer free consultations for debt cases.
@Jonah
Yeah, that makes sense. After thinking about it, I see why they aren’t going much lower.
You must file a response to the summons. If you don’t, they’ll get a default judgment against you, and you could end up with wage garnishment or a frozen bank account.
Look up how to respond in your state or visit the courthouse for help.
If they took you to court, they probably have the paperwork to prove the debt. They’ll likely try to settle before a judgment. If they win in court, they could go after your wages or bank account.
Try offering half in 2-3 payments and see if they take it. If they get a judgment, it’ll just keep growing with interest.