What is Portfolio Recovery?
Portfolio Recovery is a publicly traded company that purchases large blocks of outstanding debt from large lenders around the country. Large lending companies have ledgers of “bad debt” on their books they have been unable to collect. Creditors have gone through all the procedures they have in place to collect from their customers on these overdue accounts, but have been unable to do so for a variety of reasons. In order to collect something from this “bad debt”, they bundle hundreds or thousands of accounts and sell them for pennies on the dollar to other collection companies. Portfolio Recovery is one of these companies.
Are Collection Agencies Legally Able to Collect Debts from Other Companies?
You get a notice from a company that you have never done business, and they are telling you that you owe them money. Can this really be happening? Yes, it can. Your debt to a company is considered an asset and they are able to do with it as they choose. They can continue to hold the debt and hope you will pay it someday, or they can sell it to another company just as they would a car or piece of furniture.
Many problems can occur when these large chunks of information are sold – information can slip through the cracks. You may have already paid the debt, or discharged it with a bankruptcy, but if they have your information and it shows that you owed this company money at the time they purchased the debt, they will do all they can to encourage you to pay your debt.
Portfolio Recovery Collections Effect on Your Credit Scores.
Portfolio Recovery collections can remain on your credit report for 7 years from the original delinquency date. Even if you are in a financial situation to work with them and pay off the debt, the collection is still considered a negative account and will be marked as a “paid collection” for up to 7 years.
When your credit score is in the low range and there are negative accounts present, it can impact more than just your financial life. Many insurance carriers check your credit report before insuring you. If your score is low, you will pay more or may not be insurable. Prospective landlords and employers can oftentimes check your credit – you may not be able to find a good job or a place to live.
My Story: How I Got Bad Credit
A few years ago, I went through some tough times in my life. I lost my job after the company I worked for went under. I made the unfortunate decision to live on my credit cards, thinking that I would be able to pay them off when I found a new job. The bills kept coming in and my credit card balances grew. Soon, I was unable to make my minimum monthly payments on my cards. I was unable to find work in the tumultuous economy and eventually, all of my credit card accounts were charged-off and sent to collection agencies.
I think it should be illegal for a company to treat people the way they treated me. They knew that I didn’t have the money to pay right away but they wouldn’t stop calling. They threatened me with legal action but I felt helpless because I wanted to pay the money back but I just couldn’t. I ended up filing for bankruptcy. I thought bankruptcy was the solution to all my problems but my credit score had a hard time bouncing back from filing for bankruptcy.
Credit Repair and Self Help
I felt like a second-class citizen for many years. I didn’t realize how important credit was until I didn’t have any. I was denied home loans from the bank even though I had a great job. Getting a car was out of the question until I could pay for it in cash. Because my credit scores were too low for the banks to even consider giving me a loan, I was completely isolated from the way most Americans do business.
A friend told me about Lexington Law Firm and how they helped fix his credit score. He said they were able to get his credit improved so he could get loans. Since then I have been surprised to learn about other people who have used Lexington’s service that I didn’t think would even need help with their credit score.
Lexington Law Changed My Life
I called the 1-800 number at the site (800-220-0084) and spoke to a credit expert who was very friendly and understanding of my situation. She was also very knowledgeable. So, I went ahead and signed up, and I am so glad I did! After about 3 weeks, I started receiving letters from the credit bureaus stating negative accounts had been removed from my credit reports! (See below).
Collections Removed from My Credit Report:
My credit scores have dramatically improved since there are no longer any negative accounts on my credit report. Here’s a snap shot of my credit scores since I signed up with Lexington Law:
“I have to admit I was a little skeptical at first, but after seeing what you were able to do with my credit after only a few months, it is very reassuring. Thank you for everything that you are doing for me and please pass on to your staff my appreciation for all of their hard work.”
— T.B., Lexington client
“I went through a bankruptcy and my score went way down into the 500′s. My wife and I planned to buy a house, so with the help of Lexington Law my score went up in just 8 months to 688! I got an excellent rate, new house, and praise big time for your services. Thanks a ton!”
— David & Dana, Lexington clients
You can read hundreds of client testimonials and even watch some very inspirational client video testimonials here.
Get Portfolio Recovery Removed from Your Credit Report Now!
If you’re sick of having bad credit, let the professionals at Lexington Law Firm take care of it for you. They can delete all kinds of negative items from your credit reports, including: bankruptcies, foreclosures, repossessions, charge offs, tax liens, collections, and more.
Since 1991, Lexington Law has helped over 1/2 million clients improve their credit. You owe it to yourself to at least check them out!
Call 800-220-0084 for a free consultation and complimentary credit score or fill out the form below and a representative will call you shortly.