I disputed the alleged debt that these people claim I owe. I determined that it in fact was a debt incurred by my ex-wife and I sent a settlement offer to them via certified mail. I requested that they contact me only in writing if they agree with the terms and conditions of the settlement offer. They ignored that request and instead called me on March 10th and I got them to say the words, 'Portfolio Recovery Associates agrees to my settlement offer'.
In the settlement offer I sent to them, the terms and conditions were for Portfolio to agree to update my credit reports to 'Paying As Agreed', reclassify the account as an 'installment account' and to update the balance each time a payment was made (4 installment payments to pay in full). The offer stated that they must reply in writing by March 12th and that if they did not respond to me in writing, they have essentially agreed to my terms and I will send the first payment with a restrictive endorsement on the back of the cashier's check stating that 'By depositing or cashing this check, Portfolio Recovery Associates agrees to update all 3 credit reporting agencies to 'Paying As Agreed'. The 4th and final payment is for deletion of the trade line from all three credit reporting agencies.
I checked with an attorney and he agreed with me that by sending the cashier's check along with the letter (I gave them ample time to refuse the terms and conditions of my settlement offer) and their verbal agreement (state of Florida that is a contract), I essentially created an 'accord and satisfaction' that implies a contract with a negotiable instrument (cashier's check). I personally brushed up on my state's Uniform Commercial Code and consulted with an attorney so I covered all my bases.
Low and behold when I checked my credit file this weekend, Portfolio Recovery has not only not updated my credit reports but they have instead added what amounts to a 161% annual percentage rate (13.54%) to the balance in the last 2 weeks (added $1,352.00). I guess I really pissed them off.
I checked with my state laws regarding collection agency's adding interest and its perfectly legal as long as it doesn't exceed an annual percentage rate of 10%. This is quite illegal and I have reported them to the Federal Trade Commission via their website. I also sent an email to Portfolio Recovery informing them that I have filed the formal complaint with the FTC and the Attorney General's office in Virginia and Florida.
I have asked my attorney what my next move should be and he's instructed me to maintain the payment agreement and on May 6th (final payment) if they have not lived up the 'contract' that was agreed to, file a lawsuit that will also include damages.
Do not trust these people. Trying to do the honest thing will get you nowhere with these folks.
0 comments