Apr 16 · by Next Level Credit
This collection agency is located in Virginia and known for buying very old worthless debt as far back as the 1990’s. So you ask why are they buying debt that is over ten years old? Number one – they could send them to consumers who are convinced they need to pay it. Number two – creative accounting tactics (per Bud Hibbs). Look this word up on wikipedia…”at the root of accounting scandals”.
Here is the mentality of PRA: The debt is expired and legally outside the SOL. The consumer knows this and will not pay PRA. However, what if you have to pay the IRS when PRA sends the consumer a 1099C? Madness!!! Then Portfolio Recovery Associates receives a tax deduction too. Madness!!!
Technically this would not be a dunning letter which is normally sent to the consumer. If you EVER receive a 1099C from PRA or any other collection agency, contact a tax professional. Also, send PRA a VOD letter.
Asset Acceptance Corporation has been using this scheme for a long time. The “alleged” account needs to be validated regardless of what type of notice you receive. How is PRA going to send a 1099C if they are not able to validate the debt? Contact your Attorney General and report a complaint and fight back.
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