Small business owners working with attorneys

Should I Negotiate a Settlement with Portfolio Recovery Associates?

If you are the recipient of a lawsuit from Portfolio Recovery Associates, you need to act fast. If you fail to respond to your lawsuit in a timely manner, the court will enter a default judgment against you, which means that you will lose your case and be forced to pay the amount allegedly owed. After responding to your lawsuit, however, you must decide how to approach the case. One option that may be available to you is settling with the debt collector. In this article, we discuss whether you should negotiate a settlement with Portfolio Recovery Associates.  

What is Portfolio Recovery Associates? 

Portfolio Recovery Associates is a company that buys overdue consumer debts for steep discounts. After buying such debts, the company makes attempts to collect the money owed from debtors. If Portfolio Recovery Associates has contacted you about a debt, you may be able to negotiate a settlement with the company. 

Settling with Portfolio Recovery Associates

One option for dealing with Portfolio Recovery Associates’ attempts to collect a debt is to negotiate a settlement. A settlement is a process by which you pay less than the total amount of debt owed, either over several payments or in a lump sum. After settling, the account is typically reported to the credit bureaus as settled in full.

However, if you are the recipient of a lawsuit by Portfolio Recovery Associates, the settlement process must be approached differently. Of particular importance is the timing of your settlement. For example, if you attempt to settle after Portfolio Recovery Associates issues a summons, you confirm that they have dismissed the case, or at least informed the court of the settlement. If not, you may still have to respond to the court by the deadline, and if you fail to do so, you risk a possible default judgment in favor of the debt collector. 

And if you negotiate a settlement with Portfolio Recovery Associates after the court enters a judgment, you’ll need documentation that confirms the debt collector will file a satisfaction of judgment with the court.

Portfolio Recovery Associates Settlement Tips

Below are some things to keep in mind when pursuing a settlement with Portfolio Recovery Associates:

  • Only negotiate a settlement that you can afford. 
  • Obtain a letter that outlines the details of the settlement agreement, including the payment due date and amount to be paid. 
  • Strictly comply with the terms of the agreement. 
  • Keep all documentation related to the settlement and the debt. 

Contact a Debt Collection Lawsuit Attorney 

If you are facing a lawsuit from Portfolio Recovery Associates, you should contact a debt collection defense attorney as soon as possible for help. At Fullman Firm, our California debt collection lawsuit defense attorneys will help you fight back against Portfolio Recovery Associates. In addition, if settling your case is in your best interests, we will use our negotiation skills to pursue this option. Please contact us as soon as possible to schedule a free initial consultation with one of our talented lawyers.