Summary:If you get a notice from Pioneer Credit Recovery, it probably means there’s a collection account on your credit report. But there are ways to remove Remove Pioneer Credit Recovery Inc from your credit report.
If you’re trying to improve your credit, you’ve probably started regularly checking your credit report.
Reviewing your credit history can give you a better idea of how your credit score is calculated – and allow you to take care of any mistakes on the report.
If you’ve seen the name Pioneer Credit Recovery Inc on your report, it’s understandable to be a little confused. After all, this isn’t the name of a lender, credit card issuer or any type of company you would have done business with.
Pioneer Credit Recovery is a collection agency.
So what exactly does that mean, and how can you take care of any black marks they’ve left on your credit report?
What if the debt they’re trying to collect has already been paid?
Read below to find out.
Who is Pioneer Credit Recovery Inc
Pioneer Credit Recovery Inc or Pioneer Lending is a collection agency that collects debts on behalf of the IRS, federal student loan servicers, county and municipal courts and more.
If you’re receiving phone calls from Pioneer Credit Recovery or see them on your credit report, it’s likely because you’ve defaulted on a loan or fine.
It’s also possible that you paid your bills, but the original lender never received the payment. In that case, Pioneer Credit Recovery Inc. may be mistakenly trying to collect money from you.
Negative items on your credit file? Our 609 credit dispute letters may be able to help get them removed.
Organizations and agencies hire third-party collection agencies like Pioneer Credit Recovery to recover debts from delinquent borrowers.
Pioneer Credit Recovery, Inc. is legit as a company, and accredited by the Better Business Bureau with an A+ rating.
How to Stop Pioneer Credit Recovery from Reporting on Your Credit Report
The first step is to send Pioneer Credit Recovery a Debt Validation Letter, asking them to prove that you’re responsible for the debt. The collection agency must prove that you borrowed the amount in question and failed to repay it. You can find more information on how to write one of these letters here.
If Pioneer Credit Recovery validates your debt, you can negotiate to pay the remaining balance in exchange for removing the record from your credit report. This is commonly known as a “pay for delete” strategy.
This process means you pay either the amount owed or less than the amount owed to the collection agency to settle the debt. In exchanging for paying that money, the collection agency will stop reporting the debt to credit bureaus. This means the collection will no longer show up on your credit report or affect your credit score.
This strategy differs vastly from simply paying off the debt to the collection agency. When you don’t negotiate for the removal of a debt from your credit report, the debt will then show up as a paid collection. That will still hurt your credit, because other lenders can see that you had a debt sent to collections.
An article from U.S. News & World Report found that many collection agencies are willing to settle the debt for 40-60% of the remaining balance due. If you owe $5,000, for instance, they may accept an offer between $2,000 and $3,000.
Negotiating the settlement amount is crucial. Some collection agencies will try to play hardball at first and request the entire balance, but you can save thousands if you play your cards right. Start by offering a low amount, like 15% of the total balance. They’ll likely reject it and counter with a higher percentage. Keep going until you meet in the middle.
Before you pay the settlement amount, ask for a letter in writing confirming the specifics of the agreement. This letter is crucial. If you don’t have it, the agency could refuse to delete the debt – even if you kept up your end of the bargain. Without written proof of the arrangement, you would have no recourse to fight back.
Even if you’ve come to a verbal agreement, make sure you have the letter before paying the agreed upon amount. If you’re having a hard time setting up a pay for delete scenario, consider contacting a credit repair company.
If the Collection is a Mistake
If the debt in question is a mistake, you can dispute it with the three credit bureaus: Experian, Equifax and TransUnion.
You can find their contact information here:
Credit Reporting Bureau Mailing Addresses
|P.O. Box 740256 |
Atlanta, GA 30374-0256
|P.O. Box 9701 |
Allen, TX 75013
|P.O. Box 2000 |
Chester, PA 19016-2000
You can also file a dispute online:
Make sure to dispute the mark with every credit bureau where the collection is listed, not just one or two.
Each credit bureau operates independently, so forgetting even one bureau can still hurt your credit score.
How to Stop Harassing Letters or Calls From Pioneer Credit Recovery IRS
Collection agencies have a reputation for being persistent when it comes to contacting borrowers. Sometimes they might even go too far, either by harassing you or calling your relatives or employer.
Not only can this be annoying – it can actually be illegal. The Fair Debt Collections Practices Act prohibits collection agencies from harassing people, even if the debt is valid.
Collection agencies are only allowed to contact you during normal waking hours. If they call outside of regular business hours or try to hassle you multiple times a day, you can contact the company and ask them to stop.
Borrowers should be aware that just because a collection agency stops calling, that doesn’t mean they’ve stopped trying to collect your debt. You’ll still have to figure out a solution or risk being sued.
If you’re being harassed by Pioneer Credit Recovery IRS, you can file a complaint or request that they stop on their website. You can also call them at 844-688-2708.
In addition, you should send a certified letter detailing your complaint. Their address is 26 Edward St., Arcade, NY 14009-1012.
Remind them of the Fair Debt Collections Practices Act and how they’re not allowed to threaten, harass or lie to you.
They’re also not allowed to collect money from anyone else or garnish your wages without a court judgment.
*Study found 48% of professional credit repair clients who stuck with their service for 6+ months saw an average of 100+ points to their credit score. Source.