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How hard is it to be a debt collector?

How do I go about settling a debt with this debt collector, PN Financial?

  • My mother got a letter in the mail Thursday from PN Financial stating I owe $1000 and some change. In the letter they say they will settle for $500. I have until the 30th to pay it or they will go to court and garnish my wages. I have never been contacted by this company before. I also haven't put in a change of address since I last moved. They are collecting a debt of a $200 limit Chase card I had about 5 years ago. I was dumb, and forgot about it. I live in CA, and was wondering how I should go about settling this. I am prepared to offer them the $200 that it was initially for, but I don't want to pay more than that. Should I get in contact with a debt consolidator? Is it too late to do that now? What should I do?

  • Answer:

    1) When a debt collector first contacts you, your first step should always be to request validation of the debt per your rights under the Fair Debt Collection Practices Act. Even if the debt is valid, request validation anyway. Send them a letter via Certified Mail + Return Receipt (do not use regular mail) stating: Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt, including a copy of the original signed application with my signature --------------------------------------… * Never sign your signature on any document that you mail to a debt collector. Simply type your full name. When they call back, tell them: I have sent a certified letter to your office officially requesting written validation of this alleged debt per my rights under the Fair Debt Collection Practices Act. Per this federal law they must provide written validation within 30 days and they must cease collection activity until they send you written validation. ------------ 2) This debt may be time-barred. There is a statute of limitations for credit card debt, which is the amount of time that they can successfully take legal action against you for the debt. This time period varies for each state. You can find this time period for your state by going to the link below and looking under "Open Accounts." http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml If the number of years since you defaulted on this account and stopped making payments on it is greater than the number listed for your state, then they can no longer defeat you in any court action because the debt is time-barred and you don’t have to pay it back. Morality does not come into play when dealing with the amoral, predatory US credit card industry.

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for this small amount of money, you can't afford any help at all. at 30% APR, that 200 dollars has grown to much more than the $500 they're willing to settle for. and that ignores the late payment fees and collection costs that Chase incurred trying to find you and get their money. pay the $500.

The notice your mother received probably covers validation required by the FDCPA. Sending a certified letter requresting validation isn't necessary and is only a delaying tactic in this case. When did you make the last payment on this account? The Statute of Limitations (SOL), the timeframe to bring lawsuit, varies from state to state. Check yours: http://www.bcsalliance.com/statute_of_limitations_on_debt.html. Typically the SOL starts from the date of last activity or last payment. If it has really been 5 years since you last paid on this account, it is likely beyond the SOL. This is an affirmative defense if they sue you. If it is beyond the SOL, you can send the collection agency a certified, return receipt letter telling them to cease and desist all contact as the debt is beyond the SOL. They will probably sell the debt off to another collection agency and you'll have to send a cease and desist letter to the new collection agency. Or you can make a settlement offer. Send a letter mentioning that the SOL in California is 4 years and this is a 5 year old debt, you would be willing to settle the debt for $100. Ask that an authorized agent for the collection agency sign and return a copy of your letter indicating acceptance of the offer. When you get the signed copy, send them a money order. Absolutely do not allow them direct access to your bank account. You absolutely do not need a debt settlement or consolidator.

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