Shepherd Outsourcing opened its doors in 2021, and has been providing great services to the ARM industry ever since.
About
Address
©2024 by Shepherd Outsourcing.
Did you know that in 2024, “Aggregate delinquency rates edged up from the previous quarter, with 3.5 percent of outstanding debt in some stage of delinquency?” Debt recovery companies like PRA play a major role in managing and recovering these debts, but it’s essential to know exactly how they operate and how they may impact you.
Debt recovery can be overwhelming, especially when dealing with companies like Portfolio Recovery Associates (PRA) that specialize in purchasing delinquent debt. If you're facing debt collection or dealing with PRA, it’s essential to understand the recovery process, your rights, and the best course of action for resolving the debt.
The blog will help you through the entire process of portfolio recovery, which includes various steps. It focuses on purchasing debt, implementing research and analysis, opting for negotiation, implementing persistent tactics and account management. The blog will also compare it to traditional debt collection and discuss how you can handle the situation efficiently. Management can also be done by getting help from professionals.
In simple terms, Portfolio Recovery refers to the process where a company like Portfolio Recovery Associates (PRA) purchases unpaid debts from original creditors—usually at a steep discount—and then attempts to collect the outstanding balance from the debtor.
If you owe money and it has been sold to PRA, they are now the entity that will contact you for repayment. They may use a variety of strategies to recover the money, ranging from phone calls and letters to legal action. But how do they go about this process, and how does it differ from traditional debt collection agencies?
Portfolio recovery isn't as simple as just calling you up and demanding payment. There are multiple steps involved in the process that PRA follows once they acquire your debt.
Portfolio Recovery Associates (and similar companies) acquire delinquent debts from original creditors such as banks, credit card companies, and healthcare providers. These debts are typically bought at a discount—often for a fraction of their face value.
For example, if you owe $1,000, PRA might purchase the debt for just $300. The reason for this discount is the risk involved; after all, they’re buying debts that are already in default.
Once PRA has acquired your debt, they will begin a thorough analysis of the account to verify the details of the debtor. This includes confirming your contact information and account history and assessing how much is owed. They will ensure they have the proper documentation to pursue collections.
At this stage, it's essential to ensure that the debt is accurate. If you believe the debt is not yours or there is an error, it's important to dispute it right away to avoid any complications.
Now, PRA will initiate communication with you through calls, emails, or letters, attempting to recover the money owed. In many cases, they will offer settlement options or negotiate a payment plan to help you pay off the debt over time.
Debt buyers like PRA have access to several legal collection strategies. These strategies may include:
If PRA’s collection efforts fail, the account may eventually stop active collection efforts if they see no potential for recovery, often selling the debt again. This means the debt is written off as uncollectible in PRA’s books, but that doesn’t mean the debt disappears. They may resell the debt to other collection agencies or pursue further legal action against you.
Shepherd Outsourcing focuses on ethical and effective collection methods. Shepherd Outsourcing understands the importance of maintaining positive relationships between clients and their customers, ensuring that debt recovery doesn’t strain relationships or create unnecessary stress.
You need to understand the difference between portfolio recovery and the traditional debt collection process.
Many people confuse Portfolio Recovery with standard debt collection agencies, but there are some key differences that set them apart. Here’s a quick comparison to help you understand:
As you can see, Portfolio Recovery involves purchasing older, delinquent debts, whereas traditional debt collectors often work directly with original creditors to recover newer debts.
Shepherd Outsourcing can stand out in these aspects as it focuses on maintaining positive relationships between clients and their customers. Ensuring that debt recovery doesn’t strain relationships or create unnecessary stress. Shepherd Outsourcing focuses on ethical and effective collection methods.
You also need to know the methods of handling debt. A certain method can help you handle debt, which also includes professional consultation.
If your debt has been acquired by PRA, here are a few steps you can take to handle the situation responsibly:
Before taking any action, make sure that the debt is legitimate and accurately reported. You have the right to request verification of the debt, which PRA is required to provide.
As a consumer, you are protected by the Fair Debt Collection Practices Act (FDCPA). This law prevents PRA from using abusive tactics like harassment, threats, or misleading claims. If they violate your rights, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
If the debt is valid and you are able to pay, negotiating a settlement might be an option. Many debtors are able to negotiate a lower repayment amount. PRA may also offer a payment plan to spread out the debt over time.
If you’re struggling to manage debt collections, it may be time to contact a professional debt management company. Shepherd Outsourcing specialize in Accounts Receivable Management (ARM) and can provide personalized solutions to help you resolve your debt. Shepherd Outsourcing offers consultations, quality assurance, and resolution-oriented progress to help you regain financial stability.
Dealing with Portfolio Recovery Associates can be stressful, but understanding the process and knowing your rights can give you a clearer path forward. Whether you're negotiating a settlement, disputing a debt, or seeking professional assistance, it's essential to be proactive and informed.
Shepherd Outsourcing specialize in guiding individuals like you through the complexities of debt recovery. If you’re facing debt collection, we’re here to help you find the most effective and resolution-driven approach. Shepherd Outsourcing can help you develop a strategic plan for managing and resolving your debt efficiently.
Ready to Take Control of Your Debt? Contact us today for a personalized consultation, and let’s take the first step toward resolving your debt.
If you’re struggling with debt collection, don’t explore it alone. Contact Shepherd Outsourcing today to schedule a consultation. We can help you develop a strategic plan for managing and resolving your debt efficiently. Together, we’ll work toward a more secure financial future.
©2024 by Shepherd Outsourcing.