[caption id="attachment_3216" align="alignleft" width="160"] If you have pioneer credit debts on your credit reports you score can be seriously negatively impacted. Luckily, there are steps you can take to reverse the damage.[/caption]
If you've been targeted for debt collection by Pioneer Credit Recovery, watch out.
There have been many complaints filed against them by consumers who are baffled by the enormous amounts of fees and interest they place on their unpaid collection accounts.
Pioneer Credit Recovery handles debts to government agencies, especially student loans. If you find yourself unable to pay your student loan due to financial hardship or other circumstances, make sure you go through the proper channels to get a loan deferment BEFORE your account is sold to a debt collector like Pioneer Credit Recovery!
That way you can avoid the outrageous fees, lengthy repayment plans, and credit damage related to debt collection.
If you receive a debt collection notice from Pioneer Credit Recovery or any other debt collection agency, the very first thing you must do is send a debt validation letter.
This letter will force the debt collector to PROVE that you actually owe the debt in question. You can find a letter template online, or else hire a lawyer to create one for you. You must do this within 30 days of receiving your first collection notice in order to take advantage of the debt validation process.
Here are a few reasons why your debt might be invalid:
- Too Old. There is a statute of limitations on most kinds of debt, meaning that once a debt reaches a certain age, it becomes ineligible for collection.
- Incorrect Name. Debt collectors go to great lengths to track down debtors, and sometimes they get their contact information mixed up.
- Identity Theft. Debts incurred by a thief can be discharged and should never go into collections.
- Deferred. If you have had your loan deferred, it cannot go into collections until the deferment expires.
- Previously Discharged in Bankruptcy. Debts wiped out in bankruptcy are not eligible for collection.
- Unverifiable. Even if you really do owe the debt in question, the debt collector must still provide proof to the satisfaction of the law. If they can't provide this proof, they can't collect on the debt.