You could be surprised if you’ve recently checked your credit and saw a collections account listed with Pioneer Credit Recovery. You’ve probably never heard of this company before, so how can they report negative information to credit bureaus about you?
You might also be in a situation where you’re getting phone calls from Pioneer Credit Recovery. How can you stop them? Why are they calling in the first place?
These are common questions consumers have, but there are steps available to deal with Pioneer Credit Recovery.
Pioneer Credit Recovery is legitimate. The company has a history going back more than 40 years. This company operates as a third-party credit recovery company.
Another entity hires a credit recovery company to retrieve the debt. If you have a debt and haven’t paid it back, a debt recovery agency might start calling you. The original creditor is no longer trying to collect the debt. If a debt recovery company contacts you, they believe you’re delinquent on payments, or you’ve defaulted on an account or loan.
The information is reported to credit bureaus when you’re delinquent on an account. There are three main credit bureaus, Equifax, TransUnion, and Experian. A delinquency or collections account can be reported to one or more of these bureaus. They don’t all automatically have the same information on file.
This debt recovery company works for the government but is a private company. If you have debt with the local, state, or federal government, Pioneer Credit Recovery might try to collect it.
Navient Corporation owns the Pioneer Credit Recovery company. Navient is a company that manages education loans and works with healthcare, transportation, and payment processing businesses.
If you get phone calls from Pioneer Credit Recovery, they believe you owe a debt. That debt may have originated with a government entity, such as unpaid fines or taxes. Then, the government entity came to Pioneer Credit Recovery to have them try and recover it.
You could legitimately owe the debt, or it could be a mistake. Frequent mistakes occur when it comes to debt collection and credit reports.
If you haven’t yet checked your credit, but you start to get calls from Pioneer Credit Recovery or another debt collector, check it. Remember to check your report with each of the three bureaus. If there’s a collections account listed there with Pioneer Credit Recovery, and you believe there’s been a mistake, you need to take steps to have it removed, often best done by working with an attorney.
If you leave wrong but negative information on your credit, your score will drop. The lower your credit score is, the less likely other companies will give you new credit or allow you to open accounts. That can prevent you from being able to make major financial steps like buying a house.
Your credit score also impacts your interest rates. If you get new credit, you may have to pay a higher interest rate to reflect your lower credit score.
As a result, correcting mistakes on your credit should be a top priority.
If you believe Pioneer Credit Recovery is wrong about a debt you owe, contact a consumer protection attorney. Every consumer has the right to dispute debts, fully or partially, because of the Fair Credit Reporting Act. An attorney can handle this process on your behalf. The FCRA is a broad federal law covering consumers when it comes to how their credit information is reported, maintained, and used.
Once a dispute is submitted, Pioneer Credit Recovery should do an investigation. This is also required by third-party debt collectors under the FCRA. If you have any evidence to support your dispute, it can be provided during the process. When the investigation ends, Pioneer Credit Recovery is required to report its findings.
Any wrongly reported information on your credit should be removed if the investigation finds a mistake. Reasons that wrong information is on a credit report include:
You might get calls from Pioneer Credit Recovery or see them on your credit report, but you’re unsure if you owe them. This often happens because they aren’t the original creditor. To confirm a debt, the company should send you a debt validation letter as soon as they begin to contact you. This letter contains the information you need to confirm or dispute a debt’s yours.
The debt validation should include the original creditor’s name as well as:
If a collection company can’t provide this information, you may not be responsible for the debt. It’s your right to receive this information under the FCRA and another federal law, the Fair Debt Collection Practices Act.
Even if a debt is yours, because of the FDCPA, debt collectors can’t use harassment or abusive tactics to try and collect money. Debt collectors can’t purposely call you at inconvenient times or bombard you with calls. If you send them a cease and desist letter, they are supposed to stop contacting you. When a collector isn’t compliant, you might need to work with an FDCPA attorney.
If you’re dealing with Pioneer Credit Recovery and it’s become challenging to contact them or get a response, an FCRA attorney can help. We can also help with the steps needed to remove this name off your credit history and stop their calls. Contact our team today for a free case review.