I recently received a letter from Pioneer Credit Recovery, stating I owed them $10000.00+. I phoned them to find out what this was regarding. They stated it was for an SBA flood loan made several years ago, which I had tried to apply for as a grant. The original amount was $8000.00 Due to unemployment, I had been unable to make payments.
They stated they were a branch of the Federal Treasury Dept, and were attempting to collect the loan. I advised them of repeated letters to the SBA and Treasury Dept to make alternate payment arrangements in the previous years. They requested I fill out my financial data so they could come up with a repayment plan. I emailed them the financial data, and waited to hear from them.
I finally received a phone call from them asking when I was going to pay the balance in full. When I sent them the financial data, I requested a listing of the total amount due, interest & fees, and a list of the payments already made (offsets from federal tax refunds & stimulus payments, all were taken). They stated that they do not send this information out, and I should be able to figure it out for myself.
I repeatedly requested the statement in writing, including original amount, fees (and what they were for), and all payments made, as well as their offer of a repayment schedule. I wanted this in writing, and replied to every statement they made with another request for this in writing. They continuously stated that they do not provide any of this information in writing.
The agent (Diane) got angry that I was continuously requesting the same thing, and told me she was ending the call and garnish my wages, as she said I was refusing to pay. I replied that I was not refusing to pay, I was requesting information in writing.
At that time Mark, a supervisor, broke into the conversation, and wanted to know what the problem was, and what the repayment plan was. I advised him of the information I was requesting in writing, as well as a copy of the payment plan in writing. He stated that they did not do that. I asked for the section of federal law that states they do not have to provide that information, and again requested it in writing, which he refused.
After requesting the same information from Mark approximately 10 times, all of which he refused, he became upset, and the call ended.
Why do they refuse to provide anything in writing? According to the Fair Dept Collection Act, they are required to do so.
I will be writing them to request validation of the debt, which I should have done before speaking to them.
Jordanville, New York