• Report: #393389

Complaint Review: Pioneer Credit Recovery

  • Submitted: Thu, November 20, 2008
  • Updated: Tue, July 14, 2009

  • Reported By:hollywood California
Pioneer Credit Recovery
P.O. Box 100 Arcade, New York U.S.A.

Pioneer Credit Recovery Reps call to collect and harrass but are not equipped to take a payment. Company tries to operate like the IRS and wants to garnish your wages all the while charging you extra fees. Won't discuss loan only make threats. Arcade New York

*Consumer Comment: Please be wary of misinformation

*Consumer Comment: GOOD LUCK

*Consumer Comment: Student Loans in California

*Consumer Comment: TO THE BOTTOMFEEDER -JIMHENRY THAT RESPONDED

*Consumer Suggestion: Chris..STAY OFF THE PHONE!!! ...AND...File a "CEASE COMMUNICATION" request.

*Consumer Comment: dude seriously

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I consolidated my student loans through Sallie Mae and was making payments on time when they notified me via e-mail that the loans were put into deferment, I notified them via e-mail that I didn't want my loans put into deferment but was told I had no rights when it came to my loans. Over seven years later I get an e-mail saying my loans were late and my credit is now being ruined if I don't send them so and so amount immediately.

So I call, from work where I had happened to check my e-mail to give them my address so I could receive a payment book or something, I'm not going to just send a check out without seeing something. About 4 hours later I get a call from some angry guy demanding to know why I don't pay my bills, calling me a deadbeat and threatening to take my certifications, degrees and even personal property! I explained to him the situation and that a payment is on the way the minute I get an invoice but he is under no circumstances to call me again at my work. I got two more calls on that day and an average of three calls every day after.

I was furious and called to tell them that I don't do business like that, I thought I was a customer and deserved to be treated like one. I told them at that time to turn my loan back over to the guaranteer of my loan which I assumed was the Federal Government, I would rather pay them interest than a company that derives it's income from harassment and threats.

I really don't understand the Sallie Mae business model at all, If you wanted your money why force a deferment on me and why treat your customers the way you do? An army of minimum wage slaves to harass your customers? Who else does business that way, who could survive with that business model? I recently called Sallie Mae and talked to nothing but eastern Indians.

I borrowed my money in US dollars and got my education at a US tech school, so why am I speaking to somebody from India whom I can't understand, who can't help me at all, can't make any decisions for the company and spent all of their time trying to confirm my identity after I already had to punch in my social security number, birth date and area code just to get that far.

Now I get Pioneer credit Recovery, a division of Sallie Mae, who apparently bought my bad loan for the full amount (bad debt is usually bought for pennies on the dollar but pioneer credit recovery pays full price for bad loans, somebody needs to tell the banks.) and added another 10k or so on top of it.

I called up Pioneer Credit recovery and offered to start making payments with 6 thousand dollars down and up to 2 thousand a month until the bill is settled but they first said they don't believe me and that I was calling to harass them, then they required I submit all of this new loan information and credit references. I'm not trying to make any new loans, thanks, just trying to pay off the one I have now as quickly as possible. They wouldn't take my payments and ended up hanging up on me. Can you imagine the poor soul who gave these parasites a reference? Not on your life. So you see they simply are not set up to receive payment and are satisfied charging you excessive late fees and garnishing your wages like they are the IRS or something.

They have told me repeatedly that I have no rights regarding my loan but I know I never had an agreement or a signed contract with pioneer credit recovery and I don't dispute the Sallie Mae payoff amount or my agreement with them. There is simply no one in charge at pioneer who can make any decisions. Just low brow collection bots reading from a script. When I called to pay I gave them all the information they needed to garnish my wages because they didn't have to, I could afford to pay, but they want to and are set up to do only that.

With this tough economic climate and Sallie Mae stock plummeting like it is you would expect they would welcome somebody trying to pay them and have some sort of way to accept payments but they don't seem to. Only petty criticisms and threats coming from angry, low paid, bill collectors.

Chris
hollywood, California
U.S.A.

This report was posted on Ripoff Report on 11/20/2008 03:52 PM and is a permanent record located here: http://www.ripoffreport.com/r/Pioneer-Credit-Recovery/Arcade-New-York-14009/Pioneer-Credit-Recovery-Reps-call-to-collect-and-harrass-but-are-not-equipped-to-take-a-pa-393389. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

Please be wary of misinformation

AUTHOR: Anonymous - (U.S.A.)

I'm not sure if the user Steve's post was a joke, but please do your research before following his advice.

How your student loan got into default I don't know, and it's irrelevant to the issue at hand anyway. Once it does go into default, it is turned over to the US Department of Education and they contract it out for collection. The DoE will not collect themselves, so avoiding all contact with third party collectors will just keep your loan accruing interest and fees indefinitely. Note that interest on defaulted loans is compounded daily.

Steve is correct that you are entitled under FDCPA to request in writing that a company not contact you anymore. However, the DoE's collection contracts are awarded on a monthly basis. Once they see you have filed a cease communications order against one collection agency, they will simply pull the account and give it to someone else. Now you'll get calls again, and have even more fees tacked onto the balance.

The reason they couldn't accept your payment is because what they were trying to do is set you up in a credit rehabilitation program. Perhaps no one explained it to you, and that is unfortunate because it's actually a very good thing to help out people who are in default. The point of the program is for you to make 9 consecutive payments to prove that you're serious about paying off the loan, and then a new lender will buy your debt and you will now make lower payments to them. In addition, the old defaulted loan is erased from your credit report. The references are required for the program or else the new lender won't pick up your loan at the end.

Finally, while it may be true in some cases that a garnishment is less money than paying a collection agency, this isn't always the case. A federal garnishment will take 15% of your wages. The minimum payment on a loan is based on your principle and interest to date, and may be more or less than a garnishment depending on what that number is and how much money you make. The downside to a garnishment is that once it starts it will never stop until you either stop working or make additional payments on top of the garnishment to get out of default. By making voluntary payments, you can get out of default and prevent garnishment from ever happening.




Chris,

NEVER speak to ANY third party debt collector on the phone!! NEVER!!!
Doing so will NEVER do anything poisitive for you, and will only make things worse.

IMMEDIATELY send them a 'CEASE COMMUNICATIONS' request as per your rights under FEDERAL LAW!!

Do this by certified mail, return reciept requested. Be sure to put the certified # on the letter itself, and make a copy of that letter for your records. This step is VERY important, as it not only proves you sent 'something', but proves EXACTLY what you sent.

Now, when they violate your LEGAL REQUEST, you sue them under the FDCPA..
Its EASY money!! They are GENUINE morons, and WILL violate your ORDER.

Don't get mad, GET PAID!!

ps. You are better off just letting them do the garnishment. This amount will be less than what they want, and that collector does not get his/her commission/bonus on the amount collected. That is why they push for full payment. They get a commission/bonus on amount collected ON THAT CALL only.

Most third party debt collectors are genuine lowlife, and are usually having debt collections issues themselves, as well as drug and alcohol problems, and many of them are felons. It is a scummy industry as a whole.

Good luck.
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#2 Consumer Comment

GOOD LUCK

AUTHOR: Billcoll01 - (U.S.A.)

THIS STORY HAS MORE HOLES THAN A CHUNK OF SWISS CHEESE. SO, YOU GET AN E-MAIL SAYING THAT YOU WERE BEING FORCED INTO DEFERMENT & 7YRS LATER THEY SEND YOU ANOTHER E-MAIL???? ALSO, THE GOVERNMENT DOES NOT SELL STUDENT LOANS!!!! I CAN SEE WHY YOU WENT TO A TRADE SCHOOL.
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#3 Consumer Comment

Student Loans in California

AUTHOR: Lad - (U.S.A.)

Most student loans in California are required to be backed by the California Student Aid Commission (CSAC). When a student loan goes into default, they pay the lender the value of the loan and take over the servicing of it. They have their own internal collections department (EdFund, where I used to work) or they outsource.

There are 5 ways to resolve a defaulted student loan: pay it off in full, ask CSAC to approve a settlement (which rarely happens), enroll the defaulted loan in the William D Ford program (which basically refinances the loan and allows payments), participate in a "rehabilitation" of the loan (if you make enough payments of a certain amount they find a new lender to take it over; usually takes 12 months), or they enact involuntary methods.

The involuntary methods include wage garnishment and IRS levy. Once its with CSAC, it's a debt owed by the gov't, so they don't need to go to court to establish garnishment or levy. It's really just as simple as confirming employment, social security number, and filing some paperwork with your employer.

It sounds like they were trying to get you to do a William D Ford refinance, which would basically just change your Sallie May loan into a Federal loan and you'd start making payments again.

I'm not going to make any moral observations here, just thought I'd supply some info.
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#4 Consumer Comment

TO THE BOTTOMFEEDER -JIMHENRY THAT RESPONDED

AUTHOR: Laurie - (U.S.A.)

FROM BUFFALO NY - WHERE THE WORST OF THE WORST COLLECTION AGENCIES ARE LOCATED. (and from what I have read are all quickly going out of business)


Its easy to spot the debt collector reponses.

They try to justify their illegal actions and tactics. Doubtful any calls are recorded when the collector violates FDCPA law. They claim to follow them - but don't.


Consumers can record these calls themselves - you just have to check your state's laws regarding whether you are required to tell the other party or not.
This comes in handy because you sue abusive debt collectors and your personal recordings are proof.


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#5 Consumer Suggestion

Chris..STAY OFF THE PHONE!!! ...AND...File a "CEASE COMMUNICATION" request.

AUTHOR: Steve - (U.S.A.)

Chris,

NEVER speak to ANY third party debt collector on the phone!! NEVER!!!
Doing so will NEVER do anything poisitive for you, and will only make things worse.

IMMEDIATELY send them a "CEASE COMMUNICATIONS" request as per your rights under FEDERAL LAW!!

Do this by certified mail, return reciept requested. Be sure to put the certified # on the letter itself, and make a copy of that letter for your records. This step is VERY important, as it not only proves you sent 'something", but proves EXACTLY what you sent.

Now, when they violate your LEGAL REQUEST, you sue them under the FDCPA..
Its EASY money!! They are GENUINE morons, and WILL violate your ORDER.

Don't get mad, GET PAID!!

ps. You are better off just letting them do the garnishment. This amount will be less than what they want, and that collector does not get his/her commission/bonus on the amount collected. That is why they push for full payment. They get a commission/bonus on amount collected ON THAT CALL only.

Most third party debt collectors are genuine lowlife, and are usually having debt collections issues themselves, as well as drug and alcohol problems, and many of them are felons. It is a scummy industry as a whole.

Good luck.
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#6 Consumer Comment

dude seriously

AUTHOR: Jimhenry - (U.S.A.)

i have friends and family that work at Pioneer Credit..

Underpaid? Come on. Do you realize how much these people make?
Trust me.. They're doing better than you think.

The first problem I notice is your attitude toward these collectors... you really can't expect someone to respect you if you already have this terrible attitude.

now.. as far as them calling you a deadbeat.. That surprises me.. I've always heard that Pioneer Credit records all of their collectors and they wouldn't be able to say that to you..

you're the one with the debt.. you are not a customer anymore.
to them.. you're a debtor...

they make the calls. and you try to accommodate them....

.... I'm not sure about their education side of things.. but their other clients (like US Treasury) DO garnish their debtors... check your state laws to see how much they can garnish monthly to satisfy the debt.. (it's different in every state)


other than that.. just try and work with them... if you feel like someones being rude to you.. just ask for a manager... i'm sure you can get it straightened out....
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