pause
  • Report: #123117

Complaint Review: Pioneer Credit Recovery

Thank You

Read how Ripoff Report saves consumers millions.

  • Submitted: Wed, December 15, 2004
  • Updated: Mon, July 13, 2009

  • Reported By:Coral Springs Florida
Pioneer Credit Recovery
P.O. Box 228 Arcade, New York U.S.A.

Pioneer Credit Recovery ripoff Harrasment Threaten TO SEIZE and GARNISH MY WAGES operate as Federal Agent Arcade New York

*Consumer Comment: Misinformed debtors may perceive illegality where there is none.

*Consumer Comment: Here are the facts on garnishments and collections and student loans

*UPDATE EX-employee responds: okay so

*UPDATE EX-employee responds: okay so

*UPDATE EX-employee responds: okay so

*UPDATE EX-employee responds: okay so

*Consumer Comment: I think everyone is missing the point?

*Consumer Comment: The law

*Consumer Suggestion: I doubt you know as much as you think you know

*UPDATE Employee: get your fact straight.

*Consumer Suggestion: Advice for "T"...Find a new job!

*UPDATE Employee: still needs to find a way to pay,

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

I was contacted at my work place to pay in full an outstanding student loan. I requested some identification from the company I was advised by John (sup of collection)that he represent the federal goverment and if I failed to paid this loan in full my wages will be seized and garnish.

I have consolidated loan in 1998 with Direct Loans and disputed another wanted some clarification. Spoke with John (Sup Collections) who advised me that the claim was made in 2003 by the Department of Education.
I requested information in writting John advised me that correspondence was send to me 30 days ago and there was no response from me.

I wanted to know where the correspondence was send it was send to the correct address but as per John said their correspondence looks like Junk mail. I advised him if you correspondence looks like junk mail it is in the trash. He advised me that they will not send certified mail unless is paid by me; I just wanted to know how to differenciate from their correspondence from another junk mail.

I wanted to know which school was this balance for , and proceeded to contact the Dept of Edu. after contacting the dept of edu they advised me to contact Pioneer and negociate with them but they could not tell me for which school was this outstanding bill for and gave me a different amount due. Pioneer said it is $1,900.00 Dept Edu $2,000.00.

I proceeded to contact Direct Loans they advised me that I have two consolidated loans with them as of 1998 when the loans were consolidated A loan was discharge from Lynn University which I register to attend but later withdrawn from school before class started, the school still send my loan information after my withdrawn and collected from the DEpt of Edu, since I have the withdrawn slip the loan was discharged.

The Dept of Edu could not tell me nor Pioneer why the outstanding balance.

First, I am contacted at work and treaten to have my hard work wages seized and garnish when no one has my work number how they found me and are they allow to do that.

Second, their correspondence looks like Junk mail.

Third,represent the federal goverment...

Fourth, Can not send certified mail to me unless I paid for it.

Fifth,I graduated in 1995 why this claim shows up now.. the 4 years limitation period as per Fl law FS95.11 (3)(P).

Sixth, request payment in full I make $9.00 and hour for teacher assistant Dec 22-Jan 10 no salary..I had to return my vehicle due to unable to make payments and they did not want to hear me. Direct Loans gave me a harship forbearance.

Please someone help me with this.

Beth
Coral Springs, Florida
U.S.A.

This report was posted on Ripoff Report on 12/15/2004 11:08 PM and is a permanent record located here: http://www.ripoffreport.com/r/Pioneer-Credit-Recovery/Arcade-New-York-14009/Pioneer-Credit-Recovery-ripoff-Harrasment-Threaten-TO-SEIZE-and-GARNISH-MY-WAGES-operate-a-123117. 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.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Pioneer Credit Recovery

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
REBUTTALS & REPLIES:
0Author 12Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Misinformed debtors may perceive illegality where there is none.

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

First: It is not illegal for debt collectors to search for your work number and contact you at work. In fact, it is their job to find you wherever they can. If you are not allowed to receive telephone calls at work, however, and make this known to the collection agency that has contacted you, they are no longer allowed to contact you there. The law that requires this is the Fair Debt Collection Practices Act (FDCPA). Note that this act does not apply to first-party collectors (a company collecting on debt that they own). Pioneer is a third-party collector, so the act DOES apply to them.

The government still can, and will, contact your employer directly to secure a federal wage garnishment. This is the right of the United States government when you fall into default, and they may legally take 15% of your disposable income. This is an unpleasant situation, but one that can be avoided by simply not going into default.

Second: Third-party disclosure laws require that any correspondence be sent in unmarked envelopes that do not bear any company name or logos. This is for your own privacy, to prevent anyone else from seeing your mail and learning of your debt. It would be illegal for Pioneer to provide any way for you to distinguish their letters from junk mail.

Third: Pioneer does indeed represent the federal government. They, and many other collection agencies, are contracted by the government to collect on defaulted student loans.

Fourth: I'm not sure about the certified mail thing. It makes sense that they would not send a different, more expensive type of mail at your request unless you were willing to pay for it, but I don't understand exactly what it was you wanted them to send to you either.

Fifth: It doesn't matter when you graduated. There is no statute of limitations on student loans. It's possible that the loan had been to several collection agencies before Pioneer, and they were simply the first to successfully contact you. From what I've seen on the Internet, they seem to be the top-ranked agency on the DoE contract for several years running, so this is not implausible.

Sixth: Unfortunately, your salary is irrelevant. When you took out the loan, you signed a promissory note which stated that if you should ever fall into default then the full balance would be due immediately. You mentioned that Pioneer and the government had offered you a program. This was a courtesy, and not something that they were required to do at all. They could have simply garnished your wages outright. Your forbearance through Direct Loans was available when you were not in default. Again, you lose the right to a forbearance when your loan defaults. If you can manage somehow to get out of default then you will again be eligible for a forbearance, but not until then.
Respond to this report!
What's this?

#2 Consumer Comment

Here are the facts on garnishments and collections and student loans

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

We can split hairs all day long, but here are the facts.

1. These are still THIRD PARTY DEBT COLLECTORS we are talking about so the FDCPA still applies even though they are allegedly collecting on a federal school loan.

Right to dispute entire debt or amount still applies.
Right to demand debt validation still applies.
Right to demand cease communication still applies.

2. Once the dispute and validation processes are complete, and the "debt" is validated, then, and only then is there no statute of limitations as it is then verified to be a federal debt.

If it is never verified/validated as a federal debt / ie: school loan, the state SOL applies to this third part debt collection effort.

The legal burden of proof is on the third party debt collector.

3. School loan garnishments are limited to 15% of your gross income by federal law, but they often follow the state law on garnishment if you dispute it.

For example, the maximum garnishment in Florida is 25% of your EXPENDABLE income. This is often LESS than the 15% of GROSS INCOME.

4. The above mentioned debt collector broke several state and federal laws regarding debt collection practices, and impersonating an officer of the court.

There are many legal loopholes to any given situation. You should consult an attorney for legal advice.
Respond to this report!
What's this?

#3 UPDATE EX-employee responds

okay so

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

It's totally legal for PCR to call you at work. The only time they can't per FDCPA is when you write to them telling them not to contact you there, or if your boss tells them they can't call.
The Department of Education has every right in the world to seize your TAXES and garnish your WAGES. They can only garnish up to 15%. Your loans are federally backed, therefore the government can take whatever money they are legally allowed to. I have seen loans collected on that were 10 years old. They're still owed. If you borrow money and don't pay it, it's considered STEALING.
Watch out: the dept of ed can put leins on your house, bank accounts, cars... any assets you own.
My advice: pay it && shut up
Respond to this report!
What's this?

#4 UPDATE EX-employee responds

okay so

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

It's totally legal for PCR to call you at work. The only time they can't per FDCPA is when you write to them telling them not to contact you there, or if your boss tells them they can't call.
The Department of Education has every right in the world to seize your TAXES and garnish your WAGES. They can only garnish up to 15%. Your loans are federally backed, therefore the government can take whatever money they are legally allowed to. I have seen loans collected on that were 10 years old. They're still owed. If you borrow money and don't pay it, it's considered STEALING.
Watch out: the dept of ed can put leins on your house, bank accounts, cars... any assets you own.
My advice: pay it && shut up
Respond to this report!
What's this?

#5 UPDATE EX-employee responds

okay so

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

It's totally legal for PCR to call you at work. The only time they can't per FDCPA is when you write to them telling them not to contact you there, or if your boss tells them they can't call.
The Department of Education has every right in the world to seize your TAXES and garnish your WAGES. They can only garnish up to 15%. Your loans are federally backed, therefore the government can take whatever money they are legally allowed to. I have seen loans collected on that were 10 years old. They're still owed. If you borrow money and don't pay it, it's considered STEALING.
Watch out: the dept of ed can put leins on your house, bank accounts, cars... any assets you own.
My advice: pay it && shut up
Respond to this report!
What's this?

#6 UPDATE EX-employee responds

okay so

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

It's totally legal for PCR to call you at work. The only time they can't per FDCPA is when you write to them telling them not to contact you there, or if your boss tells them they can't call.
The Department of Education has every right in the world to seize your TAXES and garnish your WAGES. They can only garnish up to 15%. Your loans are federally backed, therefore the government can take whatever money they are legally allowed to. I have seen loans collected on that were 10 years old. They're still owed. If you borrow money and don't pay it, it's considered STEALING.
Watch out: the dept of ed can put leins on your house, bank accounts, cars... any assets you own.
My advice: pay it && shut up
Respond to this report!
What's this?

#7 Consumer Comment

I think everyone is missing the point?

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

In your complaint you mentioned this:

"I proceeded to contact Direct Loans they advised me that I have two consolidated loans with them as of 1998 when the loans were consolidated A loan was discharge from Lynn University which I register to attend but later withdrawn from school before class started, the school still send my loan information after my withdrawn and collected from the DEpt of Edu, since I have the withdrawn slip the loan was discharged."

I think you need to contact Lynn University and advise them that you will be holding them legally responsable. Or, did you spend the cash????

Just a thought!

-Robert
Respond to this report!
What's this?

#8 Consumer Comment

The law

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

PCR tries to scare people into paying or voluntarily having their wages garinished...Send them a registered letter telling them to stop calling you if they do so and do NOT respond to any of their requests for information. They, as are all collection agencies, liars and thieves.

See here: Fact Sheet #30: The Federal Wage Garnishment Law.

http://www.dol.gov/esa/regs/compliance/whd/whdfs30.pdf

See also: http://www.studentloanborrowerassistance.org/collections/collection-options-outside-of-court/admin-wage-garnishments/

I hope this helps.
Respond to this report!
What's this?

#9 Consumer Suggestion

I doubt you know as much as you think you know

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

You may claim to know the law, but I bet the only "law" you know is "PCR's Law". Of course PCR law is likely different than consumer law. I have serious doubts that you can garnish someone's wages without winning a judgement against that person in a court of law. Oh, by the way Mr. Collector, learn how to spell. Your responses look as if they were written by a 2nd grader.
Respond to this report!
What's this?

#10 UPDATE Employee

get your fact straight.

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

1st I have been doing this job for 14 years I thing I know the law(s).

2nd There is NO staute of limitations on student loans.

3rd. She can send a cease and desist letter but is isnt that avoiding the issue and not taking resposiblity for her debt.

4th. We don't sue, we dont go to court. Dept of Ed sends what is call an administrative wage notice to the employer and they are instrusted to garnish 15 perc out of the employess check.

5th AWG is not illegal. It happens all the time.

People can complain all they want, but take the right road and start getting your credit straightend out. Don't let it to that far.
Respond to this report!
What's this?

#11 Consumer Suggestion

Advice for "T"...Find a new job!

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

"T",

Your whole assumption that "she still needs to find a way to pay" is the problem here.

It appears that the debt is past SOL for collection, and even if it isn't she doesn't make enough money to leave anything for garnishment if you could even get one!

And, you have violated federal law by threatening wage siezure/garnishment. This is illegal as part of any colection attempt as per the FDCPA.

Beth:

Go to FTC.gov and file separate complaints on each violation of your rights. Read and print out the FDCPA. It is fairly short and easy to print.

Go to BudHibbs.com to learn how to deal with collectors and to read other complaints on these fools.

DO NOT speak to them on the phone. Send all communications by certified mail, return reciept requested. Put the certified # on the letter itself and keep a copy for your records.

Notify them in writing to cease communication and also that contact at work is unacceptable.

Make them sue you and get a judgement. It is very unlikely they could. But even if they do, according to you there is nothing to get.
Respond to this report!
What's this?

#12 UPDATE Employee

still needs to find a way to pay,

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

1st, when you contact the us dept of ed, it is only a customer service dept, not ed, they are the middle man between pioneer and ed.

2nd, how did they find your poe?? It is their job to find things, they go off credit reports collect infor from your references you listed on the prom notes. It is called skiptracing and part of the job.

3rd, by law pcr cant put on the return envelope pioneer credit reovery. that will let everybody know that you owe a credit recovey(collection agency) and they also have laws they have to follow.

4th Payment in full is due, read the defualt section in your prom note, when in defualt the loan is called due bu dept of ed.

5th If your loan in still with pcr call and set up arrangements if you havent done so, the longer u wait the more money it will be in the end with fees and intrest charged by dept of ed.
Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?

Advertisers above have met our
strict standards for business conduct.



Ripoff Report Legal Directory