• Report: #596480
Complaint Review:


  • Submitted: Sun, April 25, 2010
  • Updated: Wed, January 09, 2013

  • Reported By: Tony Foxx — Chicago Illinois United States of America
PO Box 20 Perry, New York United States of America

PIONEER CREDIT RECOVERY, INC. - Sallie Mae Original Debt amount from Sallie Mae 34k+ tha Pcr says I owe 43K +? Looks like a RAT sounds like a RAT must be a Ripoff!!! Perry , New York

*General Comment: PLEASE PROVIDE PROOF..

*Consumer Suggestion: Heads-Up: There ARE Ways Out

*UPDATE EX-employee responds: pay your loans dirt bags

*General Comment: The idiot who called me an idiot

*Consumer Comment: Pay your student loans!

*Consumer Comment: I have student loans

*Consumer Comment: Pioneer doesnt need to sue you for a wage garnishment

*UPDATE Employee: FYI

*Consumer Comment: Sallie Mae Scam

*Consumer Comment: Sallie Mae is a SCAM

*UPDATE EX-employee responds: ok

*Consumer Comment: Robert...READ what I wrote...Pioneer broke the law!

*Consumer Comment: Student Loans are Different..

*Consumer Suggestion: Stay off the phone!!! Always dispute!

*Consumer Comment: unfortunately it's legal

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On the computer at work I notice a garnishment and received a letter from my job saying that i have a garnishment with a mandatory amount of 15%.   I was told that i could ask for a lower garnishment of 10% is I talk to pcr  (Pioneer Credit Recovery).  I contacted pcr and they said that they would automatically drop it to 10% once my garnished payment processes into their system and she will note my account. 

Six payments later their was not drop pf 10% because now she says that i need to send paper work to my job and then to them because if i do it I'll get a quicker response!? They seemed to do just fine without me for the garnishment! They seemed excited because the larger amounts of money received due to me working overtime, eventhough I am a parttime worker(I believe was reluctance to drop10%)

How does 34,000 become 43,000- current payments new balance is 41678.77?

Interest accrued on defaulted loan and fees? The government allows them to add a 21.5% collection cost?  They said they couldn't find or reach me but the interest still accrued! So they want me to fill and fax out a borrowers acknowledgement and Authorization withdrawal which is an additional $50 month to rehabilitate me and it cannot be too early or too late other wise the cycle starts over again.  I have not signed off because it does not seem right!  They talk to fast. Keep switching people on the phone and want to hurry sign and send back in! 

No real Proof or detailed information on Loan amount, interest etc...!

When I contacted Sallie Mae about this they said their was nothing they could do about this they sold the loan to this agency but what she did tell me was that they gave the loan to pcr with a balance of 34,000+!

This report was posted on Ripoff Report on 04/25/2010 11:39 AM and is a permanent record located here: http://www.ripoffreport.com/reports/pioneer-credit-recovery-inc-sallie-mae/perry-new-york-14530/pioneer-credit-recovery-inc-sallie-mae-original-debt-amount-from-sallie-mae-34k-tha-p-596480. 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 General Comment





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#2 Consumer Suggestion

Heads-Up: There ARE Ways Out

AUTHOR: W. Braid - ()

Some of the replies to this thread irked me because of their ignorance - such as how Sallie Mae can go after you forever for student loans, blah blah blah.

The reality is that there is a Statute of Limitations on this. The way it works is that student loans are made by banks but guaranteed by the federal government, specifically Sallie Mae.

After you default on a student loan, there is a set amount of time the bank has to make their claim with Sallie Mae at which time Sallie Mae pays the loan guarantee to the bank and then owns your loan - in other words, they buy your loan from the bank.

If they don't buy the loan within the Statute of Limitations, and government being slow, they frequently don't, guess what? You're free and clear! This was my case - I was being pursued and my credit was ruined until I did the research, got original copies of the loan docs, and realized that they'd missed the statute by about 3 months. 

Once I was armed with this info I was able to get all of this nonsense shut down and stopped. Every now and then I'll get a call or letter from a random collection agency but due to the Statute of Limitations rule, Sallie Mae has never been able to garnish my wages, take my tax refund, or any of the other usual remedies.

What you need to do is get on a good credit repair forum and learn the rules of the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and do some research on the statute of limitations and the time limits that Sallie has to buy a defaulted loan until it becomes null & void. (It's been so many years since I did this that I don't recall at all.)

I do remember that I wrote a demand letter to the collection agency that originally was harassing me and requested a copy of the original signed loan agreement, which they eventually provided, and the dates on that compared with the date that Sallie took over the loan got me off the hook.

Solution: The solution to all this is for the government to STOP STOP STOP handing out free money for college and guaranteeing student loans to no end that banks will make them to anyone. Studies have shown over and over again that colleges raise tuition in response to the ever-increasing free money and if that money were stopped, tuition would come back down to reasonable levels that people could afford without ruining themselves financially.

We also need to educate young people on the consequences of literally mortgaging their lives away with hundreds of thousands of dollars in student loans. 

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#3 UPDATE EX-employee responds

pay your loans dirt bags

AUTHOR: price88 - ()

if you would pay your school loan you wouldn't go into collections... you are complete scumbags

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#4 General Comment

The idiot who called me an idiot

AUTHOR: traveler - (United States of America)

It's not the collection company that is responsible for the outrageous fees. It is the Government. The Note in question does not require a suit prior to collection fees initiation, and if read carefully, you will see that the Borrower agrees to the usurious fees and penalties. Your right to seek legal counsel is correct. But get free advice from your State's Bar Association. That way you will not be paying a lawyer to tell you that it is legal for the collector and the Government to do what they are doing.!

I am not a collector.

I am not an idiot.

I am however a J.D. I am currently not a litigator. I do currently mediate.

Again. You are wrong!
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#5 Consumer Comment

Pay your student loans!

AUTHOR: Jen - (United States of America)

Ok well here is how I see it, there are collection costs, principal interest and other things that add to an account over time. 

I think if people would just pay off their federal backed loans instead of thinking they can get a free ride. Maybe they should go back to school and learn about how companies can possibly garnish, or tax offset you. And learn how to read a piece of paper before signing it! 

Perhaps this company is trying to help you. If you don't talk to them you will have to learn the hard way.

People don't realize that they are here to help you and work with you not to just take your money that they have the right to take. 
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#6 Consumer Comment

I have student loans

AUTHOR: Smurf - (United States of America)

Pioneer is threatening to garnish my wages. Someone earlier, stated that they could take a percentage of your disposable income. Does that also apply, for a student loan, or can they take more? When, how, and who determines the disposable income? I have trouble keeping food on the table!
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#7 Consumer Comment

Pioneer doesnt need to sue you for a wage garnishment

AUTHOR: Harold - (United States of America)

I work with student loans and wage garnishment, stopping them.. etc. Due to the fact that it's a Student Loan pionees doesnt need a court order / judgement / lawsuit to garnish your wages. Federal or private, they can just swoop right in and take it out of your check.
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#8 UPDATE Employee


AUTHOR: Anonymous - (United States of America)

I'm not quite sure that Sallie Mae "sold" the loan to Pioneer Credit Recovery as PCR is a wholly owned subsidiary of Sallie Mae. In essence, SLM still has the loan, only PCR is their collection arm.
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#9 Consumer Comment

Sallie Mae Scam

AUTHOR: Anonymous - (USA)

For More info on how to become invisible to those looking to collect judgements on you, please see

J. J. Luna  "How to Become Invisible"  or see his website.  www.canaryislandspress.com.
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#10 Consumer Comment

Sallie Mae is a SCAM

AUTHOR: Anonymous - (USA)

The whole student loan industry needs to be held accountable.  They have been giving students a good screwing (legally) for years.  Yes they can garnish wages without suing.  Yes they can take government benefits such as Social Security, Disability, Tax refunds, etc.  They can yank professional licenses too if they say you have defaulted on a student loan.  There is no statute of limitations on their actions and they can legally hound you forever. 

Any other entity could never get away with these tactics as they are against the law.  But, we are talking about the Dept. of Education.  As part of the federal govt, they can basically do what they want.  Sue them? Not much of a chance there as current law is on their side.  Try to get the law changed?  Good luck.  These disgusting pieces of filth make far too much money scamming people and collecting all of their "fees" for this and that to ever change.  It would take some draconian law changes against the entire industry to effect any positive consumer-oriented relief.  I just don't see that ever happening. 

No, the best way is to make yourself judgement proof.  That means that theoretically you own nothing but enjoy the use of everything.  Your home, cars, bank accounts, anything of any value, must be owned by corporations you set up or put into someone else's name.  Eventually they will leave you alone when they figure out you have nothing worth taking. 

Trying to reason with Ed, or Sallie Mae is a waste of time.  Trust me on that one. 
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#11 UPDATE EX-employee responds


AUTHOR: billllllllay - (United States of America)

Your loan hasnt been with pioneer since it defaulted, sallie mae cycles your loan between different collection agencies. interest accrues on a daily basis while your loan is in default and pcr has no control over that, they also have no control over the 21.5% collection cost that is added after the account is in default for 60days. They ask you for the $50 payment for rehabilitation to get you into that program, the dates are very specific because they're taking your loan out of default after 9-12 months depending on the new lender and they're going to be stopping your garnishment. they have specific dates because theyre trying to show the new lender that you are making consecutive monthly payments at the same time each month. to rebuild your payment history, the reason they want those papers signed and sent back right away is because you can go through the whole payment process, and make all of your 9-12 payments but if that paperwork isnt back into the office then your loan wont be pulled out of default. pcr cannot take any additional money out of your account that you have not agreed to, the rehabilition program is a federally backed program, theres rules both you and pcr have to follow. if you want proof or loan infomation ask for the initial demand letter, or go to loanpaymentsolutions.org .. you will have to make a username and password and there you should find all records of your loans. sallie mae doesnt sell the loans to the agencies, they simply place accounts in the collection agencies offices and put them in charge of all collections on those accounts.

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#12 Consumer Comment

Robert...READ what I wrote...Pioneer broke the law!

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


First of all, the OP only said "Sally Mae" which does NOT automatically mean a school loan. There are Sally Mae backed mortgages as well.

Second, Pioneer conveniently bypassed the legal notification process, and the debtor's right to dispute.

Third, they can ONLY take 15% of DISPOSABLE income. This is the rule that is the most important. Most people who cannot pay their bills have NO "disposable" income.

Furthermore, the debtor does NOT have to deal with a bottomfeeder. The debtor can deal directly with the dept of ED. And, the debtor CAN file bankruptcy too!

Oh yeah...what is with the $50 "rehabilitation fee"? I didn't see that anywhere in the law. That looks like a bottomfeeder trying to scrape up some extra cash.

The debtor needs to deal with the Dept of Ed directly, dispute the amount of the garnishment, and then file for hardship. Cut the bottomfeeder out of the loop.


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#13 Consumer Comment

Student Loans are Different..

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

There DOES NOT need to be a court order and judgment to garnish wages for a Student Loan.  This sounds like they did what is known as an "Administrative Wage Garnishment".  This is where they basically are allowed to Garnish first, ask questions later.  But you need to be in default status for them to do this, and by them transfering the loan to a Collection Agency it seems as if this may be the case.


Now, there is supposed to still be notifications and you should be able to get a hearing to stop the garnishment.  The good news for you in this case is that you appear to be in Chicago, and that is one of 3 cities that they do the hearings in.  However, you may be required to come up with a repayment plan in order to do this.

As for the amount of the debt.  There is no mention of time, if this has been several years it is quite possible with interest and late fees that it increased by about 9,000.  If you are saying that the debt was sold to them and right away it went up 9,000 then there might be some problems that you need to look at.  This is also where you need to seriously consider getting a lawyer.  

Student Loans are not something that you are allowed to get out of easily.  They are one of the very few things that are not dischargeable in a Bankruptcy.  They are also one of about 5 items that can cause a garnishment, even in a state that does not allow garnishment in other cases(such as credit card debt).

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#14 Consumer Suggestion

Stay off the phone!!! Always dispute!

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

First of all, the person claiming that this is legal must be a collector, or just a plain idiot!

Now, NEVER speak to ANY debt collector on the phone!! ALWAYS DEMAND EVERYTHING BE IN WRITING!! A paper trail is absolutely essential when you end up in court.

You have the LEGAL RIGHT to dispute any collection attempt, and/or any garnishment.

They CANNOT legally get a garnishment order without first suing you and winning. Were you ever sued on this? If not, that is your defense to the garnishment order. They are a 3rd party collector, regardless of who they are collecting for.

If indeed Sally Mae "sold" the loan, you are only dealing with a junk debt buyer who paid about 2 cents on the dollar for your old debt!


You need to get an attorney TODAY!!!



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#15 Consumer Comment

unfortunately it's legal

AUTHOR: traveler - (United States of America)

The agreement you signed  most likely states that SLM can add 1/3 the total amount as default amount for collection.

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