Okay... I'll try to keep this 'wordy-ness' down so that it's an easy read. A lot of people have debt and need help on how to resolve it. I'm not here to judge anyone's situation but to only speak to our (my wife and I) issue(s) and our responsibility.
I'm going to write this in a manner that will quickly help inform, educate and possible give some direction to future individuals dealing with similar delimma. None of what I'm going to put in her should be considered fact as it relates to legal matters. What goes on and or expected in Indiana may not be your situation in your state. Check them out and verify.
What companies like P.R.A do is buy unsecured debt from credit card companies for PENNY's on the dollar. So that $1,000 debt they say my wife owes they paid the credit card companie anywhere from 5-10 percent for it. The credit card company writes the debt off and the money they are unable to re-coup from the 'write-off' they sell to companies like P.R.A.
So the I.R.S cuts the Banks (Credit Card's) some slack for the loss. They are allowed to write it off. What is left from the write-off they (Credit Card Companies) sell the bad debt to bottom feeders like P.R.A. They come in and add any fees, interest and run up the bill on you.
**As this process continues I will further update this post.
1. We were contacted by P.R.A. via letter informing us we owe just under $1,000 for a credit card debt. This letter stipulated that we are to pay them the full amount or we are subject to a "judgement".
2. I called the 1-800 number to verify this debt with them. They notified me that they PURCHASED the debt from the creditor.
3. I will be submitting a letter to P.R.A for verification of the debt. Why do this? Simple, the debt my wife incurred was with the credit card company. NOT P.R.A. They will NOT be able to provide ANY written agreement with my wifes signature indicating she owes P.R.A any money. Not good for P.R.A. As I know as a matter of law that they will NEVER be able to provide proof that we owe them any debt. The only information they will be able to provide is that they bought a debt from the Credit Card Company. No Judge will ever force a consumer to pay a debt to an entity that cannot prove there is agreement between the two parties. It's a matter of fact....and law.
4. I spoke with two (2) N.A.C.A attourneys at no cost. These guys live for cases that involve Predatory Collection Acts'. They make their bread nailing companies like P.R.A. Anything under $3,000 is not worth hiring an attorney on THEIR (P.R.A.) side. Just to get a judgment proceeding started out of their base of operations (VA) would cost them a minimum of $1,000. Anything above 3K is worth it.
I have linked the NACA find an attorney. These guys are really cool about giving quick advice. The ones in Indiana are great. Fee's vary with them. But the cheapist I found was $750 flat fee. The rest charge you add-on's based on the work. But their main objective is to get companies like P.R.A to slip up and fall into a FDCPA violation. Those carry a $1,000 fine for EACH offense.
5. In larger owed amounts over 3K they want a judgment against you. A judgement is VERY bad for you if it happens. They are easy to avoid...but require some leg work. That's a later discussion. Just DONT ever get a judgement against you. They are not a joke.
In conclusion: I asked the P.R.A representative on the phone for debt verification and he could not give it to me. They kept on wanting to tell me that I owed the Credit Card Company money. What they could not answer is my orignal question..
"Please provide me proof that my wife has an agreement with P.R.A. for that debt". They will only be able to provide proof that she 'owed' the Credit Card Company. No documentation will be able to be provided that she owes P.R.A any money.
Now I plan to UPDATE this thread as the process continues to keep interested parties informed.