Pioneer Credit Recovery buys old debts from companies such as credit card companies, student loan servicers, and even the IRS. When consumers don’t pay their debts for 120+ days, companies like Pioneer Credit Recovery buy the debts from the creditor.
Most collection agencies like Pioneer buy the debt for much less than it’s worth. This gives you some negotiation room, but it doesn’t let you off the hook. If you owe the debt, you must pay it, but you may not have to pay the full amount.
The bigger issue is how to remove Pioneer Credit Recovery from your credit report. Leaving it there, even after paying it can damage your credit score for the long term. Most collections stay on your credit report for 7 years, so it’s important to know how to remove Pioneer Credit Recovery from your credit report.
Start with Debt Validation
The first thing anyone should do who finds Pioneer Credit Recovery on their credit report or who receives a phone call from them is to validate the debt.
Remember, you have only 30 days from the date they first contact you to do this. As soon as they call you or send you a letter, write back, asking them to validate the debt. Ask as many specific questions as you can about the debt. If they can’t answer your questions (validate your debt), then they must remove it from your credit report.
Ask for debt validation in writing. Pioneer has 30 days to respond to the request. If they don’t, by law they must remove the credit line from your credit report.
Dispute the Debt
If Pioneer Credit Recovery validates the debt, you may still dispute it. A dispute means you don’t agree with what they reported on your credit report. If the information is inaccurate or unfair, you may dispute it and Pioneer must remove the information from your credit report.
You can dispute just about any information about the collection, so look at it closely. Are the account numbers right? Is your name spelled right? Look at the payment dates and amounts. Are they correct? Anything that’s incorrect, you can dispute.
Write a letter to the credit bureau reporting the debt to dispute it. In your letter include the reasons you’re disputing the debt and include proof. The credit bureaus have 30 days to respond to the dispute.
Arrange a Pay for Delete Agreement
If you do the above steps and find that you owe the debt and that it’s legitimately reported on your credit report, you have one more option – a pay for delete agreement.
Yes, this means you must pay the debt. Even in the above steps, you still owe the debt, it just erases it from your credit report. But, it means two things:
- You may not have to pay the full balance. Pioneer buys the debt from your creditor for less than the full amount. You have room to negotiate how much you pay back.
- You can ask Pioneer to delete the debt from your credit report in exchange for payment. If you ask this over the phone and they agree, request a letter in writing. Don’t pay them until you have it in writing.
A pay for delete agreement settles the debt in full or in the amount they agree to and erases it from your credit report. That’s the important part. Even if you pay the debt in full but don’t have a pay for delete agreement, it will sit on your credit report for 7 years.
A collection on your credit report makes future lenders unsure about lending to you. Most will turn down your application and those who approve it will charge you higher fees and interest rates.
Don’t let Pioneer Credit Recovery sit on your credit report. If you find it on there, react immediately, validating the debt if it’s within the first 30 days of them reporting it. If you missed your window of opportunity, take the next steps, disputing the debt and working out an arrangement with them.
Remember, they bought the debt for less than it’s worth. Negotiate a settlement with them, starting low, knowing they will counter offer at a higher amount. The key is to settle the debt AND erase it from your credit report.