Are you facing a Parking Revenue Recovery Services collection account that has shown up on your credit report? Do you even remember the parking lot?
They probably don’t even remember you, but they’re just as happy to leave the negative item on your credit report.
Luckily, you have rights, and I’m going to tell you exactly how to wield them. You’re protected under federal law, and that law is one of the things that collection agencies hope you never discover.
There’s a reason that the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) are in place. These laws are designed to protect you, the consumer, from the depredations of debt collection agencies.
When you know your rights, you can fight back. In this article, we’ll show you what your rights are, what to ask for, what to dispute, and what to demand from Parking Revenue Recovery Services.
It’s important to note that you should never pay a collection account without disputing it first. Remember, credit reports are full of errors. According to a study done by U.S. PIRGs, 79% of credit reports contain some kind of mistake or serious error.
Before you take a collection agency at their word and assume that the debt is legitimate, you need to do your research and figure out whether or not the item on your report is accurate.
Who is Parking Revenue Recovery Services?
Parking Revenue Recovery Services, also known as PRRS, is a private parking enforcement and debt collection company based in Colorado. A quick search for information on PRRS brings up a lot of red flags.
The Colorado Attorney General’s office issued a press release in August 2023, in which it announced that it had reached a settlement with PRRS that would require the company to pay $106,298 in penalties and refunds to consumers.
The settlement was reached after an investigation that found that PRRS had attempted to collect fines from consumers who had already paid for parking, entered incorrect license plate numbers, or who had never even parked in PRRS’s lots. Hundreds of consumers were affected by the company’s deceptive practices, according to Attorney General Phil Weiser.
In addition to attempting to collect fines from consumers who did not owe them, the investigation found that the company had operated for six months with an expired Colorado collection agency license, even though it continued to attempt to collect debts.
Obviously, these practices are a big deal, and they’re something that you need to be aware of as you attempt to deal with the company. This is especially important because these practices could affect your debt. If PRRS was attempting to collect fines from consumers who didn’t actually owe them, there’s a chance that the company is doing the same thing to you.
A search for PRRS on the Better Business Bureau’s website shows that the company has had 2,518 complaints filed against it in the past three years. The company is not accredited by the BBB, and the majority of the complaints against it relate to “billing and collections issues” and “problems with a product or service.”
Many of the complaints against PRRS indicate that consumers were being fined for parking that they had already paid for, or that they were having issues with the company’s dispute process.
What are your legal rights when dealing with Parking Revenue Recovery Services?
Your Right to Demand Validation
Under the FDCPA, you have the right to demand that a debt collector validate a debt within 30 days of the initial communication. You can dispute the debt and the collector is required to stop collection activities until they verify the debt.
When it comes to parking violations, the company should be required to provide proof that the vehicle in question was present in the lot, that the lot was properly signed, that you didn’t pay for parking, and that the fine is the correct amount. In many cases, collectors are unable to provide that information.
In fact, the Seventh Circuit court case Franklin v. Parking Revenue Recovery Services found that parking fees are, in fact, debts and subject to the FDCPA. The court made this determination in 2016, after the FTC and the Consumer Financial Protection Bureau (CFPB) filed amicus briefs arguing that parking fees are debts and should be subject to the requirements of the FDCPA.
Your Right to Dispute a Credit Report Entry
The FCRA gives you the right to dispute any entry on your credit report that you believe is inaccurate, incomplete, or unverifiable. The credit reporting agency has 30 days to investigate and verify the entry. If they are unable to verify the entry, they are required to delete it.
This means that, even if you don’t dispute the debt directly with the collector, you can still dispute the entry with Equifax, Experian, and TransUnion. If the collector doesn’t respond to the credit reporting agency’s investigation or can’t verify the information, the agency will delete the entry.
You can get a collection account removed if the information is inaccurate, if the debt is erroneous, if the account is fraudulent, or if the collector can’t verify the information within a reasonable amount of time. Given the fact that PRRS has a history of errors when it comes to billing, it’s worth challenging the debt.
Why you should never pay a collection account without disputing it first
The reason you should never pay a collection account without disputing it first is simple: paying a collection account will change its status on your report from “unpaid collection” to “paid collection.” Unfortunately, that doesn’t mean the account will be removed. In most cases, the account will stay on your report for seven years from the original delinquency date.
Having a paid collection on your report can still damage your credit score. While newer credit scoring models like the FICO 9 and the VantageScore 3.0 ignore paid collections, many lenders still use older models. That means paying a collection might not even help your credit score.
In some states, paying a collection account can even restart the statute of limitations, leaving you open to lawsuits for debts that are several years old. Before you pay a collection account, it’s a good idea to dispute it and see whether the collector can provide evidence that the debt is valid and that it’s being reported correctly.
The economics of dealing with a collection agency
Collection agencies make their money by buying up debts for pennies on the dollar and then attempting to collect the full amount from consumers. If a debt collection agency is telling you that you owe $97, for example, the company may have paid just a few dollars for the debt. That means you shouldn’t pay the full amount, even if the debt is legitimate.
In addition, the cost-benefit analysis of pursuing you for the debt might not be in the company’s favor. For example, if the company needs to file a lawsuit against you in order to collect, it will need to pay court costs, attorney fees, and other expenses. If the debt is for $97, it’s unlikely to be worth the company’s time and money to pursue.
In fact, collectors rarely sue for small debts because the cost-benefit analysis simply doesn’t work out in their favor. That knowledge can help you when you’re dealing with a debt collector. The company wants a quick resolution to the debt because it needs to make a profit. If you know your rights and assert them, you can make things much more difficult and expensive for the collector. That gives you leverage.
How to protect yourself from Parking Revenue Recovery Services’ tactics
Your Right to Control Communications
The FDCPA says that you have the right to tell a debt collector to stop contacting you. You can do this at any time, and the communication is required to stop, except in specific circumstances. For example, the collector can contact you to tell you that it’s going to file a lawsuit against you. You can stop the contacts by sending a written cease communication letter to the collector.
One consumer who dealt with PRRS told the Consumerist about the notices she received from the company: They sound really intimidating because I think most people would pay just because of the verbiage they use and the fear factor. Another consumer reported that she worried every morning that there would be a boot on her car.
The goal of notices like this is to intimidate you into paying a debt you might not owe. The best way to deal with a debt collector is to make it communicate with you in writing. When you allow a collector to contact you by phone, you give it the opportunity to use high-pressure tactics to get you to pay a debt. When you insist on written communication, you have time to do your research and assert your rights.
It’s also important to recognize when a debt collector is engaging in illegal behavior. Collectors aren’t allowed to harass you, threaten to have you thrown in jail, or pretend to be a government official. They’re not allowed to call you at odd hours, use obscene language, or threaten to do things they don’t intend to do. If a collector does any of these things, you might have grounds for a countersuit.
If the collector violates the FDCPA, you are entitled to actual damages, statutory damages (up to $1,000), and reasonable attorney fees. Everything, save every letter, date and time every phone call, this is evidence.
The Dispute Process Step by Step
We’ll outline a step by step process for disputing this debt on your credit report, and demanding validation.
Gathering Your Documentation
First, you’ll want to obtain a copy of your credit report from each of the three major credit bureaus.
Identify how the debt is reporting, account number, balance, date of first delinquency, etc. Make a note of any discrepancies between how the account is reporting, and what you know to be fact. Gather any evidence that supports your case, parking receipts, credit card statements (if you paid via credit card), photos of the signage (if signage was inadequate), any records you have which prove you were not in the location on the date alleged.
One consumer reported that they sent their Apple Card statement to PRRS to prove payment, only to have PRRS claim the documentation was not acceptable because they did not send the specific receipt.
The more documentation, the merrier. There is a specific process for credit repair, and the more work you do in this initial step, the better off you will be down the line.
Filing Effective Disputes
You should file a dispute with each of the three credit bureaus. In your dispute, you should specify why you believe the information is not accurate. Generic disputes, get generic responses. If you make a specific dispute, they will be forced to conduct a meaningful investigation.
The credit bureau is required to forward your dispute to the collector (PRRS), who then has 30 days to verify the debt. If they do not respond, or if they cannot verify the debt as accurate, they must delete the item from your credit report. Keep in mind, PRRS receives over 100,000 notices per month, how are they able to verify each account?
Make sure you keep a copy of everything you send, and receive. Send your disputes via certified mail, return receipt requested. This will provide you a paper trail of when the credit bureau received your dispute, and when the clock started ticking on the investigation.
When Professional Help Makes Sense
The Complexity Factor
While it’s entirely possible to tackle this process on your own, it isn’t always the best approach. Collection agencies have extensive experience navigating these situations, and they know just how to respond to a consumer’s dispute in a way that serves their best interests. This is an information imbalance: They know all the ins and outs, but most consumers don’t.
Credit repair experts, however, know the ins and outs of every type of dispute letter, the timing to maximize your chances of success, and how to follow up in a way that keeps the pressure on the collector. This isn’t a situational, on-the-fly process for them; It’s something they’ve done many times before, and they have it down to a science.
The dollar amounts at stake make seeking expert help well worth considering. A collection on your credit report can cost you tens of thousands of dollars in higher mortgage interest payments alone. Paying for expert help is often a much more cost-effective strategy than trying to navigate complex disputes on your own.
What to Look for in Credit Repair Assistance
Reputable credit repair companies are transparent about their process and about what they can achieve. They won’t make promises about specific outcomes, and they won’t promise the world. If someone is guaranteeing you overnight success or a certain number of points, that’s a red flag.
You want a company that is focused on disputing the debt, rather than simply trying to settle with the collection agency. The goal should always be to remove the inaccurate information, not just negotiate a payment plan that will leave the negative item on your report.
Advocacy companies are looking out for consumers’ rights and operate within the framework of the FDCPA and FCRA. They recognize that in many cases, collectors can’t actually verify a debt and will use that fact to their advantage as they advocate on behalf of consumers.
Conclusion
It has been well documented that Parking Revenue Recovery Services (PRRS) attempts to collect debt that is not valid, they have operated for periods of time without the proper licensing, and they have generated thousands of complaints from consumers. Their recent settlement with the state of Colorado for $106,298, and their 2,518 complaints with the Better Business Bureau over the past three years, say a lot about what their business practices are like, and how you should approach them.
You have rights afforded to you under the law that will make it difficult for a collection agency like PRRS to leverage you into paying a debt. You have the right to request validation of the debt, you have the right to dispute the credit report, and you have the right to dictate how a collection agency is allowed to communicate with you. Your leverage comes from education, and using that education to your advantage.
The reason for the dispute first approach, is simple. You should never pay something that you do not have proof is owed. We know that up to 79% of credit reports contain some level of error, if you are simply going to assume the debt is valid because that is what the collection agency says, you are playing right into their hands.
Take Action Today
If you have a collections listing from Parking Revenue Recovery Services on your credit report, do not ignore it, and do not pay it until you have validated its accuracy. Use your right to dispute the listing, and demand validation. The law provides you the tools you need to protect yourself from companies like PRRS, you just need to use them.
FightCollections.com is a consumer advocacy website that specializes in helping individuals understand how to battle collection agencies and improperly reported credit information. If you have PRRS on your credit report, and you are not sure what to do, contact us for a free consultation. Our staff will help you understand what your options are, and how we can help. It’s your credit report, it’s time to take control of it.
