IRSCrimeWatch

Portfolio Recovery Associates: Apropo of Bailouts

Look, if you value your dough, don't invest in a company that is trying to defraud the IRS by running a 1099-c ponzi scheme. They pay $5 for a bad, out of limt , unverified debt, then file for deduction for the alleged full balance of the debt ($5000), claiming they're out the $5000 instead of five bucks. That's a $4995 windfall for $5 - pretty good, unless you get caught at it. Since they've decided to go whole hog into this phony deduction scam, the jig will be up shortly for PRAA. Haven't they heard that the IRS are the best debt collectors in the whole world?

You'd do better to stick a quarter in a slot machine, then send an invoice to the casino for what you could have won had you put a dollar in. You'd do better because you wouldn't end up in the pokey next to Kenneth Lay. Where do they get these creative accountants that come up with these schemes? Does everyone want to earn free room and board, courtsey of the state?

If this 1099-c scheme PRAA is pulling is legitimate, then I'm Mary Queen of Scots! Stay away! Stay away! Stay away!


On Oct 03 02:14 PM metal27 wrote:

> PRAA is well run, has a record of making money on the debt they buy.
> They also are reputed to be more humane in their collection efforts
> than most in the business. I owned the stock some years ago, sold
> because times were too good (hedge funds were buying debt at too
> high a price) but I may have to revisit it, do new DD, as anyone
> should.
>
> The keys in this business are the price paid for the debt and the
> skill of the collection people--PRAA gets high marks in both categories
> from TMF, which has followed and recommended this stock for years.