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SBA Loan Default: The Private Collection Agency

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SBA Loan Default: The Private Collection Agency

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If you have defaulted on your SBA loan, a private collection agency may start contacting you to collect the SBA loan. Who and what are private collection agencies (PCAs)?

The Department of Treasury contracts with four private collection agencies, known by their common names: Performant, Pioneer Credit, CBE Group and Conserve. If you have been contacted by one of these four PCAs, your defaulted SBA loan has been referred to the Department of Treasury for collection who has contracted with one of the PCAs to collect for the Department of Treasury. The PCAs, of course, have a financial incentive to collect on the defaulted SBA loan.

The Claims Collection Act authorizes the Department of Treasury to contract with private collection agencies. However, the Department of Treasury must retain the authority to resolve disputes, compromise claims, end collection actions and refer claims to the Department of Justice.

The PCAs are bound by the Privacy Act and the Fair Debt Collection Practices Act and all other applicable federal and state laws and regulations relating to debt collection practices.

The PCAs are not only tasked with sending letters and making phone calls demanding payment, but they may also send notices of administrative wage garnishments. Therefore, any letters sent by a PCA should be opened and read immediately because if a notice of administrative wage garnishment is sent, you only have a short amount of time to file a request for hearing and challenge the administrative wage garnishment.

Furthermore, the Department of Treasury may use multiple PCAs to try to collect on the defaulted SBA loan; that is, by way of example, although Performant may have the first opportunity to collect, the debt may later be transferred to Pioneer for collection. As such, if a PCA contacted you regarding your SBA loan default, do not ignore the PCA, it is time to take action and deal with the debt.

If you are facing an SBA loan default, contact Protect Law Group today at www.sba-attorneys.com or 1-888-756-9969 to schedule your FREE initial consultation.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure

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Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements

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Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

$505,000 SBA 7(A) LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

$505,000 SBA 7(A) LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

Clients borrowed and personally guaranteed an SBA 7a loan.  Clients defaulted on the SBA loan and were sued in federal district court for breach of contract.  The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan.  We were subsequently hired to intervene and aggressively defend the lawsuit.  After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 7(a) loan balance of over $150,000.  Business failed and eventually shut down.  SBA then pursued client for the balance.  We intervened and was able to present an SBA OIC that was accepted for $30,000.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

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