How To Deal With Central Portfolio Control

What Is Central Portfolio Control?

Central Portfolio Control Inc. (CPC) is a full-service, nationally licensed collection agency based in Minnetonka, Minnesota. According to CPC’s website, it mainly purchases debt from major banks and other financial services.

Here is Central Portfolio Control’s contact information: 

Website: https://cpcrecovery.com/ 

Phone number: 1 (800) 834-2147

Address: 10249 Yellow Circle Drive, Suite 200, Minnetonka, MN 55343

You might be wondering how or why CPC is contacting you. Your original creditor — for example, your bank — will send you written notices and call you if your payments become delinquent. If you ignore their collection efforts, they will charge off your debt to a debt collector like CPC. The collector then creates a collections account for your debt and takes over.  

Why Is CPC Contacting Me?

If Central Portfolio Control contacts you, a lender, such as your bank, has sold them a debt you owe. CPC is now continuing collection efforts. 

Since CPC now owns your debt, you will need to work directly with the debt collection agency to address the account.

Is Central Portfolio Control Legit?

Yes, Central Portfolio Control is legitimate. However, they have many consumer complaints against them, according to the Better Business Bureau (BBB) and the Consumer Financial Protection Bureau (CFPB). 

Consumers have filed over 143 complaints with the Better Business Bureau against CPC in the past three years. Many complaints against CPC involved the debt collector(s) attempting to collect debt that people didn’t actually owe.  

Note to reader: These reviews and complaints highlight relevant issues but may not represent all consumers’ experiences.

Attempting to collect on a debt that a debtor doesn’t owe is a common violation of the Fair Debt Collection Practices Act (FDCPA). 

The FDCPA is a federal law that protects you from harassment and unlawful behavior from third-party debt collectors and collection agencies. If you believe a debt collector has committed a violation, you can report them to the CFPB and even sue for monetary compensation. 

How Do I Know if I’m Being Scammed?

While CPC is legitimate, scammers may use the company’s name to try to con you. You can spot a scammer if they ask for sensitive information — like bank account information or your Social Security number. A legitimate debt collection agency won’t ask for this information.

Read our guide to the 8 Red Flags of Debt Collector Scams to learn more about these scams.

The best way to protect your personal information is to validate your debt (more on this below) and ask for more information. If you think you’re dealing with a scammer, you can report them to the Federal Trade Commission (FTC). The FTC is a government agency that specializes in protecting consumers' rights. 

Do I Have To Pay Central Portfolio Control?

If CPC contacts you, your first step should be to ensure the debt they claim you owe is legitimate. Sometimes, debt collectors get details wrong, like the amount owed or the account holder’s name. Debt collectors typically buy debt in bulk, so it’s not uncommon for them to have incorrect or incomplete information.

To figure out if the debt is legitimate, you need to validate the debt to verify that:

• The debt is an actual debt that you owe

• The debt collector genuinely owns the debt

• The amount of debt is accurate   

If the debt collector got the information wrong and they’re unable to validate the debt, you can tell them to stop contacting you. If they can prove the debt is yours and that they own it, you have to decide what to do next. 

Step 1: Send a Debt Verification Letter

If you haven’t already received a debt validation letter from CPC, you need to request one from them. You can also craft and send your own debt verification letter. 

Debt collectors are required to send you a debt validation letter. This should contain information about the debt they’re trying to collect from you. Legally, the debt collection company is required to send you this letter either before or within five days of their initial contact. They have to give you a 30-day window during which you can dispute the debt.

During this 30-day period, the collection agency can’t continue its efforts. This includes making phone calls and sending letters or emails. If they can’t verify your debt within these 30 days, you aren’t obligated to make a payment. 

If the debt collector verifies your debt within the 30-day time frame, your next steps will depend on whether you agree or disagree with the amount they claim you owe.

Step 2: Decide What To Do Next

If the debt collector can prove that you owe the debt they’re claiming, you’ll need to decide what you’d like to do next. Though it may not feel like you have options, you do have control over how you proceed. 

The three main options are to: 

• Dispute the debt

• Negotiate or settle the debt 

• Ignore the debt (while this is technically an option, this is not recommended) 

Option 1: Dispute the Debt

If you disagree with the amount on the debt validation letter or other details outlined in the letter, you have the right to dispute the debt. 

If something is incorrectly reported on the debt validation notice, there’s a good chance it was incorrect reporting to the three major credit bureaus as well. So if you dispute a debt with a debt collector, be sure to check your credit report  to see if and how that debt was reported.

You can protect and potentially improve your credit score by disputing credit report errors with the three major credit bureaus. 

Under the Fair Credit Reporting Act (FCRA), you have the right to request a free copy of your credit report from each of the three major credit bureaus once every 12 months. Some credit bureaus allow you to view your credit report more frequently.

Also, under the FCRA, you have the right to request credit bureaus remove negative entries from your credit report using the 609 Credit Dispute Letter.

Option 2: Negotiate the Debt and Make a Settlement Offer

Many people in debt can't pay the total amount the debt collector is asking for. If this is you, consider negotiating a debt settlement. Yes, you can negotiate your debt amount down, pay less, and settle the account for good.

Many people don’t realize that debt collectors are often willing to accept settlements ranging from 40% to 60% of the original amount owed. Because they acquired your debt from the original creditor at a fraction of its value — and they’ll likely make a profit even if you pay much less than what you originally owed — they’re willing to negotiate.

If you want to negotiate your debt, you can do so with a debt settlement letter. In fact, it’s good to negotiate via written communication rather than on the phone. That way you have a record of everything. Don’t start with your best offer. It’s better to start lower — perhaps as low as 25% — but be open to meeting at around 50%.

Can You Negotiate Every Past-Due Debt?

You can generally negotiate common past-due consumer debts like credit card debt, medical bills, personal loans, and payday loans. Overdue tax debt is often negotiable as well, but the IRS has its own process for negotiating owed tax debt.

Any debt that’s backed by collateral can’t usually be negotiated. The most common examples are mortgages and car loans. If you default on either of these loans, the lender can take the property back to address the debt. This process is called repossession for vehicles and foreclosure for homes.

Millions of Americans have and are struggling to repay federal student loans. You can’t usually negotiate these loans, either, but there are many student loan forgiveness and repayment options.

Option 3: Ignore the Debt (Not Recommended)

Dealing with debt can be overwhelming, and debt collectors are persistent. If you’re tempted to just ignore them, you’re not alone. But ignoring the debt or the debt collector won't resolve the issue. In fact, it can add to your stress and anxiety.

What Happens if I Ignore Central Portfolio Control?

Ignoring a debt collector won’t make the debt go away. It can actually cause even more problems. Here are some common consequences:

• Your credit score drops.

• The debt collector adds interest, fees, or court costs and you owe more in the long run.

• The debt collector decides to sue you. If they win, they can get a court order to garnish your wages. 

Although negative information typically falls off your credit report after seven years, the underlying debt may not disappear. Collection agencies can continue their efforts as long as the statute of limitations remains in effect.

Bottom line: The best thing you can do for yourself is to take action. You can take on Central Portfolio Control and come out the other side.

Can Central Portfolio Control Sue Me?

Yes. If CPC’s attempts to collect a debt go unanswered, they may take legal action and file a debt collection lawsuit.

Whether or not a debt collector sues you depends on many factors, such as:

• Your state’s wage garnishment laws

• The amount of time your debt has been in collections

• The amount of debt you owe

If you get sued, you’ll know when you receive a summons and a complaint. These are official court documents notifying you of the lawsuit and outlining the case details. Depending on your state’s laws for serving court documents, the papers may be mailed to you, delivered to you in person, or left with an adult at your home. 

Let’s Summarize…

Central Portfolio Control (CPC) is a legitimate debt collection agency focusing on consumer debts like credit card bills and personal loans. If they contact you, you need to validate that the debt is accurate. If it is, take action and respond to CPC as soon as possible. If you owe the debt, try to negotiate a settlement offer to pay less than the full amount you owe and resolve the issue.