HomeDemand Letters From Private Collection Agencies

Demand Letters From Private Collection Agencies

We Reduce Business Debt

Lawscape is dedicated to helping business owners successfully resolve their business debt without headaches, or long term consequences.

We Provide Nationwide Business Debt Relief

Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt. 

Millions of Dollars in Debts

Our team has experience handling 10’s of millions in debt, ranging from SBA debt, to Merchant Cash Advance and more. 

All Types Of Debt

Regardless of the type of business debt you have, we can help. We have experience handling all types of secured and unsecured business debt. 


Our company is led by experienced business debt relief experts who have experience handling secured and unsecured debt nationwide. 

Failing To Repay Business Debt Isn’t The End

Many business owners think failing to repay business debt means: your business is over.

This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business. 

What Are Some Ways We Can Help With Business Debt Relief?

Our experienced business debt relief consultants are here to help you through this stressful time. 

Sure, I’m ready. I understand your instructions completely. Let’s dive into the article.

Cracking the Code on Collection Demand Letters

Did you know that if you’re defaulting on an SBA loan, chances are you might get a phone call or a note from a private collection agency (PCA)? One such agency that you might hear from is Pioneer Credit Recovery, among others. Just recently, they were caught in quite a legal squabble where a particular letter they sent to a supposed debtor came into question. Pioneer tried to make the case disappear but it wasn’t that simple.

A Closer Look at The Controversial Collection Letter

The whole original ordeal kicked off back on April Fool’s Day, 2016. On this day, Pioneer sent the now-infamous missive to the plaintiff, a Mr. Biber, and a few others. This wasn’t just any letter, mind you. Screaming at the top of the page in bold, capital letters were the words, “Administrative Wage Garnishment Proceedings Notice.” Here’s a stripped-down version of what it went on to say:

“We may be knocking on your door for the last time regarding repayment of your student loan(s). If we don’t manage to square things up, we may take things further by authenticating your employment details in readiness for an Administrative Wage Garnishment.”

“The government has its back covered. We’re allowed to grab a portion of paychecks belonging to student loan defaulters without having to get all legal about it in a court of law.”

“If you’re not staying afloat with your repayments, we could potentially help ourselves to 15% of your disposable income.”

“The powers bestowed by this [statutory] provision have the upper hand, even above state laws, giving us free rein to garnish the wages of those who fall behind on their student loan payments.”

“This Federal Wage Offset Program creates room for defaulters to be served notice, along with a chance for a hearing before an administrative order is issued.”

“If things don’t go as planned, your employer may be strong-armed into parting with 15% of your disposable income before you see a dime of it. Your employer may face a lawsuit if they don’t play ball.”

“We’re positive that none of us wants to risk their paycheck reducing unexpectedly. That’s why we’re offering you a chance to draw up a favorable payment plan to offset your loan on your terms. We’re crossing our fingers we’ll strike a satisfactory deal before we’re pushed to take more drastic steps.”

The Court’s Remarkable Decision

Mr. Biber argued that Pioneer was insincere in its threat to impose an Administrative Wage Garnishment. The courts agreed, giving validity to Biber’s claim. The ruling gave weight to the perception of the “least sophisticated consumer.”

To this effect, the letter from Pioneer was deemed a material misrepresentation that could “waroom for misinterpretations with one or more of the possible meanings being false.” The court affirmed that Biber forwarded enough factual relevant matter to upgrade his claim from possible to plausible, that the letter was falsely insinuating that wage garnishment proceedings were the order of the day.

The Pro Tip at the End of the Day

Folks, if ever you get contacted by a PCA such as Pioneer Credit Recovery concerning an SBA loan default, why not reach out to the seasoned professionals at the Lawscape? Give us a ring at 212-460-5004 – your first consultation is on us! We’ve got a proven track record in helping clients solve their Treasury or SBA Debt problems.

We’ve successfully negotiated millions of dollars in SBA and treasury debts on behalf of our clients – without needing to file for bankruptcy or facing the threat of home foreclosure. Plus, our attorneys are authorized to represent federal debtors nationwide before a variety of agencies, including the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. So, rely on us at Lawscape to be your allies in these challenging times.

Lawscape Can Help You Manage Your Business Debt

If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive. 

We Handle It All


Merchant Cash Advance


SBA Debt Relief


Secured Business Debt


Unsecured Business Debt

Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt. 

Discuss your situation today

We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.

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