Consumer complaint received 2026-02-03 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Business Processing Solutions, LLC
State: NJ

Complaint narrative:
On or about XX/XX/year>, I was contacted by Pioneer Credit Recovery , Inc., a collection agency acting on behalf of the New Jersey Department of the Treasury, regarding an alleged New Jersey state tax balance. 

During multiple telephone conversations, the assigned caseworker, XXXX XXXX, stated that I was required to pay approximately {$380.00} per month and that the balance must be paid in full within 12 months. I was explicitly told that if my payment plan exceeded 12 months, a judgment would be placed on my credit profile. 

These statements directly contradict the New Jersey Department of Treasurys publicly stated payment plan policy, which allows standard payment plans of up to 60 months, subject to approval. I relied on this official policy and submitted a payment plan request directly to the New Jersey Department of the Treasury in good faith, proposing monthly payments of {$70.00}. The Treasury acknowledged receipt and informed me that my documentation was forwarded to Pioneer Credit Recovery for review and approval.

Despite the payment plan being under review, Pioneer Credit Recovery continued to pressure me by phone to accept their demanded terms, repeatedly asserting that failure to agree to a 12-month plan at {$380.00} per month would result in a judgment. No court action, judgment, or lien had been filed at the time these threats were made. 

During a subsequent call, XXXX XXXX stated that a revised payment schedule and updated balance had already been mailed to my residence. However, no such correspondence was ever received. I am enrolled in XXXX XXXX XXXX, which provides advance visibility of incoming mail, and it confirms that no mail from Pioneer Credit Recovery was sent or delivered. 

I requested written confirmation of the revised payment schedule, including the date mailed, the address used, the payment terms, and whether the plan was proposed or approved. Pioneer Credit Recovery failed to provide this documentation while continuing verbal demands for payment.

Additionally, Pioneer Credit Recovery stated that the balance increased by approximately {$400.00} solely because the account was placed in collections, yet no written explanation or itemization of this increase has been provided. The amount Pioneer claims differs from the balance listed by the New Jersey Department of the Treasury.

I contacted the New Jersey Department of the Treasury to clarify whether Pioneer Credit Recoverys payment demands and threats of judgment were lawful. Treasury responded that once an account is assigned to a collection agency, they do not comment on or discuss the agencys collection practices. This left me with no clarification or oversight while Pioneer continued to assert consequences that appear inconsistent with the creditors own published policies.

I believe Pioneer Credit Recovery engaged in misleading representations, unsupported threats of legal action, and unfair pressure tactics by asserting mandatory payment terms not supported by the creditors policy, claiming documents were mailed when they were not received, and continuing collection pressure while a formal payment plan approval process was pending. 

I am not refusing to pay this debt. I have actively attempted to resolve it through proper channels. My complaint concerns the misrepresentation of consequences, lack of written validation, inconsistent balances, and coercive collection conduct.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation