Pioneer Credit Recovery: How it Got Your Student Loans

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Updated on October 6, 2022

Pioneer Credit Recovery, Inc. is a debt collection agency that collects IRS debt and non-tax debt, including defaulted student loans for the U.S. Department of Education and guaranty agencies. The company is a subsidiary of Navient Corporation, headquartered in upstate New York.

If PCR is contacting you about student loan debt, then you’re in default, and you’re at risk of an administrative wage garnishment, tax refund offset, and Social Security Benefit Offset. Here’s what to know about this collection company.

Who does Pioneer Credit Recovery Collect for?

Pioneer Credit Recovery collects for city, state, federal government agencies, and Educational Credit Management Corporation. It also provides collection services to county and municipal courts and guaranty agencies for student loan debt.

If you’re having trouble with PCR, you can file a complaint online with Pioneer. You also can file a complaint with the Better Business Bureau (BBB) and the Consumer Financial Protection Agency.

If neither of those options resolves your issue, you can contact your state attorney general’s office or state consumer protection office. Take notes on any phone calls you have about your student loans or other debts and keep copies of letters, bills, or emails about your account.

Lastly, because Pioneer is a debt collector, you may be able to file a lawsuit against PCR for violating the Fair Debt Collection Practices Act.

Pioneer Credit Recovery Scam? Pioneer Credit Recovery is a legitimate business and not a scam. But over its years of experience, consumers have filed several complaints with the CFPB and BBB about PCR’s debt collection efforts (e.g., asking family members for a borrower’s Social Security Number or giving inaccurate account information).

Does the IRS use Pioneer Credit Recovery? Until September 23, 2021, the IRS used Pioneer Credit Recovery to collect outstanding inactive tax debts. However, the IRS stopped using Pioneer Credit Recovery and now relies on three debt collection agencies: CBE Group Inc., Coast Professional, and ConServe.

Pioneer Credit Recovery Wage Garnishment Authority

Pioneer Credit Recovery can garnish wages for defaulted federal student loans without first getting a court order. Federal law allows private collection agencies to send administrative wage garnishment orders to employers after a borrower defaults. The law also allows those agencies to set up a payment plan.

Due to the coronavirus pandemic, Pioneer is prohibited from garnishing wages to collect student loan debt until after September 2021.

While Pioneer can garnish wages for student loans, it cannot do the same for tax debt. The IRS has authorized Pioneer only to call taxpayers and work with them to establish a voluntary repayment plan.

Can Pioneer Credit Recovery take my tax refund? Pioneer Credit Recovery can take your refund to repay delinquent tax debt. But it cannot offset your tax refund for a debt owed to the Department of Education or a guaranty agency — that job is reserved for the Department of the Treasury under the Treasury Offset Program.

Options to Get Out of Student Loan Default with Pioneer

Pioneer Credit Recovery allows borrowers to get out of student loan default by negotiating a settlement, applying for loan consolidation, or entering the loan rehabilitation program. Many borrowers choose the rehab program to remove the default status from their credit report.

Before you do the same, you should know that the CFPB filed a lawsuit against Pioneer Credit Recovery in 2017. In its complaint, the CFPB alleged that Pioneer misled borrowers about the effect of rehabilitation on their credit report and overpromised the amount of collection fees that would be waived by enrolling in the program.

You can protect yourself by reading this guide to the loan rehabilitation program.

Contact Information for Loan Rehabilitation:

  • Phone Number: 800-242-1590

  • Mail: Pioneer Credit Recovery, Inc., P.O. Box 130, Perry, NY 14530

Can you negotiate with Pioneer Credit Recovery? Student loan borrowers can negotiate settlements with Pioneer Credit Recovery. Settlement offers depend on whether the loan is federal or private, time since last payment, and balance. You can submit a settlement offer in writing or call and ask the representative for settlement options.

How to contact Pioneer Credit Recovery

You may contact Pioneer Credit Recovery via:

  • Phone call: You can call Pioneer at their Arcade NY office at 800-836-2442 or their Moorestown NJ office at 866-372-6840. Pioneer’s office hours are 8 a.m. to 9 p.m. ET Monday through Friday and 8 a.m. to 12 p.m. E.T. on Saturday.

  • Email: Borrowers who owe student loan debt to a guaranty agency can email PCR at

  • Fax: Borrowers with debt owed to the Department of Education can fax Pioneer Recover at 855-650-2899 to submit or verify documentation. Borrowers with debt owed to a guaranty agency can fax PCR at 877-653-2839. Taxpayers can fax Pioneer at 877-907-1868.

  • Mail: Pioneer has several addresses, depending on what you need. Check out its forms page for details.

Need to stop collections from Pioneer Credit? Let's talk.

As a student loan lawyer, I’ve helped borrowers stop wage garnishment and decide between loan rehabilitation and consolidation. I know all the options you have available to bring your student loans back in good standing.

Let’s talk. Let’s look at your situation realistically and create a plan that will provide you with results. Schedule a call with me today and take the first step in getting your life back.

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