Bottom Line: Cavalry Portfolio Services is a debt buyer that purchased your account for approximately 4–10 cents per dollar. That gives you enormous negotiation leverage. Start settlement offers at 15–20%, target 25–35%, and always demand proof of ownership before paying anything.
Who Is Cavalry Portfolio Services?
Cavalry Portfolio Services
Business Type:Debt Buyer & Collection Company
Business Model:Purchases charged-off consumer debt portfolios from financial institutions
Debt Types:Credit cards, personal loans, auto deficiency balances, unsecured consumer debt
Collection Methods:Phone calls, mail, credit reporting, litigation, settlement negotiation
Credit Report Name:Cavalry Portfolio Services / Cavalry SPV
Estimated Purchase Price:4–10 cents on the dollar
Cavalry Portfolio Services is a debt buyer that specializes in purchasing portfolios of charged-off consumer debt from banks, credit unions, and other lenders. Like all debt buyers, Cavalry pays a fraction of face value for these accounts — typically 4 to 10 cents per dollar — and then attempts to collect the full balance.
The key insight for dealing with Cavalry is the same as with any debt buyer: they have massive profit margins built into every dollar they collect. A $3,000 debt might have cost Cavalry $120–$300. That means a $900 settlement (30% of face value) still represents a 200–650% return on their investment.
Warning: Debt buyers like Cavalry often cannot produce complete documentation for the debts they've purchased. Missing original agreements, incomplete payment histories, and gaps in the chain of title are common problems. Always demand full validation — this alone can resolve many Cavalry accounts without payment.
Your Rights Against Cavalry Portfolio Services
Cavalry is bound by the same federal and state consumer protection laws as all debt collectors:
- FDCPA: Must validate debt within 30 days of request; cannot harass, threaten, or use false statements
- FCRA: Must report accurate information to credit bureaus; must investigate and correct disputed items
- State consumer protection laws: Many states impose additional requirements on debt buyers, including licensing and documentation standards
- Statute of limitations: If the SOL has expired in your state, Cavalry cannot win a lawsuit — but they can still attempt to collect
Step-by-Step: Dealing With Cavalry Portfolio Services
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Send a debt validation letter within 30 days. Demand Cavalry provide the original signed agreement, complete payment history, and a documented chain of title. They must stop collection activities until they respond. If they can't produce proper documentation, the account may be dropped entirely.
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Check your state's statute of limitations. Find your state's SOL at
/statute-of-limitations/. If the debt is time-barred, Cavalry cannot win in court. Don't make any payments on time-barred debt without consulting an attorney — it may restart the clock.
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Open settlement negotiations at 15–20%. Cavalry paid 4–10 cents per dollar. Start your offer at 15–20% and be prepared to negotiate up to 30–40%. For older accounts nearing the statute of limitations, push for 15–25%.
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Request pay-for-delete. Before making any payment, ask Cavalry to remove the collection from your credit report. Get the agreement in writing before sending money.
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Document every interaction. Log all calls (date, time, representative name, summary), save all letters and emails. If Cavalry violates the FDCPA, you may have a counterclaim worth up to $1,000 plus damages and attorney fees.
Phone Scripts for Cavalry Portfolio Services
First Contact — Demand Validation
"I am requesting written validation of this debt before we discuss anything. Please provide: the original signed credit agreement, a complete payment history showing how the balance was calculated, documentation of the chain of title showing how Cavalry acquired this specific account, and proof that your company is licensed to collect in my state. I prefer all future communication in writing."
Settlement Opening Offer
"I'd like to resolve this account today. I understand that debt buyers like Cavalry typically purchase portfolios for 4 to 10 cents on the dollar. I'm prepared to offer [15-20% of the balance] as a full and final settlement. This is well above what Cavalry likely paid for this account. I need a written settlement agreement before sending any payment, and I'd like to discuss whether Cavalry can request deletion of this entry from the credit bureaus."
When Cavalry Refuses to Negotiate
"I understand your position. My maximum budget for this settlement is [your max]. If Cavalry is not willing to negotiate, I will need to explore other options, including disputing this account with all three credit bureaus and consulting with a consumer attorney about my rights under the FDCPA and state law. I'd prefer to resolve this directly. Can you escalate this to someone with more settlement authority?"
Expected Settlement Ranges With Cavalry
| Account Age | Cavalry's Estimated Cost | Realistic Settlement Range | Strategy |
|---|
| Recently purchased (0–12 months) | 5–10 cents/dollar | 35–50% | Cavalry is early in collection; start at 20% and negotiate |
| 1–3 years in portfolio | 4–8 cents/dollar | 25–40% | Sweet spot for negotiation; collector wants cash flow |
| 3–5 years in portfolio | 3–6 cents/dollar | 15–30% | Approaching SOL; Cavalry more motivated to settle |
| Near statute of limitations | 3–5 cents/dollar | 10–20% | Maximum leverage — they know time is running out |
| Time-barred (past SOL) | 2–4 cents/dollar | 10–15% or ignore | Get legal advice before paying; don't restart the SOL |
Pro Tip: Cavalry collectors typically have settlement authority up to a certain percentage. If you can't get a reasonable offer accepted, ask to speak with a supervisor or the settlements department. Also, end-of-month and end-of-quarter timing can work in your favor — collection agencies are often under pressure to hit targets and may accept lower offers.
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