By: Robert J. Nahoum
“Junk debt buyer” Portfolio Recovery Associates, LLC (PRA) buys up portfolios of old debt from banks, credit card companies, hospitals, doctors, cell phone companies and car companies for pennies on the dollar and then sues to recover the full balance.
According to the New York State Unified Court System, PRA filed 5,696 New York debt collection lawsuits in 2019.
In 2015 Portfolio Recovery reached a deal with government watchdog the Consumer Financial Protection Bureau over illegal debt collection practices.
Among the settled claims, the CFPB accused Portfolio Recovery of
- Misrepresenting their intention to prove debts they sued consumers over,
- Relying on misleading, robo-signed court filings to churn out lawsuits,
- Suing or threatening to sue consumers past the statute of limitations,
- Pressuring consumers to make payments using misrepresentations,
- Falsely claiming an attorney had reviewed the file and that a lawsuit was imminent.
Under the settlement, Portfolio Recovery agreed to pay $19 million in refunds to consumers and pay a penalty of $8 million to the CFPB’s Civil Penalty Fund. Also, Portfolio Recovery agreed to stop collecting on $3 million of debt, release or move to vacate all judgments and dismiss all pending lawsuits it filed past the statute of limitations and stop any attempts to enforce or collect on those judgments, estimated to have a face value of $3.4 million.
Portfolio Recovery Associates, LLC is a public company traded on the NASDAQ: under ticker symbol PRAA. According to Portfolio Recovery Associates, LLC,
Portfolio Recovery Associates, LLC regularly make debt collection phone calls from (800) 772-1413, 800-331-0500, 866.925.7109, (800) 383-8013, and is located at:
120 Corporate Boulevard
Norfolk, VA 23502
Portfolio Recovery Associates is an accused violator of federal debt collection laws known as the Fair Debt Collection Practices Act (FDCPA) and is sued regularly by consumers for these violations. The FDCPA is a federal law that regulates the collection of consumer debts. It precludes third party debt collectors from using false, misleading, deceptive and harassing debt collection tactics.
If you need help settling or defending a debt collection law suit, stopping harassing debt collectors or suing a debt collector, contact us today to see what we can do for you. With office located in the Bronx, Brooklyn and Rockland County, the Law Offices of Robert J. Nahoum defends consumers in debt collection cases throughout the Tristate area including New Jersey.
The Law Offices of Robert J. Nahoum, P.C