Portfolio Recovery Associates, LLC is one of the largest debt collectors in the United States. Every month they file thousands of lawsuits against consumers in Oklahoma, and in Louisiana alone. On March 23, 2023, the Consumer Financial Protection Bureau filed a complaint and proposed stipulated final judgment and order to resolve the Bureau’s claims against the PRA. The Bureau alleges that Portfolio Recovery Associates violated the Consumer Financial Protection Act of 2010 (CFPA), the Fair Debt Collection Practices Act (FDCPA), and the Fair Credit Reporting Act (FCRA) and its implementing Regulation V.
This isn’t Portfolio Recovery’s rodeo with the CFPB. The Bureau previously issued an order against Portfolio Recovery Associates on September 9, 2015 (2015 Order), which addressed the Bureau’s findings that the company violated CFPA and FDCPA in connection with its debt collection practices. The Bureau alleges that Portfolio Recovery Associates violated the 2015 Order and the CFPA by violating multiple conduct provisions, including misrepresenting the amount or validity of unsubstantiated debt and collecting on debt without providing necessary documentation to consumers.
Additionally, the Bureau alleges that Portfolio Recovery Associates violated FCRA, Regulation V, and CFPA in its practices for resolving disputes about information it furnished to consumer reporting agencies (CRAs). The Bureau claims that Portfolio Recovery Associates failed to timely resolve disputes submitted by consumers, properly respond to frivolous disputes, conduct reasonable investigations of consumer’s disputes, and maintain reasonable policies and procedures regarding the accuracy and integrity of consumer information that it furnished to CRAs.
The Bureau alleges that Portfolio Recovery Associates illegally collected millions of dollars through its unlawful conduct and that its illegal dispute resolution practices impacted at least tens of thousands of consumers. If entered by the court, the proposed order would require Portfolio Recovery Associates to pay at least $12.18 million in redress to harmed consumers and a $12 million civil money penalty. It would also impose broad injunctive relief designed to prevent Portfolio Recovery Associates from violating the law in the future.
If you’re facing a debt lawsuit or collection action, it’s important to know your rights. You may want to consider seeking the help of an Oklahoma collection defense lawyer or Louisiana credit card lawyer like Paramount Law. These legal professionals can help you understand your rights and options for defending against debt collection efforts. We’ve been able to get hundreds of lawsuits filed by Portfolio Recovery dismissed without our clients ever paying them anything. Remember, even if a lawsuit has already been filed, you have the right to dispute the validity of a debt and request documentation supporting the debt. We can help.