Product: Debt collection

Dear Sir or Madam : I am writing to dispute the default judgment entered against me in the Magistrate Court of XXXX XXXXXXXX XXXX, Case Number XXXX. I am XXXX XXXX XXXX, the defendant in this case. 

I dispute your claim and I am requesting validation from you pursuant to the Fair Debt Collection Practices Act 15 USC 1692g Sec. 809 ( 8 ) ( FDCPA ).

Lack of Proper Service : I was not properly served with the lawsuit documents : an old debt and failure to provide proof of Debt Validation. 

I was never personally served. 
Lack of Notice : Because I was not properly served, I was unaware of the lawsuit and unable to respond or defend myself in court. 

[ Choose any of the following that apply and provide details and evidence ] : Debt Not Valid. I do not believe I owe this debt because.

Statute of Limitations : This debt is too old to be legally collected.

Debt Validation Request : Pursuant to the Fair Debt Collection Practices Act, I request that you provide me with verification of this debt, including : A copy of the original contract or agreement Proof that you are legally entitled to collect this debt An itemized statement showing how the debt was calculated Request to Reopen Case : I respectfully request that the court set aside the default judgment and allow me an opportunity to present my defense. I am prepared to provide further evidence and documentation to support my claims. 

Contact Information : Please send all correspondence to the address listed at the top of this letter. 

Important Considerations Certified Mail : Send the letter by certified mail with the return receipt requested. This provides proof that PRA received your letter.

Keep Copies : Make copies of everything you send to PRA and keep them for your records.

Court Rules : Research the specific rules for setting aside a default judgment in the XXXX XXXX XXXX XXXX. You may need to file a formal motion with the court in addition to sending this letter. 

Legal Assistance : If possible, consult with an attorney or a consumer law expert. They can provide guidance and help you navigate the legal process. 

This document describes a Consent Order from the Consumer Financial Protection Bureau ( CFPB ) against XXXX XXXX XXXX and Portfolio Recovery Associates, the nation 's two largest debt buyers and collectors. It details how these companies engaged in deceptive and illegal debt collection practices and outlines the penalties and corrective actions imposed upon them. 

Here 's a breakdown of the key points : Findings of the CFPB : Debt Buying and Collection of Potentially Inaccurate Debts : Encore and Portfolio Recovery Associates purchased debt portfolios that were often inaccurate, lacked documentation, or were unenforceable. They then aggressively pursued collection on these debts without proper verification. 

Deceptive and Illegal Collection Tactics : The companies used deceptive tactics, including false statements and robo-signed court documents, to pressure consumers into paying.

Illegal Litigation Practices : They filed lawsuits without the intent to prove the debts, relying on default judgments when consumers failed to respond. They also misrepresented their intention to prove debts in court, relied on misleading, robo-signed court filings, sued or threatened to sue on time-barred debts ( debts past the statute of limitations ), and pressured consumers to make payments using misrepresentations. 
Violations of Fair Debt Collection Practices Act ( FDCPA ) and Dodd-Frank Act : These actions violated federal laws designed to protect consumers from abusive debt collection practices. 

Penalties and Corrective Actions : Financial Penalties : Encore : Up to {$42.00} XXXX in consumer refunds and a {$10.00} XXXX penalty. 
Portfolio Recovery Associates : {$19.00} XXXX in consumer refunds and an {$8.00} XXXX penalty. 

Cessation of Collection on Certain Debts : Encore : Stop collection on over {$120.00} XXXX worth of debts. 
Portfolio Recovery Associates : Stop collection on over {$3.00} XXXX worth of debts. 
Overhaul of Debt Collection and Litigation Practices : No More Reselling Debts : Prohibited from reselling debts to third parties. 
Verification of Debts : Must review original account-level documents before collecting disputed debts or debts from questionable portfolios. 
Accuracy in Lawsuits : Can not file lawsuits without proper documentation and information. 

Information for Consumers Before Lawsuits : Must provide consumers with debt information and offer original documents before filing suit. 
Accurate Affidavits : Affidavits must accurately reflect the signer 's knowledge. 
Reformation of Older Debt Collection : Prohibited from suing or threatening to sue on time-barred debt. Must disclose if a debt is too old to be litigated.

Cessation of Other Illegal Practices : Must cease various other illegal practices outlined in the consent order, including harassing phone calls, misrepresenting legal actions, and failing to properly investigate disputes. 
Key Takeaways : This action demonstrates the CFPB 's commitment to protecting consumers from abusive debt collection practices. 
It highlights the risks associated with debt buying and the importance of proper debt verification. 

The penalties and corrective actions imposed on XXXX and Portfolio Recovery Associates are significant and aim to reform their practices and provide redress to affected consumers.