Consumer complaint received 2024-09-03
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: PORTFOLIO RECOVERY ASSOCIATES INC (LA)

THIS IS NOT A DUPLICATE On XXXX XXXX XXXX I submitted a complaint to the Consumer Financial Protection Bureau ( CFPB ) regarding a collection account with Portfolio Recovery Associates related to XXXX XXXX XXXX XXXX. I requested specific documentation from Portfolio Recovery Associates, including the assignment contract and full payment history from XXXX XXXX to the last payment made on XXXX XXXX XXXX 

Key Issues : Incomplete Documentation Provided by Portfolio Recovery Associates : Portfolio Recovery Associates provided a summary of payments starting from XXXX XXXX, rather than the full payment history from XXXX XXXX as requested.

The documentation provided confirms that my last payment on the account was indeed made on XXXX XXXX XXXX, which aligns with my previous claim. This confirms that the account is past the statute of limitations for an open account under Louisiana law, which is 3 years as per Louisiana Civil Code Article 3494.

Improper Charge-Off by XXXX XXXX : At the time, I was recovering from being hospitalized with XXXX. I contacted XXXXXXXX XXXX  to resolve the payment issues and to accept an offer made on XXXX XXXX XXXX, to remove the fee and get on a payment plan. However, despite my efforts, I was denied this opportunity, and the account was charged off on XXXX XXXX XXXX, two days before I could make the minimum payment of {$590.00}. 
The documents provided by Portfolio Recovery Associates show that XXXX XXXX  charged off the account on XXXX XXXX XXXX, before the given due date of XXXX XXXX XXXX, for a minimum payment of {$590.00}. This suggests that XXXX XXXX charged off the account prematurely, before giving me the opportunity to make the minimum payment. 
According to 12 C.F.R. 1026.7 ( b ), which requires that creditors must fairly apply payments and not engage in practices that could be deemed unfair, charging off an account before the due date for a minimum payment may be considered a violation of this requirement. XXXX XXXX  should have allowed until the due date ( XXXXXXXX XXXX XXXX  ) to charge off the account. 
Statute of Limitations : As confirmed by the documentation provided, my last payment on the account was made on XXXX XXXX XXXX Under Louisiana Civil Code Article 3494, the statute of limitations for an open account is 3 years from the date of the last payment, which means this account is past the statute of limitations and should not be subject to further collection efforts. 
Legal Violations : Fair Credit Reporting Act ( FCRA ) Violations : Portfolio Recovery Associates and XXXX XXXX XXXX continued reporting of this account, despite it being past the statute of limitations, constitutes a violation of the FCRA. This section mandates that credit reporting agencies must report accurate information, and any unverifiable or outdated information must be deleted. 
Violation of 12 C.F.R. 1026.7 ( b ) : XXXXXXXX XXXX XXXX  decision to charge off the account two days before the due date for the minimum payment may be a violation of the Truth in Lending Act regulations. Creditors are required to apply payments fairly and give consumers a reasonable opportunity to make payments before taking adverse actions like charging off the account.