Consumer complaint received 2023-01-28
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: PORTFOLIO RECOVERY ASSOCIATES INC (IL)

In a prior complaint ( XXXX ), I requested detailed information to verify an alleged debt being collected by PORTFOLIO RECOVERY ASSOCIATES ( partial account number : XXXX ). If the request was met, this complaint would indicate another violation by PORTFOLIO RECOVERY of Regulation E of the Electronic Fund Transfer Act ( EFTA ) and the Fair Credit Reporting Act ( FCRA ).

Today, I am submitting a complaint against PORTFOLIO RECOVERY for violating EFTA and FCRA. Regulation E is a regulation issued by the Federal Reserve Board under the Electronic Fund Transfer Act ( EFTA ) to protect consumers who use electronic fund transfer ( EFT ) services, including credit card transactions, debit card transactions, Automated Clearing House ( ACH ) transfers, and ATM transactions. The purpose of Regulation E is to provide consumers with clear and concise disclosures of their rights and liabilities in EFTs. The regulation requires financial institutions and credit card companies to provide consumers with disclosures, including credit limits for particular credit cards and credit lines, error resolution procedures, and other protections related to EFTs. The regulation also imposes liability on financial institutions for unauthorized EFTs and sets out procedures for consumers to dispute errors, inaccuracies, and unauthorized transactions. 
Pursuant to section 904 of the EFTA, if a credit card company ( original creditor in this case ) allows a charge that is higher than the credit limit, the credit card company is violating the EFTA by authorizing a legally unauthorized transfer of funds from the consumer 's account. Section 904 of the EFTA, specifically states that " a financial institution shall not honor an electronic fund transfer initiated through an automated teller machine or point of sale terminal if the transfer would exceed the account balance of the consumer or would exceed any established credit limit for the account. '' Therefore, by allowing a charge that is higher than the credit limit, the credit card company violated section 904 of the EFTA, by authorizing a legally unauthorized transfer of funds and not ensuring that the consumer 's account balance is not exceeded.

In this alleged debt, which has not yet been validated and verified as requested, PORTFOLIO RECOVERY, is attempting to collect an amount that exceeds any legally established credit limit for that account, a clear violation of the EFTA. An itemized payment history in my prior request for validation and verification of this account would have revealed this error and related inaccuracies. Furthermore, PORTFOLIO RECOVERY is in violation of Section 919 ( a ) of the EFTA, which imposes liability on financial institutions for unauthorized transfers, including those resulting from legally unauthorized credit card transactions. PORTFOLIO RECOVERY is violating section 904 of the Electronic Fund Transfer Act ( EFTA ) by collecting an alleged debt after the original creditor allowed a charge that was higher than the credit limit, a complete violation of the law. By authorizing a charge or transfer, the original creditor did not ensure that the consumer 's account balance was not exceeded, which violates the provisions outlined in section 904 of the EFTA. 

Furthermore, the original creditor and now PORTFOLIO RECOVERY allowed a charge that was higher than the credit limit and are reporting and trying to collect this legally unauthorized charge or transfer as a legitimate debt, thereby violating the requirement to report accurate information under the FCRA, specifically, section 611 of the FCRA, 15 U.S.C. 1681i ( a ) ( 1 ).

PORTFOLIO RECOVERY is reporting this legally unauthorized charge/transfer to credit bureaus as a negative item on my credit report, which is inaccurate reporting with incomplete information. The FCRA requires consumer reporting agencies to ensure the accuracy, fairness, and privacy of consumer credit information, and to investigate disputes and correct errors promptly. By reporting the legally unauthorized charge/transfer as a negative item on my credit report, PORTFOLIO RECOVERY has impugned my creditworthiness and caused significant harm to my financial reputation and standing. In accordance with procedures established by the CFPB and pursuant to section 15 U.S.C. 1681g ( a ) ( 3 ) of this title regarding the completeness or accuracy of any item of information in a consumer 's file, PORTFOLIO RECOVERY is bound to reinvestigate disputes from consumers regarding the accuracy or completeness of information in their credit files, and to update or delete the item from the file in accordance with paragraph ( 5 ), before the end of the 30-day period beginning on the date on which PORTFOLIO RECOVERY receives the notice of the dispute from the consumer.

15 U.S.C. 1681e of the Fair Credit Reporting Act ( FCRA ) requires consumer reporting agencies and collection agencies to maintain reasonable procedures to ensure the maximum possible accuracy of the information contained in consumer credit reports. This section of the FCRA ensures that the information in a consumer 's credit report is accurate, up-to-date, and complete. This provision of the law has been violated in this case. Specifically, 15 U.S.C. 1681e ( a ) - states requirements for maximum possible accuracy : This subsection requires consumer reporting agencies and collection agencies to follow reasonable procedures to ensure the maximum possible accuracy of the information contained in consumer credit reports. 15 U.S.C. 1681e ( b ) - Duty to correct and update information : This subsection requires consumer reporting agencies and collection agencies to promptly correct or delete inaccurate or incomplete information in consumer credit reports.

Therefore, since PORTFOLIO RECOVERY is violating section 904 of the Electronic Fund Transfer Act ( EFTA ) by collecting an alleged debt after the original creditor allowed a charge that was higher than the credit limit, a complete violation of the law, PORTFOLIO RECOVERY is also reporting and trying to collect this legally unauthorized charge or transfer as a legitimate debt, thereby violating the requirement to report accurate and complete information under the FCRA. Specifically, section 611 of the FCRA, 15 U.S.C. 1681i ( a ) ( 1 ), which constitutes FCRA 's provisions regarding the accuracy, fairness, and privacy of consumer credit information. I respectfully urge the CFPB to investigate these facts of law and these violations by PORTFOLIO RECOVERY and delete this illegal account from my report. 

Respectfully, XXXX XXXX