Consumer complaint received 2025-11-13 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Portfolio Recovery Associates, LLC
State: CA

Complaint narrative:
CONSUMER REBUTTAL AND DEMAND FOR ENFORCEMENT ACTION To : Consumer Financial Protection Bureau Re : Account Number XXXX - MULTIPLE FEDERAL AND STATE VIOLATIONS Date : XX/XX/XXXX EXECUTIVE SUMMARY Portfolio Recovery Associates , LLC ( " PRA '' ) has committed egregious, systematic violations of multiple federal and state consumer protection statutes. Their own response contains damning admissions of liability and contradictory statements that expose a pattern of unlawful debt collection practices. This case demands immediate CFPB enforcement action, substantial civil penalties, and comprehensive consumer relief. I. FRAUDULENT DEBT AMOUNT - CORE VIOLATION MATHEMATICAL IMPOSSIBILITY AND FRAUDULENT INFLATION Documented Evidence : XX/XX/XXXX XXXX  XXXX Statement : Balance = {$7700.00} PRA Claimed Balance : {$9000.00} Unexplained Increase : {$1200.00} ( 16.7 % inflation ) Legal Analysis : 15 U.S.C. 1692e ( 2 ) ( A ) : Prohibits false representation of debt amount 15 U.S.C. 1692f : Prohibits unfair practices, including inflating debt amounts No Documentation Provided : PRA has provided XXXX documentation explaining this {$1200.00} increase Fraudulent Enhancement : This represents systematic debt inflation - a deceptive practice affecting thousands of consumers CFPB Action Required : This alone warrants substantial civil penalties and industry-wide investigation II. SYSTEMATIC FDCPA VIOLATIONS A. VALIDATION FRAUD UNDER XXXX PRA 's Contradictory Admissions : " We have no record of a request or a dispute being received. '' " Due to the consumer having made that dispute with a consumer reporting agency, we were not required to provide validation. '' XX/XX/XXXX letter : " We have completed our investigation of your dispute. '' Legal Impossibility : You can not simultaneously have " no record '' of a dispute AND complete an investigation of that dispute This represents either perjury to the CFPB or systematic record-keeping failures Violations : 15 U.S.C. 1692g ( a ) : Failure to provide validation within 30 days 15 U.S.C. 1692g ( b ) : Continued collection during dispute period 15 U.S.C. 1692e ( 8 ) : False representation regarding validation requirements B. CONTINUED COLLECTION DURING DISPUTE Evidence of Unlawful Collection : PRA admits to receiving a dispute through the credit reporting agency Continued collection efforts despite the dispute Failed to cease collection as required by 1692g ( b ) Statutory Violation : Direct violation of 15 U.S.C. 1692g ( b ) - automatic {$1000.00} statutory damages III. SYSTEMATIC FCRA VIOLATIONS A. FURNISHING DISPUTED INFORMATION - 623 VIOLATIONS PRA 's Admission of Guilt : Admits consumer disputed through the credit reporting agency Claims the right to continue furnishing without investigation This is a direct admission of FCRA 623 violation Legal Analysis : 15 U.S.C. 1681s-2 ( a ) ( 8 ) : Prohibits furnishing disputed information 15 U.S.C. 1681s-2 ( b ) : Requires investigation of disputes PRA admits to violating both provisions B. ACCURACY REQUIREMENTS VIOLATIONS Inflated Balance Reporting : Reporting {$9000.00} when documented balance was {$7700.00} 15 U.S.C. 1681s-2 ( a ) : Requires accurate information Maximum civil penalty exposure : {$4400.00} per violation IV. CALIFORNIA STATE LAW VIOLATIONS A. XXXX XXXX VIOLATIONS ( Cal. XXXX. XXXX XXXX et seq. ) Required Documentation Not Provided : Cal. Civ. Code 1788.17 : Requires specific validation documentation ; PRA License # 10594-99 carries specific obligations. Penalty : {$1000.00} per violation + actual damages. B. CALIFORNIA CONSUMER REPORTING VIOLATIONS Cal. Civ. Code 1785.25 : Furnishing inaccurate information ( inflated balance ), Failure to investigate disputes. Penalty : Up to {$2500.00} per violation. V. CFPB REGULATION F VIOLATIONS A. DISPUTE HANDLING FAILURES 12 CFR 1006.34 : Improper handling of validation requests. Continued collection during the dispute period. Each violation : Up to {$46000.00} per day. B. COMMUNICATION VIOLATIONS 12 CFR 1006.6 : Misleading communications about debt validation, False representations about dispute investigation, Civil penalty exposure : Substantial daily penalties VI. DECEPTIVE PRACTICES UNDER CFPA A. UNFAIR PRACTICES - 12 U.S.C. 5531 Debt Inflation Scheme : Systematic inflation of debt amounts No reasonable method to avoid harm Substantial consumer injury without countervailing benefits B. DECEPTIVE PRACTICES - 12 U.S.C. 5531 Misrepresentations : False statements about validation requirements Contradictory dispute handling claims Misleading debt amount representations VII. CONSTITUTIONAL DUE PROCESS VIOLATIONS A. PROCEDURAL DUE PROCESS Inadequate Notice : Failed to provide constitutionally adequate validation. Inflated debt amount without explanation. Violated fundamental fairness requirements. B. SUBSTANTIVE DUE PROCESS Arbitrary Debt Enhancement : No rational basis for {$1200.00} increase. Systematic debt inflation shocks the conscience. Violates fundamental fairness VIII. PATTERN AND PRACTICE EVIDENCE A. SYSTEMATIC VIOLATIONS Indicators of Industry-Wide Abuse : Standard form letters with identical defects Systematic debt inflation practices Contradictory validation procedures CFPB should investigate PRA 's entire portfolio B. CONSUMER HARM SCALE Estimated Impact : If PRA inflates debts by an average of 16.7 % across the portfolio Estimated consumer harm : Millions of dollars annually Thousands of consumers are affected by identical practices IX. LICENSING AND REGULATORY VIOLATIONS A. CALIFORNIA LICENSING VIOLATIONS License # XXXX Requirements : Failed to maintain accurate records Violated validation requirements Action Required : License suspension/revocation review XXXX XXXX VIOLATIONS NMLS ID : XXXX : Failed to comply with federal requirements Systematic regulatory violations Action Required : XXXX XXXX XXXX XXXX. DEMANDED RELIEF AND ENFORCEMENT ACTION A. IMMEDIATE CONSUMER RELIEF Complete Account Deletion : All PRA records and credit reporting Statutory Damages : FDCPA : {$1000.00} + actual damages California XXXX XXXX : {$1000.00} + actual damages FCRA : Actual and punitive damages Credit Report Correction : Permanent removal from all bureaus Cease and Desist : All collection activities are permanently B. CIVIL PENALTIES DEMANDED CFPB Civil Penalties : Debt Inflation Scheme : {$46000.00} per affected consumer FCRA Violations : {$4400.00} per furnishing violation Regulation F Violations : {$46000.00} per day of continued violations Estimated Total : Millions in civil penalties XXXX INDUSTRY-WIDE ENFORCEMENT Pattern and Practice Investigation : Comprehensive PRA Portfolio Review Debt Inflation Analysis Across All Accounts Systematic Validation Failure Investigation Consumer Restitution Program XXXX REGULATORY ACTION Licensing Reviews : California debt collector license suspension NMLS enforcement action Federal oversight enhancement XI . LEGAL PRECEDENT AND AUTHORITY A. XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : Strict liability for FDCPA violations XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ) : FCRA concrete harm standards XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : FDCPA applies to litigation attorneys B. CFPB Precedential Enforcement Previous debt collector penalties exceeding {$10.00} XXXX Industry-wide pattern and practice investigations Systematic consumer restitution programs XXXX. XXXX XXXXXXXX EVIDENCE A. PRA 's Own Admissions Contradiction # XXXX : No dispute record vs. completed investigation Contradiction # XXXX : Debt amount inflation without explanation Contradiction # XXXX : Validation requirements misunderstanding B. Documentary Evidence XXXX  XXXX final statement : {$7700.00} PRA inflated claim : {$9000.00} No supporting documentation for the increase Mathematical impossibility of legitimate debt growth CONCLUSION AND DEMAND FOR ACTION Portfolio Recovery Associates has committed numerous serious violations of federal and state consumer protection laws. Their own response contains multiple admissions of liability and demonstrates a pattern of systematic abuse affecting thousands of consumers. This case represents exactly the type of corporate misconduct that demands aggressive CFPB enforcement action. IMMEDIATE ACTIONS DEMANDED : Find all violations proven by PRA 's own admissions Order complete consumer relief, including account deletion Impose maximum civil penalties for each violation Launch industry-wide investigation of PRA 's practices Refer for criminal investigation of potential fraud Order a comprehensive consumer restitution program CONSUMER IMPACT STATEMENT : This systematic abuse has caused : Financial Harm : Fraudulent debt inflation Credit Damage : False negative reporting Emotional Distress : Harassing collection attempts Constitutional Violations : Due Process Deprivations PUBLIC INTEREST : The CFPB 's response to this complaint will send a clear message to the debt collection industry. Aggressive enforcement action will protect millions of consumers from similar systematic abuse. The evidence is overwhelming. The violations are admitted. The harm is documented. Justice demands maximum enforcement action. Respectfully submitted with demand for immediate action, XXXX XXXX XXXX XXXX XXXX, XXXX, CA XXXX XX/XX/XXXX ATTACHMENTS : XXXX  XXXX Final Statement ( XX/XX/XXXX ), PRA Collection Letters Supporting Documentation, Legal Citations and Authorities

Company response to consumer: Closed with non-monetary relief