Consumer complaint received 2025-01-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Portfolio Recovery Associates, LLC
State: IL

Complaint narrative:
CFPB Complaint : Portfolio Recovery Associates , LLC, XXXX XXXX, and XXXX Complainant : XXXX XXXX Date : XX/XX/year> Summary of Complaint : This complaint addresses multiple legal violations committed by Portfolio Recovery Associates , LLC ( XXXX ), XXXX XXXX XXXX XXXX. Portfolio Recovery has failed to validate the debt despite multiple formal requests and continues to pursue collection without proper validation. XXXX XXXX has illegally sold a charged-off debt to XXXX without issuing a XXXX form for cancellation of debt income, which is required by IRS regulations. Furthermore, XXXX continues to report inaccurate and disputed information despite no validation of the debt by XXXX. 

Violations by Portfolio Recovery Associates , LLC ( XXXX ) : XXXX. Failure to Validate the Debt ( FDCPA Violation - 15 U.S.C. 1692g ) : XXXX did not provide any legitimate documentation or proof to validate the alleged debt after receiving a formal debt validation request. 
XXXX did not provide a copy of the original signed contract between the consumer and XXXX XXXX to substantiate the debt. 
XXXX. Continuing Collection Activity Without Validation ( FDCPA Violation - 15 U.S.C. 1692g ( b ) ) : XXXX continued to report the account to credit bureaus and attempted to collect on the debt without responding to the debt validation request. 
XXXX. Misrepresentation of Debt Ownership ( FDCPA Violation - 15 U.S.C. 1692e ) : XXXX falsely represented its legal right to collect on the debt without proving it had the proper assignment or legal standing to do so. 
XXXX failed to provide any documentation from XXXX XXXX to substantiate that the debt was legally transferred. 
XXXX. Failure to Provide Proof of Licensing in Illinois : XXXX failed to show it is licensed to collect debts in the XXXX XXXX Illinois, violating state debt collection laws. 

Violations by XXXX XXXX : XXXX. Failure to Issue a XXXX Form for Cancellation of Debt Income : XXXX XXXXXXXX sold a charged-off debt to XXXX, yet failed XXXX issue a XXXX form to the consumer for cancellation of debt income. 
This is a violation of IRS regulations. According to the IRS Form XXXX, creditors must report canceled debts over {$600.00} to the IRS and provide the debtor with a XXXX form. 
XXXX. Improper Transfer of Debt to a Third-Party Debt Buyer XXXX XXXX XXXX improperly transferred the alleged debt to XXXX without informing the consumer of the legal implications, in violation of the Truth in Lending Act ( TILA ). 

Violations by XXXX : XXXX. Failure to Conduct a Reasonable Investigation ( FCRA Violation - 15 U.S.C. 1681i ) : Despite receiving multiple disputes regarding the validity of the XXXX account, XXXX failed to conduct a proper investigation to verify the accuracy of the information. 
XXXX. Reporting Inaccurate Information ( FCRA Violation - 15 U.S.C. 1681e ( b ) ) : XXXX continues to report the Portfolio Recovery Associates account, even though the debt has not been validated by XXXX. 
XXXX. Failure to Mark the Account as Disputed ( FCRA Violation - 15 U.S.C. 1681s-2 ( a ) ( 3 ) ) : XXXX failed to properly flag the XXXX account as disputed, as required by the FCRA.

Company response to consumer: Closed with explanation