Consumer complaint received 2025-03-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Portfolio Recovery Associates, LLC
State: MD

Complaint narrative:
RE : Portfolio Recovery Associates , LLC Account Number : XXXX I am writing in response to a communication I received from your company on XX/XX/year>2025. I received the documents sent however I do believe the documents provided validates your ability to continue to report this debt to my consumer report. 

I will be referencing the Uniform Commercial Code ( UCC ) which is a set of federal laws that govern all business transactions in the United States, the Fair Credit Reporting Act ( FCRA ) ( 15 USC 1681 ), the Fair Debt Collection Practices Act ( FDCPA ) ( 15 USC 1692 ) and Gramm-Leach-Bliley Act ( GLBA ) ( 15USC 6801-6809 ) to display how your company in fact, no longer has the right to report to the consumer reporting agencies.

Your company lists yourself as the current creditor, which to me states that you purchased these accounts and acquired all ownership rights of the account. Under UCC Article 3, a holder in due course acquires certain immunities from defenses that might otherwise be raised. However, because you purchased a defaulted/charged-off account, you had notice it was overdue at the time of purchase. This disqualifies you from holder-in-due-course status under UCC 3-302 ( a ) ( 2 ) and makes your Company simply an Ordinary Holder.

Without this status, you are subject to all defenses I may assert, per UCC 3-305 ( a ) ( 2 ). Therefore, your purchase does not automatically give you incontestable rights. 

I am asserting contractual defenses, where I believe XXXX XXXX engaged in deceptive practices of fraud and misrepresentation. In the original card agreement, there was a section labeled Assignment, where XXXX XXXX stated, We may sell, assign or transfer your Account and this Agreement without your permission and without prior notice to you. According to FDCPA, 15 USC 1692j, it is unlawful to furnish any form that would create false beliefs in a consumer. That statement made by XXXX XXXX XXXXs in direct conflict with GLBA, 15 U.S. Code 6802, which states that any financial institution can not share my private information ( which is included in the Account and the Agreement ) with non-affiliated third parties unless it has first given me a proper notice. Federal Laws take precedent over any conditions set by a company.

Though XXXX XXXX may have deceptively informed me that my data would be shared in a transfer of assignment, they still did not give me the opportunity to opt out, nor did your company in any way try to ensure my privacy rights. There is an exception of when this information could be shared without my permission, which is when the creditor gives my information to a nonaffiliated third party to work on the creditors behalf. Considering in your response your company expressed that you are not the current creditor, this leads me to believe that you are working as an agent on Portfolio Recovery Associates , LLC behalf not XXXX XXXXXXXX, which then supports my argument that my consent was needed for your company to purchase and receive this assignment regardless of what XXXX XXXX stated. 

To be clear, both Portfolio Recovery Associates , LLC and all consumer reporting agencies are considered nonaffiliated third parties in these transactions. Though, at this point, the original creditor sold the account, I have now instructed your company not to share my data any further, as per GLBA. In the cease-and-desist letter, that in your response you stated you received, I respectfully requested the discontinuation of reporting this account to the consumer reporting agencies, indicating my intent to opt-out of data sharing. Which is my right as a consumer, however, you are still disregarding this request. Furthermore, once my private information is given to a nonaffiliated third party ( your company ), that party is not allowed to share it further with another nonaffiliated third party ( the consumer reporting agencies ) according to GLBA, 15 U.S. Code 6802 ( c ).

Additionally, the FCRA, 15 U.S. Code 1681a, discusses the construction of a consumer report. FCRA, 15 U.S. Code 1681a ( 2 ) states that a consumer report does not include information solely as to transactions or experiences between the consumer and the person making the report. Your company on top of ignoring my requests to opt out, is in violation of the FCRA by reporting information related to transactions which includes a payment history and balance.

In light of the above points and the applicable legal provisions under the UCC, FDCPA, and GLBA, I respectfully request again, that you remove these tradeline ( s ) associated with these accounts from my consumer reports. The privacy protections established by federal law supersede any contractual clauses. I look forward to your prompt response and expect that you will honor these requests to comply fully with all relevant state and federal regulations as you stated was important to your company.

If your company continues to choose non-willful compliance, I will continue with the arbitration process.

Company response to consumer: Closed with explanation