Consumer complaint received 2025-10-28 00:00:00
Product: Credit card — Store credit card
Issue: Other features, terms, or problems — Other problem
Company: Portfolio Recovery Associates, LLC
State: VA

Complaint narrative:
PRA is refusing to pay arbitration 1. Plaintiff elected to disregard the arbitration provision as provided in the contract and pursue court action. Defendant has provided notification in accordance with the contract ( previously filed with this court, by Plaintiff ) The contract allows... notice can be given after the beginning of a lawsuit or in papers filed in the lawsuit. Defendant responds to Plaintiffs request and elects XXXX to administer the arbitration. 

XXXX. Plaintiff misrepresents XXXX  Consumer Arbitration Rules R-2 ( a ) ( 3 ). Rule R-2 ( a ) ( 3 ) provides that If the arbitration is pursuant to a court order, the claimant ( Plaintiff in the instant case ) must send... 

-a copy of the court order -a copy of the arbitration agreement... 

-the proper filing fee. ( emphasis added ) Defendant has elected XXXX  and thus XXXX  Comprehensive Arbitration Rules & Procedures Rule XXXX ( a ) ( iv ) applies in the instant case. The arbitration is deemed commenced when XXXX  issues a Commencement Letter based upon the existence of one of the following : ( iv ) A copy of a court order compelling arbitration at XXXX. 

XXXX. The contract provided to this court by the Plaintiff provides in Section 10 of the arbitration agreement We will pay arbitration costs required by the administrators rules or that are necessary for this Arbitration section to be enforced. Section 11. Governing Law. This Arbitation section is governed by the XXXX. Utah law shall apply to the extent state law is relevant under the XXXX... 

Relevant Utah governing Statute : 2023 Utah Code Title 78B - Judicial Code XXXX  XXXX - Utah Uniform Arbitration Act : Renumbered and Amended by XXXX  XXXX, XXXX General Session Section 107 - Validity of agreement to arbitrate. ( 1 ) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract. 

XXXX. Defendant submits that Plaintiff, even as an assignee, is required to pay all required fees pursuant to the Arbitration Agreement. The governing credit card agreement in the instant case is a contract of adhesion and XXXX XXXX had superior bargaining power. Contracts of adhesion are generally interpreted in favor of the non-bargaining party ( i.e. the consumer ). 

" Unconscionability is determined by reference to the relative benefit of the bargain to the parties at the time of its making, the nature of the methods employed in negotiating it, and the relative bargaining power of the parties. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX, ( XXXX. Ohio XXXX ) It is well recognized that " [ t ] he assignee [ stands ] in the shoes of the assignor. XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) ( citing XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) ).. 

Therefore, [ t ] he assignee is subject to any defenses that would have been good against the [ assignor ] ; the assignee can not recover more than the assignor could recover ; and the assignee never stands in a better position than the assignor. Id. ( citing XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX and XXXX XXXX XXXX, XXXX UT XXXX, XXXX, XXXX XXXX XXXX ). 

It is well settled that an assignee of a contract obtains his rights from the assignor and, thus, " stands in the shoes '' of the assignor and acquires the same rights and liabilities as if he had been an original party to the contract. See XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX, XXXX ( XXXX ). 

Pursuant to the Federal Arbitration Act ( " FAA '' ), 9 U.S.C. 1, et seq., " [ a ] written provision in ... a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... shall be valid, irrevocable, and enforceable.... " 9 U.S.C. XXXX. Section XXXX of the XXXX is a " liberal federal policy favoring arbitration. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX } ( internal quotations omitted ) ( quoting XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX XXXX, XXXX ( XXXX ) ). 

The XXXX " requires courts 'rigorously ' to 'enforce arbitration agreements according to their terms, including terms that specify with whom the parties choose to arbitrate their disputes and the rules under which that arbitration will be conducted. '' ' XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX ( XXXX ) ( quoting XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX, XXXX ( XXXX ) ). 

CONCLUSION The cost of arbitration was considered and known when drafted by the XXXX XXXX XXXX PRA now stands in their shoes. The contract is valid and should be enforced without changes. 

This credit card agreement was an agreement of adhesion and favors the drafter and was drafted with full knowledge of the XXXX  fee structures at the time of drafting. XXXX XXXX determined it would be in their overall benefit not to litigate all claims detailed in the Arbitration Agreement. 

Plaintiff is bound to contract as written and agreed between Defendant and XXXX XXXX XXXX. 

XXXX is a " liberal federal policy favoring arbitration. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX ) enforcing arbitration agreements. 

Therefore, pursuant to the Arbitration Agreement provided by Plaintiff, Defendant pleads Court issue Motion to Compel Arbitration and order Plaintiff to file the Arbitration request along with any required fees with the XXXXXXXX XXXX XXXX. ''

Company response to consumer: Closed with explanation