Consumer complaint received 2025-04-30 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Portfolio Recovery Associates, LLC
State: TX

Complaint narrative:
YOUR COMPLAINT From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Email : XXXX Date : XX/XX/XXXX Subject : Urgent Complaint Against Portfolio Recovery Associates for Continued FDCPA and FCRA Violations Dear CFPB, I am filing this complaint to formally report Portfolio Recovery Associates , LLC for ongoing, malicious, and unlawful debt collection and credit reporting practices that have directly violated my legal rights under both federal and state laws. Despite my repeated efforts to resolve this issue respectfully and legally, PRA continues to harass me, ignore written requests, and maliciously harm my credit profile by furnishing inaccurate, unverifiable, and unauthorized information to as many as 12 credit bureaus, including Equifax. Background : I have sent three written requests demanding debt validation and an assignment contract, as required under 15 U.S. Code 1692g ( b ) of the Fair Debt Collection Practices Act ( FDCPA ). Instead of proper validation, PRA has only responded with generic credit card statements, which do not satisfy legal debt validation requirements. They refuse to disclose how much they purchased the alleged debt for, which is a critical part of proving ownership. As you know, once a debt is charged off, it is often transferred into a structured trust and pooled with other debts. In these cases, the ownership becomes obscured, and third-party collectors like PRA often lack proper legal standing to collect or report the debt. After I sent a cease and desist letter, PRA ignored it and then went so far as to report the account to Equifax, escalating their malicious actions after I legally revoked their right to contact me. Legal Violations : FDCPA 809 ( b ) 15 U.S.C. 1692g ( b ) : PRA failed to provide proper validation of the debt despite multiple written requests. Their vague replies with generic billing statements are not sufficient proof under the FDCPA. FDCPA 805 ( c ) 15 U.S.C. 1692c ( c ) : I clearly submitted a cease and desist letter, yet PRA has continued to contact me indirectly through reporting, which is a violation of my right to be left alone under the law. Fair Credit Reporting Act 15 U.S.C. 1681s-2 ( a ) : PRA has reported this debt without complete or accurate investigation, which is a violation of their duty to report only verifiable, complete, and accurate data. The Grim Bail Leach Act ( referring to the Fair Debt Buyer Practices Act and elements of consumer protection law often referenced in financial trust violations ) : PRAs likely involvement in purchasing pooled debts from a trust without proper legal assignment or chain of custody creates serious standing and jurisdiction issues. If they can not prove ownership through contract assignment, they have no legal authority to collect or report this alleged debt. Violation of My Due Process Rights : I was never properly notified of any assignment or sale of the debt, nor was I presented with any opportunity to dispute this before it was maliciously placed on my credit report. This is deceptive, harmful, and intended to coerce payment under duress Fair Solution : Immediate removal of any and all entries from Portfolio Recovery Associates on all credit reporting agencies, including XXXX XXXX XXXX and any others they may have contacted. A formal investigation into PRAs continued violations and refusal to honor consumer protection laws. PRA must be permanently barred from ever contacting me again in writing, phone, email, or courier, and be prohibited from furnishing information about this alleged debt in the future. I request that PRA be fined or penalized for their pattern of abuse against not just myself but other consumers who have also reported similar misconduct. This is a matter of abuse of the credit system, and PRA has demonstrated repeated, intentional violations of law. Their actions have affected my ability to rebuild my credit, and their refusal to follow federal law is unacceptable. Please treat this complaint as urgent and respond with appropriate action. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  TX XXXX Email : XXXX CFPB Orders Repeat Offender Portfolio Recovery Associates to Pay More Than {$24.00} XXXX for Continued Illegal Debt Collection Practices and Consumer Reporting Violations Debt collection giant filed lawsuits even when it lacked documentation about the debt XX/XX/XXXX Share & print XXXX XXXX XXXX  The Consumer Financial Protection Bureau ( CFPB ) took action today against Portfolio Recovery Associates, one of the largest debt collectors in the nation, for violating a XXXX CFPB order and engaging in other violations of law. The CFPB filed a proposed order today that, if entered by the court, would require Portfolio Recovery Associates to pay more than {$12.00} XXXX to consumers harmed by its illegal debt collection practices, in addition to a {$12.00} XXXX penalty that would be deposited into the CFPBs victims relief fund. Portfolio Recovery Associates violated the XXXX order by collecting on unsubstantiated debt, collecting on debt without providing required documentation and disclosures to consumers, suing or threatening legal action against consumers without offering or possessing required documentation, and suing to collect on debt outside the statute of limitations. Portfolio Recovery Associates also failed to properly investigate and resolve consumer disputes about the company 's credit reporting. Todays action is one of many actions the CFPB has recently taken to hold repeat offenders accountable. 

After getting caught red-handed in XXXX, Portfolio Recovery Associates continued violating the law through intimidation, deception, and illegal debt collection tactics and lawsuits, said CFPB Director XXXX XXXX . CFPB orders are not suggestions, and companies can not ignore them simply because they are large or dominant in the market. 

Portfolio Recovery Associates is a wholly owned subsidiary of publicly traded PRA Group ( XXXX : PRAA ) and is one of the largest debt collectors in the United States. The companys principal headquarters is in XXXX, Virginia. PRA Group reported net income of over {$180.00} XXXX in XXXX. 

In XX/XX/XXXX, the CFPB ordered Portfolio Recovery Associates to pay more than {$27.00} XXXX in consumer refunds and penalties for deceptive debt collection tactics. In that case, the CFPB found that Portfolio Recovery Associates collected on unsubstantiated debt, filed misleading affidavits in debt-collection actions, misrepresented that it intended to prove debts if consumers contested them, and misrepresented that the company had legally enforceable claims to debts outside of the applicable statutes of limitations. 

The XXXX order required Portfolio Recovery Associates to adhere to provisions including prohibitions on : Collecting debts without a reasonable basis, Selling debt, Threatening or filing collection lawsuits without an intent to prove the debt, Filing false or misleading affidavits in debt-collection actions, Making false or misleading representations, and Collecting or suing on debt that was outside the statute of limitations. 
In todays complaint, the CFPB charged Portfolio Recovery Associates with violating numerous requirements of the XXXX order during the five-year period the order was in effect and engaging in deceptive conduct in violation of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act, including : Making representations about unsubstantiated debts : Portfolio Recovery Associates made at least tens of thousands of representations about unsubstantiated, disputed debts, failing to review the required documentation to support the claim.

Threatening consumers with potential legal actions and initiating debt collection lawsuits without offering or possessing required documentation : Portfolio Recovery Associates lawyers sent millions of form letters to consumers notifying them of potential legal action without offering to provide all required documents. Portfolio Recovery Associates also initiated thousands of legal actions against consumers when it lacked proper documentation about the debt.

Misrepresenting that it would provide certain documents within thirty days : The form letter notifying consumers of potential legal action stated that, upon receipt of a written request from the consumer, Portfolio Recovery Associates would provide within 30 days of request the proof of documentation mentioned in the letter. On numerous occasions, Portfolio Recovery Associates failed to timely provide these documents after receiving a consumers written request for them. This impeded consumers ability to determine whether a debt was truly owed and how they should respond to allegations of outstanding debts. 
Collecting on time-barred debt without making required disclosures : On numerous occasions, Portfolio Recovery Associates did not provide the required disclosures to consumers when collecting on debts beyond the statute of limitations. When the company purchased debt, it estimated the statute of limitations that governed the debt, and in some cases that date was later than the actual statute of limitations. 
Suing to collect on time-barred debt : Portfolio Recovery Associates initiated at least dozens of lawsuits for debt that was too old to legally enforce. In doing so, Portfolio Recovery Associates falsely represented that those consumers had legally enforceable obligations to pay those debts when in fact they did not because the debt was outside the statute of limitations. 
The CFPB also alleges that Portfolio Recovery Associates committed numerous violations of the Fair Credit Reporting Act and its implementing Regulation V, which include : Failing to inform consumers about investigation outcomes : On numerous occasions when Portfolio Recovery Associates determined that a consumers dispute was frivolous or irrelevant, it failed to timely inform the consumer about what information would be necessary for Portfolio Recovery Associates to investigate the dispute. 
Failing to timely resolve disputes : On at least tens of thousands of occasions, Portfolio Recovery Associates failed to resolve disputes within the required time. 
Conducting unreasonable investigations : On numerous occasions when a consumer alleged fraud or identify theft, Portfolio Recovery Associates did not conduct a sufficient investigation that considered all necessary information. 
Enforcement Action Under the CFPA, the CFPB has the authority to take action against institutions violating consumer financial laws, including engaging in unfair, deceptive, or abusive acts or practices. The CFPB alleges that Portfolio Recovery Associates violated the XXXX order, the CFPAs prohibition on deceptive conduct, the FDCPA, FCRA, and Regulation V.

If entered by the court, the order would require Portfolio Recovery Associates to : Provide redress to consumers : Portfolio Recovery Associates would pay at least {$12.00} XXXX to consumers harmed by its illegal collection practices.

Clean up its faulty operations : The order prohibits Portfolio Recovery Associates from collecting debts unless it has access to certain documents that meet its obligation to have a reasonable basis to believe it is collecting debts that consumers actually owe. 
Fix its failures to properly respond to consumers : The order requires Portfolio Recovery Associates to improve their response when consumers report that they do not owe a debt because of fraud or identity theft. And it ensures that Portfolio Recovery Associates adequately responds to consumer disputes in a timely manner about information Portfolio Recovery Associates has furnished to consumer reporting agencies. 
Pay {$12.00} XXXX in penalties : Portfolio Recovery Associates would pay a {$12.00} XXXX penalty to the CFPB, which would be deposited into the CFPBs victims relief fund. 
Read todays proposed order. 

Read the XXXX order against Portfolio Recovery Associates. 

In XXXX, the CFPB proposed a new registry to help detect and deter repeat offenders like Portfolio Recovery Associates. The public can submit comments on the proposal until XX/XX/XXXX. 

If you or someone you know needs help dealing with a debt collector, the CFPB publishes resources on how to protect your legal rights and navigate your financial future. 

Consumers can submit complaints about financial products or services by visiting the CFPBs website or by calling ( XXXX ) XXXX ( XXXX ). 

Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to XXXX.

Company response to consumer: Closed with explanation