Receiving a lawsuit notice from Portfolio Recovery Associates (PRA) can be alarming and confusing. Whether you recognize the debt or have never heard of it before, understanding your rights and how to respond is essential. Ignoring these legal documents can result in serious financial consequences. Here’s everything you need to know and what immediate steps you should take.
Who Is Portfolio Recovery Associates?
Portfolio Recovery Associates, LLC, is one of the largest debt-buying companies in the United States. Owned by PRA Group, Inc., a publicly traded company valued at approximately $1 billion, PRA purchases unpaid debts at extremely low rates and attempts to collect the full amount from consumers. They commonly handle debts from credit cards, personal loans, and other consumer debts.
Why Is PRA Suing You?
When you default on a credit card or loan, the original creditor may sell your debt to a collection company like PRA. Because PRA purchases these debts cheaply, any amount they recover above their cost represents profit. This means they aggressively pursue collection, often through lawsuits.
Portfolio Recovery Associates’ Questionable Practices
Despite claiming they want to make debt repayment fair and manageable, PRA has repeatedly been accused of engaging in deceptive and unfair collection practices. The Consumer Financial Protection Bureau (CFPB) previously fined PRA $24 million for multiple violations, including:
- Attempting to collect debts without sufficient proof.
- Pursuing collection actions on debts that are past the statute of limitations.
- Filing lawsuits without proper documentation.
The Better Business Bureau has recorded nearly 4,000 complaints against PRA, highlighting their aggressive tactics and frequent violations of consumer rights.
Important Steps If PRA Contacts You
Distinguish Between a Letter and a Lawsuit
It’s crucial to recognize whether you’ve received a lawsuit or just a debt collection letter. A lawsuit typically includes a court summons with deadlines clearly stated. Ignoring this can lead to a default judgment against you, allowing PRA to garnish your wages, levy your bank account, or place liens on your property.
Always Respond to Court Documents
Over 90% of consumers sued by debt collectors fail to respond, resulting in default judgments. Regardless of whether you recognize the debt, responding promptly protects your rights. You typically have 30 days from receiving the lawsuit to submit an answer to the court. If you need additional time, the court may grant extensions.
Why You Need an Experienced Debt Defense Lawyer
Dealing with PRA alone puts you at a disadvantage. Their attorneys manage thousands of similar cases annually and know exactly how to navigate the legal system. Hiring an experienced debt defense attorney from The Fullman Firm can dramatically improve your chances of a favorable outcome.
Common Mistakes Made by Debt Collectors Like PRA
Debt buyers often handle large volumes of accounts simultaneously, frequently leading to mistakes such as:
- Incorrect documentation or missing paperwork.
- Claims on debts that have expired due to statutes of limitations.
- Failing to prove ownership or validity of debts.
These errors present strong defenses in court. A knowledgeable attorney can identify and expose such mistakes, potentially resulting in your case being dismissed.
Your Rights Under Federal and California Law
You are protected by laws such as:
- Fair Debt Collection Practices Act (FDCPA): Protects against abusive, misleading, or unfair debt collection methods.
- California’s Rosenthal Fair Debt Collection Practices Act: Adds additional protections against harassment, misrepresentation, and unfair practices.
Under these laws, PRA cannot:
- Harass or threaten you
- Make false claims or misrepresent the debt
- Collect debts you do not legally owe
Violations of these laws allow you to counter-sue PRA for statutory damages, emotional distress, lost wages, and attorney’s fees.
Potential Outcomes of Your Case
By actively defending your lawsuit with the help of a qualified attorney, you can achieve outcomes such as:
- Case dismissal if PRA cannot provide sufficient proof
- Reduced settlement amount significantly lower than original claims
- Opportunity to file counterclaims against PRA for violations of consumer rights
The Fullman Firm’s Track Record Against Potfolio Recovery Associates
At The Fullman Firm, we have successfully defended thousands of Californians against debt collectors like Portfolio Recovery Associates. Our experienced attorneys regularly handle cases involving:
- Wage garnishments
- Bank levies
- Default judgments
- Liens on property
Our proven strategies can help save you money and protect your financial future.
No Risk, Free Case Evaluation
We understand the stress and anxiety lawsuits bring. That’s why we offer a completely free, no-risk consultation to discuss your case. Our transparent, affordable fee structure means we only profit when we save you money.
Don’t let Portfolio Recovery Associates win by default. Stand up for your rights today.
Call The Fullman Firm for Your Free Consultation!
