Sued by Portfolio Recovery Associates: What You Need to Know

What to do if you've been sued by Portfolio Recovery Associates LLC

If you're dealing with a Portfolio Recovery Associates lawsuit, you're not alone. This debt collection agency is one of the largest in the nation and has a reputation for being aggressive in pursuing unpaid debts such as credit card debt or auto loans.

Here's a quick rundown on Portfolio Recovery Associates (or "PRA" for short):

Portfolio Recovery Associates is a debt buyer, which means they purchase unpaid debts from original creditors (usually for pennies on the dollar) and then try to collect on them. While they are a legitimate company, they have been the subject of numerous complaints and lawsuits over the years for their aggressive debt collection tactics.

The thing to remember now is to never ignore a lawsuit because it can have serious consequences. Even if you owe the debt, there are options available to you to make negotiation easier and more in your favor.

Key Takeaways

• Portfolio Recovery Associates is a debt buyer known for their aggressive debt collection tactics.
• If you've been sued by them, don't panic! Gather your documents & prepare your Response using lawlaw.
• Use our service to respond to the lawsuit, negotiate a settlement with them, or get the case thrown out of court

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Here's how to handle a Portfolio Recovery Associates Lawsuit

If you've been sued by PRA, start collecting your documentation and calculate how much time you have to respond. This will depend on your jurisdiction. If you'd like affordable and easy help dealing with PRA, use LawLaw.

Drafting & Filing an Answer to a Debt Lawsuit

The first step you should take is to draft and file an answer to the lawsuit. You have a limited amount of time to file an answer, typically 20 to 30 days, depending on your state's laws. If you fail to file an answer within the time frame, the court may enter a default judgment against you. A default judgment will allow PRA to garnish your wages, take money from bank accounts, etc. Not good.

When drafting your answer, you should respond to each allegation made in the complaint. This means your admitting, denying, or saying you don't have enough information for each claim they make. You also need to include your defenses and affirmative defenses. These are legal arguments that help you beat their claims or point out holes in their arguments. They're super important to identify to put you in the best position to negotiate or win!

We built lawlaw to help people navigate these situations. For example, in certain jurisdictions you may be able to have a lawsuit completely dismissed if they waited too long to file the suit.

What to Include in Your Response

Include your responses or answers to each of their allegations. Do not overshare. When dealing with people outside of a lawsuit, they may be sympathetic to the unfair circumstances or dishonesty of a debt collector--but things are different when dealing with a court of law. Many times oversharing will accidentally hurt you. Stick to the facts and save the story for later.

Admit, Deny, or Not enough Information

When you're responding, remember the importance of denying claims. When you admit something in your Answer/Response, you're making PRA's job easier. You're essentially saying "Yep, this is 100% true without a doubt and I admit it!" Not sure an amount was calculated right? Deny. Not positive they have a fact correct? Deny. The burden is on them to prove these things.

Don't forget to demand proof of the debt as well. Unfortunately, many debt collectors operate in scammy ways and cut corners. Call them out and demand proof. If they don't have it--you'll find yourself in a great position!

Use Defenses to Battle the Lawsuit

Identify and use defenses. These are your shields that give a ton of power in a lawsuit. For example, if a debt collector waited too long to collect, the statute of frauds can be used to get their case thrown out of court. Finding and using these Affirmative Defenses are critical in the early stages. Use LawLaw to help find these shields and file your answer with them!

Arbitration as a Secret Weapon

In some situations, you may be able to use a super powerful tool called arbitration. Arbitration essentially forces the lawsuit out of court and into a private dispute scenario. But what makes this so powerful? Because most attorneys who are suing you in court don't want to go through the process of arbitrating. It will cost them more time, money, and attention than their usual methods of suing in court.

Many debt collectors have standard procedures and rely on people never fighting back. Compelling arbitration will often lead to debt collectors settling for significantly less than what they're suing for or completely dismissing their suit altogether. It isn't available for everyone and depends on your situation, but it can be a great tool to use if you can!

Here's a recap:

1. Respond to their claims by admitting, denying, or claiming lack of sufficient knowledge.
2. Don't make PRA's job easier by admitting everything--deny their claims if you're unsure they're true!
3. Demand proof.
4. Include your defenses because they're your most powerful weapon.
5. Use arbitration to your advantage if it's available

What Happens if I Ignore the Lawsuit?

If you are sued by Portfolio Recovery Associates, ignoring the lawsuit could lead to a default judgment. This means that the court will automatically rule in favor of the debt collector, and you will be required to pay the full amount owed plus any additional penalties or fees they tack on.

After they get the default judgment, many states will allow them to begin garnishing wages or taking money from your bank account. Imagine waking up one day and seeing that your checking account has a hold on it due to PRA. Don't let this happen by taking charge and facing them head on. Ignoring these situations only delays bad outcomes and can result in nasty surprises in the future.

If PRA hasn't sued you yet but has only been contacting you, you can still take action! Ask them to validate debt so you can have all of the details. Make them provide all of the information so you can have a better understanding of what holes or issues they may have when they try and collect from you. If you ignore them, you may not be able to get this information.

When you're dealing with a collector like PRA, remember to always get agreements or correspondence in writing. Try to limit your contact with them on the phone, and never admit to anything when you're talking to them. Debt collectors like them are trained to try and pry information from people when you call--know this in advance so you don't hurt yourself in the long run!

Who Is Portfolio Recovery Associates LLC and Are They Legitimate?

If you're forced to deal with Portfolio Recovery Associates (PRA), you may be wondering who they are and if they are legitimate. PRA is one of the largest debt buyers in the United States. They purchase debt from original creditors, such as credit card companies, and then try to pursue the debtors on that debt. What a wonderful, noble company. (Can you sense my sarcasm?)

As a debt buyer, PRA is not the original creditor, but rather a third-party collector. This means that they may not have all of the original documentation or information about your debt. It is important to note that debt buyers are regulated by the Consumer Financial Protection Bureau (CFPB) and must follow certain rules and regulations when attempting to collect on a debt. If they don't follow these rules, they can get in trouble. Situations like that can also work in your favor if they end up pursuing a lawsuit!

PRA is a subsidiary of the PRA Group, Inc., which is a publicly traded company. The PRA Group, Inc. has been in business for over 20 years and operates in multiple countries. According to the Better Business Bureau (BBB), PRA has been in business for 27 years and has an B+ rating. Their current review is 1.29/5--which makes sense because no one likes a debt collector.

PRA has also faced legal action in the past for violating debt collection practices. In 2015, the CFPB ordered PRA to pay $19 million in fines and refunds for illegal debt collection practices. In 2023, the CFPB took action against PRA again for violating the 2015 order and engaging in other violations of law. PRA was ordered to pay $24 million in fines and refunds to consumers. Despite all this, they're still out there and being a nuisance to millions of Americans. We're here to help.

Tips for Dealing with Debt Buyers & Collectors

We know that it can be a stressful and overwhelming experience dealing with a debt collector like PRA. However, knowing your rights and how to handle the situation can help alleviate some of that stress. If you haven't been sued yet, here are some tips on dealing with them:

Debt Collection Laws: FDCPA and Validating Your Debt

The Fair Debt Collection Practices Act (FDCPA) provides consumers with certain protections against debt collectors. One of these protections is the right to request validation of the debt so you can verify specific details like the amount of the debt. If you receive a collection letter from Portfolio Recovery Associates, you can send them a debt validation letter requesting proof that the debt is yours and that they have the legal right to collect it. Use LawLaw to generate your validation letter and send it to them.

Things to Never Reveal to a Debt Collector

It's important to be cautious when speaking with debt collectors. They may try to get you to reveal personal information or make promises that you can't keep. Here are some things you should never reveal to a debt collector:

• Your bank account or credit card information
• Your Social Security number
• Your employer's information
• Your income or assets
• Promises to pay without a clear plan to do so

How to Negotiate a Debt Settlement with Portfolio Recovery

If you're unable to pay off the debt in full, negotiating a settlement with Portfolio Recovery Associates may be an option. Here are some tips for negotiating a settlement:

• Start by offering a lump sum payment that's less than the total amount owed.
• Get any settlement agreement in writing before making a payment.
• Try to get a settlement agreement that includes a provision that the debt will be reported as "settled in full" to the credit bureaus.

Remember, debt collectors like Portfolio Recovery Associates are required to follow certain rules and regulations when attempting to collect a debt. By knowing your rights and how to handle the situation, you can protect yourself from unfair or illegal practices.

Use LawLaw to Fight Back Against PRA

If you've been sued, use LawLaw to generate the documents you need to fight back against Portfolio Recovery Associates. All you have to do is go through our easy to use web application that asks questions about your situation and generates your documents for you. We'll help you find the right defenses so you can reach a settlement with PRA, get their lawsuit completely dismissed, or help you compel arbitration to put you in the best negotiating position possible.

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