CFPB v. Portfolio Recovery Associates, LLC

Portfolio Recovery Associates, LLC allegedly violated the Consumer Financial Protection Act of 2010 (CFPA), the Fair Debt Collection Practices Act (FDCPA), and the Fair Credit Reporting Act (FCRA). Portfolio Recovery Associates allegedly violated the CFPA and, in some instances, the FDCPA, when it violated multiple conduct provisions from the 2015 Order, including prohibitions on (1) representing the amount or validity of unsubstantiated debt; (2) collecting on debt without offering to provide necessary documentation to consumers; (3) mispresenting that it would provide the offered documents within thirty days; (4) collecting on time-barred debt without making required disclosures; (5) initiating debt collection lawsuits without possessing required documentation; and (6) suing to collect time-barred debt. The Bureau also alleged that several of Portfolio Recovery Associates’ practices for resolving disputes about information it furnished to consumer reporting agencies (CRAs) violated FCRA, Regulation V, and the CFPA. Specifically, Portfolio Recovery Associates allegedly failed to (1) timely resolve disputes submitted by consumers directly to Portfolio Recovery Associates ; (2) properly respond to disputes that Portfolio Recovery Associates deemed frivolous; (3) conduct reasonable investigations of consumer’s disputes; and (4) maintain reasonable policies and procedures regarding the accuracy and integrity of consumer information that it furnished to CRAs.

Summary generated from official Consumer Financial Protection Bureau press release