• Report: #728846
Complaint Review:

Portfolio Recovery Associates, LLC

  • Submitted: Fri, May 13, 2011
  • Updated: Wed, June 22, 2011

  • Reported By: Slack-Jawed Yocal — Some Where in.... Indiana USA
Portfolio Recovery Associates, LLC
P.O. Box 12914 Norfolk, Virginia United States of America

Portfolio Recovery Associates, LLC KNOW YOUR RIGHTS Norfolk , Virginia

*Author of original report: Motion for Summary Judgement / We Won!

*Author of original report: *UPDATE*

*Consumer Suggestion: Statute of Limitations and FDCPA

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Okay...  I'll try to keep this 'wordy-ness' down so that it's an easy read.  A lot of people have debt and need help on how to resolve it.  I'm not here to judge anyone's situation but to only speak to our (my wife and I) issue(s) and our responsibility. 

I'm going to write this in a manner that will quickly help inform, educate and possible give some direction to future individuals dealing with similar delimma.  None of what I'm going to put in her should be considered fact as it relates to legal matters.  What goes on and or expected in Indiana may not be your situation in your state.  Check them out and verify. 

What companies like P.R.A do is buy unsecured debt from credit card companies for PENNY's on the dollar.  So that $1,000 debt they say my wife owes they paid the credit card companie anywhere from 5-10 percent for it.  The credit card company writes the debt off and the money they are unable to re-coup from the 'write-off' they sell to companies like P.R.A. 

So the I.R.S cuts the Banks (Credit Card's) some slack for the loss.  They are allowed to write it off.  What is left from the write-off they (Credit Card Companies) sell the bad debt to bottom feeders like P.R.A.  They come in and add any fees, interest and run up the bill on you.  

**As this process continues I will further update this post. 

1.  We were contacted by P.R.A. via letter informing us we owe just under $1,000 for a credit card debt.  This letter stipulated that we are to pay them the full amount or we are subject to a "judgement". 

2.  I called the 1-800 number to verify this debt with them.  They notified me that they PURCHASED the debt from the creditor. 

3.  I will be submitting a letter to P.R.A for verification of the debt.  Why do this?  Simple, the debt my wife incurred was with the credit card company.  NOT P.R.A.  They will NOT be able to provide ANY written agreement with my wifes signature indicating she owes P.R.A any money.  Not good for P.R.A.  As I know as a matter of law that they will NEVER be able to provide proof that we owe them any debt.  The only information they will be able to provide is that they bought a debt from the Credit Card Company.  No Judge will ever force a consumer to pay a debt to an entity that cannot prove there is agreement between the two parties.  It's a matter of fact....and law.   

4. I spoke with two (2) N.A.C.A attourneys at no cost.  These guys live for cases that involve Predatory Collection Acts'.  They make their bread nailing companies like P.R.A.  Anything under $3,000 is not worth hiring an attorney on THEIR (P.R.A.) side.  Just to get a judgment proceeding started out of their base of operations (VA) would cost them a minimum of $1,000.  Anything above 3K is worth it.
I have linked the NACA find an attorney.  These guys are really cool about giving quick advice.  The ones in Indiana are great.  Fee's vary with them.  But the cheapist I found was $750 flat fee.  The rest charge you add-on's based on the work.  But their main objective is to get companies like P.R.A to slip up and fall into a FDCPA violation.  Those carry a $1,000 fine for EACH offense.  

5.  In larger owed amounts over 3K they want a judgment against you.  A judgement is VERY bad for you if it happens.  They are easy to avoid...but require some leg work.  That's a later discussion.  Just DONT ever get a judgement against you.  They are not a joke. 

In conclusion:  I asked the P.R.A representative on the phone for debt verification and he could not give it to me.  They kept on wanting to tell me that I owed the Credit Card Company money.  What they could not answer is my orignal question..

"Please provide me proof that my wife has an agreement with P.R.A. for that debt".  They will only be able to provide proof that she 'owed' the Credit Card Company.  No documentation will be able to be provided that she owes P.R.A any money. 


Now I plan to UPDATE this thread as the process continues to keep interested parties informed.   

This report was posted on Ripoff Report on 05/13/2011 08:26 AM and is a permanent record located here: http://www.ripoffreport.com/reports/portfolio-recovery-associates-llc/norfolk-virginia-23541/portfolio-recovery-associates-llc-know-your-rights-norfolk-virginia-728846. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Author of original report

Motion for Summary Judgement / We Won!

AUTHOR: - ()

Recently submitted our example of a response to a motion for summary judgement.  The judge rulled in our favor.  We get our day in court.  Our court hearing is in a three months and will update on the hearing and findings. 

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#2 Author of original report


AUTHOR: PotatoSoup - (USA)

RE: Somerset post

I appreciate you story and sorry to hear that you are going through it as well.  It appears that you are much further in the process than I with these guys.  Was your situation similar in that they purchased the debt from another and tried to collect? 

I'm ready for the day the notice lands on my door from them to proceed with judgement.  I have my response and challenges ready to go for our day in court with these guys. 

Interesting though that this time they have lowered the settlement offer almost 30%.  They are now offering me a settlement of 70% of the reported debt.  In speaking with them this week I asked them if they would be able to send me verification of debt with my wifes signature on it.  The representative in her best N.Y accent talked over me and said yes.  This representative also told me that they have spoken to my wife and she knows this.  Now I've been married to my wife 14 years and have known her an additional two.  I know for a fact my wife has NEVER spoken with these people.

-  PRA does not have 1 piece of document with my wifes signature on it indicating she 'owes' them any money.
-  I have yet to receive but do suspect that they will provide documents that my wife owes the creditor the money.  But NOT PRA. 
-  When I receive the 1099 form from the creditor indicating they (the credito) no longer have the debt and have laid it on my wife then PRA's goose is cooked. 

**Verify the debt people**

PRA are bottom feeders that buy up bad debt and attempt to collect in MOB fashion. 
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#3 Consumer Suggestion

Statute of Limitations and FDCPA

AUTHOR: Bob p. - (U.S.A.)

I have already instituted suit against PRA (Portfolio Recovery Associates) and it has been unresolved now for more than two years. I won the original suit, was granted a confiramtion of the verdict after appeal and it's being appealed higher by PRA.

PRA will not give in as it will set a precident and open them up for more costly suits and a BIG hit in there stock price....that's right, they are traded on the stock market. So are several other big 3rd party collectors. PRA has spent 10's of thousands of dollars paying their attorneys and will have to pay mine 10's of thousands as well. I was awarded the $1,000 violation amount but have yet to see it as PRA is continuing to challenge the Appeals courts "opinion" following the verdicts.

Individual suits may have some consolation but I think 20 or more of us who have been treatede illegally by PRA should join ina suit against them. They continually dance the fine line between FDCPA violations and legitimate business. The REAL thing that needs tom be done is to "revamp" FDCPA statutes that include "No communication with potential debtors after the statute of limitaions expires" as well as larger fines for violating any FDCPA statutes. Also, as far as "debt verification" is concerned, I think that the FDCPA should demand that ALL original files, in their entirety, be forwarded as copies when the debt is pursued and a verification is demanded.

It's not just PRA and other debt collections agencies, the laws that need to be "pumped up" and stricter guidelines implimented. I'm making the case for this and have been for several years. Our Congess was being addressed about this problem and I was supposed to testify but it was scraped at the last minute.

My advice is to NOT let them get away with it. You can find a lawyer who repeatedly files suit against PRA and join others who want them to stop breaking the law.
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