If you’re among the millions of people who have received a debt collection letter or are being sued by Portfolio Recovery Associates, LLC, you’ve probably got a few questions hitting you all at once.
Is Portfolio Recovery Associates suing me?
Wait, who is Portfolio Recovery Associates, LLC?
Can I settle a debt with Portfolio Recovery Associates, LLC?
In this article, we’ll answer all those questions and more. We’ll explain the relationship between Portfolio Recovery Associates, LLC and companies like Credit One Bank, Resurgent Capital Services, and Credit Control, LLC. Then, we’re going to explore your options and touch on dealing with debt collectors in general. So, read on for all the information you need to know about settling debt with Portfolio Recovery Associates, LLC. and their affiliated companies.
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Who Is Portfolio Recovery Associates, LLC?
Portfolio Recovery Associates, LLC is a debt buyer. That means they purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. So, naturally, their goal is to buy low and collect high.
Portfolio Recovery Associates, LLC is one of the largest debt buyers in the United States, so it isn’t uncommon to see their name when you have accounts fall behind and go to collections.
Once Portfolio Recovery Associates has acquired a debt, they have a few options that they can exercise right away or in the future. To name a few, they may:
- Collect on the debt directly
- Hire a third-party collection agency to pursue collections
- Place the account with a law firm for collection and/or litigation
- Do nothing
- Resell the account to a different debt buyer
Is Portfolio Recovery Associates a Legitimate Debt Collection Company?
Yes, Portfolio Recovery Associates is a legitimate company. In fact, Portfolio Recovery Associates, LLC is one of the largest debt buyers in the United States. Portfolio Recovery Associates, LLC is a subsidiary of PRA Group, Inc. A previous iteration of the company was Portfolio Recovery Associates, Inc.
Just because they are a legitimate organization doesn’t mean you should let your guard down, though. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies.
Double and triple-check to be sure you are truly communicating with the real Portfolio Recovery Associates, LLC before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from Portfolio Recovery Associates, LLC, they are indeed a legitimate debt buyer.
What Is the Relationship between Portfolio Recovery Associates, LLC and PRA Group, Inc.?
There are several entities working within the PRA-ecosystem. For example, when you have a debt that has been purchased by Portfolio Recovery Associates, LLC, you may also see PRA Group, Inc., or PRA Receivables Management, LLC.
With all these companies intertwined, it can get a bit tricky.
Rather than untangle the corporate web behind Portfolio Recovery Associates, LLC, suffice it to say that PRA is a debt buyer who also acts as its own debt collector.
Their various subsidiaries each play a role in their business processes. All have a deviation of the core “PRA” within their names and, for the most part, you’ll primarily see Portfolio Recovery Associates, LLC and PRA Group, Inc.
What Is the Relationship between Portfolio Recovery Associates, LLC, Credit One Bank, and Other Creditors?
Portfolio Recovery Associates, LLC purchases unpaid debt from lenders like Credit One Bank, SoFi, and others.
Once a debt has been purchased by Portfolio Recovery Associates, LLC, it is their right to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you (or your debt settlement attorney) and the new owner of the debt or their collector.
Why Is Portfolio Recovery Associates, LLC on My Credit Report?
When Portfolio Recovery Associates, LLC becomes the new owner of your debt, their name will often appear on your credit report alongside the collection account. Their remarks may include their contact information, how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled.
Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, if they cannot verify the information, or if it is not a valid debt, you may be able to remove Portfolio Recovery Associates, LLC from your credit report by disputing the remark. You’ll want to ensure the error is corrected with each of the three credit reporting agencies: Transunion, Experian, and Equifax.
One special thing about Portfolio Recovery Associates and credit reports, right now they have a business policy of asking the credit bureaus to delete any tradelines of resolved accounts from the consumer’s credit report. This means for the time being, once an account is settled PRA will remove their name and account history from the credit file. A business policy is not required, the law does not require this deletion. It does nothing to the original creditor’s tradeline. The policy could change tomorrow, there is no guarantee that they will continue to delete accounts after resolution, but of course we hope that they will!
What Should I Do If I Receive a Letter or Call from Portfolio Recovery Associates, LLC?
If you’re receiving calls or letters from a debt collector at Portfolio Recovery Associates, LLC or PRA Group, Inc., there are actions you can take and rights that protect you as a consumer in debt.
First, read the Attorney’s Guide to Reading a Collection Letter. This will explain the core elements of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts.
Then, determine your next steps.
Are you sure you owe the alleged debt to Portfolio Recovery Associates, LLC? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you’d like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center.
If you are sure the debt is valid, can you afford a payment plan to resolve or settle the account? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.
National Legal Center negotiates with companies like Portfolio Recovery Associates, LLC, every day. Complete this short form to discover options to resolve debt with Portfolio Recovery Associates, LLC, and any other creditors you may have on your credit reports.
Is Portfolio Recovery Associates, LLC a Debt Collection Agency?
Yes and no. PRA is a debt buyer. They purchase debt, and then they have their debt collectors call in an attempt to collect the debt. The fact that they own the debt does raise questions on whether they are technically a debt collection agency. The title of being a “debt collector” brings along many requirements under the FDCPA.
If you feel you’ve been harassed or like your rights have been violated by debt collection companies, National Legal Center is here to help.
Can Portfolio Recovery Associates, LLC Sue Me?
Yes, Portfolio Recovery Associates, LLC may be able to sue you for the debt you owe. A debt collection lawsuit can be a frightening experience that you should take seriously. If Portfolio Recovery Associates, LLC sues you, it is important to seek legal assistance as soon as possible.
Failing to respond to a summons can result in a default judgment being entered against you. At that point, you’re susceptible to having wages garnished, money taken from your bank account, seizure of personal assets, and more.
National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.
Should You Negotiate a Settlement with Portfolio Recovery Associates, LLC?
When Portfolio Recovery Associates, LLC is contacting you about a debt, negotiating a settlement is one option to resolve the debt.
A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you pay Portfolio Recovery Associates, LLC, the account is reported to the credit bureaus as settled in full (or similar), and they should not take further action.
If Portfolio Recovery Associates, LLC has filed a debt collection lawsuit, and you’re considering settlement, things change a bit. Of specific importance is the timing of the settlement.
For example, if the settlement occurs after Portfolio Recovery Associates, LLC issued a summons, you’ll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement.
If you settle a Portfolio Recovery Associates, LLC lawsuit after a judgment was entered, you’ll want to have documentation that confirms they will file a satisfaction of judgment with the court.
While you can ask the representative at whatever law firm is handling the matter for Portfolio Recovery Associates, LLC, it’s crucial to remember that they are not your attorneys!
Instead, they represent the other party, so it’s good to be skeptical and confirm anything they tell you. After all, their job is to collect the most funds possible on the accounts they handle.
Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t’s and dot your i’s.
Tips for Negotiating a Settlement with Portfolio Recovery Associates, LLC
Here are some tips for negotiating a settlement with Portfolio Recovery Associates, LLC, or any other debt collection agencies:
- Negotiate a settlement you know you can afford. Don’t over-commit yourself and fail to complete the terms of the arrangement.
- Obtain a letter outlining the terms of the agreement, including the amount to be paid and the payment due date.
- Follow the letter’s instructions. If the settlement agreement is $4,089.98, pay that, don’t pay $4,090! If it is due by the 28th, paying on the 30th doesn’t cut it—if you need an extension on a settlement, you also need a new letter.
- Maintain your documents. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.
How Can a Debt Settlement Attorney Help?
Receiving a summons on a debt you owe to PRA is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make mistakes during legal proceedings.
If you decide to work with an attorney, they’ll likely look at your entire financial situation and work to find an affordable resolution for you and minimize your legal risks. They may also identify alternate legal strategies to deal with the debt.
Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?
You don’t have to wait until you receive a debt collection summons to begin working on a solution. By working with a lawyer familiar with debt-related matters, you can minimize the chances of a debt collection lawsuit happening in the first place.
