Is Portfolio Recovery Associates Hurting Your Credit?

Who is Portfolio Recovery Associates?

Portfolio Recovery Associates (PRA), aka PRA Group, Inc., is a publicly traded debt collection agency and debt buyer headquartered in Norfolk, Virginia. They also have locations in the following cities:

If you see Portfolio Recovery Associates listed on your credit report as a collections account, it typically signifies an unpaid debt they are attempting to collect.

Who does Portfolio Recovery Associates collect for?

Portfolio Recovery Associates is one of the largest debt buyers in the United States. They purchase large volumes of debt from banks, lenders, and credit card companies nationwide.

These companies typically sell their uncollected debt, often for pennies on the dollar, to agencies like PRA when they have been unsuccessful in collecting the debt themselves. Once PRA purchases this debt, they take over the collection process, seeking to recover as much of the owed money as possible.

Is Portfolio Recovery Associates legit or a scam?

Despite their persistent and sometimes aggressive collection methods, Portfolio Recovery Associates is a legitimate debt collection agency. The company was established in 1996 and is a well-known entity in the debt collection industry. Like many collection agencies, they might frequently contact you via phone calls, text messages, or emails in an attempt to recover the debt.

How can I remove Portfolio Recovery Associates from my credit report?

Collection accounts can impact your credit score for up to seven years, so it’s essential to address them promptly. To remove collections from your report, start by disputing any errors related to the account with the credit bureaus.

If the information is accurate, consider negotiating a “pay-for-delete” agreement, where you offer payment in exchange for the account’s removal. Another option is to work with a credit repair service that specializes in challenging collections.

Portfolio Recovery Associates, LLC / PRA Group Contact Information

Address:

Portfolio Recovery Associates, LLC
120 Corporate Boulevard
Norfolk, VA 23502

Phone number: (800) 772-1413

Will Portfolio Recovery Associates sue me or garnish my wages?

Portfolio Recovery Associates lawyers have been known to sue debtors for non-payment. If PRA is successful in their lawsuit and obtains a court judgment against you, they could potentially garnish your wages or levy your bank account to collect the debt.

However, the likelihood of them taking legal action, and the processes involved, can vary widely based on numerous factors, including the size of the debt, your state’s laws, and your overall financial situation.

It’s important to understand that wage garnishment is generally considered a last resort. Before this happens, you would typically receive multiple notices and have the opportunity to either pay the debt or work out a payment plan.

Send Portfolio Recovery Associates a Debt Validation Letter

Under the FDCPA, the burden of proof lies on the debt collection company. Portfolio Recovery Associates, LLC must prove that the debt in question is accurate, and they have a right to collect on it. And that’s where a debt validation letter comes into play.

It’s a written request that doesn’t get into the details about the debt. Instead, it requests that Portfolio Recovery Associates prove the debt is yours, and you have a legal obligation to repay it.

There’s a chance that Portfolio Recovery won’t have the documentation to validate the debt since they aren’t the original creditor. And that’s good news for you is PRA will have to remove the negative information from your credit report.

There’s also a chance they won’t respond to your request within the 30-day window. In this case, the information would also have to be removed.

The downside is this letter must be submitted within 30 days of your initial notification by PRA for it to be effective (and they have 30 days to respond).

However, if Portfolio Recovery Associates does respond, and it’s not quite the reply you were looking for, you still have a few more options.

Portfolio Recovery Associates Complaints

Many collection agencies have numerous complaints filed with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB). Most complaints are about inaccurate reporting, harassment, or failure to verify a debt. If you are being harassed, consider filing a complaint.

You have many consumer rights under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). These rights include the ability to dispute credit reporting errors with the credit bureaus and to be treated fairly and respectfully by a debt collector.

Your Rights When Dealing with Portfolio Recovery Associates

Portfolio Recovery Associates must abide by state and federal laws in the United States. The Fair Debt Collection Practices Act (FDCPA) prohibits abusive, unfair, or deceptive practices and ensures your rights are protected:

• It is a violation of federal law for Portfolio Recovery Associates to report inaccurate or incomplete information about you.
• You have a legal right to request debt validation on an alleged debt. Send the collection agency a debt validation letter. They have 30 days to prove the debt is yours and the amount is accurate.
• Portfolio Recovery Associates cannot threaten or harass you, call repeatedly, swear at you, or publicly publish a list of debtors.
• Portfolio Recovery Associates must be honest about who they are and their purpose. They must notify you that they are a debt collection company both orally and in writing.
• Portfolio Recovery Associates cannot threaten to have you arrested or imprisoned for unpaid debts.

Remove Portfolio Recovery Associates From Your Credit Report Today!

Credit Saint offers assistance with disputing Portfolio Recovery Associates collection accounts. With over 15 years of experience, they have worked with clients to address incorrect entries on credit reports.

If you’re looking for a reputable credit repair company to help you with collection accounts and repair your credit, consider working with Credit Saint.

Visit their website or call (855) 281-1510 for more details.