- The CFPB filed a proposed order against Portfolio Recovery Associates, LLC (PRA), one of the largest debt collectors in the nation, accusing the company of illegal debt collection practices in violation of a 2015 CFPB order, as well as unlawful credit-reporting practices.
- According to the complaint, the CFPB reached a consent order with PRA in 2015 to resolve allegations that the company’s debt collection practices violated multiple provisions of federal consumer financial law. However, the Bureau alleges that PRA has since violated the terms of that order by failing to substantiate the accuracy and validity of debts before attempting to collect, suing to collect on time-barred debts, and failing to provide required documentation on debts to consumers. In addition, the CFPB claims that PRA violated federal law by insufficiently investigating consumer disputes regarding information the company furnished to consumer reporting agencies.
- Under the terms of the proposed order, PRA is required to pay a $12 million penalty to the CFPB and at least another $12 million in additional relief to consumers harmed by its illegal collection practices. PRA would also be required to revise its debt collection practices to prevent further harm to consumers, including ensuring adequate, timely responses to consumers disputing debts or about information furnished to consumer reporting agencies.