What is Portfolio Recovery Associates and Is It a Legitimate Debt Collector?

Portfolio Recovery Associates (PRA) is a legitimate debt collector that has been in business since 1996. It's headquartered in Norfolk, Virginia.

PRA specializes in buying and collecting delinquent debts from other creditors, often at a discounted rate. This is a common practice in the debt collection industry.

As one of the largest debt collectors in the US, PRA has a significant presence, with over 4,000 employees and a large portfolio of debt.

Portfolio Recovery Associates is a large debt collection agency and debt buyer. They purchase delinquent credit card debt and other accounts from banks and original creditors.

They buy debt from big names like Citibank, Bank Of America, Dell Financial, GE Capital, Express, Gap, Lowes, Lord & Taylor, JC Penny, and Old Navy.

If they purchase a debt you owe to a creditor, they now have the right to collect on it.

This means they can take legal action against you if you fail to respond to their attempts to collect on debt.

Portfolio Recovery Associates has been in business for 27 years, having been accredited by the Better Business Bureau since December 27, 1996.

They have a B rating from the Better Business Bureau, based on 82 customer reviews that average 1.35 out of five stars.

Portfolio Recovery Associates has a significant number of complaints, with 2,207 closed in the last three years and 956 in the last 12 months.

The Consumer Financial Protection Bureau's Consumer Complaint Database has 22,193 entries for Portfolio Recovery Associates, with 18,303 related to debt collection.

The Fair Debt Collection Practices Act provides federal protection against certain debt collection tactics, including harassment and statute of limitations.

Debt collectors cannot take legal action to collect debt if the statute of limitations has expired, which can result in wage garnishment and damage to your credit report.

Portfolio Recovery Associates is a legitimate company, operating as a debt buyer that specializes in buying charged-off and defaulted consumer debts from creditors.

In Texas, Portfolio Recovery Associates is registered and has a debt collection bond on file with the Texas Secretary of State issued by The Hartford Casualty Insurance Company.

This registration and bond filing demonstrate that Portfolio Recovery Associates is a registered debt collector, meeting the state's requirements.

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Portfolio Recovery Associates is a legitimate company that specializes in buying debts from creditors and pursuing collection actions. They have been in business for 27 years, as of August 21, 2023, and have been BBB accredited since December 27, 1996.

They have a B rating from the Better Business Bureau, based on 82 customer reviews. This rating is not great, but it's not the worst either.

Portfolio Recovery Associates has a significant number of complaints, with 2,207 complaints closed in the last 3 years. This is a lot of complaints, and it's something to be aware of if you've been contacted by them.

The Consumer Financial Protection Bureau (CFPB) has 22,193 entries for "Portfolio Recovery Associates Inc.", with 18,303 of these complaints related to debt collection.

A unique perspective: Portfolio Recovery Associates Complaints

Portfolio Recovery Associates is a registered debt collector, specifically in Texas. They operate as a debt buyer and are registered with the Texas Secretary of State.

To be registered, they filed a debt collection bond with the Secretary of State, which is a mandatory requirement in Texas. This bond is issued by The Hartford Casualty Insurance Company.

This registration is important because it ensures that Portfolio Recovery Associates has met the necessary requirements to operate as a debt collector in Texas.

Here's an interesting read: Bond Etf Portfolio Allocation

Portfolio Recovery Associates primarily deals with purchased debts from original creditors. Their portfolio typically includes debts from credit cards, personal loans, and other consumer financial products.

They assume the role of the creditor and initiate collection efforts, which may include legal action against consumers. If you're facing a lawsuit from Portfolio Recovery Associates, it's essential to take prompt action.

Ignored lawsuits can lead to default judgments, resulting in bank garnishments, liens, or seizures. You have 14 days to respond if you're sued in a Justice of the Peace Court, or 20 days from being served the lawsuit if the case was filed in a County of District Court in Texas.

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Portfolio Recovery Associates may present a strong case, but you can still negotiate a settlement for a lower amount. Settlements can be negotiated to amounts significantly lower than the original debt, and payment plans are available.

Here are some common types of debts that Portfolio Recovery Associates collects: