Consumer Financial Protection Bureau (CFPB) has taken action against one of the largest debt collectors in the United States
Credit & Collection e-newsletter of 3/30/23 reports: On March 23, 2023, the Consumer Financial Protection Bureau (CFPB) has taken action against one of the largest debt collectors in the United States, Portfolio Recovery Associates (PRA), for various violations of law, including a 2015 CFPB order. In the complaint, the CFPB accused Portfolio Recovery Associates of violating numerous requirements of the 2015 order as well as engaging in deceptive conduct in violation of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act, and violating the Fair Credit Reporting Act and its implementing Regulation V. The CFPB filed a proposed order requiring Portfolio Recovery Associates to pay $12 million in consumer redress and a $12 million penalty, which will go to the CFPB’s victims’ relief fund. Portfolio Recovery Associates is a wholly-owned subsidiary of the publicly traded PRA Group, and its principal headquarters is in Norfolk, Virginia. The recent action is apparently part of the CFPB’s recent efforts to hold repeat offenders accountable. By way of background, in 2015, the CFPB ordered Portfolio Recovery Associates to pay over $27 million in consumer refunds and penalties for deceptive debt collection tactics. The 2015 order required Portfolio Recovery Associates to adhere to various prohibitions, including collecting debts without a reasonable basis, selling debt, and filing false or misleading affidavits in debt-collection actions.