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The Consumer Financial Protection Bureau Cracks Down on Portfolio Recovery Associates: Holding Debt Collectors Accountable

Posted by Sami Thalji | May 24, 2023

The Consumer Financial Protection Bureau (CFPB) has taken decisive action against Portfolio Recovery Associates, a leading debt collector in the nation. Despite a previous CFPB order in 2015, Portfolio Recovery Associates persisted in violating the law and engaging in illegal debt collection practices. This blog post highlights the CFPB's latest enforcement action, the violations committed by Portfolio Recovery Associates, and the consequences they now face.

Red-Handed Repeat Offenders Portfolio Recovery Associates' Audacious Disregard for the Law

Portfolio Recovery Associates, caught in 2015 for their deceptive debt collection tactics, shamelessly continued their unlawful practices. Intimidation, deception, and illegal debt collection tactics and lawsuits were their modus operandi, undermining the rights and well-being of consumers. The CFPB is determined to remind companies that orders are not mere suggestions to be ignored.

Violations of the 2015 Order Unsubstantiated Debt, Lack of Documentation, and Statute of Limitations Abuses

During the five-year period the 2015 order was in effect, Portfolio Recovery Associates blatantly disregarded numerous requirements. They collected on unsubstantiated debt, neglected to provide required documentation and disclosures to consumers, threatened legal action without possessing necessary documentation, and pursued debt collection beyond the statute of limitations. Furthermore, they failed to adequately investigate and resolve consumer disputes regarding credit reporting.

Consequences and Accountability CFPB's Swift Response to Repeat Offenders

The CFPB is determined to hold Portfolio Recovery Associates accountable for their actions. In a proposed order, the CFPB demands over $12 million in restitution for consumers harmed by illegal debt collection practices. Additionally, a $12 million penalty will be imposed on Portfolio Recovery Associates, with the funds deposited into the CFPB's victims relief fund. The aim is to rectify the damage caused, enforce compliance, and safeguard consumer rights.

The Ongoing Battle Against Repeat Offenders CFPB's Commitment to Protecting Consumers

Today's action against Portfolio Recovery Associates is part of a larger effort by the CFPB to ensure repeat offenders face the consequences of their actions. The CFPB, under the leadership of Director Rohit Chopra, reaffirms its commitment to consumer protection. No company, regardless of size or market dominance, can evade accountability for engaging in deceptive and harmful practices.

The CFPB's enforcement action against Portfolio Recovery Associates sends a clear message: debt collectors must adhere to the law and respect consumer rights. By holding repeat offenders accountable, the CFPB strives to create a fair and transparent financial system. Consumers can take solace in knowing that the CFPB is committed to safeguarding their interests and taking swift action against those who seek to exploit them.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...


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