Portfolio Recovery Associates Inc. Collects against California Debtors.
Many debtors in California are sued and relentlessly persued by Portfolio Recovery Associates Inc., a large consumer debt buying firm – a third party debt collector. Recently, Portfolio Recovery Associates agreed to pay fines in a settlement with the New York Attorney General because of suits Portfolio Recovery filed after the statute of limitations had expired. In addition, Portfolio Recovery agreed to ask courts to reverse judgments against consumer and credit card debtors in the millions of dollars.
While this settlement only relates to lawsuits filed in New York, this could open up a floodgate of litigation in California against Portfolio Recovery Asociates if it is determined that Portfolio engaged in the same or similar tactics against California debtors. This settlement also signals a greater crackdown by state and federal authorities against debt collection firms, third party debt collectors and other collection agencies
This urgent bulletin is brought by the Law Offices of Eric Ridley, a consumer law firm focused on bankruptcy and debt collection matters.