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Debt collection companies such as Portfolio Recovery Associates, LLC, are known for their aggressive, and sometimes abusive, collection tactics. When these collection companies harass or threaten you, it is natural to wonder if they are even a legitimate company. Many debt collection companies are scams and make their money from defrauding other people.
Portfolio Recovery Associates, LLC. is a legitimate company, but that does not always hold true for its debt collection tactics. If you are receiving calls from Portfolio Recovery Associates, LLC, or the company has already taken legal action against you, it is important to speak to a Florida debt defense lawyer who can give you the best chance of a positive outcome.
What is Portfolio Recovery Associates, LLC?
Portfolio Recovery Associates, LLC has been around since 1996, and they are based out of Norfolk, Virginia. However, they buy debts from all over the country and many Floridians are contacted by them regularly. In fact, the company is one of the biggest debt-collection businesses in the world.
The company touts itself as a debt collection agency that places a focus on full compliance with the regulations and the laws that govern the industry. The company works in a similar manner as other debt collectors. They purchase debts from banks, creditors, hospitals, and more, and they only pay pennies on the dollar for them. That essentially makes Portfolio Recovery Associates, LLC, the prime creditor and gives them the right to contact borrowers and file lawsuits to recover the debt.
This arrangement works out well for the creditor, who is guaranteed to recover at least a portion of the debt right away. Portfolio Recovery Associates, LLC, then goes after borrowers for the full amount of the original debt, and not the amount they paid for it.
Is Portfolio Recovery Associates, LLC, a Legitimate Company?
Portfolio Recovery Associates, LLC, is not a scam. They are a legitimate company, but that does not mean they always act fairly. The company has been known to file a lawsuit right away before trying to retrieve the money owed. If they are successful, they may garnish your wages, levy your bank account, and take other legal action against you.
When Portfolio Recovery Associates, LLC files a lawsuit against you, they are hoping that you will ignore it. If you do, they can obtain a summary judgment and automatically win their case. It is not uncommon for debt collectors, including Portfolio Recovery Associates, to do this in an attempt to scare people into paying the debt. It is natural to panic any time a lawsuit is filed against you, but it is important to remain calm. Some lawsuits filed by debt collection companies are not legitimate and you could have a valid defense before the case even really gets started.
Your Rights if Portfolio Recovery Associates, LLC, is Calling
It is not uncommon for debt collection companies such as Portfolio Recovery Associates, LLC, to use harassing or threatening tactics when trying to collect debt. They are hoping that the more aggressive they are, the more you will want to stop the calls and so, you will just pay the debt. Sometimes, debt collection companies even get the wrong information by mistake, and the collection notices they are sending do not even belong to you.
Under the Fair Debt Collection Practices Act (FDCPA), Portfolio Recovery Associated is not allowed to:
- Contact someone that is not the main borrower on the account
- Threaten you with wage garnishment, harm of credit, or referral to a lawyer without the actual intention of following through on those threats
- Phone any time before 8:00 a.m. or 9:00 p.m.
- Contact your employer, or try to reach you at your place of employment, after you have asked them not to
- Tell your employer about your debt
- Disclose any information about the debt to anyone else without your permission
- Send collection notices that appear to be sent from a government office or courthouse
- Threaten you with arrest if you do not pay the debt
When a debt collection company violates your above rights, you can file a lawsuit against them to claim certain damages.
What to Do if Portfolio Recovery Associates, LLC Contacts You
No one wants to deal with debt collection companies. Knowing what to expect, and the steps you should take when speaking with them can make it easier.
If Portfolio Recovery Associates, LLC has contacted you, follow the below steps.
- Ask them to verify the debt: By the time the company has purchased your debt, there is a chance that it has changed hands several times. Mistakes can be made, and they often are. Paperwork also gets lost along the way, which can also result in a mistake and the company’s inability to prove that the debt is yours.
- Removal from your credit report: If the company cannot prove the debt is yours, you have the right to demand that they remove it from your credit report. If Portfolio Recovery Associates does not do this, you can open a case with the three major credit reporting bureaus, which have an obligation to start an investigation.
- Pay the debt: If the debt is yours and Portfolio Recovery Associates does prove it, you have two choices. You can pay the debt in full, or you can negotiate for a lower amount. Portfolio Recovery Associates, LLC, will often enter into these negotiations willingly, as they would rather recover a portion of the debt rather than none at all.
It is always important to work with a debt defense lawyer if Portfolio Recovery Associates, LLC has contacted you. An attorney can provide the necessary defense in your case, and enter into settlement negotiations on your behalf.
Call Our Debt Defense Lawyers in Florida Today
If you are being harassed or threatened by Portfolio Recovery Associates, LLC, our Florida foreclosure, bankruptcy, and debt lawyers at Loan Lawyers can provide the legal advice you need. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to learn more about how we can help.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
