If you searched “Portfolio Recovery Associates is suing me,” you may have received a summons, complaint, or other court papers claiming that you owe a debt.
Do not ignore the lawsuit.
Portfolio Recovery Associates, LLC is a debt buyer that purchases accounts and attempts to collect them. When a debt remains unpaid, a debt buyer may file a lawsuit seeking a judgment against the consumer.
But being sued does not automatically mean Portfolio Recovery Associates is entitled to a judgment.
What Happens When Portfolio Recovery Associates Sues You?
A typical debt collection lawsuit alleges that:
- You opened or used an account with an original creditor.
- The account became delinquent.
- The debt was subsequently sold or transferred.
- Portfolio Recovery Associates acquired the account.
- A particular balance remains due.
Portfolio Recovery Associates may ask the court to enter a judgment for the alleged balance and potentially other amounts permitted by the contract and applicable law.
The important word is alleged.
The plaintiff generally still has to establish its claim through admissible evidence and comply with the applicable procedural rules.
Do Not Ignore the Lawsuit
One of the biggest mistakes consumers make after receiving a debt collection lawsuit is putting the papers aside.
There will generally be a deadline for responding.
Failing to respond appropriately can potentially result in a default judgment.
Once a creditor obtains a judgment, additional collection remedies may become available depending upon the law of your state.
Read every document you received and identify:
- The court where the case was filed.
- The case or docket number.
- The date you were served.
- Your deadline for responding.
- The amount Portfolio Recovery Associates claims you owe.
Can Portfolio Recovery Associates Prove the Debt?
Debt buyers typically were not the company that originally extended credit to the consumer.
That can make documentation particularly important.
Depending upon the facts and applicable law, questions may include:
- Does Portfolio Recovery Associates have records connecting you to the account?
- Can it establish the amount allegedly owed?
- Can it demonstrate that it owns the particular account?
- Is there documentation showing the chain of ownership?
- Are its records admissible?
- Is the lawsuit within the applicable statute of limitations?
The answers depend heavily on the individual case.
Is the Debt Too Old to Sue Over?
Every state has statutes of limitations governing different kinds of legal claims.
The applicable limitations period can depend on factors including the type of debt, applicable state law, the agreement, and the relevant dates.
A statute-of-limitations defense can be extremely important because a debt may continue to exist even when a lawsuit seeking to collect it is time-barred.
Consumers should also be careful about taking action on an old debt without understanding the potential legal consequences.
Could Debt Collection Laws Apply?
The federal Fair Debt Collection Practices Act (FDCPA) regulates many activities undertaken by debt collectors.
Among other restrictions, the FDCPA prohibits covered debt collectors from using certain abusive, deceptive, misleading, or unfair collection practices.
The FDCPA can apply to lawyers who regularly engage in consumer debt collection litigation.
Potential issues in a collection case can therefore involve not only whether the consumer owes money, but also how the debt was collected.
What If Portfolio Recovery Associates Contacted You Before Filing Suit?
Save everything.
That includes:
- Collection letters
- Emails
- Text messages
- Voicemails
- Account statements
- Credit reports
- Settlement offers
- Court documents
Also make notes about telephone conversations, including dates, times, telephone numbers, and what was said.
Those records may help an attorney determine whether consumer protection laws apply.
Can You Fight a Portfolio Recovery Associates Lawsuit?
Potentially.
Defenses vary considerably from case to case. Possible issues can involve ownership of the debt, the amount claimed, documentation, identity, payment history, limitations periods, procedural defects, or other matters.
A consumer should not assume that a lawsuit is unwinnable simply because a debt buyer filed it.
At the same time, no particular defense works in every case.
Speak With a Consumer Rights Attorney
If Portfolio Recovery Associates LLC is suing you, your response deadline matters.
An attorney familiar with debt collection defense and consumer protection law can review the complaint, determine what defenses may be available, and evaluate whether the collection activity itself potentially violated federal or state consumer protection laws.
Ginsburg Law Group represents consumers in debt collection and consumer protection matters.
If you have received a lawsuit or collection notice, contact us to discuss your situation.
This article is for general informational purposes and is not legal advice. Laws and deadlines vary by jurisdiction and individual circumstances.
