FDCPA Suit Filed Against Portfolio Recovery Associates

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Portfolio Recovery Associates, LLC is facing a proposed class action lawsuit filed by a New York man who claims the defendant sent him a misleading debt collection letter. According to the suit, the plaintiff received a letter from Portfolio Recovery that “merely identified the amount due” while failing to indicate whether the balance was increasing due to interest or other fees – an alleged violation of the Fair Debt Collection Practices Act (FDCPA). The plaintiff says he received a collection letter months earlier from a different debt collector regarding the same account that listed a lower balance. The difference in amounts, he surmises, indicates that the balance was, in fact, increasing, despite the defendant’s alleged failure to disclose this in its letter.

The suit further argues that the notice instructed its recipient to send “all future payments and correspondence for this account” to a physical address. Though the letter allegedly listed a phone number as well, the complaint claims this statement falsely implied to the plaintiff that any disputes over the debt must be submitted in writing even though the man is lawfully permitted to submit an oral dispute over the phone, the suit says.