Five Wisconsin Consumers Sue PRA Group, Portfolio Recovery Associates Over ‘Misleading’ Letters

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PRA Group, Inc. and Portfolio Recovery Associates, LLC have been hit with a proposed class action filed by five Wisconsin consumers who claim the companies sent them misleading letters.

To start, the lawsuit takes issue with a notice sent to one plaintiff that stated, in part:

“Any changes to the authorized arrangements must be made at least 72 hours prior to the scheduled date and by contacting one of our representatives by phone…”

According to the case, the defendants misled the plaintiff as to her options by failing to notify the woman that she could have also canceled her automatic payment plan by contacting her bank directly.

The suit goes on to allege the companies sent letters to the other four plaintiffs that directed them to call an 800 number rather than submit a written notice should they dispute their debts, which would prevent them from obtaining verification of the debts.

“Such directions overshadow the validation notice by falsely indicating to the consumer that oral disputes are equivalent to written disputes,” the complaint reads.