Lawsuit Claims Debt Collector Attempts to Trick Consumers into Court

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Portfolio Recovery Associates, LLC is on the receiving end of a proposed class action lawsuit that claims it failed to inform consumers that any payments made on a time-barred debt could renew the statute of limitations and allow the debt collector to sue. According to the complaint, the plaintiff received a collection letter that outlined several payment options for an allegedly time-barred debt that had been inactive for at least six years. The letter supposedly contained a statement informing the recipient that she could not be sued over her debt because of its age. The suit argues, however, that the debt collector failed to disclose that any payments made on the debt could restart the statute of limitations, allowing Portfolio Recovery to file suit against the plaintiff. The omission of this information, according to the suit, is unlawful because it fails to inform consumers of their rights and could mislead them into surrendering their “ironclad protection” under the statute of limitations.