Lawsuit Picks at Alleged Portfolio Recovery Associates Missteps in Collection Notice

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Portfolio Recovery Associates is facing a proposed class action filed by a New York consumer who alleges a collection notice she received from the company was out of step with the Fair Debt Collection Practices Act (FDCPA). 

The lawsuit says the plaintiff received a notice from the defendant in September 2017 that stated her “Total Now Due” as $8,782.83. The letter then provided a “Disputes Correspondence Address” that the complaint pegs as deceptive in that it may lead a consumer to believe debt disputes must be communicated in writing.

“The least sophisticated consumer would be unsure as to whether a writing [sic] or oral communication is necessary to dispute the underlying debt,” the suit argues, claiming a consumer would likely be deceived after reading the defendant’s notice. 

Later in the complaint, the plaintiff claims Portfolio Recovery Associates failed to disclose in the same notice that her balance may increase, as it was subject to interest and fees per the agreement with her original creditor, Synchrony Bank.