Portfolio Recovery Associates Facing Lawsuit Over Debt Dispute Instructions

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A New Jersey consumer has filed a proposed class action against Portfolio Recovery Associates, LLC in which the man claims he received a collection notice wherein he was prompted to call an 800-number to dispute his obligation by phone or write to the company’s Norfolk, Virginia address. The lawsuit argues such instructions overshadow the Fair Debt Collection Practices Act validation notice, as the defendant provided the plaintiff with “an alternative option to dispute a debt by phone that is not in accordance with the statutory validation notice.” According to the complaint, Portfolio Recovery Associates overstepped the FDCPA in that the notice sent to the plaintiff can reasonably be read to mean a debt could be disputed over the phone.