Suit Claims Portfolio Recovery Associates Misrepresented Debt’s Legal Status

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Portfolio Recovery Associates, LLC is on the receiving end of a proposed class action lawsuit filed by an Alabama consumer who claims the defendant sent her a collection letter that violated the Fair Debt Collection Practices Act (FDCPA). The complaint claims the defendant sent the plaintiff several letters attempting to collect a time-barred debt. One of the letters allegedly stated, “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it.”

According to the lawsuit, the letter’s statements were misleading because the defendant noted that it “will not sue” the plaintiff instead of more accurately stating that it cannot sue her over the debt. The unsophisticated consumer, the case argues, could be led to believe that the debt collector was legally permitted to commence litigation against him or her and was “simply choosing not to do so.” These allegedly false implications, according to the complaint, are a misleading representation of the debt’s legal status and therefore violate the FDCPA.