Portfolio Recovery Associates refuse to validate debt and try to collect time-barred debt Norfolk Virginia
Through several rounds of correspondence (beginning 6/16/15 and ending 8/13/15) with Portfolio Recovery Associates, LLC (a debt collector), I have insisted on the verification of a debt they are trying to collect. Despite the Fair Debt Collection Practices Act (specifically 15 U.S.C. 1692g) giving me the rights to 1) the names *and addresses* of original/current creditors and 2) *a copy of the verification or judgment against me by the original creditor*, Portfolio Recovery Associates, LLC has failed to properly validate this debt. As such, Portfolio Recovery Associates, LLC is breaking the law.
In addition, Portfolio Recovery Associates, LLC lists the date they purchased this account as 8/22/2008. In my last correspondence, on 8/07/15, I requested a full payment history since they have purchased the account (which, on each of their identical form letters, they invite me to request – but did not provide in their last correspondence on 8/13/15 in response to my request). According to the statute of limitations on debt collection in Nevada (where I live), the maximum time a debt collector has to collect a debt is 3-6 years, depending on the type of debt (NRS 11.190). Even if the debt were mine (which I am not admitting to, as it has not been properly validated), Portfolio Recovery Associates, LLC is deliberately refusing to allow me to prove that the statute of limitation on debt collection has been passed on this account – and that by attempting to collect it, they are breaking the law.
2 Updates & Rebuttals
re: "Right But Wrong"
#3Author of original report
Mon, August 24, 2015
Thank you, Robert, for your comments.
First, about the terminology for the statute of limitation on debt collection -- you are right. Thank you for correcting me. As you said, it only has to do with whether the company would prevail in court if they were to sue me in order to collect the debt.
However, the rest of what I said stands. They are violating the FDCPA by refusing to validate the debt (and they did, in fact, attempt to collect the debt multiple times via phone and mail without validating it). And by not validating the debt, they are not only refusing to prove that the debt is mine but also that they have a legal right to collect it if they were to sue me. That latter part is a dishonest and deceptive business practice that has landed PRA in hot water before -- a 2012 NY State case fined them and forced them to back off from from suing for debt they were no longer legally entitled to and collecting from the defendants who defaulted.
In other words, refusal to validate is both an issue that stands on its own (as a FDCPA violation), as well as one that is connected to my rights as a consumer to know for myself where this debt stands as far as the statute of limitations is concerned.
While I do not recognize the debt (based on the merchant/creditor listed on the account -- without the addresses/more information I honestly have no idea what it refers to), I do know for certain it is not student loan debt as I have never had any student loans. :D
Rather than simply sending a cease-contact letter (and I've sent all of my correspondence to PRA CM-RR), I've escalated the issue by filing complaints with both the Consumer Financial Protection Bureau and the Better Business Bureau (of SE VA & NE NC). I will make my decision as whether to file a small claims complaint after these organizations have completed their processes, although I don't believe it will be necessary.
Robert
Irvine,California,
USA
Right but Wrong...
#3Consumer Comment
Sun, August 23, 2015
Just a few comments to help clear up a few things for you.
First of all there is no Statute of Limitations on ATTEMPTING to collect a debt, even if the debt was 20 years old and well past the SOL, a company can ATTEMPT to collect it. The Statute of Limitations has to do with ONLY the ability for a company to prevail if they were to sue you in Civil Court. In that case you could use the SOL as an affirmative defense to have the case thrown out. Note that if you fail to show up in court, they could still get a judgment against you.
Now, as to the FDCPA. You are correct you have the right for "Debt Validation", and as such they must provide certain items. However, they key here is that they are not allowed to attempt to collect on the debt until they "Validate" the debt. If they fail to validate the debt, they are in violation of the FDCPA and you can sue them in court(Small Claims works fine) and go for $1000 in Statutory damages plus any other real damages you may have incurred. The SOL has NOTHING to do with this.
Now, one other aspect you may want to deal with. If you do know what this debt is(whether or not you are going to admit it) and you are positive it is outside the SOL, and past 7 years(when it can be placed on your credit report). You can just send them a "Cease Communications" letter stating they are to no longer contact you. Send it by Certified Mail with Return Receipt, and if they attempt to contact you even once they have violated the FDCPA and again you can sue them. The only exceptions to this is if they then file a suit against you, or send you a letter stating they will no longer contact you. Neither of those would be a violation.
You didn't mention the type of debt. But if by chance this is a Student Loan those debts have NO Statute of Limitations and the companies can take additional actions against you that they can not for regular consumer level debt.