CFPB fines Portfolio Recovery Associates $24 million for illegal debt collection practices.
The Consumer Financial Protection Bureau (CFPB) has taken action against Portfolio Recovery Associates, one of the largest debt collectors in the US, for violating a 2015 CFPB order and engaging in other violations of law. The CFPB filed a proposed order that would require Portfolio Recovery Associates to pay more than $12 million to consumers harmed by its illegal debt collection practices, in addition to a $12 million penalty that would be deposited into the CFPB’s victims relief fund. Portfolio Recovery Associates violated the 2015 order by collecting on unsubstantiated debt, collecting on debt without providing required documentation and disclosures to consumers, suing or threatening legal action against consumers without offering or possessing required documentation, and suing to collect on debt outside the statute of limitations.