Portfolio Recovery is wrecking your credit?

Who Portfolio Recovery Associates is

Portfolio Recovery Associates, LLC (PRA) is a wholly owned subsidiary of PRA Group, a public company traded on the Nasdaq as PRAA and headquartered in Norfolk, Virginia. PRA Group describes itself as one of the largest acquirers of nonperforming loans in the world, with portfolio operations in 18 countries. In 2015 the Consumer Financial Protection Bureau called PRA the nation’s second largest debt buyer and collector.

PRA is a debt buyer. When a bank or card issuer charges off an account it no longer expects to collect, it can sell the debt in bulk to a company like PRA, usually at a steep discount. PRA then collects the full balance it claims is owed and reports the account to the credit bureaus as a collection. That PRA tradeline is what lenders, landlords and some employers see.

PRA’s record with federal regulators

In September 2015, the CFPB ordered PRA to pay $19 million in consumer refunds and an $8 million civil penalty, and to stop collecting on over $3 million in judgments. The CFPB found that PRA collected debts that were unsubstantiated or inaccurate, bought debts without investigating whether they were accurate, and filed lawsuits supported by robo-signed affidavits.

In March 2023, the CFPB sued PRA in federal court in the Eastern District of Virginia, alleging that PRA violated the 2015 order and also violated the Fair Credit Reporting Act and Regulation V in how it handled credit reporting disputes. The CFPB alleged that PRA failed to timely resolve disputes submitted directly by consumers, failed to properly respond to disputes it deemed frivolous, failed to conduct reasonable investigations of disputes, and failed to maintain reasonable policies and procedures on the accuracy of the information it furnished to credit bureaus. The court entered a stipulated order on April 13, 2023, requiring at least $12.18 million in consumer redress and a $12 million civil money penalty.

These are regulator findings and allegations, not findings about your account. But the 2023 allegations go to the core of credit reporting: whether PRA investigates disputes and reports accurately.

Reporting errors PRA accounts can cause

When debts change hands, account details get lost. Common problems on PRA tradelines include:

• Debts that aren’t yours. A mismatched name or Social Security number, or an identity thief’s account, ends up in your file as a PRA collection.
• Wrong balances. A balance that exceeds the charge-off amount may include interest or fees that were not authorized.
• Paid or settled debts. An account you resolved with PRA still shows a balance or an unpaid status.
• Bankruptcy-discharged debts. A debt wiped out in bankruptcy is still reported as owed.
• Re-aged debts. Under 15 U.S.C. § 1681c, a collection account generally cannot be reported more than seven years after the 180-day period following the original delinquency. A later delinquency date stretches that window illegally.
• Duplicates. The original creditor keeps reporting a balance after selling the account to PRA, so one debt counts twice.
• No dispute notation. PRA keeps reporting a debt you disputed with it without noting the dispute.

How to dispute a PRA account

1. Get all three reports. Use AnnualCreditReport.com and save dated copies.
2. Dispute with each bureau reporting the PRA account. Use the official channels for Equifax, Experian and TransUnion. Say exactly what is wrong and attach proof, such as a bankruptcy discharge, a paid or settlement letter, an FTC identity theft report, or records of the real delinquency date.
3. Also dispute in writing with PRA. Use the contact information on PRA’s official website, send it in a way you can prove, and keep a copy. If you dispute within 30 days of PRA’s first notice, the FDCPA requires PRA to stop collecting until it provides verification (15 U.S.C. § 1692g).
4. Keep everything. Results letters, envelopes, upload confirmations and later reports are your evidence.

Why both? The FCRA’s private claim against a furnisher like PRA, 15 U.S.C. § 1681s-2(b), arises only after you dispute with a credit bureau and the bureau notifies PRA. A dispute sent only to PRA does not trigger that claim. The direct dispute still matters: it puts PRA on notice, and a collector that keeps reporting a debt it knows is disputed without saying so can violate the FDCPA.

Your rights

• Furnisher investigation (§ 1681s-2(b)). Once a bureau forwards your dispute, PRA must reasonably investigate, review the information provided, and correct, delete or block anything inaccurate, incomplete or unverifiable.
• Bureau duties (§§ 1681e(b), 1681i). Each bureau must follow reasonable procedures to assure maximum possible accuracy and reasonably reinvestigate disputes. A bureau can be liable separately from PRA.
• Reporting limits (§ 1681c). Old collections generally must come off seven years after the 180-day period following the original delinquency.
• FDCPA protections. A collector may not misrepresent the amount of a debt (15 U.S.C. § 1692e(2)) or communicate credit information it knows or should know is false, including failing to communicate that a disputed debt is disputed (§ 1692e(8)).

What you may recover

For negligent FCRA violations, you may recover actual damages, such as credit denials, higher interest and emotional distress, plus attorney’s fees and costs (15 U.S.C. § 1681o). For willful violations, you may recover actual damages or statutory damages of $100 to $1,000, punitive damages, and fees and costs (§ 1681n). Under the FDCPA, you may recover actual damages, statutory damages of up to $1,000 per action, and attorney’s fees (15 U.S.C. § 1692k).

FCRA Attorneys handles these cases on contingency. There is no fee unless we win.

Get a free case review before your deadline

FDCPA claims must be filed within one year of the violation. FCRA claims generally must be filed within two years after you discover the violation and no later than five years after it occurred. If Portfolio Recovery Associates is reporting a debt that isn’t yours, the wrong amount, or a debt that should be gone, gather your reports and dispute records and request a free case review. FCRA Attorneys has offices in Dallas, Houston, Chicago, Los Angeles and Atlanta, and files FCRA cases in federal court nationwide, directly or with local counsel.

Questions about suing Portfolio Recovery Associates

Can I sue Portfolio Recovery Associates over my credit report?

Possibly. If you dispute a PRA collection with a credit bureau and PRA fails to reasonably investigate or keeps reporting inaccurate information, you may have a claim under 15 U.S.C. § 1681s-2(b). Because PRA collects debts, false credit reporting can also violate the Fair Debt Collection Practices Act.

PRA says it verified the debt. Is that the end of it?

No. A furnisher's investigation has to be reasonable, which means actually looking at the information you and the bureau provide. In 2023 the CFPB alleged that PRA failed to conduct reasonable investigations of consumer disputes. If your dispute came back verified and the information is still wrong, keep the results letter and talk to a lawyer.

Can I also sue the credit bureau?

Sometimes. Equifax, Experian and TransUnion each have their own duties to follow reasonable procedures for accuracy and to reasonably reinvestigate disputes (15 U.S.C. §§ 1681e(b), 1681i). A bureau that simply passes along PRA's answer may be liable along with PRA.

How long do I have to act?

An FCRA claim generally must be filed within two years after you discover the violation and no later than five years after it occurred (15 U.S.C. § 1681p). An FDCPA claim must be filed within one year of the violation (15 U.S.C. § 1692k(d)).

Related reading

• How to Dispute Credit Report Errors With Equifax, Experian and TransUnion
• An Account on My Credit Report Is Not Mine: What Now?
• Charged-Off Account Still Showing a Balance? When It's Accurate and When It's Not
• Examples of FCRA Violations, Matched to the Section of the Law They Break

Sources

• PRA Group: company overview (Norfolk, Virginia headquarters; Nasdaq: PRAA)
• CFPB enforcement action: Portfolio Recovery Associates, LLC (2015 order and 2023 stipulated judgment)
• CFPB press release: CFPB Orders Repeat Offender Portfolio Recovery Associates to Pay More Than $24 Million (March 23, 2023)
• CFPB press release: CFPB Takes Action Against the Two Largest Debt Buyers for Using Deceptive Tactics to Collect Bad Debts (September 9, 2015)
• Portfolio Recovery Associates: official website

Updated November 2026. This page is general information, not legal advice.