Portfolio Recovery Associates Is Suing Me in Texas — What Do I Do?

Portfolio Recovery Associates LLC ("PRA") is a wholly owned subsidiary of PRA Group, Inc. (NASDAQ: PRAA), one of the two largest publicly traded debt buyers in the United States. PRA is headquartered in Norfolk, Virginia, and files thousands of consumer collection lawsuits each year, including a high volume in Texas.

PRA buys portfolios of charged-off consumer debt — primarily credit cards from Synchrony Bank, Capital One, and various store-card issuers — at deep discounts, then collects through in-house collectors and outside Texas collection counsel.

The Consumer Financial Protection Bureau has taken two major enforcement actions against PRA. The 2015 consent order required PRA to pay $19 million in consumer redress plus an $8 million civil money penalty for collecting unverified debts, using false affidavits, and filing collection suits without adequate documentation. The 2023 action found continued violations and resulted in an additional $24 million settlement.

Why this matters in Texas: Texas Justice Court Rule 508.2 imposes specific disclosure requirements on debt-buyer petitions — the charge-off balance, post-charge-off interest itemization, and the complete chain of assignment with dates and assignee names. PRA was sanctioned by the CFPB for filing suits without exactly this kind of documentation. And Texas Finance Code § 392.307(d) imposes the strongest no-revival rule in the country: once the 4-year SOL has run on a debt-buyer claim, no payment, partial payment, or other activity restarts it.

If you were just served with a citation from PRA in Texas Justice Court or District Court, here is what almost certainly happened. You fell behind on a credit card or other consumer account. The original creditor wrote the account off and sold it as part of a portfolio to PRA at a deep discount. PRA is now suing you in Texas because a default judgment is the most efficient way to convert that purchase into a full-balance recovery.

Industry data and CFPB studies confirm that the majority of consumers sued in debt collection cases never file an Answer. Texas is unusually punishing in this regard because of the 14-day deadline — many defendants do not have time to act before the deadline runs.

In Texas, a default judgment carries some collection consequences but fewer than in most states. Texas exempts current wages from garnishment under Tex. Const. art. XVI, § 28, with limited exceptions for child support, taxes, and a few other categories. However, PRA can still levy non-exempt bank account deposits, place judgment liens on non-exempt property, and pursue a turnover order against non-exempt assets.

Filing a real Answer flips the case from a near-automatic default into a real lawsuit that PRA must prove under Rule 508.2 and Texas case law on standing. Given PRA's twin CFPB consent orders and the categorical no-revival rule under § 392.307(d), Texas is one of the strongest states in the country for fighting back against PRA.

Texas gives you the shortest Answer deadline in the country: just fourteen days from service if your case is in Justice Court, under Tex. R. Civ. P. 505.3. For County Court and District Court cases, the deadline is the Monday following twenty days after service under Tex. R. Civ. P. 99(b). Most credit-card collection cases fall in Justice Court because of the dollar limits, so 14 days is the practical rule for PRA defendants.

You count the fourteen days starting the day after service. Weekends count. If the deadline falls on a weekend or court holiday, the deadline rolls to the next business day under Tex. R. Civ. P. 4. Check the docket and the citation if you are unsure when service was completed.

Fourteen days is dangerously short. Many Texas defendants miss this deadline simply because they are still processing the shock of being sued when the clock runs out. There is no informal extension; if you do not file an Answer in time, PRA can move for default judgment immediately.

If you miss the 14-day deadline, vacating a default in Texas requires a motion under Tex. R. Civ. P. 320 within thirty days of the judgment, or a bill of review afterward. Both require showing factors set out in Craddock v. Sunshine Bus Lines, 134 S.W.2d 195 (Tex. 1939). Mark your deadline on your calendar and treat that date as non-negotiable.

Texas has a specific procedural rule for debt-claim cases in Justice Court that protects defendants. Under Tex. R. Civ. P. 508.2, a debt-claim petition must disclose the charge-off balance, an itemization of post-charge-off interest and fees, and the complete chain of assignment with each transfer date and assignee name. The rule applies to most PRA cases because most credit-card collection cases land in Justice Court.

This maps directly onto the CFPB's findings against PRA. The 2015 consent order required PRA to obtain the original cardholder agreement and account-level transfer files before suing — and the 2023 action found PRA still falling short. The exact paperwork PRA was sanctioned for lacking is the same paperwork Rule 508.2 requires it to disclose in every Texas Justice Court petition.

In practice, PRA petitions filed in Texas often fall short of Rule 508.2. The chain of assignment is often presented as a generic block transfer without account-level identification. The post-charge-off itemization is often missing or incomplete. Each defect is a basis to challenge the petition under Rule 502 or to demand more definite pleading.

Under Texas common law, PRA must establish standing by proving an unbroken chain of title from the original creditor to itself. A generic affidavit from a PRA records custodian asserting that PRA owns the debt is generally insufficient if challenged. The bills of sale must specifically identify your account number, balance, and origination date.

In District Court cases, where the dollar amount exceeds Justice Court limits, Texas Rules of Evidence 803(6) (business records exception) and 902(10) (self-authenticating business records affidavits) govern admissibility. The custodian asserting the records must lay foundation showing personal knowledge — and a PRA custodian generally cannot testify about how Synchrony Bank kept its account records.

For credit card debt and most consumer accounts in Texas, the statute of limitations is four years under Tex. Civ. Prac. & Rem. Code § 16.004. The clock starts running on the date of your last payment or last charge on the account.

Texas has the strongest no-revival rule in the country for debt-buyer cases. Under Tex. Fin. Code § 392.307(d), when a debt buyer is the plaintiff, no payment, partial payment, or other activity restarts the SOL clock. Once the 4-year SOL has run, it stays run — no exceptions. This is dramatically more protective than the rule in most states, where a partial payment or written acknowledgment can revive a time-barred debt.

If you made your last payment in March 2020, the four-year clock began on that date and expired in March 2024. A lawsuit filed in late 2024 would be filed outside the limitations period. Even if you made a small partial payment in 2023 — for example, in response to a PRA settlement letter — that payment does not restart the clock once the original SOL has already expired.

The statute of limitations in Texas is an affirmative defense that must be raised in your Answer. Under Tex. R. Civ. P. 94, affirmative defenses must be specifically pleaded. If you fail to plead the SOL, you waive it.

The combination of the 4-year SOL, the categorical no-revival rule under § 392.307(d), and PRA's twin CFPB consent orders documenting time-barred suits makes Texas one of the strongest states in the country for time-bar defenses against PRA.

Most credit card agreements contain a clause requiring that any dispute be resolved through binding arbitration administered by AAA or JAMS. When PRA bought your account, they bought it subject to whatever terms were in the original cardholder agreement.

This is a strong defense for Texas PRA defendants because of the dollar dynamics. Under Tex. Civ. Prac. & Rem. Code § 171.021, Texas courts must compel arbitration when a valid agreement exists. AAA and JAMS commercial filing fees for a business claimant typically run from $1,500 to $5,000 or more, plus the arbitrator's hourly fees. Most Texas PRA cases involve credit-card debts under $10,000 — well below the threshold where arbitration makes economic sense for PRA.

This creates the "arbitration fee trap." When a Texas defendant files a motion to compel arbitration — and the court grants it — PRA must choose between paying thousands in arbitration filing fees or abandoning the case. They very often abandon, which can result in a dismissal.

To use this defense, you generally need a copy of the original cardholder agreement showing the arbitration clause. PRA is required to produce that document if you request it during discovery — and the CFPB's 2015 consent order required PRA to obtain that document before filing suit. Pair the arbitration motion with a Rule 508.2 attack on the petition and a § 392.307(d) SOL defense for maximum leverage. Texas defendants who file these motions early — within the 14-day Answer window — often find PRA settles or dismisses rather than respond.

Your Answer is the most important document you will file in this case. A good Answer in Texas does three things: it admits or denies each numbered allegation, it raises every applicable affirmative defense, and — where appropriate — it raises a Texas Debt Collection Act counterclaim under Tex. Fin. Code § 392.001 et seq.

For the admit-or-deny portion: do not admit anything you do not actually know. If PRA alleges that you owed Synchrony Bank $3,217.42 as of a charge-off date you do not remember, deny that allegation for lack of knowledge. Texas accepts a general denial under Tex. R. Civ. P. 92, but specifying particular denials and affirmative defenses is far stronger procedurally.

The affirmative defenses to consider in a Texas PRA Answer include: lack of standing or chain of title; failure to comply with Tex. R. Civ. P. 508.2 disclosure requirements; statute of limitations under Tex. Civ. Prac. & Rem. Code § 16.004 with the categorical no-revival rule of Tex. Fin. Code § 392.307(d); failure to state a cause of action; account stated cannot be established; arbitration clause; and failure to itemize post-charge-off interest and fees.

Where TDCA violations are present — and PRA's CFPB record makes these unusually likely — raise a counterclaim under Tex. Fin. Code § 392.401–.404 for actual damages, statutory damages of at least $100 per violation, and attorney's fees.

What you should never do: do not admit you owe the debt. Do not call PRA. Do not promise to pay. Do not ignore the lawsuit. The 14-day clock is unforgiving.

Texas has two principal consumer protection regimes that apply to PRA cases — the Texas Debt Collection Act (Tex. Fin. Code §§ 392.001–392.404) and the federal Fair Debt Collection Practices Act.

The TDCA prohibits unfair, deceptive, and harassing collection practices. Section 392.304 prohibits deceptive collection methods, including misrepresenting the character or amount of a debt or threatening unauthorized actions. Section 392.301 prohibits threats of violence or other prohibited conduct. Section 392.302 prohibits harassing or abusive contact. Most importantly for PRA cases, Section 392.307(d) imposes a categorical no-revival rule on debt-buyer plaintiffs that is stronger than the equivalent rule in any other state.

The TDCA provides a private right of action under § 392.403 with actual damages, attorney's fees, and either injunctive relief or, on certain violations, additional damages. A successful TDCA counterclaim can convert a small debt collection case into a substantial liability for PRA.

The federal FDCPA also applies to PRA. The FDCPA prohibits false statements, misrepresentations of the amount or character of the debt, and abusive collection tactics. FDCPA violations entitle you to up to $1,000 in statutory damages plus attorney's fees in federal court. The CFPB findings against PRA — collecting unverified debts, using false affidavits, suing without adequate documentation — are direct evidence of FDCPA-violative conduct.

The combination of TDCA fee-shifting, FDCPA statutory damages, the categorical § 392.307(d) no-revival rule, and PRA's twin CFPB consent orders means PRA faces real downside risk in Texas cases.

After you file your Answer with the Texas court clerk and serve a copy on PRA's attorney, the case moves into the next phase. In Justice Court, where most PRA cases are filed, discovery is more limited than in District Court — but you still have important rights under Tex. R. Civ. P. 500–510.

In a PRA case, the chain-of-title defense gets tested through requests for production and discovery responses. You can demand every assignment document, every bill of sale, the original cardholder agreement, and the complete account history. If PRA cannot produce a clean chain of title and an authenticated account record, their case is in trouble.

What very often happens next is a settlement offer. Texas practitioners report that PRA commonly settles real-Answer cases for forty to sixty cents on the dollar, sometimes much less.

If the case does not settle, it proceeds to a trial date. Justice Court trials are simplified — you do not need a lawyer. District Court trials follow full Texas Rules of Civil Procedure.

A meaningful share of PRA cases get voluntarily dismissed in Texas after Answer, especially when the SOL defense is strong or when chain of title is weak.

Answered is a self-help legal platform built specifically for pro se defendants in consumer debt collection lawsuits. The Texas playbook was reviewed by a Texas-licensed consumer-rights attorney and is built around the specific statutes and rules that govern PRA cases — Tex. R. Civ. P. 505.3, 508.2, Tex. Civ. Prac. & Rem. Code § 16.004, Tex. Fin. Code § 392.307(d), and the Texas Debt Collection Act.

When you upload your summons and complaint, Answered does the following: it extracts your service date and your 14-day Answer deadline (or the longer deadline for District Court cases); it scans for the procedural defects most commonly found in PRA petitions, including missing chain-of-title documents, defective Rule 508.2 disclosures, and missing post-charge-off itemization (the exact defects the CFPB sanctioned PRA for); it identifies whether your debt may be time-barred under the four-year SOL of Tex. Civ. Prac. & Rem. Code § 16.004 with the categorical no-revival rule of § 392.307(d); it checks whether an arbitration clause is likely available; it analyzes whether a TDCA counterclaim is supported; and it generates a court-ready Answer with the affirmative defenses that apply.

The Answer document is formatted for Texas Justice Court or District Court, includes the proper caption and case style, and contains the affirmative defenses and (where applicable) TDCA counterclaim language.

Pricing is simple: free to start, and a one-time $99 charge to unlock and download your final documents. There is no subscription. There is no per-document fee. If you also want Answered to print, sign, and mail your Answer to the court via certified mail — Texas is one of four states where Answered offers full mail filing — that is available for an additional flat fee.