Sued by Portfolio Recovery Associates in Virginia? Here’s What to Do

Portfolio Recovery Associates, LLC (often abbreviated as PRA) is a debt buyer headquartered in Norfolk, Virginia. They are a subsidiary of PRA Group, Inc. (NASDAQ: PRAA), one of the largest publicly traded debt collection companies in the world.

Portfolio Recovery buys defaulted consumer debts from original creditors like Capital One, Synchrony Bank, Chase, Citibank, and Bank of America. They pay pennies on the dollar — typically 4 to 6 cents per dollar of face value — and pursue collection through letters, phone calls, and lawsuits.

Because Portfolio Recovery is headquartered in Norfolk, they file particularly heavily in Virginia courts. Industry data shows PRA is one of the top debt buyer filers in Virginia, with filing volumes that grew substantially in recent years. Their attorneys in Virginia are typically Glasser and Glasser, P.L.C., a Norfolk-based firm with deep ties to Virginia debt collection litigation.

The most important fact about Portfolio Recovery: they bought your debt for a tiny fraction of what they’re claiming. They have strong financial incentives to settle for less than the full amount, and even stronger incentives to abandon cases where the defendant fights back with documented defenses.

Portfolio Recovery Associates has been the subject of two major CFPB enforcement actions.

In 2015, the CFPB ordered Portfolio Recovery and its parent PRA Group to pay $27 million in restitution and penalties for collecting on debts they couldn’t substantiate, filing court cases without proper documentation, and using deceptive collection practices.

In 2023, the CFPB issued a second consent order against Portfolio Recovery for $24 million, finding the company had violated the terms of the 2015 order — continuing to collect on debts without adequate documentation and continuing to file lawsuits without verifying the underlying facts.

These enforcement actions matter for your Virginia case. If Portfolio Recovery is suing you, demand the underlying documentation — the original credit agreement, complete account statements, and the chain of assignment. Portfolio Recovery’s history of pursuing collections without proper documentation is part of the public record.

Virginia uses a non-standard procedure for debt collection cases that catches many pro se defendants by surprise. Most states use a complaint and answer system. Virginia uses what’s called a Warrant in Debt.

When Portfolio Recovery sues you in Virginia, you don’t receive a complaint with a 30-day deadline to file a written answer. Instead, you receive a Warrant in Debt that lists a specific return date — a date when you must physically appear at the General District Court named on the document.

This is the single most important thing to understand about Virginia debt cases: the return date is when you appear in person, not when you file a written answer. Many pro se defendants miss the return date because they assume they can mail in a response — and the court enters default judgment against them.

Under Va. Code § 16.1-79, the only requirement at the return date is to appear and indicate that you want to defend the case. You do not need to bring a written Answer. You do not need to argue your defenses. You simply appear and state on the record that you wish to contest the case.

If you fail to appear at the return date, the court enters default judgment for the full amount Portfolio Recovery is claiming. Default judgment is permanent. It can be collected from your wages, bank accounts, and property.

After you appear at the return date, the court orders Portfolio Recovery to file a Bill of Particulars — a formal statement detailing the basis for their claim, including the original creditor, the chain of assignment, the amount owed, and the documentation supporting the claim.

Portfolio Recovery typically has 21 days to file the Bill of Particulars. After they file it, you then have a period (typically 21 days) to file your written Grounds of Defense — your formal response addressing the allegations and raising your defenses.

This sequencing is critical. Do NOT file Grounds of Defense at the return date. Do NOT file Grounds of Defense before Portfolio Recovery files the Bill of Particulars. The sequence is:

1. You receive the Warrant in Debt 2. You appear at the return date and state you wish to defend 3. The court orders Portfolio Recovery to file a Bill of Particulars 4. Portfolio Recovery files their Bill of Particulars 5. You file your Grounds of Defense in response

Filing Grounds of Defense at the wrong time is a common pro se mistake that can cause confusion in the case and may waive certain defenses.

Virginia has different statute of limitations periods depending on whether Portfolio Recovery can produce a signed agreement.

Under Va. Code § 8.01-246(2), the SOL on signed written contracts is 5 years from the date of breach (typically the date of your last payment).

Under Va. Code § 8.01-246(4), the SOL on unsigned written contracts and open accounts is only 3 years.

This split is critical in Portfolio Recovery cases. Most credit card agreements are signed electronically or through clickwrap acceptance. Whether that counts as a "signed" agreement under Virginia law depends on whether Portfolio Recovery can produce the actual signed document — which they often cannot, because the document may have been lost or never properly transferred during portfolio assignments.

If Portfolio Recovery cannot produce a signed agreement, the 3-year SOL applies. Many Portfolio Recovery cases in Virginia are time-barred under the 3-year SOL even though they would not be under the 5-year SOL.

Demand the original signed credit agreement in your discovery and Bill of Particulars review. Whether Portfolio Recovery can produce it determines which SOL applies.

Virginia has a unique procedural mechanism that gives defendants significant leverage in debt buyer cases.

Under Va. Code § 8.01-380, plaintiffs in Virginia generally have the right to take a "nonsuit" — voluntarily dismissing their case without prejudice, allowing them to refile within 6 months. This is a powerful tool for plaintiffs because it lets them escape unfavorable rulings or weak evidence.

Under Va. Code § 8.01-380(D), this absolute right to nonsuit is blocked when the defendant has filed a counterclaim. If you file a Federal Fair Debt Collection Practices Act (FDCPA) counterclaim or a Virginia Consumer Protection Act counterclaim BEFORE Portfolio Recovery tries to nonsuit, they cannot escape the case without your consent.

This is significant because Portfolio Recovery often tries to nonsuit when discovery requests reveal documentation problems. Filing a counterclaim early — particularly an FDCPA counterclaim based on Portfolio Recovery’s documented CFPB violations — eliminates their escape route and forces them to either prove their case or pay damages on your counterclaim.

This mechanic is unique to Virginia. It does not exist in most other states. Use it.

Statute of limitations under Va. Code § 8.01-246(4). If Portfolio Recovery cannot produce a signed credit agreement, the 3-year SOL applies. Many cases are time-barred under this rule.

Lack of standing and chain of title. Portfolio Recovery must produce the complete chain of assignment. The CFPB has twice penalized Portfolio Recovery for collecting on debts without proper documentation.

Federal FDCPA counterclaim with § 8.01-380(D) nonsuit-blocking effect. File an FDCPA counterclaim alongside your Grounds of Defense to prevent Portfolio Recovery from voluntarily dismissing the case to avoid an unfavorable ruling.

Motion to Compel Arbitration. Most consumer credit agreements contain mandatory arbitration clauses. Filing a Motion to Compel Arbitration moves the case out of Virginia General District Court and forces Portfolio Recovery to file with the American Arbitration Association (AAA).

Virginia Consumer Protection Act (Va. Code § 59.1-196). Virginia’s Consumer Protection Act prohibits deceptive collection practices. Violations support both defenses and counterclaims with statutory damages.

In 2025, I was sued for $2,892.96 by Plaza Services LLC, another debt buyer, in Eau Claire County Small Claims Court in Wisconsin. I had no lawyer. I’d never been in a courtroom before.

I read my original credit agreement carefully. It contained a mandatory arbitration clause requiring all disputes to be resolved through the American Arbitration Association. I filed a Motion to Compel Arbitration in Wisconsin Circuit Court.

The plaintiff didn’t comply with AAA’s procedural requirements within the deadline. The court dismissed the case.

That same playbook works against Portfolio Recovery in Virginia. The credit agreements they sue on — Capital One, Synchrony Bank, Citibank, Chase — almost universally contain arbitration clauses. When you compel arbitration and Portfolio Recovery fails to comply with AAA’s procedural requirements, the case can be dismissed.

I built Answered specifically because I went through this process and realized how few defendants know they have these defenses. Most pro se defendants either default or panic and settle for amounts they don’t actually owe.

Virginia uses a two-tier system for civil cases.

General District Court handles cases with amounts in controversy up to $50,000 (raised from $25,000 effective July 1, 2025, under Va. Code § 16.1-77 as amended by SB1291). Most Portfolio Recovery cases fall here. General District Court uses the Warrant in Debt and return date procedure described above.

Circuit Court handles cases over $50,000 and uses standard complaint/answer procedure with a 21-day Answer deadline.

Filing fees for Grounds of Defense in General District Court are typically $0 to $50. Virginia offers fee waivers for qualifying low-income defendants — file a Petition for Proceeding in Civil Case Without Payment of Fees.

For most Portfolio Recovery cases, you’ll be in General District Court. The procedure is: appear at return date → court orders Bill of Particulars → review Portfolio Recovery’s Bill of Particulars → file your Grounds of Defense within the time the court orders → discovery and trial.

Don’t miss the return date. Missing the return date is the #1 reason Virginia pro se defendants lose Portfolio Recovery cases. Default judgment is permanent.

Don’t try to file a written answer at the return date. Just appear in person and state you want to defend the case.

Don’t file Grounds of Defense before Portfolio Recovery files their Bill of Particulars. Wait for the proper sequencing.

Don’t agree to a verbal payment plan. Get everything in writing and on the court record.

Don’t pay the original creditor. If Portfolio Recovery is suing you, paying the original creditor creates evidence that Portfolio Recovery doesn’t actually own the debt anymore.

Don’t settle without seeing the documentation first. If Portfolio Recovery can’t comply with the Bill of Particulars or produce a signed agreement (triggering the 3-year SOL), you may not owe what they’re claiming.