Portfolio Recovery Associates LLC

Corporate structure

Who owns Portfolio Recovery Associates LLC?

Portfolio Recovery Associates LLC is owned by or affiliated with PRA Group, Inc. (NASDAQ: PRAA).

Common original creditors whose accounts Portfolio Recovery Associates LLC has purchased include: Capital One, Synchrony Bank, Bank of America, Chase, Citibank, Wells Fargo, Discover, USAA.

Regulatory history

CFPB and regulatory enforcement

Your next steps

What to do if Portfolio Recovery Associates LLC is suing you

1. 1
   Find your deadline immediatelyYou have a limited number of days to file your Answer after being served — typically 20 to 35 days depending on your state. Missing this deadline results in a default judgment. Check your state’s guide for the exact deadline.
2. 2
   Review proof of ownershipPortfolio Recovery Associates LLC generally needs evidence connecting your account from the original creditor to the named plaintiff. Your Answer and follow-up documents can preserve standing and chain-of-title issues for review.
3. 3
   Check the statute of limitationsDebt buyers sometimes sue on old accounts. If the limitations period in your state has run since your last payment or the charge-off date, you may have a complete defense. Look up the state guide for your jurisdiction.
4. 4
   File your Answer — even if you plan to settleFiling a timely Answer preserves all your defenses and gives you leverage to negotiate a better settlement. Do not ignore the lawsuit expecting it to go away. See your state’s defense guide.

State-specific defense guides

Read the Portfolio Recovery Associates LLC defense guide for your state

Frequently asked questions

Common questions about Portfolio Recovery Associates LLC

• Who is Portfolio Recovery Associates LLC?

  Portfolio Recovery Associates LLC (PRA) is a major national debt buyer and collector, wholly owned by PRA Group, Inc. (NASDAQ: PRAA). PRA purchases charged-off consumer debts — credit cards, auto deficiencies, student loans — from banks and other lenders, then collects using in-house staff and litigation attorneys.

• Why is Portfolio Recovery Associates suing me?

  PRA purchased your charged-off account from your original creditor and is now seeking to collect the full balance through the court system. Because PRA employs in-house collection attorneys, it files lawsuits at a high volume across the country.

• Can PRA prove it owns my debt?

  PRA must establish standing by producing a valid chain of assignment from the original creditor to itself. If PRA cannot produce a bill of sale or account-level documentation, you may have grounds to challenge its right to sue. Defects in chain-of-title have led courts to dismiss PRA cases.

• What enforcement actions has the CFPB taken against PRA?

  The CFPB has taken action against Portfolio Recovery Associates twice. In 2015, it ordered PRA to pay $19 million in consumer refunds and an $8 million civil penalty for collecting unverified debts and making false statements in court filings. In 2023, the CFPB took a second action resulting in a $24 million settlement for continued illegal practices.

• Is the statute of limitations a defense against PRA?

  Yes, if the applicable limitations period in your state has run since you last made a payment or the account was charged off, you can assert this as an affirmative defense in your Answer. PRA has been known to file on older accounts — check your state's limitations period carefully.

• What happens if I do not respond to PRA's lawsuit?

  If you do not file an Answer by your state's deadline, the court will enter a default judgment in PRA's favor. PRA can then use that judgment to garnish wages or bank accounts. Filing a response preserves your right to raise all available defenses, including statute of limitations and lack of standing.

State defense guides

Sued by Portfolio Recovery Associates LLC? Find your state