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Large debt collection group fined $24M for deceptive practices, called repeat offenders

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Published  April 10, 2023 10:13am EDT
Consumer
FOX 5 Atlanta

U.S. group orders debt collector to pay millions for illegal tactics

The Consumer Financial Protection Bureau ordered a national debt collector to pay millions of dollars in fines after the company had been warned back in 2015 to clean up its act and didn’t. The FOX 5 I-Team's Dana Fowle digs into the ruling and how victims can get relief.

ATLANTA - The Consumer Financial Protection Bureau ordered a $24 million fine against Portfolio Recovery Associates after it was warned back in 2015 to clean up its act, but it didn’t. 

The debt collector is one of the largest in the country. And, it’s been in the bureau’s crosshairs before. In fact, this statement from the Consumer Financial Protection Bureau is strong.

It reads that the debt collector had been caught "red-handed", then kept violating the law through intimidation, deception, and illegal debt tactics and lawsuits.

"After getting caught red-handed in 2015, Portfolio Recovery Associates continued violating the law through intimidation, deception, and illegal debt collection tactics and lawsuits," said CFPB Director Rohit Chopra. "CFPB orders are not suggestions, and companies cannot ignore them simply because they are large or dominant in the market."

Back in 2015, the Consumer Financial Protection Bureau ordered the company to pay more than $27 million to consumers in refunds and penalties for deceptive debt collection practices.

The Consumer Financial Protection Bureau building in Washington on Monday, March 29, 2021. (Photo By Bill Clark/CQ-Roll Call, Inc via Getty Images)

And rules were laid out about how to handle business going forward. But, according to the CFPB, Porfolio Recovery Associates went back to their old habits.

NEW COMPLAINT FROM CFPB

  • Making representations about unsubstantiated debt
  • Threatening consumers with legal action and initiating lawsuits without offering the required documents
  • Collecting on old debt that was beyond the statute of limitations  
  • Suing for debt that was too old to collect

So this time, the $24 million fine breaks down like this — $12 million in penalties to the government then $12.18 million should go to consumers. 

If you suspect you could be a victim, follow the Consumer Financial Protection Bureau's website: CFPB's Victim Relief Fund.