In A Twist, A Debt Collection Company May Owe Money To Consumers

person counting money

The Consumer Financial Protection Bureau (CFPB) is asking a court to order Portfolio Recovery Associates to pay $24,000,000 in penalties and damages. The CFPB’s announcement on March 23, 2023, said it had caught Portfolio “red-handed” in 2015 committing numerous violations of law, and that Portfolio had not changed its practices.

The CFPB said Portfolio has continued to act illegally by:

  • Failing to review required documents before making claims about a debt
  • Having its lawyers send form letters that did not offer to provide documents Portfolio was required to provide,
  • Demanding payment after the debt was barred by the statute of limitations and could not be collected anymore.
  • Failing to provide documents in the time required by its promises.

The CFPB is asking that $12,000,000 of the money go to consumers harmed by Portfolio’s illegal actions. You can apply for money here.

In Wisconsin, debt collectors who violate state or federal law may end up paying the consumer damages including money awarded to consumers for the emotional distress they suffer as a result of illegal practices. LawtonCates has collected hundreds of thousands of dollars from debt collectors who broke the law, and often is able to represent consumers on a contingent fee basis, charging the customer nothing. If you are facing debt collection efforts, contact our office to set up an appointment to speak with a consumer protection lawyer today.

Author: LawtonCates

At LawtonCates, we take fighting for accident victims very seriously. It’s how we’ve always done it for six-plus decades as a reputable South Central Wisconsin law practice. Our lawyers are passionate about helping people get back on their feet because we know their health, livelihood, and future are at stake.