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Portfolio Recovery Associates to Pay $4 Million to Settle Massachusetts' Claims Over Abusive Collection Practices

Posted by Roderick Woods | Nov 12, 2019 | 0 Comments

Portfolio Recovery Associates, LLC, one of America's largest purchasers of defaulted debt (i.e., a "junk debt buyer"), recently paid $4 million to settle claims brought by the Attorney General of Massachusetts that it utilized deceptive and unfair practices to target low-income, elderly and disabled consumers to collect defaulted debt.  

The action brought by the Attorney General's Office alleged that Portfolio's collection activities violated Massachusetts' consumer protection laws.

The full press release from the Massachusetts Attorney General's Office can be found here:


As noted above, Portfolio Recovery Associates, LLC, is a debt buyer. Like Midland Funding, LLC and Cavalry SPV I, LLC, Portfolio Recovery Associates, based in Norfolk, Virginia, purchases defaulted debt for pennies on the dollar from original creditors, usually Citibank and Bank of America. It then sometimes files suit for the entire debt amount. In Connecticut, Portfolio Recovery Associates, LLC is usually represented by the law firms of Howard Lee Schiff, P. C., or Tobin and Marohn.

The Woods Law Firm, LLC has extensive experience representing defendants sued by Portfolio, as well as in suing Portfolio under the FDCPA. If you have receive a Summons from Portfolio don't ignore it! There are typically many defenses to debt buyer lawsuits and The Woods Law Firm, LLC has consistently defeated Portfolio in Connecticut state courts saving clients tens of thousands of dollars. Here are some recent results:

Portfolio Recovery Associates, LLC v. Client (Superior Court of Connecticut, Danbury, 2014)-- Portfolio Recovery Associates, LLC brought suit in the Superior Court of Connecticut against client for almost $17,000.00 for an alleged Bank of America credit card debt. The Complaint contained a number of deficiencies, including the failure to attach to it a copy of the card member agreement which pertained to the original debt. After being served with a lawsuit, client contacted The Woods Law Firm, LLC. The Woods Law Firm, LLC located the agreement and discovered that it contained an arbitration provision. On behalf of client, a Motion to Compel Arbitration and Stay the Action was filed. Portfolio withdrew its suit several days after the Judge granted the Motion to Compel Arbitration.

Portfolio Recovery Associates, LLC v. Client (Superior Court of Connecticut, Hartford, 2015) -- Portfolio Recovery Associates, LLC sued our client in the Superior Court of Connecticut for an alleged Bank of America credit card debt exceeding $6,000.00. The Woods Law Firm, LLC became involved after our client had represented herself for several months. We quickly identified a violation of the Fair Debt Collection Practices Act and sued Portfolio in federal district court. Portfolio quickly settled the case and erased the alleged $6,000.00 debt.

Portfolio Recovery Associates, LLC v. Client (Superior Court of Connecticut, New Haven, 2015) -- Portfolio Recovery Associates, LLC sued our client and obtained a default judgment in 2010 for over $8,000.00. In 2015, Portfolio filed a bank execution and garnished over $1,600.00 from the client's bank account. The Woods Law Firm, LLC was retained. We quickly identified a possible FDCPA violation, and, when threatened with suit, Portfolio vacated the Judgment, withdrew the action, and agreed not to pursue the debt. In addition, the client's $1,600.00, taken as part of the bank execution, was returned.

Don't wait to get the help you need. It is always critical to obtain legal representation as soon as you are served with a Summons in a lawsuit, especially if it is from Portfolio Recovery Associates, LLC. Contact a skilled debt defense attorney in Connecticut today at (860) 999-9757!

About the Author

Roderick Woods

A summa cum laude graduate of the State University of New York at New Paltz and a graduate of Albany Law School of Union University in Albany, New York, Attorney Roderick D. Woods represents individuals in a wide array of consumer litigation matters, including defending consumers in lawsuits filed by credit card companies and debt buyers, and representing individuals in actions brought under the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, as well as the Fair Credit Reporting Act.


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The Woods Law Firm, LLC represents clients throughout the state of Connecticut, including Hartford, Tolland, Putnam, New London, Middlesex, New Haven, Litchfield and Fairfield Counties.