What Is Portfolio Recovery Associates?
Portfolio Recovery Associates (PRA) is a leading debt purchasing and recovery company based in Norfolk, Virginia. Established in 1996, PRA specializes in buying and managing charged-off consumer debts, which are typically credit card debts that the original creditor has written off as uncollectible. PRA then seeks to recover these debts by working with individuals to find mutually beneficial solutions.
As a debt buyer, PRA purchases these debts from original creditors at a discounted price, assuming the risk and potential reward of collecting on them. The company employs a team of skilled professionals who are trained to work with consumers and provide assistance in resolving their outstanding debts.
PRA operates within the legal framework of debt collection, adhering to the guidelines set by the Fair Debt Collection Practices Act (FDCPA). The FDCPA ensures that consumers are protected from unfair practices and harassment by debt collectors.
PRA’s primary objective is to help consumers resolve their financial obligations in a fair and mutually beneficial manner. The company recognizes that life circumstances can change, leading individuals to struggle with their debts. PRA aims to provide viable solutions to help consumers regain their financial footing while maintaining ethical and respectful practices.
Frequently Asked Questions (FAQs) about Portfolio Recovery Associates:
1. Is Portfolio Recovery Associates a legitimate company?
Yes, PRA is a well-established and reputable debt purchasing and recovery company.
2. Why did I receive a letter or call from Portfolio Recovery Associates?
If you received a communication from PRA, it means that they have acquired a debt you owe and are seeking repayment.
3. Can I negotiate the amount I owe with Portfolio Recovery Associates?
Yes, PRA is open to negotiating the amount you owe to reach a mutually agreeable resolution.
4. How can I verify if the debt is legitimate?
You have the right to request validation of the debt. PRA is obligated to provide proof that the debt is valid if you request it.
5. What should I do if I believe the debt is not mine?
If you believe the debt is not yours, you should contact PRA and provide supporting evidence to dispute the claim.
6. Can Portfolio Recovery Associates take legal action against me?
Yes, if you fail to make arrangements to resolve the debt, PRA may have the option to pursue legal action. However, they will typically aim to find a resolution before resorting to legal measures.
7. What are my rights when dealing with Portfolio Recovery Associates?
You have rights under the FDCPA, which include protection against harassment, the right to request validation of the debt, and the right to dispute the debt.
8. Can Portfolio Recovery Associates report the debt to credit bureaus?
Yes, PRA may report the debt to credit bureaus, which can impact your credit score. It is important to work with them to find a resolution that avoids negative credit reporting.
9. Can I pay the debt in installments?
PRA may offer installment plans to help you repay the debt over time. It is advisable to discuss this option with them.
10. Can I settle the debt for a lesser amount?
PRA may be willing to accept a lesser amount as a settlement. This can be negotiated with them.
11. Can Portfolio Recovery Associates help me improve my credit score?
While PRA’s primary focus is debt recovery, they may be able to provide guidance on steps to improve your credit score.
12. Can I work with a debt settlement company to deal with Portfolio Recovery Associates?
You have the option to work with a debt settlement company, but it is important to research and choose a reputable organization that can effectively negotiate with PRA on your behalf.
In conclusion, Portfolio Recovery Associates is a legitimate debt purchasing and recovery company that aims to assist consumers in resolving their outstanding debts. If you have received communication from PRA, it is essential to understand your rights, verify the debt’s legitimacy, and work towards finding a mutually beneficial resolution with the company.