What to Do When Portfolio Recovery Associates Tries to Collect a Debt

It’s always alarming when you’re contacted by a person or organization you’ve never heard of claiming that you owe them money. In these situations, it’s natural to assume someone is trying to scam you. While this might be the case in many scenarios, Portfolio Recovery Associates is indeed a real organization. 

Portfolio Recovery Associates, otherwise known as PRA, is a debt collection agency based out of Norfolk, VA. This means they purchase unpaid debts from a variety of organizations—including credit card companies, financial institutions, and even telecom enterprises. They make money by buying delinquent debts at a fraction of their value (typically under 10 cents per dollar owed), and then try to collect that money from consumers. 

Debt collectors are notorious for being aggressive with their tactics; and Portfolio Recovery Associates is no exception to this rule. They’re known for being trigger happy with filing lawsuits against individuals if they think it will get you to pay. 

There are certain things you should and shouldn’t do when you’re contacted by Portfolio Recovery Associates—or any debt collection agency, for that matter. Here’s what to do when Portfolio Recovery Associates tries to collect a debt. 

What Should You Do When Contacted By Portfolio Recovery Associates (PRA)?

You’re probably not going to be in your best mindset after being contacted by Portfolio Recovery Associates. This is totally understandable. It’s really tough to deal with debt collectors, as they’re professionals at manipulating emotions to get money from you. Therefore, you need to be prepared before you interact with a representative from PRA. Here’s what you need to know:

• Don’t Pay Right Away – You might want to just get over the debt collection process as soon as possible. It’s emotionally, mentally, and even physically draining. But paying right away almost never works in your best interest. Remember, debt collectors only paid a small fraction of the total debt amount to obtain your debt. They’re going to be willing to accept much less than the fact value in most situations. Even if you really do owe money, don’t let the emotions of the moment get the best of you. Furthermore, paying even a small amount is admitting the debt is valid, and can restart the statute of limitations window. You’ll soon see why you want to avoid this at all costs. 
• Validate the Debt – You need to ask Portfolio Recovery Associates to validate any debt they claim to be yours. There are often mistakes made in the handoff of debt from the original lender to the collection agency. Even if you’re pretty sure the debt is yours and the amount is correct, you’ll want to ask for validation. If the collectors can’t provide this, they’ll have no legal basis to pursue legal action against you. 
• Understand the Statute of Limitations in Your State – Each state has different laws regarding how long someone has to collect a debt from a consumer. If the statue of limitations has expired, debt collectors can’t get money from you—unless you accidentally restart the clock by paying them something. Determine whether or not you’re in the clear with the statute of limitations. If so, you can send a cease and desist letter to PRA and they will be forced to comply. 
• Negotiate a Settlement – If you indeed owe a debt and it’s still within the statute of limitations, you’re going to have to deal with it one way or another. Refusing to pay will lead to lawsuits, and likely wage garnishments. You can potentially negotiate a deal with Portfolio Recovery Associates, as they ultimately just want to profit from the transaction. If you don’t want to do the negotiations yourself, you can hire a debt relief agency to step into the ring for you. 

Whenever dealing with debt collectors, it’s also important to know your rights. They’re not allowed to harass or threaten you, along with a long list of other forbidden activities. Whether you’re dealing with Portfolio Recovery Associates or another debt collection agency, knowing how to play the game will help you get through the process in much better shape.