CFPB Orders Repeat Offender Portfolio Recovery Associates to Pay More Than $24 Million | Live Stream

TL;DR

The Consumer Financial Protection Bureau (CFPB) issued a consent order against debt collector Portfolio Recovery Associates for illegal collection practices, and it can be used as a defense strategy against lawsuits by the company.

Transcript

hey everybody and welcome to Thursday night welcome to the consumer Warrior YouTube channel where each and every Thursday night we go live and talk about all things debt related my name is John skiba I am a bankruptcy attorney and a consumer protection attorney I guess would be another title for what I do uh here in the state of Arizona uh I mostly... Read More

Key Insights

• 🪈 The CFPB issued a consent order against debt collector Portfolio Recovery Associates for continuing illegal debt collection practices, resulting in a fine of over $24 million.
• 🤢 The consent order highlights the company's violations, such as collecting debts without a reasonable basis, filing false affidavits, and collecting on time-barred debts.
• 🪈 The consent order can be a valuable defense tool for individuals being sued by Portfolio Recovery Associates, showcasing the company's history of non-compliance with regulations.
• 🤢 The statute of limitations may apply to individual monthly installment payments of private student loans, and missed payments outside the time limit can be barred from collection.

Questions & Answers

Q: How can the recent consent order against Portfolio Recovery Associates be used as a defense in a lawsuit?

The consent order can be used as evidence to show the company's history of illegal debt collection practices and lack of compliance with regulations. It can help in challenging the credibility of the company's documents and supporting counterclaims based on violations of the Fair Debt Collection Practices Act (FDCPA).

Q: Do the statute of limitations apply to private student loans?

Private student loans are subject to statute of limitations laws, and each monthly installment payment carries its own statute of limitations. Making payments does not reset the statute of limitations for previous missed payments, and it may be possible to have certain payments barred if they fall outside the applicable time limit.

Q: Can the consent order be used in arbitration cases?

Yes, the consent order can still be used as evidence in arbitration cases. It is recommended to ensure that the arbitrator or judge reviewing the case is aware of the consent order and its implications on the debt collection practices of Portfolio Recovery Associates.

Q: How can the consent order help in filing counterclaims?

If the lawsuit is brought by a debt collector or debt buyer, rather than the original creditor, suing for debt that is outside the statute of limitations may violate the FDCPA. The consent order can support counterclaims under the FDCPA, alleging that the collector engaged in illegal collection practices.

Summary & Key Takeaways

• Consumer protection attorney John Skiba discusses the recent consent order issued by the CFPB against Portfolio Recovery Associates for illegal debt collection practices.

• The consent order reveals that Portfolio Recovery Associates engaged in practices such as collecting debts without a reasonable basis, filing false affidavits, and collecting on time-barred debts.

• Skiba advises individuals being sued by Portfolio Recovery Associates to obtain a copy of the consent order once it is signed by the judge and use it as evidence in their defense.