ARE YOU GETTING LETTERS OR COURT PAPERS FROM PORTFOLIO RECOVERY ASSOCIATES? WALKER AND WALKER CAN STOP THEM!
Portfolio Recovery Associates is one of the most active debt collectors in Minnesota. They often sue people in Minneapolis and Saint Paul and get judgments for debts. Sometimes the first time a Minnesotan hears about Portfolio Recovery Associates is when someone comes to serve them with court papers. Often the cheapest way to stop judgments and court papers is by filing bankruptcy. Walker & Walker Law offices has stopped Portfolio Recovery from getting judgments thousands of times by filing bankruptcy. Sometimes we can also find problems in their paperwork which might be a Fair Debt Collection Practices Act. If we find a problem like that, then Portfolio Recovery will have to pay you $1,000. For a free attorney consultation to find out what can be done to stop a judgment against you, call us today at 612-824-4357.
WHO IS PORTFOLIO RECOVERY ASSOCIATES
Founded in 1996, Portfolio Recovery Associates, LLC. (PRA) is one of the largest debt collectors in the United States. It is based in Norfolk, Virginia. The company operates on behalf of bankrupt companies or companies troubled by major cash flow problems because of non-payment by customers. One of the principle strategies PRA uses is to sue parties who PRA assumes have the ability to pay to recover past due receipts. They buy out the collection accounts which their customers (typically credit card issuers, auto finance companies, and cell phone companies) find to be uncollectible. The also buy the debt owed by people who recently sued for bankruptcy. Essentially, on the front end, PRA is a lender. They operate by loaning money to their clients that cover a percentage of the uncollectable debt, or loans money to bankrupt parties to cover the debt. PRA transfers debt onto itself then charges interest to generate yield on its loans.
A New Model for Collections
Generally, the debt collection industry has earned its share of public ire over the years. The feelings are widespread over the industry since approximately 30 million Americans have at least one debt in collections. Health care debt comprises 38 percent and student loan debt is 25 percent of that total. These are difficult forms of debt to collect because they represent problems in the distribution of money and sudden misfortune. Humane and intelligent methods of debt collection are vital to the process of easing the credit problems of debtors.
The business model for PRA combines a traditional debt collection process with a debt relief model. This model of debt collection combined with lending is relatively new. It is presented to people who owe money on a debt as “debt relief” or “credit counseling” (as the practice is called in the UK). PRA collects debts by arranging manageable terms and presenting people from whom they are collecting with manageable terms of payment. The National Foundation for Credit Counseling, who originated this model of debt collection, was founded in 1951 to certify organizations in the development of debt management plans. By the 1960s, dozens of credit counseling agencies began appearing throughout the United States. PRA has been a registered member of the Receivables Management Association (formally the DBA) since 2014.
Those receiving a notification letter from PRA often ask “Why do I owe money if I didn’t borrow from you in the first place? PRA explains this by saying,
“The bank or credit card company that you borrowed from decided they no longer wanted to collect the debt, and the made a business decision to sell your debt to us. The right to collect on your account has been transferred to Portfolio Recovery Associates, LLC. We are committed to working together to help you resolve your outstanding obligation and design a payment plan that fits your budget.”
In collecting debt, PRA changes the perception from a debtor to a client. They present debtors with the advantages of being debt free and make arrangements to make collections less painful, arguing that debtors may restore their credit rating as the process is fulfilled.
The Public Corporation
PRA, a public corporation, is among the top five debt buyers in the United States with nearly $950 million dollars in revenue from the United States and another half of that amount from the European operation. Full year income in 2017 was $162 million. They have 2,725 full-time “collectors” and a total of 5,100 employees in the United States and Europe. The PRA group returns capital to banks and other creditors to reduce bad loans. PRA Group companies “collaborate” with customers to help them resolve their debt.
Contact Walker & Walker Law Offices Today
Walker & Walker Law Offices, PLLC, a family business in four locations in Minnesota, with over 40 years experience helping Minnesotans get out of debt and build credit doesn’t just do the paperwork to file for bankruptcy and help you to improve your credit rating after bankruptcy. We work to win settlements for clients who have been targeted with illegal debt collection or credit reporting. Please contact us to learn more.