You received a letter or a lawsuit from “Portfolio Recovery Associates.” You have likely never heard of them. You probably don’t remember buying anything from them.
Your first instinct is to think it’s a scam. It isn’t.
Portfolio Recovery Associates (PRA) is one of the largest buyers of unpaid debt in the United States. They are aggressive. They are persistent. And if you ignore them, they will use the courts to garnish your wages or seize your bank account.
But you can fight back. You can often settle for less than you owe, or even get the case dismissed. The key is acting fast.
Create your court-approved Answer in 15 minutes with DebtAegis
Who is Portfolio Recovery Associates?
Portfolio Recovery Associates is a “debt buyer.” They are a publicly traded company (PRA Group, Inc.) based in Norfolk, Virginia.
Here is their business model: Banks and credit card companies (like Citibank or U.S. Bank) get tired of chasing people for unpaid bills. They package thousands of these unpaid accounts and sell them to companies like PRA for pennies on the dollar.
If you owed Citibank $5,000, PRA might have bought the right to collect that debt for $200. If they can get you to pay the full $5,000, they make a massive profit.
Contact Information for Validation:Address: 120 Corporate Boulevard, Norfolk, VA 23502Phone: 1-800-772-1413
Step 1: The “Golden Rule” (Validate Before You Pay)
Never pay a penny until you force them to prove they own the debt.
Debt is sold and resold. In the shuffle, paperwork gets lost. PRA often buys debts with very little documentation. If you ask them to “validate” the debt within 30 days of their first contact, they must stop collection efforts until they send you proof.
What to ask for:
- The name of the original creditor.
- The original account number.
- The exact amount owed.
- Proof that they are licensed to collect in your state.
If they cannot produce these documents, they often go away.
Step 2: What to Do If They Sue You
If you receive a Summons and Complaint, the situation has changed. You are no longer dealing with a collection agent; you are dealing with the court system.
The clock is ticking.Depending on your state, you have only 14 to 30 days to file a legal response called an “Answer.”
The Trap:Most people freeze. They think they need a lawyer, but lawyers are too expensive for a $2,000 debt. So they do nothing. This is exactly what PRA wants. If you don’t file an Answer by the deadline, they win a Default Judgment automatically. This gives them the power to freeze your bank account.
The Solution:You do not need a lawyer. You can file an Answer yourself (“Pro Se”). Filing an Answer stops the clock and forces PRA to prove their case in court.
Fact: Filing an Answer is often enough to make them back down. They rely on easy wins. When you fight back, you become expensive.
How DebtAegis Helps
We are not a law firm, and we don’t give legal advice. We provide a simple platform that generates your legal Answer for you. You answer questions in plain English, and we translate it into the formatting the court requires.
- Essential Plan ($67): Get your AI-generated Answer and filing instructions.
- Plus Plan ($147): Includes a specialist review to ensure your formatting is perfect.
Step 3: Can I Settle for Less?
Yes. Settlement is common. Remember, PRA bought your debt for pennies. They have a lot of room to negotiate.
Strategy:File your Answer first. This shows them you aren’t going to roll over. It gives you leverage.
Once the Answer is filed, you can contact them to offer a settlement. A typical settlement might be 40% to 60% of the total amount. If you have cash on hand for a lump sum, they are more likely to say yes.
The Settlement Script:“I dispute this debt. However, to save us both the cost of a trial, I am willing to pay $[Amount] to settle this account in full. If you accept, please send me a written agreement stating that this payment satisfies the debt in full and that you will update the credit bureaus.”
Warning: Get everything in writing. Never give them electronic access to your checking account.
Don’t Be a Victim
The legal system is designed to be confusing. Debt buyers use that confusion to make money. You don’t have to let them.
You have rights. You have a voice. Use it.