Portfolio Recovery Associates, LLC Consumer Action

Toohey v. Portfolio Recovery Associates, LLC, et al. Consumer Action

Frank LLP has filed a class action lawsuit against Portfolio Recovery Associates, LLC (“PRA”), and Malen & Associates, P.C. (“Malen) (together with PRA, the “Defendants”).

The class action, filed in the United States District Court for the Southern District of New York, is brought on behalf all persons against whom Defendants obtained default judgments related to the collection of consumer debt for which Defendants had insufficient admissible evidence of the debt’s existence. The officers and directors of any Defendant, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which any Defendant has or had a controlling interest are excluded from the Class.

A settlement has been reached in this case. Click here for information about the settlement.

PRA is one of the largest buyers and collectors of consumer debt in the nation. PRA purchases charged-off loans, credit card accounts, and other debts from originating creditors at a substantial discount from the debts’ face value. It then attempts to collect these debts, in part through debt collection lawsuits filed by Malen on PRA’s behalf.

In September 2015, the Consumer Financial Protection Bureau penalized PRA approximately $27 million in conjunction with a consent order with PRA for PRA’s numerous violations of the Fair Debt Collection Practices Act (“FDCPA”).

The class action alleges that, in connection with PRA’s debt collection efforts, the Defendants submit false or deceptive affidavits to state and local courts, in order to fraudulently obtain default judgments against consumers for phantom debts, or debts for which the Defendants lack sufficient evidence to properly obtain default judgments. In so doing, the class action alleges, the Defendants violated the FDCPA, the Racketeer Influenced and Corrupt Organizations Act (“RICO”), New York General Business Law § 349 (“GBL § 349”), and were unjustly enriched.

If you are a consumer and resident in New York State, and PRA has filed a debt collection lawsuit against you, and you have any questions or wish to discuss your rights or interests with respect to these matters, please contact us.

Contact:
Frank llp
Gregory A. Frank
Asher Hawkins
(800) 497-8076
(212) 682-1853
investigations@frankllp.com
www.frankllp.com