Debt Collectors Faced with Three Plaintiffs’ Multiple-Count FDCPA Lawsuit

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PRA Group, Inc. and Portfolio Recovery Associates, LLC have been named as defendants in a proposed class action lawsuit filed by three plaintiffs who allege the debt collectors failed to adhere to certain provisions of the Fair Debt Collection Practices Act (FDCPA).

The plaintiffs each claim the defendants presented them with payment plan options that didn’t add up to the full amounts of their respective debts. The suit alleges the defendants were unclear as to whether they would report the accounts as “Paid in full” or “Settled in full” if the plaintiffs completed the offered plans.

The first plaintiff further argues that the defendants incorrectly added an extra month of interest to her account balance after it had been charged off and was no longer accruing interest.

Additionally, the third plaintiff claims he received communications from both his original creditor and the defendants that stated different dates on which the creditor allegedly sold the debt to the debt collectors. The suit argues that this discrepancy caused the plaintiff confusion as to whom the debt was actually owed.