Portfolio Recovery Associates Sent Deceptive Letter Regarding Time-Barred Debt, Lawsuit Alleges

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A proposed class action out of Virginia federal court accuses Portfolio Recovery Associates, LLC of misleading a consumer regarding her time-barred debt.

According to the suit, the defendant sent the plaintiff a letter in November 2017 concerning an outstanding credit card debt. The letter offered three settlement options, the case explains, but deceptively failed to state that any payment made toward the obligation would restart its statute of limitations. From the complaint:

“Were Plaintiff to begin making monthly payments, and then were she to no longer be able to continue making payments, Defendant would have the right to sue her in court to collect the remaining the balance—something Plaintiff should be made aware of.”