Portfolio Recovery Associates Sued Over Allegedly Misleading Collection Notice

New to ClassAction.org? Read our Newswire Disclaimer

A Pennsylvania consumer has filed a proposed class action in which he alleges Portfolio Recovery Associates sent him a collection letter that contained misleading representations about his payment options.

According to the case, the April 2018 letter stated several payment options, including a single payment for the full balance of $825, two installment plans, and several settlement offers. Beside each payment option, the suit says, was an asterisk that referred to a statement further down in the letter indicating the defendant was “not obligated to renew” the offer. The complaint claims this statement falsely suggested that the one-time payment option was time-sensitive when, in fact, the defendant “would have renewed the offer to accept a one-time payment for the full balance at any time while it still owned the debt of the Plaintiff.”