Why choose a Law Firm for Credit Repair?
The fact is, there are many Credit Repair Organizations operating in the US right now. There are many good companies out there that have the best interest for their clients at heart. Then again, there are many who don’t. To be perfectly honest, there is no reason that a consumer cannot dispute items on their credit reports on their own. And many Credit Repair Organizations act in this same manner. It’s absolutely possible for individuals and CRO’s acting as the individual to get some good, sometimes great outcomes with these efforts.
But what happens when push comes to shove with debt collectors? Do most consumers know the laws and how the debt collector is violating these laws? Unfortunately, the answer is no. And why would they? Most people don’t go through their daily lives yearning for the knowledge of the Fair Credit Reporting Act (FCRA) or the Fair Debt Collection Practices Act (FDCPA). That is why it’s important when choosing a company to represent you and help with credit repair that you hire a Law Firm. Our Attorneys here at Credit Law Center have sued debt collectors for violations to both the FCRA and the FDCPA for the last 13 years. We have helped our clients fight for their rights and get compensated for these violations. Many debt collection companies will do or say anything to collect on debts they have purchased. Often times. by illegal practices. We are all too familiar with the Debt Collection Company in this blog.
Here is a HUGE reason why you should choose a Law Firm. On March 23, 2023 the Consumer Financial Protection Bureau (CFPB) sent out a press release about cracking down on one of the largest debt collection companies in the US. I have linked their press release if you would like to read the full article. However, here’s some quick points on why the CFPB is require Portfolio Recovery to pay out over 12 million dollars to consumers harmed by their illegal actions. CFPB Orders Repeat Offender Portfolio Recovery Associates to Pay More Than $24 Million for Continued Illegal Debt Collection Practices and Consumer Reporting Violations | Consumer Financial Protection Bureau (consumerfinance.gov)
Below is an excerpt from the press release.
(CFPB)
In today’s complaint, the CFPB charged Portfolio Recovery Associates with violating numerous requirements of the 2015 order during the five-year period the order was in effect and engaging in deceptive conduct in violation of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act, including:
- Making representations about unsubstantiated debts: Portfolio Recovery Associates made at least tens of thousands of representations about unsubstantiated, disputed debts, failing to review the required documentation to support the claim.
- Threatening consumers with potential legal actions and initiating debt collection lawsuits without offering or possessing required documentation: Portfolio Recovery Associates’ lawyers sent millions of form letters to consumers notifying them of potential legal action without offering to provide all required documents. Portfolio Recovery Associates also initiated thousands of legal actions against consumers when it lacked proper documentation about the debt.
- Misrepresenting that it would provide certain documents within thirty days: The form letter notifying consumers of potential legal action stated that, upon receipt of a written request from the consumer, Portfolio Recovery Associates would provide within 30 days of request the proof of documentation mentioned in the letter. On numerous occasions, Portfolio Recovery Associates failed to timely provide these documents after receiving a consumer’s written request for them. This impeded consumers’ ability to determine whether a debt was truly owed and how they should respond to allegations of outstanding debts.
- Collecting on time-barred debt without making required disclosures: On numerous occasions, Portfolio Recovery Associates did not provide the required disclosures to consumers when collecting on debts beyond the statute of limitations. When the company purchased debt, it estimated the statute of limitations that governed the debt, and in some cases that date was later than the actual statute of limitations.
- Suing to collect on time-barred debt: Portfolio Recovery Associates initiated at least dozens of lawsuits for debt that was too old to legally enforce. In doing so, Portfolio Recovery Associates falsely represented that those consumers had legally enforceable obligations to pay those debts when in fact they did not because the debt was outside the statute of limitations.
The CFPB also alleges that Portfolio Recovery Associates committed numerous violations of the Fair Credit Reporting Act and its implementing Regulation V, which include:
- Failing to inform consumers about investigation outcomes: On numerous occasions when Portfolio Recovery Associates determined that a consumer’s dispute was frivolous or irrelevant, it failed to timely inform the consumer about what information would be necessary for Portfolio Recovery Associates to investigate the dispute.
- Failing to timely resolve disputes: On at least tens of thousands of occasions, Portfolio Recovery Associates failed to resolve disputes within the required time.
- Conducting unreasonable investigations: On numerous occasions when a consumer alleged fraud or identify theft, Portfolio Recovery Associates did not conduct a sufficient investigation that considered all necessary information.
Enforcement Action
Under the CFPA, the CFPB has the authority to take action against institutions violating consumer financial laws, including engaging in unfair, deceptive, or abusive acts or practices. The CFPB alleges that Portfolio Recovery Associates violated the 2015 order, the CFPA’s prohibition on deceptive conduct, the FDCPA, FCRA, and Regulation V.
If entered by the court, the order would require Portfolio Recovery Associates to:
- Provide redress to consumers: Portfolio Recovery Associates would pay at least $12.18 million to consumers harmed by its illegal collection practices.
- Clean up its faulty operations: The order prohibits Portfolio Recovery Associates from collecting debts unless it has access to certain documents that meet its obligation to have a reasonable basis to believe it is collecting debts that consumers actually owe.
- Fix its failures to properly respond to consumers: The order requires Portfolio Recovery Associates to improve their response when consumers report that they do not owe a debt because of fraud or identity theft. And it ensures that Portfolio Recovery Associates adequately responds to consumer disputes in a timely manner about information Portfolio Recovery Associates has furnished to consumer reporting agencies.
- Pay $12 million in penalties: Portfolio Recovery Associates would pay a $12 million penalty to the CFPB, which would be deposited into the CFPB’s victims relief fund.
It’s important to have these watch dogs. Believe me when I tell you, this is only one of MANY debt collection companies that choose unscrupulous ways of collecting. If you feel that you have inaccurate or unverifiable information on your credit report, please reach out to us to see if we can be of assistance. And, who knows? Maybe we can catch these debt collectors slipping up and get some money in your pocket as well.
Credit Law Center
1-800-994-3070
