Portfolio Recovery Lawsuit: How to Settle & Respond

Being served with a lawsuit from Portfolio Recovery Associates feels overwhelming. But ignoring it will only make things worse.

You need to take immediate action. The good news? Portfolio Recovery Associates has a reputation for working with consumers to reach fair settlements.

Answer Your Portfolio Recovery Lawsuit in 15 Minutes

Portfolio Recovery Associates filed a lawsuit against you. You have only 10-30 days to respond before they get a default judgment. Don't wait another day.

Respond Now

Communication makes all the difference. Respond to the lawsuit and request proof of what you owe.

You can resolve this debt collection matter without wasting time in court. We’ll show you exactly how.

Portfolio Recovery Associates Is a Legitimate Debt Collector

Portfolio Recovery Associates is a real debt collection company. They operate from Virginia with about 320 employees and approximately $56 million in annual revenue.

They use several business names including PRA III and Anchor Receivables Management.

Here’s how to reach Portfolio Recovery Associates:

Address: 120 Corporate Boulevard, Norfolk, VA 23502
Phone number: 1-800-772-1413
Website: https://www.portfoliorecovery.com/prapay/help/contact-us

Consumer Reviews Show Portfolio Recovery Negotiates Settlements

Online reviews of Portfolio Recovery Associates present a mixed picture. However, many consumers have successfully negotiated fair debt settlements.

One Google reviewer named Roberta Rogel shared this experience:

“Portfolio Recovery has made the process of resolving my debt very pleasant. The website is excellent! When I have needed to delay a payment I have been able to do so in a couple of easy, quick steps.”

Kellie W. posted this Yelp review confirming their flexibility:

“They let me set up a payment plan that worked for me. Love the convenience of online ability to change my payment date.”

These reviews prove one thing clearly. Reaching out to negotiate makes more sense than hiding from their calls.

Check the Statute of Limitations on Your Debt

The statute of limitations sets a time limit for debt collectors to sue. After a certain period with no account activity, the debt becomes time-barred.

Activity includes making payments or signing payment agreements. Be careful. Taking action on an old account can restart the clock.

Each state has different statute of limitations rules for debt collection. You need to check your state’s specific time frame.

Example: Joe lives in Texas and faces a lawsuit over an old Citibank credit card. Portfolio Recovery Associates purchased the debt and contacted him. Joe hasn’t used the card or made payments for 9 years. Texas law sets a 4-year statute of limitations on debt. Portfolio Recovery Associates would likely lose in court. But Joe must raise this as an affirmative defense to get the lawsuit dismissed.

Investigate Before Making Any Payments

Making a payment on old debt can restart the statute of limitations. The debt could be fraudulent or the amount might be wrong.

Always investigate before agreeing to pay anything.

Send a debt validation letter to Portfolio Recovery Associates. They must provide an official debt verification statement containing:

The exact amount of the debt
The name of the original creditor
Notice that they’ll assume the debt is valid unless you dispute it within 30 days
Confirmation that they’ll mail you debt validation if requested
The original creditor’s name and address upon request

Example: Portfolio Recovery Associates keeps contacting Megan about an American Express debt. They claim she owes more than $20,000. Megan doesn’t remember using the card that much. She finds her old statements and discovers the correct amount was only $2,000. Portfolio Recovery Associates mistakenly added a zero. Megan sends a debt validation letter demanding documentation. If they can’t prove the correct amount, they’ll likely stop their collection efforts.

How to Respond to Portfolio Recovery Associates in Court

You must respond to the debt collection lawsuit. File a document called an “Answer” with the court.

You don’t need to hire an attorney. Our partner Solo helps you draft a free Answer in less than 15 minutes.

Avoid these common mistakes when responding:

Waiting Until the Last Minute: You typically have only 10 to 30 days to file an Answer. Respond quickly or Portfolio Recovery Associates gets a default judgment against you.
Saying Too Much: Keep your Answer short. Simply “admit” or “deny” each fact in the Complaint. Don’t write a narrative about your financial situation.
Responding By Phone: Never communicate with debt collectors on the phone. Put everything in writing to protect yourself.
Continuing to Pay: Stop making payments if they sue you while you’re on a payment plan. Write them a letter explaining why.
Admitting the Amount: Don’t assume their claimed amount is correct. Deny the amount unless you’re 100% certain it’s accurate.
Forgetting to Demand Proof: Always demand verification of the amount they claim you owe.

File a Strong Answer to the Lawsuit

Portfolio Recovery Associates must send you a court Summons and Complaint. These documents notify you of the lawsuit and list their claims.

Your first step is filing a written Answer with the court.

Here’s how to draft a strong Answer:

Don’t tell your whole story: The burden of proof falls on Portfolio Recovery Associates. You don’t need elaborate explanations. Briefly respond to each claim and make them prove their case.
Deny as many allegations as possible: Most attorneys recommend denying everything you reasonably can. Portfolio Recovery Associates must work harder to prove their case.
Include affirmative defenses: List any reason they don’t have a valid case. Examples include expired statute of limitations, incorrect amounts, or harassment.
Use professional formatting: Type your Answer in black and white with standard margins. Include a caption with court information, case title, and case number.
Add a certificate of service: Declare that you’ve sent a copy to Portfolio Recovery’s attorney. Include both addresses.
Sign the document: Courts reject unsigned Answers. Some courts require wet signatures instead of electronic ones.

After filing your Answer with the court, print a copy. Send it to Portfolio Recovery Associates’ designated attorney.

Failing to serve them can result in a default judgment against you.

Example: Jacob faces a Portfolio Recovery Associates lawsuit in California Superior Court. He notices they’re suing him in the wrong county. Jacob has 30 days to respond or they’ll get a default judgment. He uses Solo to prepare his Answer. He denies all 18 allegations in the Complaint. Jacob includes powerful affirmative defenses about improper venue. Solo files the Answer and sends a copy to PRA Group’s attorney. Portfolio Recovery Associates subsequently dismissed the lawsuit.

Negotiate a Settlement for Less Than You Owe

You can reach out to settle at any time. Before the lawsuit, during, or even after.

If you’ve already been sued, file your Answer first. Filing protects you from accidentally missing the deadline and getting a default judgment.

Portfolio Recovery Associates has a reputation for flexibility. They work with consumers to reach out-of-court resolutions.

Most debt collection agencies settle for anywhere between 1% and 60% of the original debt. You can start negotiations by sending an offer through our partner Solo.

Example: Jenny owed $3,000 on her Citibank credit card from 2019. The pandemic hit her family hard and she fell behind. Three years later, Portfolio Recovery Associates purchased the debt from Citibank for just $300. When they contact Jenny about the $3,000 debt, she can’t pay it in full. They file a lawsuit. Jenny offers to settle for $1,500, which is half the original amount. Portfolio Recovery Associates accepts and makes a $1,200 profit. Jenny pays what she can afford and resolves the debt matter.

Contact Portfolio Recovery Associates Directly

You can reach Portfolio Recovery Associates via email at pracustomercare@portfoliorecovery.com.

Their toll-free phone number is 1-800-772-1413.

Send debt validation letters to this address:

Portfolio Recovery Associates, LLC
120 Corporate Blvd.
Norfolk, VA 23502

Portfolio Recovery Sues Consumers Nationwide

Portfolio Recovery Associates files debt lawsuits throughout Texas and all other US states.

If they’re suing you, respond immediately. File your Answer in court and send a settlement offer through our partner Solo.

You have the power to fight back and settle this debt. Take action today before the deadline passes.

Frequently Asked Questions

What happens if I ignore a Portfolio Recovery Associates lawsuit?

If you ignore the lawsuit, Portfolio Recovery Associates will get a default judgment against you. They can then garnish your wages, freeze your bank account, or place liens on your property. You typically have only 10-30 days to respond, depending on your state.

How much will Portfolio Recovery Associates settle for?

Portfolio Recovery Associates typically settles for anywhere between 1% and 60% of the original debt amount. They purchase debts for pennies on the dollar, so they're often willing to accept significantly less than what you originally owed. Consumer reviews confirm they offer flexible payment plans.

Can I respond to Portfolio Recovery Associates without a lawyer?

Yes, you have every right to represent yourself in a debt collection lawsuit. You can draft and file an Answer to the lawsuit without hiring an attorney. Make sure to deny allegations you're unsure about and include affirmative defenses like expired statute of limitations.

What is a debt validation letter and why should I send one?

A debt validation letter requires Portfolio Recovery Associates to provide proof of the debt amount and original creditor. Sending this letter protects you from paying incorrect amounts or fraudulent debts. It also prevents you from accidentally restarting the statute of limitations on old debts.

How do I check if the statute of limitations has expired on my debt?

The statute of limitations varies by state, typically ranging from 3-6 years. Check when you last made a payment or had activity on the account. If that date exceeds your state's statute of limitations, the debt may be time-barred. You must raise this as an affirmative defense in your Answer.

How to Settle a Portfolio Recovery Associates Debt Lawsuit