Why Is Portfolio Recovery Calling Me When I Have No Debt?

Common reasons Portfolio Recovery might be calling you

If you’re receiving calls from Portfolio Recovery but don’t believe you owe any debt, there are several possible explanations for why they’re contacting you.

Mistaken identity

One of the most common reasons people receive collection calls despite owing no debt is simple mistaken identity. According to CFPB data from 2021, 56% of debt collection complaints were related to debt collectors attempting to collect on a debt the consumer didn’t owe. Debt collectors may contact the wrong person if someone else shares your name, if there’s a data entry error, or if outdated information links your phone number to another person’s account.

Because debts are frequently sold and resold between collection agencies, the records accompanying these transactions aren’t always complete or accurate. Portfolio Recovery might have purchased debt portfolios containing thousands of accounts, and errors in matching debtor information to the correct individuals are unfortunately common.

The debt is time-barred

Even if you once owed a debt, it may now be beyond the statute of limitations for legal collection. Most states have statutes of limitations between three and six years for debts, though this varies by state and type of debt. Once this period expires, the debt becomes “time-barred,” meaning creditors cannot legally sue you to collect it.

However, the debt doesn’t disappear entirely. Even after the statute of limitations expires, debt collectors can contact you and ask for voluntary repayment. Portfolio Recovery may be attempting to collect on old debts that are no longer legally enforceable, hoping you’ll make a payment without realizing your legal protections.

It’s critical to understand that acknowledging the debt or making even a small payment can restart the statute of limitations clock in many states, giving collectors renewed legal standing to sue you.

The debt was already paid or discharged in bankruptcy

Portfolio Recovery might be attempting to collect on a debt that you’ve already settled with a previous creditor or collection agency. When debts are sold multiple times between different companies, sometimes the communication about payment status doesn’t transfer accurately.

Similarly, if you’ve had debts discharged through bankruptcy, those debts are no longer legally collectible. Attempting to collect on debt discharged in bankruptcy is an FDCPA violation. While most collectors screen their portfolios for discharged debts, errors still occur, particularly with older accounts.

Identity theft

In some cases, the debt Portfolio Recovery is attempting to collect may be the result of identity theft. If someone fraudulently opened accounts in your name, those accounts may eventually be sold to debt collectors. You would have no knowledge of these accounts, yet collectors like Portfolio Recovery would have your personal information and begin collection attempts.

Inadequate verification before purchase

Portfolio Recovery purchases debt portfolios containing thousands or even millions of dollars worth of accounts. Because these accounts may be several years old, the records are not always complete. Despite incomplete documentation, PRA still attempts to recover the full balance listed in the portfolio they purchased.

The company has been sanctioned for this practice. Portfolio Recovery violated federal orders by collecting on unsubstantiated debt and collecting on debt without providing required documentation to consumers.

Your rights under the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a federal law that protects consumers from abusive, unfair, or deceptive debt collection practices. Understanding your rights under this law is crucial when dealing with any debt collector, including Portfolio Recovery Associates.

• Right to debt validation: A collector has to give you “validation information” about the debt either when they first communicate with you or within five days of the first contact. This validation notice must include the amount you allegedly owe, the name of the original creditor, and information about your right to dispute the debt within 30 days. If you dispute the debt in writing within that 30-day window, the collector must cease collection activities until they provide verification of the debt. This verification should include documentation proving you owe the money and that they have the legal right to collect it.

• Protection from harassment: Debt collectors cannot harass or abuse you while attempting to collect money. Collectors can’t call you more than seven times within a seven-day period or within seven days after talking with you by phone about a particular debt. They also cannot call you before 8 a.m. or after 9 p.m. local time, use obscene or abusive language, or threaten violence.

• Right to dispute and cease communication: You have the right to dispute any debt you believe you don’t owe. You also have the right to request that a debt collector stop contacting you altogether. If you mail a letter to the collection company asking them to stop contacting you, they are legally obligated to stop communication except to confirm receipt or inform you of specific legal action.

• Protection from false representations: Collectors can’t lie, can’t tell you that you owe a different amount than what you actually owe, can’t pretend to be an attorney or from the government, and can’t tell you that you’ll be arrested. They also cannot falsely threaten legal action if they don’t intend to take it or cannot legally do so.

• Protection regarding time-barred debts: Federal regulations now explicitly prohibit debt collectors from suing or threatening to sue over time-barred debts. A debt collector must not bring or threaten to bring a legal action against a consumer to collect a time-barred debt. If Portfolio Recovery threatens legal action on a debt that’s beyond your state’s statute of limitations, this is a violation of federal law.

What to do when Portfolio Recovery calls

If you’re receiving calls from Portfolio Recovery and you don’t believe you owe any debt, taking the right steps can protect your rights and potentially stop the calls.

• Don’t ignore the contact: While it might be tempting to ignore calls from debt collectors, this can sometimes make the situation worse. If Portfolio Recovery has incorrect information, ignoring them won’t make the problem disappear. Additionally, if they eventually file a lawsuit (even an improper one), failing to respond could result in a default judgment against you.

• Request written validation: Never acknowledge owing a debt or provide personal information over the phone until you’ve verified the debt in writing. Request that Portfolio Recovery send you written validation of the debt, including proof that you owe it and that they have the legal right to collect it. Under federal law, you have 30 days from the first contact to request this validation. Send your request via certified mail with return receipt so you have proof of when it was sent and received.

• Dispute the debt in writing: If you’re certain you don’t owe the debt, send a written dispute letter within 30 days of receiving the validation notice. In your letter, clearly state that you dispute the debt and explain why (wrong person, already paid, discharged in bankruptcy, etc.). Request that Portfolio Recovery provide proof of your obligation. Keep copies of all correspondence and send letters via certified mail with return receipt requested. This creates a paper trail that can be valuable if you need to take legal action later.

• Don’t make payments or acknowledge the debt verbally: Be extremely careful about what you say on the phone. Even verbally acknowledging the debt as yours during a conversation with a collection agent can reset the statute of limitations in some states. Never make a payment, even a small one, on a debt you don’t believe you owe, as this can restart legal collection periods and be interpreted as acknowledgment that you owe the money.

• Check your credit reports: Obtain copies of your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion) through com. Check whether Portfolio Recovery has reported the alleged debt to the credit bureaus. If they have, and you don’t owe the debt, you have the right to dispute this information with the credit bureaus as well.

• Request they stop contacting you: If you’re certain you don’t owe any debt to Portfolio Recovery, you can send them a written request to cease all communication. Once they receive this letter, they can only contact you to confirm they’ve received your request or to inform you of specific legal action they intend to take.

• Document everything: Keep detailed records of every interaction with Portfolio Recovery. Note the date, time, and content of phone calls. Save all letters, emails, and texts. Record the names of any representatives you speak with. This documentation can be crucial if Portfolio Recovery violates your rights and you need to file a complaint or lawsuit.

• Consider consulting an attorney: If Portfolio Recovery continues to contact you despite your disputes, if they threaten legal action on a debt you don’t owe, or if you suspect they’ve violated the FDCPA, consider consulting with a consumer rights attorney. Many attorneys who handle FDCPA cases work on contingency, meaning you don’t pay unless you win your case.

How to protect yourself from wrongful debt collection

Taking proactive steps can help you avoid becoming a victim of mistaken debt collection attempts.

• Monitor your credit regularly: Check your credit reports at least once a year for any accounts or debts you don’t recognize. The earlier you catch errors or potential fraud, the easier they are to resolve.

• Protect your personal information: Be cautious about sharing personal information like your Social Security number, address, and phone number. Never give out or confirm sensitive financial information unless you know the company or person you are talking with is a real debt collector. Identity theft is a leading cause of people being contacted about debts they don’t owe.

• Keep financial records: Maintain records of paid debts, settlement agreements, and bankruptcy discharges. If a debt collector contacts you about an old debt, you’ll have documentation to prove the debt was resolved.

• Know your state’s statute of limitations: Understanding your state’s statute of limitations for different types of debt can help you identify when a collector is attempting to collect on a time-barred debt. You can find this information through your state attorney general’s office or consumer protection agency.

• Be aware of your rights: Familiarize yourself with the Fair Debt Collection Practices Act and your state’s debt collection laws. Knowing what debt collectors can and cannot do empowers you to recognize violations and take appropriate action.

When Portfolio Recovery violates the law

Portfolio Recovery Associates has a documented history of violating debt collection laws. Understanding what constitutes a violation can help you determine whether you have grounds for legal action.

• Filing complaints: If you believe Portfolio Recovery has violated your rights, you can file complaints with several agencies. The Consumer Financial Protection Bureau accepts complaints about debt collectors through their website or by calling (855) 411-2372. You can also file complaints with your state attorney general’s office and the Federal Trade Commission. These complaints create a record of the company’s behavior and can lead to regulatory action, though they won’t directly compensate you for any harm you’ve suffered.

• Suing for FDCPA violations: You have the option to sue a collector in a state or federal court within one year of when the collector broke the law. If you can prove damages (such as lost wages or medical bills), you can sue for those amounts. Even without provable damages, a court can award you up to $1,000 in statutory damages, plus attorney’s fees and court costs. Many consumer rights attorneys take FDCPA cases on contingency, meaning they only get paid if you win. This makes legal representation accessible even if you can’t afford upfront legal fees.

The bottom line

Receiving calls from Portfolio Recovery Associates when you don’t owe any debt is frustrating and stressful, but you have powerful legal protections. Whether the calls are the result of mistaken identity, attempts to collect time-barred debts, or inadequate verification practices, you have the right to demand proof and to be free from harassment.

The most important steps you can take are to request written validation, dispute any debt you don’t owe in writing, document all interactions, and never acknowledge or make payments on debts you’re certain aren’t yours. If Portfolio Recovery violates your rights under the FDCPA, don’t hesitate to file complaints with regulatory agencies or consult with a consumer rights attorney about potential legal action.

Remember that even large, established debt collection companies like Portfolio Recovery Associates must follow the law. You have rights, and those rights exist specifically to protect you from exactly this type of situation. By understanding these protections and taking appropriate action, you can put an end to unwanted collection calls and protect yourself from improper debt collection practices.

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