Mediation
The Consumer Corner
Alternative Dispute Resolution - Mediation What is Mediation Mediation is where parties come together and discuss their cases with a third party known as the mediator. Ideally the mediator is neutral. The goal is to get the parties to agree on a resolution. Hopefully, the parties eventually come to an agreement. Sometimes the parties will come back together to memorialize it, but they may not. And the mediator may draft some language up so the parties can sign. This will depend on the mediator and the parties. When do you Mediate, Who pays for it, and How much does it cost? Usually, the...
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Portfolio Recovery Associates
The Consumer Corner
PORTFOLIO RECOVERY ASSOCIATES Portfolio Recovery Associates is a company that buys collection accounts from credit card issuers, student loan lenders, retailers (i.e. department stores and other retail stores), hospital or other medical providers, utility companies, consumer finance companies, auto finance companies, and cellphone providers for 4 to 10 cents on the dollar. Portfolio Recovery Associates have a patten of aggressive debt collection practices. In 2011, according to the Public Access to Court Electronic Records (PACER), PRA was sued over 700 times for harassing consumers under the...
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Wells Fargo
The Consumer Corner
WELLS FARGO In today's episode, we will talk about Wells Fargo Bank and the scandals that hurt its reputation over the years. We will also talk about some of the things they are doing today….right this minute to harm you, the consumer. In 1852, Wells Fargo began banking activates and quickly evolved from a cross-county express service into one of the biggest banks in the world. To date, Wells Fargo is America’s fourth largest bank. The success of the company has been built on a cultural and economic platform that merges deep customer relations and an engaged sales culture. The company's...
info_outlinePORTFOLIO RECOVERY ASSOCIATES
Portfolio Recovery Associates is a company that buys collection accounts from credit card issuers, student loan lenders, retailers (i.e. department stores and other retail stores), hospital or other medical providers, utility companies, consumer finance companies, auto finance companies, and cellphone providers for 4 to 10 cents on the dollar.
Portfolio Recovery Associates have a patten of aggressive debt collection practices. In 2011, according to the Public Access to Court Electronic Records (PACER), PRA was sued over 700 times for harassing consumers under the FDCPA. According to the CFPB, more than 11,000 complaints were filed between July 2013 and January 2014 against various debt collection companies, including Portfolio Recovery Associates. PRA ranked third for having the most complaints” (Weston Legal).
On September 9, 2015, Consumer Financial Protection Bureau (CFPB) took action against Portfolio Recovery Associates and found Portfolio Recovery Associates: used affidavits that misrepresented that the affiants had reviewed original account-level documentation confirming the consumers’ debts when they had not, submitted affidavits with documents attached that they claimed were the consumers’ specific account contracts or records when they weren’t.
To right the Portfolio Recovery Associates’ wrongdoing, the company was asked to pay $19 million in consumer refunds and an $8 million penalties. The company was prohibited from:
collecting on over $3 million worth of debts, were required to stop collecting unsubstantiated debt and filing lawsuits that are unenforceable and incorrect, were prohibited to use affidavits to collect debts unless the statements contained within the affidavits specifically and accurately describe the signer’s own personal knowledge of the facts and the documents referenced in the affidavit are attached, and were forced to provide consumers with credible information and original documents to file a lawsuit or collect a debt.
The latest scandal occurred in 2020, when Portfolio Recovery Associates were found to have violated the Worker Adjustment and Retraining Notification Act when 200 employees were laid off via email without any prior notice.
REFERENCES
Bills.com website- https://www.bills.com/learn/debt/portfolio-recovery-associates
CFBP website-consumer financial protection bureau- https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-the-two-largest-debt-buyers-for-using-deceptive-tactics-to-collect-bad-debts/
John Skiba, Esq. | Sep 9, 2015 Midland Funding and Portfolio Recovery Associates Slammed by Consumer Financial Protection Bureau by | Collection Law Suits, Debt Collection Lawsuits, Fair Debt Collection, FDCPA Claims, Newsletter- https://skibalaw.com/midland-funding-and-portfolio-recovery-associates-slammed-by-consumer-financial-protection-bureau/
https://hbr.org/2007/06/companies-and-the-customers-who-hate-them
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WHAT IS NEXT….
In the next episode we will talk about Alternative Dispute Resolutions and Mediation