U.S. watchdog orders Virginia debt collector to pay $24 mln for illegal practices (updated)

PRA

23/03/2023 19:05

(Updates with company reaction)
       March 23 (Reuters) - A Virginia debt collection company
has agreed to pay $24 million over allegedly illegal practices,
the top U.S. agency for consumer financial protection said on
Thursday, adding that the company had violated a previous order.
    Rohit Chopra, director of the Consumer Financial Protection
Bureau, said Portfolio Recovery Associates had been "caught red
handed" in 2015, but had persisted in "intimidation, deception
and illegal ... tactics" to collect on unsubstantiated and
undocumented consumer debt in recent years.
    "CFPB orders are not suggestions, and companies cannot
ignore them simply because they are large or dominant in the
market," Chopra added.
        Portfolio Recovery Associates said it had admitted to no
wrongdoing.
  
    In 2015 the CFPB ordered Portfolio Recovery Associates to
cease collecting on debts without reasonable basis, selling
debt, or threatening to sue or suing when it had no intent to
prove the claims. The company agreed to pay $27 million to
resolve the allegations.
        The CFPB on Thursday said the company broke a number of
provisions related to that order. The $24 million payment
agreement includes a fine, as well as repayment to consumers
harmed, pending court approval. 
  
    In a statement, Portfolio Recovery Associates said it was
committed to dealing fairly and respectfully with its clients.
        "Although we have admitted to no wrongdoing as part of
the resolution, and we continue to disagree with the CFPB's
characterization of our conduct, we are pleased to have this
matter resolved and behind us," Kevin Stevenson, president and
chief executive of parent company PRA Group Inc  PRAA.O , said
in a statement.
  

 (Reporting by Douglas Gillison; Editing by Aurora Ellis and
Leslie Adler)
 ((douglas.gillison@thomsonreuters.com;))