What to Do If Sued by Portfolio Recovery Associates

Quick Answer: What should I do if I’m sued by Portfolio Recovery Associates in Texas?

In Texas, immediately calculate your Answer deadline (14 days in Justice Court; Monday 10:00 a.m. after 20 days in County/District), file on time, and demand debt validation to preserve defenses and avoid default.

• Calendar your Texas deadline.
• File a timely Answer.
• Demand written validation.

If you get sued by Portfolio Recovery Associates, LLC, you may be scared and not know how to proceed. On the other hand, you may not recognize the name and wonder if it is a scam because you have never taken out a loan through Portfolio Recovery Associates. You may not even recognize the debt it claims to own against you. However, Portfolio Recovery Associates is a legitimate company and one of the largest debt collection agencies in the United States. Below, our North Texas debt collection defense attorneys discuss what to do if you are facing a Portfolio Recovery Associates lawsuit.

Portfolio Recovery Associates, LLC. is one of the largest debt collectors in the United States. It often purchases unpaid and overdue debts from creditors and financial institutions at discounted prices. Portfolio Recovery Associates purchased defaulted debt, including personal loans and other types of consumer debt, from original creditors. Portfolio Recovery Associates purchases charged-off and defaulted consumer debts from creditors. Then, it tries to collect the total amount of debt, usually with interest and late fees included.

Debt collection companies must follow the Fair Debt Collection Practices Act in their collection tactics. Under the act, companies may not use aggressive or unfair tactics to collect from you. Even so, it is not uncommon for these companies to harass or threaten consumers in their efforts to collect on bad debt. The Better Business Bureau maintains a business profile and publishes complaint records for Portfolio Recovery Associates; counts change over time.

Need-to-Know Highlights

• Texas deadlines: 14 days (Justice), Monday 10 a.m. after 20 days (County/District).
• Demand validation and chain of title before paying.
• Wage garnishment is generally exempt; bank accounts can be garnished after judgment.
• Time-barred debts (4 years) can’t be sued on.

Is Portfolio Recovery Associates Legitimate?

Yes, Portfolio Recovery Associates, LLC is a legitimate debt collection company. Its headquarters is in Norfolk, Virginia, and it is a subsidiary of PRA Group, Inc. It is a publicly traded company on Nasdaq. According to the BBB, Portfolio Recovery Associates, LLC also goes by PRA III, LLC, and Anchor Receivables Management and is registered in Texas.

Who Represents Portfolio Recovery Associates?

If Portfolio Recovery Associates, LLC is suing you, you may hear directly from its debt collection attorneys. In many Texas court cases, Rausch Sturm LLP handles its debt collection cases. If you receive communication from a law firm and do not recognize it, search for it online to learn more about it.

How Long Can a Debt Collector Pursue an Old Debt in Texas?

Under Texas law, the creditor must file suit within the four-year limitations period for a ‘debt’ claim; after that, the claim is time-barred and unenforceable in court. Tex. Civ. Prac. & Rem. Code § 16.004(a)(3). Debt buyers may not sue or compel arbitration after limitations expire and must give time-barred debt disclosures in initial written communications; payment or reaffirmation does not revive the claim. Tex. Fin. Code § 392.307(c)–(e). Texas law requires third-party debt collectors to file a $10,000 surety bond with the Secretary of State before engaging in debt collection. Tex. Fin. Code § 392.101.

Case Study: Using Texas Limitations to Shut Down a PRA Lawsuit

A client came to us scared and confused after being served by Portfolio Recovery Associates on an old credit card account. She worried about her paycheck and her bank account. We checked the court and filed her Answer before the Texas deadline to block a default. Next, we demanded full validation, the chain of title from the original creditor, and a clear payment timeline. Our review showed the last payment was more than four years ago. We raised the statute of limitations as an affirmative defense and set a hearing. PRA could not produce complete records to overcome the time bar. The case was dismissed, and the calls stopped. The lesson is simple. Do not ignore the lawsuit. File on time, ask for proof, and check the dates. A time-barred claim cannot be enforced in Texas.

How to Fight If Sued by Portfolio Recovery Associates in Texas

1. Do Not Ignore the Lawsuit.

   Portfolio Recovery Associates is counting on you to ignore the lawsuit. It does not want you to respond to the suit or show up in court so that it can get a default judgment against you. The judge will likely assume you owe the debt and make a judgment in favor of Portfolio Recovery Associates without your input. A default judgment allows a creditor to garnish bank accounts and reach non-exempt assets, but current wages for personal services are exempt from garnishment in Texas (with narrow exceptions such as court-ordered child support or spousal maintenance).

2. Consult With a Debt Defense Lawyer as Soon as Possible.

   Portfolio Recovery Associates uses extensive resources to collect money from you, including lawyers, and has filed dozens of lawsuits under federal laws. You do not need to have a lawyer on your side, but we recommend it. As a client, having a lawyer to defend you, provide legal advice, and fight for your best interests will give you a better chance of a more favorable outcome in the case, as a lawyer is a powerful tool in navigating legal challenges. Many debt defense lawyers offer flat fee or flat fees arrangements, giving clients transparent and predictable legal costs compared to hourly billing. A judgment in a debt collection case carries interest and can increase in value daily, emphasizing the importance of timely action. We recommend contacting our North Texas debt defense attorneys to discuss your situation.

3. Respond to the Lawsuit to Avoid a Default Judgment.

   It is essential that you respond to a Portfolio Recovery Associates lawsuit as soon as possible. Deadlines depend on the court. In justice court, an answer is due by the end of the 14th day after service. Tex. R. Civ. P. 502.5(d). In county or district court, the answer is due by 10:00 a.m. on the Monday next after 20 days from service. Tex. R. Civ. P. 99(b).

How We Help Clients With Portfolio Recovery Associates Lawsuits

At Warren & Migliaccio, our debt defense lawyers have extensive experience representing clients in debt defense cases. You can count on us to help you understand your best legal options to protect you against a debt collection lawsuit. If you are facing a portfolio recovery services lawsuit or other debt lawsuits filed by Texas Portfolio Recovery Associates or other debt collection agencies, you should seek legal help.

A few examples of how we may be able to help you include but are not limited to:

• Prepare and file a response to the lawsuit. We can protect you against a default judgment due to failure to respond. We contest the allegations against our clients and demand proof of debt.
• Investigate the case. Generally, debt collection lawsuits have weaknesses. For example, the statute of limitations may have expired, you may not own the debt, or the alleged amount of debt may be incorrect. We can determine the validity of the debt by reviewing your account statements, credit card statements, and credit report to verify the debt and confirm the original creditor. Portfolio Recovery Associates may have purchased the debt from the original creditor, so it is important to verify the chain of title and ensure the debt buyer has the legal right to collect.
• Request a case dismissal. We may request that the court dismiss your case if we find that Portfolio Recovery Associates made procedural errors or the lawsuit lacks legal merit. Courts require specific procedures to be followed, and a Texas partial release may be necessary if a judgment lien is involved.
• Defend you in court. We can defend you and fight for your best interests within the court system. You may have legal grounds that protect your legal rights and prevent Portfolio Recovery Associates from seeking a judgment against you. Courts require proper documentation and legal procedures, and judgment creditors may have the right to pursue collection actions. Judgments can cloud title to real estate, may appear on your credit report, and can prevent the purchase or sale of property until resolved.
• Negotiate a settlement. If appropriate, we can help you negotiate a favorable settlement agreement below the original amount of debt or arrange a manageable payment plan. Debt settlement and negotiating with Portfolio Recovery Associates can help you settle for less than the original amount owed, and payment plans may be available. You may be able to pay Portfolio Recovery Associates a certain amount to settle the debt, which can help avoid further legal action. Negotiating with Portfolio Recovery Associates may involve working with the creditor or debt collection agencies to reach a resolution.
• Pursue damages. If Portfolio Recovery Associates used illegal practices to try to collect money from you, then we can help you pursue damages against it. If Portfolio Recovery Associates attempts to collect a bill that you do not owe, you may have legal recourse.

FAQs About Texas Lawsuit Timing & Limitations

FAQs About Debt Collection Remedies & Proof

FAQs About Texas Legal Nuances & Parties

FAQs About Case Outcomes & Company Background

Discuss Your Situation With Our Debt Collection Defense Attorneys

Are you being sued by Portfolio Recovery Associates or another debt collection company? We encourage you to schedule a free consultation with our North Texas debt defense attorneys. During consultation, we can answer your legal questions, help you understand the best option, and evaluate your individual case to determine how we can help you. Fill out our online contact form or call us at (888) 584-9614 to discuss your unique situation.