Collection Agencies are SHADY!!!!

I have not shared any Credit News in a while, so here's one! I think I will start sharing how unethical collection agencies and their business operations are.

Below is a link to an article about Portfolio Recovery Associates- a shady collection agency based in Norfolk, VA. The Consumer Financial Protection Bureau (CFPB) ordered the repeat offender Portfolio Recovery Associates to Pay More Than $24 Million for Continued Illegal Debt Collection Practices and Consumer Reporting Violations.

https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-portfolio-recovery-associates-to-pay-more-than-24-million-illegal-debt-collection-practices-reporting-violations/

They were fined for the following violations:

• Making representations about unsubstantiated debts

• Threatening consumers with potential legal actions and initiating debt collection lawsuits without offering or possessing required documentation

• Misrepresenting that it would provide certain documents within thirty days

• Collecting on time-barred debt without making required disclosures

• Suing to collect on time-barred debt

• Failing to inform consumers about investigation outcomes

• Failing to timely resolve disputes

• Conducting unreasonable investigations

The following actions were taken against them for violating consumer financial laws (YOUR CONSUMER RIGHTS)

• Provide redress to consumers ($12.18 million)

• Clean up its faulty operations

• Fix its failures to properly respond to consumers

• Pay $12 million in penalties

In my opinion and experience, they are one of the worst collection agencies to deal with. Oh and.... Midland Credit Management!

This is why I ALWAYS advise my clients to not pay a collection account until they request debt validation and receive the legal documents from those shady debt collection agencies!

Remember, it is never too late to take control of your finances!