Portfolio Recovery Associates, Inc. (PRA) is – in its own words – “a market leader in the consumer debt purchase and collection industry.” Founded in 1992, by 2011, Portfolio Recovery Associates spent $408 million buying debt with a total face value of $9.8 billion. That’s about $.04 on the dollar. By the end of 2011, the company employed more than 2,600 people in 10 states and had annual earnings of $100.8 million.
Portfolio Recovery Associates relies on several law firms to collect its debt in California, including Hunt & Henriques, Bleier $ Cox, and the Legal Recovery Law Offices of Mark Walsh.
At the outset of a case, PRA will typically demand 75% of the principle amount to settle. When faced with experienced debt defense counsel, however, Portfolios demands will shrink as trial approaches. Recently, for example, this office defended a $ 42,000 credit card collection lawsuit against Portfolio Recovery Associates. For over a year, Portfolio stuck to its settlement demand of $30,000 – just under 75%. Then, a week before trial, they settled $9,600.
In this case, about six weeks before trial, we took the deposition by PRA’s witness.Fortunately, we were able to poke several holes in their case. PRA settled for 20% of the balance sought rather than bring a weakened case to trial. (A deposition is out of court testimony taken under oath before a court reporter priro to trial. Deposition testimony can be used at trial to descredit a witness.) While depositions can be expensive, in larger cases, they are necessary in preparing for trial.
To learn how we can help you against Portfolio Recovery Associates,LLC please click on one of the links at the top of the page. You can also feel free to call us toll free at (877)551-0210 for a free consultation, or you can provide your contact information to the right and we will contact you.