Portfolio Recovery Associates Faces Class Action Lawsuit Over Violation of Debt Collection
According to a recent class action lawsuit, a debt collection organization disclosed private user data — including account numbers and balances owed — to third parties to collect debts.
Carmen M. Pagan v. Portfolio Recovery Associates LLC
On Thursday, Carmen M. Pagan’s class action lawsuit against Portfolio Recovery Associates LLC (PRA) was transferred to a federal court in New Jersey.
According to the complaint, PRA violated the Fair Debt Collection Practices Act and the New Jersey Consumer Fraud Act by disclosing confidential information about customers to third-party contractors to send debt collection letters.
Pagan claims that on June 16 of last year, she received a collection notice from PRA that she believes was delivered via a third-party letter service, despite the fact that she never agreed to the company accessing her private information.
The lawsuit states that the defendant irresponsibly revealed Pagan’s personal and sensitive information concerning her debt to a third party without her prior knowledge by employing a letter vendor.
In addition, the defendant improperly provided information concerning Pagan’s debt, including the creditor’s account number and supposed balance owed.
Fair Debt Collection Practices Act
Pagan seeks to represent a Class comprising New Jersey residents whose private data was disclosed by PRA in an attempt to collect on Citibank N.A./Sears accounts between June 16, 2015, to June 16, 2016.
According to her, the Fair Debt Collection Practices Act prohibits debt collectors from interacting with third parties about unpaid debts without their consent. Additionally, it forbids the publication of a list of consumers with outstanding debts, as she suspects PRA did.
The lawsuit states that by releasing the plaintiff’s and class members’ private financial information, the defendant harmed them by disclosing their personal data to others who lacked any right or privilege to know it.
Pagan is also suing Portfolio Recovery Associates for negligence and invasion of privacy, requesting that a judge prevent PRA from continuing the alleged actions.
Editor’s Note on Portfolio Recovery Associates Class Action Lawsuit 2021:
This article is written to inform you of the class action lawsuit filed against Portfolio Recovery Associates over disclosing customers’ private information to unauthorized third-party companies.
Case Name & No.: Carmen M. Pagan v. Portfolio Recovery Associates LLC, Case No. 2:21-cv-14008
Jurisdiction: U.S. District Court for the District of New Jersey
Products/Services: Debt collection law
Allegations: Portfolio Recovery Associates allegedly disclosed its customers’ private data to third parties in an attempt to collect debts
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Suggested Article: What Is The FDCPA Law?