Sued by Portfolio Recovery Associates in Florida? Here's What to Do Next

2015 · consent order

$27M total ($19M consumer refunds + $8M civil penalty)

CFPB found that PRA collected on unsubstantiated debt, filed misleading affidavits in debt-collection lawsuits, misrepresented its intent to prove debts if contested, and sued consumers on time-barred debts.

CFPB source

2023 · consent order

$24M+ total ($12.18M consumer redress + $12M civil penalty)

CFPB found that PRA violated the 2015 order by continuing to collect on unsubstantiated debt, suing without required documentation, suing on time-barred debt, and failing to investigate consumer disputes in its credit reporting.

CFPB source

Statute of Limitations Defense

In Florida, the statute of limitations for credit card debt is 5 years. If your last payment was more than 5 years ago, the debt is time-barred. Portfolio Recovery Associates has been the subject of CFPB findings related to suing on time-barred debts — check your dates carefully and raise the SOL defense in your Answer.

Lack of Standing / Chain of Title

As a debt buyer, Portfolio Recovery Associates must prove they actually purchased your specific account. Demand the complete chain of title — the purchase agreement, bill of sale, and assignment documents. In Florida courts, failing to produce this documentation can result in dismissal.

Challenge the Amount

Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.

Florida Wage Garnishment Exemptions

Head of household is completely exempt from wage garnishment if providing more than half of a dependent's support. Strong protection.

Florida Consumer Collection Practices Act (FCCPA)

In addition to the federal FDCPA, Florida's Florida Consumer Collection Practices Act (FCCPA) may provide additional protections and remedies against Portfolio Recovery Associates's collection practices.

Florida Court System

County court handles cases up to $50,000. Circuit court for larger amounts. Small claims up to $8,000. Filing fees in Florida typically range $55-$400.

Who is Portfolio Recovery Associates?

Portfolio Recovery Associates (PRA) is a major debt buyer owned by PRA Group, Inc. They purchase defaulted consumer debts from banks and credit card companies and pursue collection through calls, letters, credit reporting, and lawsuits.

Has PRA been in trouble with regulators?

Yes. In 2015, the CFPB ordered PRA Group to pay $108 million for using litigation tactics that violated the law, including suing consumers without verifying debts and collecting debts that were not owed.

Can I beat a PRA lawsuit?

Yes. Many PRA lawsuits can be successfully defended by challenging their standing to sue, demanding proof of the chain of title, raising statute of limitations defenses, and challenging the accuracy of the amount claimed.

What should I do if PRA contacts me?

Request debt validation in writing within 30 days of their first contact. Do not acknowledge the debt or make any payments, as this could restart the statute of limitations in some states. Consider consulting with a consumer rights attorney.

Can PRA garnish my bank account?

Only after obtaining a court judgment. If PRA sues you and you do not respond, they will get a default judgment that allows wage garnishment and bank levies in most states. Filing your Answer is the critical first step to prevent this.

How long do I have to respond in Florida?

20 days from service to file your Answer with the court. This is a strict deadline.

What is the statute of limitations in Florida?

5 years for written contracts including credit cards. 4 years for oral contracts.

What is the FCCPA?

The Florida Consumer Collection Practices Act provides additional protections beyond the federal FDCPA. It prohibits many deceptive collection practices and allows consumers to recover actual damages plus attorney fees.

Can they garnish my wages in Florida?

If you are head of household and provide more than half the support for a dependent, your wages are completely exempt from garnishment. This is one of the strongest protections in the country.

What courts handle debt lawsuits in Florida?

Small claims up to $8,000, county court up to $50,000, and circuit court for larger amounts.

Can a debt collector in Florida sue me on a credit-card debt that is more than five years old?

Florida's statute of limitations for a written contract is five years under Fla. Stat. § 95.11(2)(b) and four years for an account or unwritten contract under Fla. Stat. § 95.11(3)(k). For most credit-card accounts opened in Florida, courts apply the five-year written-contract limit if the cardholder agreement is in writing, or four years if it is not. If a collector files after the limitations period has run, that itself can be a violation of the FCCPA at Fla. Stat. § 559.72(9) for asserting a legal right the collector knows does not exist, and it can be a violation of the federal FDCPA at 15 U.S.C. § 1692e(2) for misrepresenting the legal status of a debt. The defense is not automatic, you have to plead it as an affirmative defense in your answer or it is waived. Partial payment or written acknowledgment after the period runs can also restart the clock under Florida law, so do not pay or sign anything without reading it first.

How much of my wages can a Florida debt collector garnish after winning a judgment?

Florida has one of the strongest wage-protection statutes in the country. Under Fla. Stat. § 222.11, the disposable earnings of a head of family are exempt from garnishment if they are $750 per week or less. If head-of-family earnings are above $750 per week, they are still exempt unless the consumer agrees to garnishment in writing. For consumers who are not heads of family, the federal cap under 15 U.S.C. § 1673 applies, which limits garnishment to 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. Social Security, SSI, VA benefits, unemployment compensation, and most retirement income are also exempt under federal law and Fla. Stat. § 222.21. You claim head-of-family status by filing a sworn statement with the court after the writ of garnishment is served.

What does the 30-day notice under Florida Statute 559.715 mean for a debt-buyer suit?

Fla. Stat. § 559.715 requires that when a consumer debt is assigned for collection, the assignee must give the consumer written notice of the assignment at least 30 days before filing suit. Florida appellate courts, including the Fourth District in Brindise v. U.S. Bank, have held that this notice is a condition precedent to filing collection litigation and can be raised as an affirmative defense. If you are sued by Midland Funding, LVNV, Cavalry SPV, or Portfolio Recovery and the complaint does not allege that a 559.715 notice was given, you can move to dismiss or plead the missing notice as a defense. Some courts require the notice to be attached to the complaint. The notice has to identify the new owner of the debt and provide a way to contact them. Always check your records for any letter that resembles this notice before responding to the suit.

Can a debt collector freeze my Florida bank account?

A judgment creditor in Florida can serve a writ of garnishment on your bank under Fla. Stat. Chapter 77, and the bank will freeze the account up to the judgment amount. Once the writ is served, you have 20 days under Fla. Stat. § 77.041 to file a claim of exemption identifying any protected funds. Funds traceable to Social Security, SSI, VA benefits, unemployment, child support, workers compensation, and most retirement accounts are exempt under Fla. Stat. § 222.21 and federal law. Head-of-family wages deposited into the account are also exempt under Fla. Stat. § 222.11 for up to six months. If you do not file the exemption claim on time, the bank pays the funds to the creditor. File the claim of exemption form, sometimes called Form 1.977, with the clerk and serve it on the creditor's attorney; the court must then schedule a hearing within five business days.

Does the FCCPA give me more rights than the federal FDCPA in Florida?

Yes, in important ways. The federal FDCPA at 15 U.S.C. § 1692a(6) applies only to third-party debt collectors, but the Florida FCCPA at Fla. Stat. § 559.72 applies to anyone collecting a consumer debt, including the original creditor, the original lender, a landlord, and an in-house collection department. So if you are being harassed by a bank or credit card issuer that is still servicing your account, the FCCPA covers it even though the federal FDCPA usually does not. Remedies under Fla. Stat. § 559.77 include actual damages, statutory damages up to $1,000, punitive damages, and attorney fees for the consumer. You can also bring both an FDCPA claim and an FCCPA claim in the same lawsuit, which doubles the statutory exposure for the collector and increases settlement leverage.

How do I respond to a debt-collection lawsuit served on me in Florida?

In Florida county court, if you are sued for under $8,000 the case is on the small-claims track under Florida Small Claims Rules, and you must appear in person at the pretrial conference listed on the summons. For cases above $8,000, you have 20 days from the date of service under Fla. R. Civ. P. 1.140 to file a written answer with the clerk and serve it on the plaintiff's attorney. Include any affirmative defenses such as statute of limitations under Fla. Stat. § 95.11, lack of standing of the debt buyer, failure to give 559.715 notice, and any FCCPA or FDCPA counterclaims. Do not ignore the summons; default judgment is automatic if you fail to respond, and the creditor can then garnish wages and bank accounts. Filing fees are waived for indigent filers under Fla. Stat. § 57.082.