Sued by Portfolio Recovery Associates in New Jersey? 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 New Jersey, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 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 New Jersey 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.

New Jersey Wage Garnishment Exemptions

Only 10% of gross income for most debtors. If income is less than 250% of poverty level, wages are completely exempt. Very protective.

New Jersey Consumer Fraud Act

In addition to the federal FDCPA, New Jersey's New Jersey Consumer Fraud Act may provide additional protections and remedies against Portfolio Recovery Associates's collection practices.

New Jersey Court System

Small claims limit $5,000. Special civil part handles cases up to $20,000. Law division for larger amounts. Filing fees in New Jersey typically range $35-$300.

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 to respond in New Jersey?

35 days from service — one of the longer deadlines, but do not wait until the last day.

What is the SOL in New Jersey?

6 years for all contract types.

How protective is NJ on wage garnishment?

Very protective. Only 10% of gross income can be garnished. If your income is below 250% of the federal poverty level, your wages are completely exempt.

What is the special civil part?

New Jersey's court for civil cases up to $20,000. Most consumer debt lawsuits are filed here.

Is Pressler Feltner active in NJ?

Yes. Pressler Feltner is one of the highest-volume debt collection filers in New Jersey.

How long does a creditor have to sue me on a debt in New Jersey?

New Jersey's statute of limitations on most consumer debts is six years (N.J.S.A. 2A:14-1), which includes credit-card debts and open-account claims. Sales of goods under the Uniform Commercial Code follow a four-year limit (N.J.S.A. 12A:2-725), which can apply to certain store-card and revolving accounts depending on how the case is framed. The clock generally begins running from the date of last payment or default. Once the limit has expired, the debt is time-barred and you have a complete defense, but you must affirmatively plead the defense in your answer. Time-barred debts can still be requested for voluntary payment, but suing or threatening suit on a time-barred debt violates the FDCPA. Watch out for partial payments and written acknowledgments, which can restart the clock under certain circumstances. If unsure of dates, send a written validation request under 15 U.S.C. § 1692g and check your credit reports for the original charge-off date.

What is the NJ Consumer Fraud Act and why is it so powerful in collection cases?

The New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq., is one of the most consumer-friendly statutes in the country. It prohibits any unconscionable commercial practice, deception, fraud, false pretense, false promise, or misrepresentation in connection with the sale of merchandise or services. The remedy structure is what makes it powerful: automatic treble damages on any ascertainable loss, plus mandatory attorney fees and costs to any prevailing consumer. The minimum award framework, the broad definition of unconscionable conduct, and the mandatory fee shifting combine to make the CFA a serious tool in collection counterclaims. New Jersey courts have applied the CFA to misrepresented balances, misleading collection letters, deceptive debt-validation responses, and a wide range of related conduct. Combining a CFA counterclaim with a federal FDCPA claim in the same answer can substantially shift the economics of a consumer-debt case and often opens the door to a favorable settlement.

I was sued in NJ Special Civil Part. What is my deadline to respond?

If you have been sued in the Special Civil Part of the Superior Court Law Division in New Jersey, you must file a written answer within 35 days of the date the summons and complaint were served on you. If you do not respond, the plaintiff can request a default judgment for the full amount claimed plus interest and costs, and once a judgment is entered the collector can pursue wage garnishment, bank levy, and property liens. The answer fee is modest and you can file pro se. Your answer should deny the debt, demand strict proof, and raise common defenses such as statute of limitations, lack of standing, lack of admissible business records, unconscionable commercial practice under the NJ Consumer Fraud Act, and FDCPA violations as appropriate. Default judgments in Special Civil Part can be vacated under R. 4:50-1 if you act quickly, particularly within months of entry, and can show excusable neglect or a meritorious defense.

How much of my paycheck can a New Jersey collector take?

New Jersey wage garnishment is more protective than the federal floor for lower-income workers. Under N.J.S.A. 2A:17-50, the garnishment cap is 10 percent of gross income for debtors with earnings under 250 percent of the federal poverty level, and up to 25 percent for higher earners, subject to the federal CCPA limits. Disposable earnings means earnings after legally required deductions. Federal benefits including Social Security, SSI, VA, and most federal pensions are fully exempt from garnishment by private creditors. To enforce a wage garnishment, a collector must first obtain a judgment, then apply to the court for a wage execution; you receive notice and have the opportunity to challenge the execution and claim exemptions. If a collector threatens immediate wage garnishment before judgment is entered, that is a misleading statement and may violate the FDCPA. Always demand to see the judgment and wage execution paperwork before treating any garnishment threat as legitimate.

Can a collector keep calling me after I tell them in writing to stop in New Jersey?

No. Under the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692c(c), once you send a written cease-and-desist letter to a third-party debt collector, the collector is limited to a single additional contact to confirm receipt or to advise you of a specific action they intend to take. Continued collection calls after a written cease request are a per-se FDCPA violation, with statutory damages up to $1,000 per consumer plus actual damages and attorney fees. New Jersey collection regulations and the NJ Consumer Fraud Act may also reach this conduct, particularly where the calls are abusive or include misrepresentations. Always send cease-and-desist letters in writing, keep a copy, and send by a trackable method such as certified mail or USPS Priority with tracking. Save voicemails, screenshot call logs, and keep a contemporaneous log of every contact. That documentation is the foundation of a strong FDCPA counterclaim if collection continues.