Sued by Portfolio Recovery Associates in Ohio? 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 Ohio, 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 Ohio 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.

Ohio Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 30x federal minimum wage exempt. Minimum $425.50/week exempt as of 2024.

Ohio Consumer Sales Practices Act

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

Ohio Court System

Small claims limit $6,000. Municipal court for cases up to $15,000. Common pleas for larger amounts. Filing fees in Ohio typically range $50-$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 Ohio?

28 days from service.

What is the SOL in Ohio?

6 years for credit cards. 8 years for written contracts. 6 years for oral contracts.

Can wages be garnished in Ohio?

Yes. Federal limits apply, with a minimum weekly exemption of $425.50.

Where are debt cases filed?

Municipal court for smaller amounts. Court of common pleas for larger cases.

I was sued in an Ohio municipal court by a debt buyer. What should I do first?

Read the summons carefully. It will tell you which court the case is in and how many days you have to file a written answer, which in most Ohio municipal courts is 28 days from service. Do not ignore it. If you do not answer, the collector can ask the court for a default judgment, and the court will likely grant it without examining whether the debt buyer can actually prove the debt. Your answer does not need to be long or fancy. Many people file a one or two page document admitting service, denying the substantive allegations, and listing defenses such as lack of standing, failure to attach the contract, statute of limitations, and improper venue. File it with the clerk and mail a copy to the collector's attorney. Once you have answered, you have the right to request documents from them, including the original credit agreement, the chain of assignments showing they own your account, and the account statements. Many debt buyer cases fall apart at this stage because the documentation does not exist or is incomplete.

Can a debt collector garnish my wages in Ohio without suing me?

No. A debt collector cannot take your wages, your bank account, or any property in Ohio without first suing you, obtaining a judgment, and then asking the court to issue a garnishment or execution order. The only common exception is for certain government debts such as defaulted federal student loans, federal tax debts, and child support, where administrative wage garnishment may be available. If a private debt collector is threatening to garnish wages without a judgment, that threat itself can violate the federal FDCPA. Once a judgment is entered, Ohio law caps wage garnishment at 25% of disposable earnings or the amount over 30 times the federal minimum wage, whichever is less, and prohibits firing you because of a single garnishment. Bank account funds can also be levied, but Ohio exemptions protect a portion of the funds. If you receive a garnishment notice, you can file a request for hearing using the form attached to the notice to claim exemptions.

What is the statute of limitations on credit card debt in Ohio?

Ohio law treats credit card debt as an account, which carries a six-year statute of limitations on written contracts under Ohio Rev. Code § 2305.06 and a shorter limitations period for certain open accounts. For out-of-state creditors, Ohio's borrowing statute, Ohio Rev. Code § 2305.03(B), can apply the limitations period of the state where the cause of action accrued if that period is shorter. Practically, this means a debt buyer suing on an old credit card account in Ohio may be subject to a three to six year window from the date of last activity or default, depending on which state's law governs the cardholder agreement. The clock generally starts on the date of the first missed payment that was never cured. If a collector sues you on a debt that is past the limitations period, you can raise statute of limitations as an affirmative defense and the case should be dismissed. The defense is waived if you do not raise it, so it must be in your answer.

Does Ohio have a license requirement for debt collectors?

Ohio does not require third-party debt collectors to obtain a general state license to collect consumer debts. That is unusual compared to neighboring states like Pennsylvania and West Virginia. However, collection attorneys must be licensed to practice law in Ohio if they file suit, and certain regulated entities, like consumer finance lenders and mortgage servicers, have licensing obligations under Ohio Rev. Code Chapter 1321 and Chapter 1322. Even though there is no state collection license, debt collectors operating in Ohio still must comply with the federal FDCPA and Regulation F, and their conduct in consumer transactions can be challenged under the Ohio Consumer Sales Practices Act when the underlying transaction is a consumer transaction. The lack of a state license does not mean the collector is free of rules, it just means consumers usually rely on federal law and the Ohio CSPA rather than a state collection statute.

A debt collector keeps calling me at work in Ohio. Can I stop the calls?

Yes. Under the federal FDCPA at 15 U.S.C. § 1692c(a)(3), a debt collector may not contact you at work if they know or have reason to know that your employer prohibits such communications. You can tell the collector verbally that your employer does not allow personal collection calls, and they must stop. Better practice is to send a short written notice by certified mail or trackable email saying your employer prohibits calls at work and identifying the phone number. You can also send a separate written cease and desist letter under 15 U.S.C. § 1692c(c) telling the collector to stop all communication, after which they may only contact you to confirm receipt or to tell you about a specific legal action. Keep copies of your letters and proof of delivery. If they continue to call after you have given proper notice, that is a separate FDCPA violation that may entitle you to statutory damages up to $1,000, actual damages, and attorney fees in a federal lawsuit.