A class action lawsuit has accused debt collector Portfolio Recovery Associates of unlawful collection practices.
Attorney Daniel A. Edelman filed the suit in Cook County Circuit Court on behalf of named plaintiff Lawyer Darfour, according to court documents.
At the heart of the complaint is the allegation that Portfolio Recovery Associates made it appear as if Darfour had made a $38 payment toward a credit card debt that would both amount “to an admission that the remaining balance claimed is due,” as well as extend the statute of limitations for debt collection.
However, Darfour claims to never have made any such payment.
The complaint alleges that the actions taken in Darfour’s case are common practice for the company.
Darfour alleges that Portfolio Recovery Associates violated federal law by engaging in both deceptive and unfair practices in creating the $38 credit and presenting it in such a way so as to appear as an action attributable to Darfour.
The complaint also describes Portfolio Recovery Associates as engaging “in a pattern and practice of filing collection complaints and filling out the accompanying affidavits to reflect small purported ‘credits and/or payments’ that do not reflect any activity on the account which is attributable to the consumer, without disclosing that fact, according to court documents.
The lawsuit seeks unspecified statutory damages, plus attorney fees.