Portfolio Recovery $75,000 Debt Collection Settlement

Wisconsin residents who received specific debt collection letters from Portfolio Recovery Associates may qualify to claim a cash payment and/or account credit from a class action settlement.

Portfolio Recovery Associates LLC agreed to pay $75,000 to resolve a class action lawsuit alleging certain debt collection letters it sent to Wisconsin residents violated the Fair Debt Collection Practices Act.

Who can file a Portfolio Recovery Associates claim?

Class members must meet the following criteria:

• They are a natural person residing in Wisconsin.
• They received a “001 letter” from Portfolio Recovery Associates dated prior to Nov. 18, 2021.
• Within 30 days after receiving the "001 letter," they received a “34 letter” from PRA on the same account dated Nov. 19, 2019, or later.
• Neither letter was returned as undeliverable by the postal service.

How much is the debt collection payout?

The settlement provides two types of benefits:

• A pro rata share of the $75,000 settlement fund distributed equally among all class members who submit a valid claim form by the deadline.
• An automatic account credit of $16.75 for class members with a collectible PRA account and an outstanding balance of at least $16.75.

How to claim a Portfolio Recovery Associates class action rebate

Class members do not need to file a claim for the automatic account credit.

For a pro rata share of the settlement, class members can file a claim online or download, print and complete a PDF claim form to mail to the settlement administrator. The claim deadline is July 7, 2025.

Settlement administrator's mailing address: Marinescu v. PRA, c/o Kroll Settlement Administration, PO Box 225391, New York, NY 10150-5391

Required proof

Claimants must provide the Class Member ID found on their mailed postcard notice from the settlement administrator.

Payout options

• The settlement administrator will mail paper checks to approved claimants at the address provided on the claim form.
• Account credits of $16.75 will be applied automatically to eligible PRA accounts.

Debt collection settlement fund breakdown

• Settlement administration costs: $50,000 paid separately from the settlement fund
• Account credits: To be determined but paid separately from the settlement fund
• Attorneys’ fees and expenses: Up to $200,000 and paid separately from the settlement fund
• Service awards to class representatives: $5,000 each ($10,000 total and paid separately from the settlement fund)
• Settlement fund for eligible class members: $75,000

Important dates

• Claim Deadline: July 7, 2025
• Opt-out Deadline: July 7, 2025
• Final Approval Hearing: July 30, 2025

When is the Portfolio Recovery Associates payout date?

Cash payments and account credits will be made within 51 days of the settlement's final approval.

Why is there a class action settlement?

The class action lawsuit alleged Portfolio Recovery Associates sent misleading debt collection letters to Wisconsin residents that violated the Fair Debt Collection Practices Act. PRA denied the allegations but agreed to settle the case to avoid further litigation.

Sources

1. Class Notice
2. Settlement Agreement
3. Settlement Website FAQ