In 2015, the CFPB took action against “the nation’s largest debt buyer,” Encore Capital Group, for “employing deceptive practices to collect on bad debts.” The bureau also cited “Portfolio Recovery Associates, which is the nation’s second-largest debt collector” for the same allegations. Encore Capital Group was “required to pay up to $42 million in consumer refunds, plus a $10 million penalty, and halt collection on more than $125 million in debts.” Portfolio Recovery Associates “was ordered to pay $19 million in refunds, plus an $8 million penalty, and cease collecting on more than $3 million in debts.”

• Encore Capital Group is a “San Diego-based” debt buyer and Portfolio Recovery Associates is based on Norfolk, Virginia. [Lori Weisberg, “Bureau: Encore, Portfolio Recovery used illegal practices to gather funds,” The San Diego-Union Tribune, 09/19/15]

• The companies “would try to collect on incorrect balances or they would sue individuals in state courts with the hope that the consumers would not mount a defense and as a result, the firms would win the lawsuits by default” and “would pressure consumers to make payments, relying on inaccurate statements.” Together, the two companies “had purchased the rights to collect more than $200 billion in defaulted consumer debts on credit cards, phone bills and a variety of other accounts.” [Lori Weisberg, “Bureau: Encore, Portfolio Recovery used illegal practices to gather funds,” The San Diego-Union Tribune, 09/19/15]

• Encore Capital Group was “required to pay up to $42 million in consumer refunds, plus a $10 million penalty, and halt collection on more than $125 million in debts.” Portfolio Recovery Associates “was ordered to pay $19 million in refunds, plus an $8 million penalty, and cease collecting on more than $3 million in debts.” In both cases, “the refunds that were assessed were related to debt that could no longer be collected because the statute of limitations had already passed.” The companies were also “required to overhaul their methods, reform the way they collect debt through lawsuits, and stop reselling purchased debt to third parties.” [Lori Weisberg, “Bureau: Encore, Portfolio Recovery used illegal practices to gather funds,” The San Diego-Union Tribune, 09/19/15]