Cecily Zamora
Lexington Law Firm is a credit repair service that offers free resources and paid programs to help repair clients' credit. Portfolio Recovery Associates (PRA) is a debt collection agency and debt buyer that purchases large volumes of debt from banks, lenders, and credit card companies. If you have PRA listed on your credit report, it means they are attempting to collect an unpaid debt from you. Lexington Law Firm can help remove PRA from your credit report by challenging adverse reporting and examining your report for negative items. According to user experiences, Lexington Law Firm has successfully removed PRA from their credit reports. However, it is important to note that Lexington Law Firm has received concerning reviews, with complaints about unauthorized charges and difficulty cancelling subscriptions.
| Characteristics | Values |
|---|---|
| Lexington Law Firm | A credit repair service that helps to challenge adverse reporting on an individual’s credit report |
| Portfolio Recovery Associates | A debt collection agency that buys old debts from lenders and companies that have been unable to collect the debt themselves |
| Removing Portfolio Recovery from credit report | If the information is accurate, consider negotiating a "pay-for-delete" agreement or working with a credit repair service. If the information is inaccurate, request debt validation within 30 days and Portfolio Recovery must remove the negative information from your credit report |
| Fair Debt Collection Practices Act (FDCPA) | A law that spells out the rights of debtors and the obligations of debt collectors, including not calling before 8 AM or after 9 PM, not calling a place of employment, and not threatening harm or using profane language |
| Credit score impact | Having a debt collection company on a credit report can significantly lower the credit score, and removing the collection may not immediately improve the score |
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What You'll Learn
Portfolio Recovery Associates (PRA) is a debt collection agency
According to the CFPB, PRA engaged in deceptive conduct by making representations about disputed debts without reviewing the required documentation and threatening consumers with legal action without possessing the necessary documentation. PRA has also been accused of failing to resolve disputes in a timely manner, properly respond to disputes, conduct reasonable investigations, and maintain accurate and integrity-based consumer information.
If you are contacted by PRA or any other debt collection agency, it is important to remember that you have rights under the FDCPA. Debt collectors cannot call you before 8 AM or after 9 PM, and they cannot call your place of employment. If you have a lawyer, the collector must communicate with your lawyer. Additionally, debt collectors cannot threaten you or use profane language.
Lexington Law is a company that offers services to help individuals deal with debt collection agencies and improve their credit scores. According to some sources, Lexington Law has been successful in removing PRA collections from individuals' credit reports. However, it is important to note that removing a collection from your credit report does not always result in an immediate increase in your credit score. There are various factors that can impact the change in your credit score.
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Lexington Law Firm offers credit repair services
The process typically begins with a free online credit assessment to determine if credit repair is the right option for the individual. If the client chooses to proceed, Lexington Law Firm's lawyers will examine the client's credit report and identify questionable negative items that may be wrongfully hurting their credit score. The firm will then contact the credit bureaus and creditors to verify these negative items, requesting that any inaccurate or unfair items be removed.
One former client of Lexington Law Firm shared their experience on the firm's website, stating that they were able to remove an 11k collection from Portfolio Recovery from their Equifax credit report. However, it's important to note that the impact on their credit score was not as significant as they had expected. This may be because any remaining "derogs" or negative items on the report could be weighing down their score.
Additionally, it's worth mentioning that Lexington Law Firm was involved in a legal settlement with the CFPB (Consumer Financial Protection Bureau) in 2024-2025. The firm, along with CreditRepair.com, was found to have violated federal telemarketing laws and consumer protection laws. As a result, they were ordered to pay refunds and civil penalties totaling $2.7 billion and were banned from telemarketing credit repair services for 10 years.
In conclusion, Lexington Law Firm provides credit repair services aimed at helping individuals improve their credit reports and, by extension, their credit scores. Their lawyer-driven process involves identifying and disputing inaccurate or unfair negative items with credit bureaus and creditors. While the firm has helped many clients successfully remove negative items, it's important to approach credit repair services with caution and be aware of potential scams or illegal practices, as highlighted by the CFPB's legal action against Lexington Law Firm.
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PRA buys debt in bulk from original creditors
PRA Group, Inc., formerly known as Portfolio Recovery Associates, Inc., is a publicly traded debt buyer and debt collection company headquartered in Norfolk, Virginia. The company was founded in 1996 by Kevin Stevenson and Steve Fredrickson, who had previously worked in collections at Household Finance.
PRA Group is a leading debt buyer that acquires non-performing loans and delinquent debts from creditors such as credit card companies, banks, and other financial institutions. They purchase these debts at a discounted price and then attempt to collect the full amount from the borrowers. In 2000, the company purchased $1 billion of debt and was ranked as the tenth largest debt buyer in the United States. In 2013, it was listed as one of the top five debt buyers in the US by the Federal Trade Commission.
The company has a global presence, operating in the United States, the United Kingdom, Europe, Canada, Australia, and several other countries. In 2015, PRA Group expanded its reach by acquiring Aktiv Kapital, a Norway-based debt buyer and lender.
When a creditor is unable to collect a debt, they may sell it to a collection agency like PRA Group. The collection agency then becomes responsible for collecting payment. PRA Group has been known to purchase old debt and try to recover it, even if the debt is beyond the statute of limitations. In such cases, they may attempt to collect payment by threatening or misleading consumers, providing incorrect information, or filing court cases without proper documentation.
If you are contacted by PRA Group or any other collection agency, it is important to know your rights under the Fair Debt Collection Practices Act (FDCPA). You can request that the debt collector validate the debt, and they are required to stop all collection efforts until they can prove that you are responsible for the amount owed. If you believe that the debt is not valid or that the collection agency has violated the FDCPA, you can dispute the debt and may be eligible for compensation.
Additionally, you can take steps to stop harassing phone calls from debt collectors. You can send a letter requesting that they communicate only with your lawyer, if you have one, and they are legally obligated to comply. You can also set up a payment plan with PRA Group to resolve the debt, ensuring that the terms are reasonable and within your financial capabilities.
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PRA must abide by the Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity. The FDCPA only applies to third-party debt collectors, such as those who work for a debt collection agency. Credit card debt, medical bills, student loans, mortgages, and other household debts are covered by the law.
The FDCPA makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when attempting to collect debts. Debt collectors must follow certain rules and are restricted in how, when, and how often they can contact a debtor. The law specifies that debt collectors cannot contact debtors at inconvenient times, which means no calls before 8 am or after 9 pm unless the debtor and collector have agreed upon a call outside of these hours. Debt collectors may send letters, emails, or text messages, and they may attempt to reach debtors at their homes or offices. However, if a debtor requests that a collector stop calling their home phone, the collector must comply if the request is made in writing and sent by certified mail with a return receipt.
Additionally, a debt collector is not allowed to physically come to your place of employment as this is considered "publicizing" your debt. They may call you at work, but if you tell them to stop, they must comply. Debt collectors can call the relatives, neighbours, or associates of the debtor to obtain their phone number, but they are only allowed to discuss the debt with the debtor or their spouse, and they can only call third parties once.
If a debtor feels that a debt collector has violated the FDCPA, they may contact the Consumer Financial Protection Bureau (CFPB) or their state's attorney general. Harassment by debt collectors can include repetitive phone calls, calling very early or late, using obscene or threatening language, publicizing the debt, or calling without identifying themselves as a debt collector.
In the context of Portfolio Recovery, a debt collection agency, it is essential to understand that they must abide by the FDCPA when attempting to collect debts. If they violate the FDCPA, debtors have the right to take legal action against them. Lexington Law, for example, has successfully removed Portfolio Recovery from a client's Equifax report, demonstrating that it is possible to resolve issues with debt collection agencies and improve one's credit standing.
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PRA must remove debt if they can't validate it
If you are contacted by Portfolio Recovery Associates (PRA), a debt collection agency, it typically means they have purchased your unpaid debt and are seeking to collect payment. PRA must follow the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices and ensures your rights are protected.
Under the FDCPA, you have the legal right to request debt validation from PRA within 30 days of their first contact with you. They then have 30 days to prove that the debt is yours and the amount is accurate. If PRA cannot validate the debt within this timeframe, they are required by law to remove it from your credit report.
It is important to note that PRA may not have the necessary documentation to validate the debt since they are not the original creditor. Additionally, making a payment or acknowledging the debt as yours can restart the statute of limitations, allowing PRA to pursue legal action against you. Therefore, it is recommended to seek help from a credit repair service or a lawyer to handle the debt validation process and protect your rights.
Lexington Law is a credit repair service firm that offers free resources and paid programs to assist clients with credit bureau challenges, creditor interventions, and inquiry assistance. While they have concerning reviews and a poor BBB rating, they can help remove negative items from your credit report if creditors or credit reporting bureaus fail to respond to their inquiries.
To summarise, if PRA cannot validate your debt within the specified timeframe, they are legally obligated to remove it from your credit report. Seeking assistance from a credit repair service like Lexington Law can be beneficial in navigating the process and ensuring your rights are protected.
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Frequently asked questions
Lexington Law is a credit repair service that offers resources and paid programs to help repair your credit.
Portfolio Recovery Associates (PRA), also known as PRA Group, Inc., is a debt collection agency and debt buyer. They purchase large volumes of debt from banks, lenders, and credit card companies and then take over the collection process.
Yes, Lexington Law can help remove Portfolio Recovery from your credit report. They can use their legal expertise to challenge adverse reporting and examine your report for negative items.
There are a few ways to remove Portfolio Recovery from your credit report:
- You can negotiate a "pay-for-delete" agreement where you offer payment in exchange for the account's removal.
- You can dispute the debt and request debt validation within 30 days of being contacted by Portfolio Recovery. If they cannot validate the debt, they must remove it from your credit report.
- You can work with a credit repair service, such as Lexington Law, to challenge the collection and dispute inaccuracies on your credit report.
