PRA Group

PRA Group was founded as Portfolio Recovery Associates, LLC in March 1996 by Kevin Stevenson and Steve Fredrickson, who worked previously in collections at Household Finance. By February 2003, it was trading at 60% above its $13 offering price. A second stock offering in May 2003 consisted largely of sales by insiders; the cofounders of PRA and an officer of the company collectively cleared $12.2 million from the offering. In October 2014, the company name was changed from Portfolio Recovery Associates, Inc. to PRA Group, Inc. ==Litigation and regulatory actions==

In 2014, the Attorney General of New York obtained a settlement against PRA "for repeatedly bringing improper debt collection actions against New York consumers." In September 2015, The Consumer Financial Protection Bureau (CFPB) ordered PRA to pay an $8m penalty and issue $19 million in consumer refunds. The company was also ordered to cease collection attempts on debt totaling more than $3 million. The CFPB found that PRA: • Threatened and deceived consumers to collect on inaccurate debts; • Stated incorrect balances, interest rates, and payment due dates in attempting to collect debts from consumers; • Failed to provide documentation on debts; • Filed court cases without documentation to mislead consumers, and collected default judgments when consumers failed to appear in court; • Filed cases on debts that they knew were outside the statute of limitations. A 2019 court case between PRA Group's UK subsidiary and a debtor – Doyle vs PRA Group (UK) Ltd – clarified UK law around statute-barred debt, with the judge ruling that creditors were unable to pursue a debt if no action had been taken within six years of the initial default. In March 2023, PRA was fined $24 million for continued illegal debt collection practices and consumer reporting violations. The director of the agency stated that following the 2015 action, PRA continued "violating the law through intimidation, deception, and illegal debt collection tactics and lawsuits." In 2024, PRA paid $5.5 million to settle a class action lawsuit that alleged the company violated North Carolina debt collection law by obtaining default judgments against debtors without filing sufficient evidence to substantiate the debts claimed to be owed. == Subsidiaries ==

PRA Group's subsidiaries include Portfolio Recovery Associates, LLC, which purchases and collects debt; PRA Receivables Management, LLC, which acquires and services bankrupt and insolvent accounts; PRA Location Services, which helps auto lenders and insurance companies recover missing collateral; and Claims Compensation Bureau (CCB), which monitors and files class action claims on behalf of institutional investors and corporate clients. ==References==