PRA Group Discloses CFPB Looking Into Possible Violations of Consent Order

PRA Group announced in a filing with the Securities and Exchange Commission last week that it is defending itself against allegations from the Consumer Financial Protection Bureau that it violated the terms of a consent order it entered into in 2015 that accused the company of engaging in a number of illegal collection activities. The announcement comes on the heels of the CFPB filing a lawsuit against Encore Capital Group for violating the terms of its consent order, which was entered into on the same day as PRA Group.

“In December 2020, the Company was advised that the CFPB believes it may have violated certain provisions of the Consent Order and applicable law, and was provided with an opportunity to respond to the CFPB’s potential concerns,” PRA Group said in a note as part of its annual report filed with the SEC. “The Company has responded, and set forth its view that the relevant facts and law do not support any enforcement action, but is not able to predict the outcome of the investigation at this time.”

PRA Group has not made any additional comments about the investigation since it filed its annual report with the SEC late last week.

PRA Group refunded $19 million to consumers, agreed to stop collecting on $3 million of other debts, and was fined $8 million under the terms of the 2015 consent order.

The company did not say which of the activities it had potentially violated. When it filed its suit against Encore last September, the CFPB accused the company of suing consumers without possessing required documentation, using law firms and an internal legal department to engage in collection efforts without providing required disclosures, and failing to provide consumers with required loan documentation after consumers requested it.

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