Portfolio Recovery Associates is trying to collect 40 times more on an old credit card account

today I received a collection notice from "Portfolio Recovery Associates, LL C" at my mothers address, which is where I moved a year ago when I lost my home (of 16 years) to foreclosure. The notice indicates the debtor is MBNA and the principle account bal is $1,148.21 The current bal of the account is 1757.86. I have a couple questions please. The first is, the limit allowable by law, agents can charge for debt collecting. Second, I recall this account clearly. In 2007, I sold my small business and contacted MBNA to pay off the account. At the time, the outstanding bal was around three thousand. They could not or would not give me a figure to pay the account in full. I was at the bank ready to have a cashiers check drawn to pay off. the account What I decided to do was send as close to what I "guessed " the pay off may be. The outstanding account bal was around $50. Five years later I am being billed for nearly $2000. Is it legal? It certainly is immoral and unethical.

How can a debt collector claim I owe them 2000 dollars on a 50 dollar debt


Portfolio Recovery Associates (PRA) is a debt buyer. Given the background info you gave, and your questioning the amount of the alleged debt, I would suggest you send them a letter requesting validation. Be sure to send certified mail return receipt requested. I can Sketch out some of what that letter would contain for you in a reply, but would first like to know what state you moved from and what state you live in now. If the debt is past the limitation for the collector to sue you in order to collect (statute of limitations), it will change things a bit.


The limit of fees, interest and costs that can be added to a debt that remains unpaid will vary. Generally the amount and timing of fees is outlined in your agreement with the credit issuer. You will need to look to that agreement (if possible) to know more. That said, junk fees are a big problem in the debt collection industry. It will be one of the issues you can raise in your validation request.


Drilling into the legality of whether a 50.00 balance can balloon  to 2000.00  in your situation would require you (and them) to substantiate a whole host of details. Unpaid debts do indeed increase by obscene amounts in what I also see as an unfair practice. Kicking someone when they are down helps who exactly?


How is this account showing on your credit report? Is PRA reporting it?


Please respond in the comment section below and we can go from there.

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About Michael Bovee

Michael started CRN in 2004 with a mission to provide detailed debt and credit help and advice that encourages and allows people struggling with debt to solve their debt problems just like a pro - but without the high fees.

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