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Portfolio Recovery Associates: Collecting Debt

July 21, 2014

Portfolio Recovery Associates, Inc. (PRA) is a company headquartered in Norfolk, Virginia.  The firm is engaged in the detection, collection and processing of both unpaid and normal-course accounts receivables originally owed to credit grantors, governments, retailers and others.

When money is borrowed like through a loan or credit card it is meant to be repaid. There are people who own the money that was borrowed such as bank depositors and investors. They deposited or invested their hard-earned money with the understanding that it will earn interest and it they can also withdraw the amount when needed or in an agreed time period.

So a person with an unpaid obligation may view organizations like PRA as being harsh but they are only enforcing what the whole agreement was all about, return money that was borrowed. It was not a charitable act but a business transaction so it must be repaid. If all borrowed money are not repaid the whole economy would collapse; that’s why collection companies such are PRA are in demand and relevant.

PRA’s business is the purchase, collection and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to creditor originators, which include banks, credit unions, consumer and auto finance companies and retail merchants.

The firm also offers fee-based services, such as vehicle location, skip tracing and collateral recovery services for auto lenders, governments and law enforcement through PRA Location Services, LLC (PLS), revenue administration, audit and debt discovery/recovery services for local government entities via PRA Government Services, LLC and class action claims recovery services and related payment processing.

It is not only private businesses that utilize PRA but even government entities which goes to show that collection of what is owed is a very important function to keep the economy going. There are some who view that PRA and like companies are mean and immediately employ harsh collect tactics. In fact PRA would actually like to talk to those in debt and help them solve their problems with feasible payment schemes.

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