Is PRA Receivables Management, LLC Hurting Your Credit?

PRA Receivables Management, LLC has collected auto loan deficiency balances and insurance-related debts from their Lake Forest, California office since 2013. If their name appears on your credit report, the underlying account is almost certainly a vehicle repossession balance or an insurance claim, not a credit card or medical bill.

A documented PACER case from 2013 describes PRA Receivables Management calling a consumer near-daily about an auto loan, with one caller responding to a hospital visit by saying “people have bigger problems than that.” This guide covers who PRA Receivables Management is, their documented complaint patterns, and how to respond.

Who Is PRA Receivables Management?

PRA Receivables Management, LLC, also known as Portfolio Recovery Associates, is a third-party debt collection agency incorporated in June 2013 and headquartered in Lake Forest, California. The BBB gives them a B- rating and has recorded 15 complaints. They are not BBB accredited.

They collect auto loan deficiency balances and insurance-related debts. California-based collectors must comply with both the federal FDCPA and California’s Rosenthal Fair Debt Collection Practices Act, which also applies to original creditors collecting their own debts.

Not the Same Company as Portfolio Recovery Associates

PRA Receivables Management, LLC and Portfolio Recovery Associates, LLC are two separate legal entities. When one consumer filed a BBB complaint against PRA Receivables Management referencing Portfolio Recovery Associates, PRA Receivables Management’s own written response told the consumer to contact Portfolio Recovery Associates separately at a different phone number.

If you are looking for information about Portfolio Recovery Associates, that is a different company with a separate article. The company on your credit report labeled PRA Receivables Management is the Lake Forest, California entity described here.

The 2013 Auto Loan Harassment Case

A documented PACER case involves PRA Receivables Management calling a California consumer multiple times daily between September and December 2013 about an auto loan debt. Multiple callers identifying themselves as “Matthew,” “Georgia,” and “Mark” called near-daily. On one occasion, when the consumer told a caller he could not talk because he was at the hospital with his wife, the caller responded that “people have bigger problems than that.”

During the same collection period, a tow truck drove past the consumer’s home and a tow truck operator called him shortly after, a sequence the consumer connected to PRA Receivables Management’s collection activity. The consumer filed an FDCPA lawsuit for the pattern of calls and conduct.

Calling multiple times daily and dismissing a consumer’s stated emergency circumstances are both documented in this case as conduct the consumer alleged violated FDCPA Sections 1692d and 1692d(5).

Documented BBB Complaint Patterns

Multiple BBB complaints describe specific PRA Receivables Management conduct. One consumer received a collection letter about a vehicle they stated they had never seen or owned, raising a wrong-person or identity error concern.

A second consumer described making agreed payment plan payments but being unable to reach PRA Receivables Management for months after the company stopped returning calls. A third consumer tried to settle a debt but described PRA hanging up and repeatedly requesting documentation beyond what the consumer believed was necessary.

Each of these patterns reflects a documented complaint category worth noting before engaging with PRA Receivables Management by phone.

Auto Loan Deficiency Accounts and Title Issues

Auto loan deficiency balances are a primary PRA Receivables Management account type. A deficiency balance is the amount remaining after a repossessed vehicle is sold and the sale proceeds are applied to the outstanding loan. The deficiency calculation depends on the vehicle’s auction sale price, which consumers rarely see documented.

If PRA Receivables Management is collecting an auto loan balance, request the repossession date, the vehicle sale date, the auction sale price, the amount credited against the loan, and the contractual basis for the remaining deficiency balance before agreeing to pay anything.

A documented BBB complaint also describes a consumer wanting to negotiate a payment plan for a vehicle they still possessed. If you have the vehicle and want to establish a payment arrangement, get all terms in writing before making any payments, given the documented complaint about PRA stopping communication mid-arrangement.

What PRA Receivables Management Cannot Do Under Federal and California Law

Based on their documented case and complaint record:

• Call multiple times daily in a pattern designed to harass: The 2013 PACER case documents near-daily calls as alleged FDCPA violations under Section 1692d(5).
• Dismiss stated personal emergencies as a basis for a call: The hospital call conduct described in the 2013 case reflects abusive conduct under FDCPA Section 1692d.
• Collect on debts not owed or pursue wrong-person accounts: A documented BBB complaint describes a collection letter about a vehicle the consumer never owned.
• Stop communicating mid-arrangement without notice: A documented BBB complaint describes PRA failing to return calls after establishing a payment plan.
• Violate California’s Rosenthal Fair Debt Collection Practices Act: California consumers have additional complaint avenues beyond the CFPB.

Verify the Debt Before Paying Anything

Send a written validation request by certified mail within 30 days of first contact. For auto loan deficiency accounts, request the repossession date, the vehicle auction sale date, the sale price, the amount credited to the loan, and the itemized remaining balance. For insurance-related accounts, request the policy or claim documentation that supports the amount claimed.

California has a 4-year statute of limitations on written contracts. The relevant statute is typically the state where you reside.

How to Check Your Credit Report for PRA Receivables Management Entries

Search all three credit reports for “PRA Receivables Management.” Confirm the original creditor is identified and the balance matches what the original creditor recorded at referral or charge-off. If the vehicle or account described does not match your history, dispute the entry immediately.

Your Options for Resolving a PRA Receivables Management Account

• Request the full deficiency calculation before paying any auto balance: Deficiency amounts depend on the vehicle sale price and applied proceeds. The calculation documentation is your primary verification tool.
• Get any payment arrangement in writing immediately: A documented BBB complaint shows PRA stopping communication after a payment plan was established. Written terms protect both sides.
• Dispute wrong-person entries with all three bureaus immediately: If the vehicle or account is not yours, dispute with documentation confirming your identity and lack of connection to the claimed account.
• California consumers can file under both FDCPA and Rosenthal Act: The Rosenthal Act applies to California-based collectors and provides an additional enforcement avenue.

How to Contact PRA Receivables Management

• Address: PRA Receivables Management, LLC, 10 Orchard, Suite 100, Lake Forest, CA 92630
• Phone: (949) 858-0314

Bottom Line

PRA Receivables Management, LLC is a separate California-based company from Portfolio Recovery Associates. Their primary documented account type is auto loan deficiency balances, and their complaint record includes near-daily harassment calls, wrong-person collection letters, and stopping communication after payment arrangements were established.

Before paying anything they claim, request the full deficiency calculation for any auto account, and get any payment plan terms in writing before sending a single payment.