If you’ve just received a letter or call from Portfolio Recovery Associates (PRA), your stomach might be in knots.
You’re probably wondering who they are, why they’re contacting you, and what you’re supposed to do next.
First things first: don’t panic. You’re not alone, and you have options.
Let’s walk through what’s going on and how to protect yourself.
Who is Portfolio Recovery Associates?
Portfolio Recovery Associates is one of the largest debt buyers in the United States. They’re a publicly traded company (under the name PRA Group, Inc.) that buys old debts from banks and credit card companies for pennies on the dollar, then tries to collect the full amount.
You might not recognize their name because they weren’t the original lender. That credit card you stopped paying on six months ago? It might’ve been with Capital One, Synchrony, Citibank, or Comenity. But now, that account has likely been sold to PRA — and that’s who’s calling or mailing you.
They’re not a scam. PRA is a legitimate company with an A+ rating from the Better Business Bureau. That said, just because they’re legitimate doesn’t mean they’re always right. Mistakes happen. Old debts resurface. And sometimes collectors pursue the wrong person or the wrong amount. So take it seriously, but keep your wits about you.
Why Are They Contacting You?
If PRA is reaching out, it usually means they believe you owe money on a debt they’ve purchased. Typically, these are charged-off credit card balances or personal loans that went unpaid for months.
Once they buy the debt, they step into the shoes of the original creditor. So even though you may have never heard of them before, they’re now the legal owner of the debt — at least from their perspective.
That’s why their name is suddenly showing up on letters, voicemails, or your credit report. It’s not some mix-up. They’re reaching out because they want payment. But what you do next can make all the difference.
What Happens If You Ignore Them?
Let’s get this out of the way: ignoring PRA usually makes things worse.
If you toss the letter in the trash or avoid their calls, a few things can happen:
And yes — Portfolio Recovery Associates is known to sue. If they win a judgment, they could garnish your wages, freeze your bank account, or place a lien on your property depending on your state laws.
PRO TIP: Don’t wait until you’re served with court papers. If you take action early, you’ll have more leverage and more options.
Can You Settle with Portfolio Recovery Associates?
In many cases, yes. PRA is often willing to accept less than the full balance if you can make a lump-sum payment or set up a short-term plan.
Settlements in the range of 40% to 60% aren’t unusual. Sometimes even lower, depending on how old the debt is, how collectible you appear, and how motivated they are to close the file.
You don’t have to be perfect or have thousands of dollars on hand. Even partial payments or hardship letters can open the door to a better outcome. Just remember, they do this all day, every day. You don’t. So it’s easy to feel outmatched.
PRO TIP: Never send money until you get a written settlement agreement. That letter should clearly state the payment amount, due date, and that the balance will be considered paid in full. No guesswork. No assumptions.
Should You Handle It Yourself or Get Help?
You can try to negotiate with PRA directly, and plenty of people do. But it’s not always simple. They’re experienced, trained professionals. You’re likely stressed, unsure, and maybe even embarrassed.
This is where companies like Donaldson Williams come in. We’ve been negotiating with debt collectors like PRA since 2006. We know their playbook, their patterns, and their policies.
We don’t charge any upfront fees. And if we can’t negotiate a better outcome? You owe us nothing. Our "No Results. No Fees." policy keeps things fair.
So if you want help avoiding a lawsuit, saving money, and getting peace of mind without the collection calls, we’re here for you.
Common Questions About Portfolio Recovery Associates
Will they sue me? Yes, they might. PRA files thousands of lawsuits every year. If you owe a significant amount and haven’t responded to their outreach, they may see legal action as the next step.
Can they garnish my wages or take money from my account? Only if they win a court judgment. They can’t just reach into your account or paycheck because they feel like it. But if they sue and win, garnishment is on the table.
Are they legit? Yes. They’re a real company. But that doesn’t mean they never make mistakes. Always verify any debt they claim you owe.
Should I send a debt validation letter? Maybe. If you’re not sure the debt is yours, send a validation request within 30 days of their first letter. But if you know it’s legit, it may just slow things down or reduce their willingness to negotiate.
Can I just pay the original creditor instead? Usually not. Once PRA owns the debt, the original creditor is out of the picture. Any payment needs to go through PRA to be counted.
What to Do Next
This isn’t the time to freeze up or go silent. If Portfolio Recovery Associates is contacting you, it means the clock is ticking.
Take a few minutes to:
And if you’re not sure what to do, reach out. Our team at Donaldson Williams can walk you through your options with no pressure, no judgment, and no upfront cost.
The sooner you act, the better the outcome. Let’s fix this — before it turns into something worse.
