RISKY BUSINESS...Steve D. Fredrickson president (bald man in center- photo above) and Portfolio Recovery Associates under attack by FCC and multiple Federal Lawsuits and a Class Action Lawsuit in Florida, their SEC report indicates multiple problems with negative publicity and FCC recommend enforcement actions. The Portfolio Recovery Associates stock (PRAA) as traded on NASDAQ has dropped from a high of $91.00 to a low of $56.00 during 2011.
UPDATE.....NYT Feb. 1st, 2012, F.T.C. Fines Debt Collector $2.5 Million. The Federal Trade Commission that it would continue to crack down on debt collectors who harass consumers for money they may not even be legally obligated to pay. The F.T.C. said that Asset Acceptance had agreed to pay a $2.5 million civil penalty to settle charges that the company deceived consumers when trying to collect “old bad debt” and accounts discharged by Federal Bankruptcy. This is the exact same business plan that Steve D. Fredrickson president and CEO of Portfolio Recovery Associates sold his investors on NASDAQ.
Unsavory Business And Murky Accounting Undervalue Portfolio Recovery Associates; While companies like Encore Capital (Nasdaq: ECPG), Asset Acceptance (Nasdaq: AACC) or Asta Funding (Nasdaq: ASFI) tend to be relatively responsible, it's not uncommon to see newly minted companies come into the market, mess up pricing, and go bust ( Portfolio Recovery Associates) when they cannot collect enough to stay in business.
Portfolio Recovery Associates, LLC, also known as Anchor Receivables Management, the company was incorporated in 1996 and is based in Norfolk, Virginia with additional offices in Alabama. Portfolio Recovery Associates, LLC operates as a subsidiary of Portfolio Recovery Assoc., Inc. in New York State.
FROM the most recent SEC Report as per Steve Fredrickson and Portfolio Recovery Assoc., Inc., Negative publicity or reputational attacks could damage our reputation (and bottom line). "There are negative news stories about our industry or company, especially with respect to alleged conduct in collecting debt from customers. Negative public opinion about our alleged or actual debt collection practices or about the debt collection industry, especially that expressed via social media such as blogs, various websites or newsletters, generally could adversely impact our stock price and our ability to retain and attract customers and employees."
"The Federal Trade Commission has the authority to investigate consumer complaints against debt collection companies and to recommend enforcement actions and seek monetary penalties. If we fail to comply with applicable laws and regulations, such failure could result in the suspension, or termination of our ability to conduct collections which would materially adversely affect our results of operations, financial condition and stock price. In addition, new federal and state laws or regulations or changes in the ways these rules or laws are interpreted or enforced could limit our activities in the future or significantly increase the cost of compliance."
BLOOMBERG BUSINESSWEEK January 31, 2012 3:00 AM ET....Turner Law Offices, LLC and Arcadier & Associates, P.A. Files Class Action Lawsuit Against Portfolio Recovery Associates, LLC. The law firms of Turner Law Offices, LLC and Arcadier & Associates, P.A. have filed a Class Action lawsuit against Defendant Portfolio Recovery Associates, LLC in the United States District Court for the Middle District of Florida on behalf of all persons in the State of Florida who, since February 18, 2011, received a non-emergency telephone call from PRA to a cellular telephone through the use of an automatic telephone dialing system or an artificial or prerecorded voice and who did not provide prior express consent for such calls during the transaction that resulted in the debt owed. The action is captioned Karen Harvey et al. v. Portfolio Recovery Associates, LLC, and is numbered 6:11-CV-00582.
According to the Complaint, PRA violated the Telephone Consumer Protection Act by using automatic dialing systems and/or an artificial or prerecorded voice to contact cell phone users about purported debts without their prior consent. Under the TCPA, PRA could be ordered to pay attorneys’ fees, litigation expenses and costs of the lawsuit, and statutory damages of $500 for each negligent violation, and/or $1,500 for each knowing and/or willing violation. According to the Complaint, the potential Class Members are estimated to number in the tens of thousands. Additionally, the complaint alleges collective damages exceeding five million dollars ($5,000,000).
Reverside Commerce Center
120 Corporate Boulevard Suite 100
Norfolk VA 23502
#75-3078675 (I.R.S. Employer Identification No.)
2). Kevin P. Stevenson CFO
3). John H. Fain Director
4). John E. Fuller Director
6). David N. Roberts Director
7). Scott M. Tabakin Director
THE CORRECT PROCESS TO REPORT PORTFOLIO RECOVERY ASSOCIATES: File complaints with Federal Trade Commission (FTC) https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
If you or they are located in NY – use this SPECIAL Link www.NYDebtHelp.com This special website was created by NY AG Andrew Cuomo specifically for reporting illegal debt collection practices.
New York State Entity Name: PORTFOLIO RECOVERY GROUP L.L.C.
Portfolio Recovery Associates, LLC does not have any Key Executives recorded.
Initial DOS Filing Date: JANUARY 15, 2010
Jurisdiction: NEW YORK
Entity Type: DOMESTIC LIMITED LIABILITY COMPANY
Current Entity Status: ACTIVE
Selected Address to which DOS will mail process if accepted on behalf of the entity.
PORTFOLIO RECOVERY GROUP L.L.C.
793 CENTER STREET, SUITE 114 (UPS Store)
LEWISTON, NEW YORK, 14092 see link for address http://www.theupsstorelocal.com/6143/
Bill Warner Sarasota Private Investigator, SEX, CRIME, CHEATERS & TERRORISM at www.wbipi.com