Response from Port Rec Assoc - Office of General Counsel - need advise

[azsassycat]

As some of you may remember, I reported PRA to the AZDFI (Arizona Department of Financial Institutions) last November.

Here is the response PRA sent to the AZDFI -

PRA pruchased the account referenced above from US Cellular in December 2006.  PRA is not conducting business as a third party collection agency attempting to collect this debt; PRA owns the debt referenced above as a debt purchaser.

It is our understanding of our company's licensing department that a license is not required under the laws of the state of Arizona for debt purchasers.

Signed by Senior Associate General Counsel

BTW - This is the footer of their letter . . .  This letter is from a debt collector and is an attempt to collect a debt.  Any information obtained will be used for that purpose.

So - what is your take on their response?

Here's the definition of collection agency from the Arizona Revised Statues -

"Collection agency" means:

(a) All persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due.

(b) Any person who, in the process of collecting debts occurring in the operation of his own business, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.

[Anonymous]

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azsassycat wrote:

"Collection agency" means:

(a) All persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due.

(b) Any person who, in the process of collecting debts occurring in the operation of his own business, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.

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If they purchased the debt, then are they not "engaged directly or indirectly in soliciting claims for collection"?

What did the AZDFI say about it?

[azsassycat]

Sidewinder-

That was my thought too.  AZDFI response stated that "The Department has not yet determined the disposition of this complaint."  They also stated that I could provide additional information in writing, which I plan on doing today or tomorrow - just wanted to get some opinions from here first.

Thanks for your input!

Cathleen

[azsassycat]

OK - here's my response to the AZDFI with a cc to PRA - let me know what you think.

Thanks-

Cathleen

In correspondence to your office dated April 4, 2008, Ms. R states "PRA purchased the account referenced above from US Cellular in December 2006.  PRA is not conducting business as a third party collection agency attempting to collect this debt; PRA owns the debt referenced above as a debt purchaser.”

PRA is indeed a collection agency as defined in Arizona Revised Statues (“ARS”).  ARS Title 32 Chapter 9 Article 2 defines a collection agency as all persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due.  Therefore, it is of no significance whether PRA considers themselves to be a “third party collection agency” or a “debt purchaser”.  They are engaged directly in soliciting claims for collection and, for that reason, meet the definition of a “collection agency.”

In addition, PRA does not meet the conditions for exemption from the provisions of Chapter 9.

ARS Title 32 Chapter 9 Article 3 provides that it is unlawful for a person to conduct a collection agency in this state without having first applied for and obtained a license under this chapter.  In addition, ARS Title 32 Chapter 9 Article 3 provides that a person operating a collection agency without a license shall be guilty of a class 1 misdemeanor.

Please feel free to contact me if you desire additional information.  I am looking forward to resolution of this matter.

[haulingthescoreup]

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@azsassycat wrote:

BTW - This is the footer of their letter . . . This letter is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose.

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I do rather adore this!

Do they not have the intelligence to use different letterhead when communicating with non-debtors? Er, non-customers? Or whatever they might consider the AZDFI...

Good luck! Please keep us posted, and I'm hoping for a sensible reply from the gov.

[Anonymous]

Many states allow collections from a CA and no license is needed if they OWN the account. BUT the DOFD/DOLA can not be changed      CRTP also applies.

They still can not file a lawsuit if past 2 years (federal SOL) OOPS    they can file but you can use the SOL as your defence.

Message Edited by HappyDays on 04-10-2008 08:38 PM

[Anonymous]

Also should quote from their website-

http://www.portfoliorecovery.com/about.asp

Overview

Portfolio Recovery Associates was founded in 1996, went public in 2002 (NASDAQ: PRAA) and is a leading firm specializing in the purchase, management and collection of charged off consumer debt. Our goal is to treat all our customers well, helping them through difficult financial times, while providing appropriate returns to PRA's shareholders. At PRA "benevolent" and "debt collector" is not an oxymoron. Quite the contrary; at PRA we believe the only way for our company to succeed is to provide a win-win interaction with our customers. At PRA "we're giving debt collection a good name."

We have more than 1,500 employees in five states - Virginia, Kansas, Nevada, Tennessee and Alabama - and have acquired in excess of $24 billion of accounts and more than 11 million customer accounts since our founding. PRA is a founding member of the American Asset Buyers Association (now a part of the American Collectors Association), a member of the American Collectors Association, and numerous Chambers of Commerce.

[azsassycat]

HappyDays-

I was a little worried when they stated they were a "debt purchaser" and not a "third party collection agency", however, the ARS exemptions do not refer to "debt purchaser" so I think I'm still OK - here's the link if you're curious at all -

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/32/01004.htm&Title=32&DocType=ARS

Timothy-

Thanks for the info from their website - I'll put it in the letter - I don't know how they think they can win this one.

All my other MYFICO friends -

I'm putting the revised letter in the mail today.  Wish me luck!  BTW - if everything else fails, this will fall off my reports in 12/2008; I'm just trying to make a point now.

Much love,

Cathleen

[Anonymous]

Cathleen-

Keep me in the loop - I am working on some CA's for my little brother -

All but 1 are not licensed in AZ-  I would like to get your contacts-

[azsassycat]

Timothy-

Check your PM for contact information.

Cathleen