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A debt collection company gave private customer information — including account number and balance due — to third parties in order to try and collect the money, a new class action lawsuit alleges.
On Thursday, a class action lawsuit filed by Plaintiff Carmen M. Pagan against Portfolio Recovery Associates LLC (PRA) was moved to a New Jersey federal court, Law360 reported.
The complaint alleges that PRA violated the Fair Debt Collection Practices Act and the New Jersey Consumer Fraud Act by giving customer’s confidential information to outside vendors in order to send collection letters.
Pagan says on June 16 last year, she got a collection letter from PRA that she believed was mailed using a third-party letter business that she never consented to having her private information.
“By using a letter vendor, defendant has recklessly disclosed Pagan’s personal identifying information and private information about her debt to a third party without Pagan’s prior consent,” the complaint reportedly says.
“Defendant unlawfully disclosed information about Pagan’s debt including the account number associated with the debt and the alleged balance due.”
Pagan is looking to represent a Class of New Jersey residents whose private information was given out by PRA since June 16, 2015, in an attempt to collect on Citibank N.A./Sears accounts.
She says the Fair Debt Collection Practices Act prevents a debt collector from communicating with third parties about a debt without permission. It also prevents publishing a list of consumers who have unpaid debts, which she says she believes PRA did.
“By publishing the private financial information of the plaintiff and the class, defendant damaged them by exposing their private information to persons who lacked any right or entitlement to know their private financial information,” the complaint reportedly says.
Pagan is also suing for negligence and invasion of privacy, and wants a judge to order an injunction stopping PRA from continuing with the alleged behavior.
There are strict laws around how debt collectors can go after money. Earlier this month, an appeals court ruled that a barcode on a debt collector’s envelope that can be scanned to reveal a debtor’s reference number could breach privacy laws because it makes it possible to determine a recipient’s “financial predicament.”
The Third Circuit Court of Appeals filed an opinion on a class action case ruling that debt collectors do violate the Fair Debt Collections Practice Act when they put QR codes on consumer envelopes that are specific to that debtor.
What do you think of the allegations in this case? Let us know in the comments!
Pagan is represented by Yongmoon Kim of Kim Law Firm LLC and Ronald I. LeVine and Eileen L. Linarducci of the Law Office of Ronald I. LeVine Esq.
The Portfolio Recovery Associates Privacy Class Action Lawsuit is Carmen M. Pagan v. Portfolio Recovery Associates LLC, Case No. 2:21-cv-14008, in the U.S. District Court for the District of New Jersey.
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44 thoughts onDebt Collection Company ‘Recklessly’ Gave Customer Info to Others to Recover Debts, Class Action Alleges
add me
Yes please add me as my information has been sold to 3rd party as well.
Also Bismarck ND credit bureaus has done this to me as well also has sold my bank account information ect.
Yes they harasser me
Capital one sold my information to a third party company called midland and now they have all my information as well so please add me
I’m sick of PRA and their tactics of indiscriminately sharing PII of its clients this is pure negligence and invasion of privacy.
Four months of PRA calling every other day from all over the country plus P.R, spoofing other businesses titles as well. Letters from other agency, 3rd party, saying debts out of statute, but calls constantly
I dealt with the same thing. Have you figured out about the settle?
Yes this company has threatened me through private calls with number blocked has purposely bought or aquired several debts I have increased amounts and adding fees.
Please add me
Please add me. My personal & financial information has been sold to a 3rd party vendor.
They called my ex-mother in-law! Harassed my daughter all on a debt that was settled! Please add me I would like to be very involved in this awsuit!
How can you add me to this?
They called my girlfriend, cousins threatening about my debt.
yes. My information has been sold to 3rd party
I’ve been being harassed by the lowlifes for accounts that are not even mine. They have been made aware of the mistake multiple times and yet my personal information was misused and given out to 3rd parties regardless. The courts and politicians need to put on their “Big boy/girl panties” and put a leash on these thrives/criminals once and for all. Enough is enough! And hey while we’re at it…ban all lobbyists in local, state and federal government! That right there will be a massive step towards equally the playing field between the 99% and the 1%!!!