Lauren Silva  |  September 21, 2021

Category: Debt Collection

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Monarch Recovery
(Photo Credit: Andrey_Popov/Shutterstock)

Monarch Recovery, Portfolio Debt Collection Class Action Lawsuit Overview:

  • Why: The plaintiff claims the debt collectors sent a joint letter that was unclear and in violation of debt collections laws.
  • Who: A North Carolina resident lodged a class action lawsuit against debt collectors Monarch Recovery Management and First Portfolio Ventures I.
  • Where: The class action lawsuit was filed in North Carolina federal court.

A North Carolina resident filed a class action lawsuit against Monarch Recovery Management and First Portfolio Ventures I, two debt collectors, for violating debt laws with an unclear and deceptive collections letter. 

The lead plaintiff, Kathleen McKee, says she received a collection letter from Monarch Recovery regarding an alleged debt she had incurred from a Celtic Bank credit card. The letter identifies Portfolio as the creditor and states that Portfolio transferred the debt account to Monarch. 

McKee disputes the transfer, claiming that Monarch is a debt collector hired by Portfolio and does not own the alleged debt. The letter also contained “Additional information: Celtic Bank/Indigo MasterCard,” without explaining the relationship to Celtic Bank, which McKee claims caused her much confusion.

McKee filed the class action lawsuit on behalf of herself and individuals with addresses in the state of North Carolina to whom Monarch Recovery sent a letter on behalf of Portfolio attempting to collect a consumer debt

Monarch Recovery, Portfolio Confuse With Debt Collections Letter

The class action lawsuit claims that the letter’s wording makes it unclear to whom the debt is owed and which entity owns the account, a practice that the complaint says is “deceptive” and unlawful. 

The class action lawsuit also claims that the letter is noncompliant with a debt collections statute that is cited in the letter itself. The statute requires any disputes of debts to be sent to the collector “in writing” or by “written request”; however, Monarch Recovery and Portfolio allegedly write in their letter that McKee and the class may provide verbal communication. 

If Monarch and Portfolio intended to comply with the statute, McKee argues that they could not accept McKee’s verbal dispute, despite having allowed her to do so. Even if they had accepted it, the dispute and a ceasing of collections would not be able to continue as they would with a written dispute, claims the class action lawsuit. 

The class action lawsuit demands statutory and actual damages, costs of the action, and pre- and post-judgment interest. 

This is not the first time Monarch Recovery has been accused of violating debt collection laws. In 2014, an Indiana man filed a class action lawsuit against Monarch after receiving a misleading debt collection letter that misrepresented the money he owed. 

Have you ever received a similarly confusing debt collections letter from Monary Recovery or another company? Tell us about it in the comments below!

The plaintiff is represented by C. Randolph Emory of The Emory Law Firm, P.C.

The Monarch Recovery, Portfolio Debt Collection Class Action Lawsuit is McKee v. Monarch Recovery Management Inc., et al., Case No. 3:21-cv-00492-RJC-DSC, in the U.S. District Court for the Western District of North Carolina.


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13 thoughts on‘Deceptive’ Debt Collectors Monarch Recovery, Portfolio Face Class Action Lawsuit

  1. Angie says:

    Add me please. As for years I have been harrassed from portfolio

  2. Debra Robinson says:

    Portfolio calls me every single day, even on Sundays. They call at all times and even though I keep blocking them they manage to get around it. My phone identifies it as being Portfolios number, they just keep changing the number that is calling me but it still says portfolio. The debt is due to being in a car accident and losing my husband.

    1. Debrar@gmail.com says:

      I forgot to add to please put me on this list and as I see below, having problems with Midland, I to have been having problems with them I have been paying them more than I agreed every month. They have 3 of my accounts and we agreed to a certain amount but they take out about $10 more each month for each debt. I know it’s not much bt I am widowed now which is the only reason I even have that debt so is Midland comes around please put me on that list too.

  3. Angela masi says:

    Portfolio recovery has been relentless in their efforts to threaten payment for several years now. They have ruined my credit and won’t stop. Please add me to this class action . lawsuit. The other one Midland Funding is equally as bad. They need to be stopped.

  4. Lisa Price says:

    I am currently holding in my pretty lil hands a Portfolio Recovery debt collection paper that I received yesterday. 1 of the MANY I have thrown away. Can you PLEASE include me in this class action lawsuit?

  5. Jodi Goulden says:

    I would like to know how to be contacted or contact you if you handle abusive & threatening debt collectors? Not this company or actually could be, then are not giving the real company name actually. They have contacted my family members this week and stated I have a case number and need to call immediately and that was a call to say I am being officially “served” and official notification. This happened this week and I have saved messages and from at least 6 different numbers. I called back and they screamed at me because I wanted to know who they are, what this is and to never call a personal friend or family or people listed on my Facebook. If you handle this type of situation in general please let me know. This has started a week ago.

  6. DENISE MOORE says:

    Add please

  7. Sylvia Smith says:

    Please add

  8. Allen W. Arbogast says:

    Please add ne

  9. dana cardi says:

    Add me. Please because portfolio came after me hard. Hard hard. These people don’t know where the line is. They are liars. And don’t care. Bullying.

  10. CL Ingraham says:

    Yes, I have received letters and telephone calls from this company. I will need to keep the letters moving forward as this type of practice should not be tolerated.

    1. Philippa A Marko says:

      Yes I paid portfolio recovery for over 2years ,the balance was bigger than the credit limit and I collect SSDI, they roped me into a check for withdrawal from checking account and no idea what the true balance was?

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