Update on Pounds v. Portfolio Recovery Associates Class Action Settlement

The settlement administrator started mailing settlement checks to class members on August 29, 2024.  The checks are issued through Huntington National Bank and range in amount from $50 to $5,000 depending on each class member’s circumstance.  Class members should deposit or cash their checks as soon as possible, as all outstanding checks will be deemed void after November 27, 2024.

The North Carolina Justice Center serves as class counsel in this case.  The attorneys working on this case are Jason Pikler and Carlene McNulty.

Frequently Asked Questions:

What Is This Action About?

This Action was brought to challenge the way Portfolio Recovery Associates, LLC, a debt buyer, obtained default judgments against persons in North Carolina courts.  The lawsuit claims that Portfolio Recovery Associates, LLC violated North Carolina debt collection law that pertains to debt buyers by obtaining default judgments in North Carolina without providing proper documentation and information to the courts.

How Do You Know If You Are Part of the Settlement?

If you received a check, you are part of the settlement.

The Class Members are:

All persons against whom PRA obtained a default judgment entered by a North Carolina court in a case filed on or after October 1, 2009, where default judgment was entered on or before September 30, 2023, with some limited exceptions

What Are The Benefits of the Settlement?

The Settlement provides the following benefits to Class Members:

PRA will cancel all outstanding default judgments included within the class PRA is in the process of contacting courts across the state, requesting that these judgments be cancelled.
PRA has stopped collecting on these judgments and any payments received on those accounts after October 19, 2023, will be refunded or returned to the last known address for the account.
PRA has paid $5,750,000 (5.75 Million Dollars) into a Settlement fund. Part of this settlement fund was used to pay court-approved Attorneys’ Fees and expenses of Class Counsel and for service awards for the four Class Representatives. The rest has been distributed to class members.

How Was the Settlement Fund be Divided Among the Class Members?

Each Class Member received a minimum payment of $50 from the Settlement Fund Balance. The remaining amount of the Settlement Fund Balance is being used to compensate those Class Members who had money collected from them or property seized by PRA as a result of the default judgments. All such Class Members have received a proportional share of the Settlement Fund Balance based on the amount of money that was collected from the Class Member, in addition to the minimum payment of $50.

Settlement payments will range from $50 to more than $5,000.

How Will Uncashed Settlement Checks Be Handled?

The settlement checks must be deposited or cashed within 90 days (by November 27, 2024).  If a Class Member cannot be located or does not cash their check, the money allocated to them will be redistributed to all the class members who did cash their check, provided there is enough money left over to make each check at least $10. We will update these FAQs with more information about a second distribution.  Any amounts remaining in the Settlement Fund Balance after this process will be distributed as directed by the Court for purposes that will benefit the public. The money will not go back to PRA.

Where Can You Get More Information?

The settlement website (www.pra-poundssettlement.com) summarizes the Settlement. More details are in a Settlement Agreement available in the Documents section of this website or by calling toll-free (833) 462-3510.