When PRA Group contacts you about a debt, they must prove they own it. This proof comes through a "chain of title" showing how the debt transferred from the original creditor to PRA Group. Without this documentation, their collection efforts may violate federal law.
According to the 2023 CFPB Consent Order, PRA is prohibited from collecting debt where it does not have certain documents related to the account, specific chain of title documents, and representations and warranties from the debt seller. This regulatory action confirms the importance of chain of title documentation in debt collection.
This guide explains how to request and use chain of title documentation to defend yourself.
What Is Chain of Title?
The chain of title is the paper trail showing debt ownership transfers. It documents each sale from the original creditor through any intermediate buyers to the current owner. Each transfer requires proper documentation proving legal ownership rights.
Think of it like a car title. When you buy a used car, the seller must transfer the title to you. Without a proper title transfer, you can't prove you own the vehicle. Debt works similarly. PRA Group must prove they legally acquired your debt through valid transfers.
According to the Fair Debt Collection Practices Act (FDCPA), debt collectors must validate debts upon consumer request. This validation includes proving they have legal standing to collect. Chain of title documentation establishes this standing.
Why PRA Group Needs to Prove Ownership
PRA Group is a debt buyer, not your original creditor. They purchase charged-off debt portfolios from banks and credit card companies for pennies on the dollar. When they buy debt, they're supposed to receive documentation proving ownership.
However, debt sold multiple times may result in ambiguities about which debt buyer owns the debt, making it difficult to establish an unbroken chain of ownership from the original creditor. This creates opportunities for consumers to challenge collection attempts.
Without valid chain of title, PRA Group cannot:
- Legally collect the debt
- Sue you in court
- Report the debt to credit bureaus
- Garnish wages or freeze bank accounts
Court cases increasingly require debt buyers to prove ownership through proper documentation. In the Virginia Court of Appeals case Green v. Portfolio Recovery Associates, the court ruled that PRA's scanty and incomplete evidence could not prove ownership through a chain of title tracing back to the original creditor, finding the circuit court was plainly wrong in ruling for PRA.
Common Chain of Title Problems
PRA Group and other debt buyers frequently struggle with chain of title documentation for several reasons.
Missing Documentation
Debt buyers often purchase portfolios containing thousands of accounts. The sale includes electronic spreadsheets with account information, but may lack individual assignment documents for each debt. Without account-specific assignments, they cannot prove they own your particular debt.
Incomplete Transfers
Each transfer in the chain must be documented. If your debt was sold three times before reaching PRA Group, there should be three separate assignment documents. Missing even one link in the chain creates proof problems.
According to legal experts, evidence of transfer must establish an unbroken chain of ownership, with each assignment or writing evidencing transfer containing the debtor's name and account number.
Robo-Signed Affidavits
Some debt buyers use "robo-signed" affidavits where employees sign thousands of documents without actually reviewing account details. Courts have rejected these affidavits as unreliable evidence.
In the Green case, the consumer argued that PRA violated the FDCPA by robo-signing the affidavit and not reviewing their business records or ones allegedly assigned to them.
Portfolio-Level vs. Account-Level Proof
PRA Group might possess documentation showing they purchased a portfolio of 10,000 accounts. But this doesn't prove your specific account was included in that portfolio. Account-level documentation is required.
Your Right to Debt Validation
The Fair Debt Collection Practices Act gives you powerful rights when debt collectors contact you. Under the FDCPA, you have 30 days after receiving a debt collection notice to dispute the debt's validity by sending a debt validation letter, and upon receipt, PRA Group will cease all collection efforts until it validates you are responsible for the amount owed.
This validation must include:
- The amount of the debt
- The name of the creditor to whom you owe the debt
- A statement that unless you dispute the debt within 30 days, the debt will be assumed valid
- A statement that if you dispute the debt in writing within 30 days, the debt collector will obtain verification and mail it to you
However, basic validation letters often don't request specific chain of title documentation. You need to explicitly request this information.
How to Request Chain of Title Documentation
Send PRA Group a detailed debt validation letter requesting specific chain of title documents. This letter should go beyond basic validation and demand proof of ownership.
What to Include in Your Letter
Your debt validation letter should request:
1. Complete chain of title documentation showing all transfers from the original creditor to PRA Group, including:
- Original credit agreement with your signature
- Each assignment agreement transferring the debt
- Bill of sale for each transfer
- Account number on each transfer document
- Your name on each transfer document
2. Proof of purchase, including:
- Purchase agreement between PRA Group and the seller
- Specific identification of your account in the purchase
- Amount PRA Group paid for your specific debt
- Date of purchase
3. Authorization to collect showing:
- PRA Group's legal authority to collect in your state
- License numbers, if required in your jurisdiction
- Proof they're authorized to collect on this specific type of debt
4. Account documentation, including:
- Complete payment history from the original creditor
- Last statement from the original creditor
- Documentation of all charges and fees
- Explanation of how the current balance was calculated
Sample Debt Validation Letter
Here's a template you can adapt:
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
Portfolio Recovery Associates, LLC
[PRA Group Address]
Re: Account Number: [Account Number]
Dear Sir or Madam:
This letter is sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g. I am disputing this alleged debt in its entirety.
I am requesting complete validation of this debt, including but not limited to:
1. Proof that PRA Group owns this debt and has the legal right to collect it, including:
- Complete chain of title documentation from the original creditor to PRA Group
- All assignment agreements transferring this debt
- Bill of sale specifically identifying my account
- Proof of consideration paid for this debt
2. A copy of the original signed credit agreement or contract
3. Complete payment history from the original creditor to present
4. Documentation showing how the current balance was calculated, including all fees, interest, and charges
5. Proof that PRA Group is licensed to collect debt in [Your State]
6. Verification that the debt is within the statute of limitations for [Your State]
Until you provide this documentation, you must cease all collection activities on this account, including credit reporting, phone calls, letters, and legal action.
This is not a refusal to pay, but a request for validation as allowed under the FDCPA. I reserve all rights under federal and state law.
Sincerely,
[Your Signature]
[Your Printed Name]
How to Send Your Letter
Always send debt validation letters via certified mail with return receipt requested. This provides proof that PRA Group received your letter and when they received it.
Keep copies of:
- Your letter
- The certified mail receipt
- The return receipt when it comes back
- All other correspondence with PRA Group
Documentation is critical if you end up in court. Your certified mail receipt proves PRA Group received your validation request and when their 30-day response period started.
What Happens After You Send the Letter
Once PRA Group receives your debt validation letter, federal law requires them to stop collection activities until they provide the requested validation.
According to the CFPB's 2023 Consent Order against PRA Group, the Order prohibits PRA from collecting debt where it does not have certain documents related to the account, specific chain of title documents, and reps and warranties from the debt seller.
If PRA Group Provides Adequate Documentation
Review everything carefully. Check that:
- The chain of title is complete with no missing links
- Each assignment document includes your name and account number
- The amounts match throughout the documentation
- All documents are properly signed and dated
- The original creditor's name matches your records
If documentation appears complete and accurate, you may need to address the debt through payment, settlement, or other means.
If PRA Group Provides Incomplete Documentation
Missing or incomplete documentation gives you leverage. Common problems include:
Missing original agreement: The original document was not produced, and its omission was not excused by the court for good cause or by statute, and without this documentation, proof of the amount owed was not established or validated.
Incomplete chain: If PRA Group provides only the final assignment to them without showing earlier transfers, the chain is broken.
Generic portfolio documentation: Portfolio-level proof without account-specific documentation doesn't meet validation requirements.
Unsigned documents: Assignment agreements typically require signatures from both the seller and buyer.
If PRA Group Doesn't Respond
If 30 days pass without adequate response, PRA Group has violated the FDCPA. You can:
1. File a complaint with:
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- Your state Attorney General
- Better Business Bureau
2. Demand they cease contact in writing, noting their FDCPA violation
3. Sue for damages under the FDCPA, which allows up to $1,000 in statutory damages plus actual damages and attorney fees
4. Use it as a defense if they sue you, showing they failed to validate the debt
Using Chain of Title as a Court Defense
If PRA Group sues you despite failing to prove chain of title, you have strong defenses available.
Filing Your Answer
When sued, you must file an Answer within the deadline specified in the lawsuit (typically 20 to 30 days). Your Answer should include defenses based on chain of title problems.
Affirmative defenses to include:
- Lack of standing (PRA Group cannot prove they own the debt)
- Failure to provide debt validation as required by FDCPA
- Insufficient evidence of debt ownership
- Incomplete chain of title documentation
Discovery Requests
Once the lawsuit begins, you can request documents through discovery. Specifically request:
- All chain of title documentation
- Original credit agreement
- Complete payment history
- Purchase agreement
- Business records supporting their ownership claim
Motion to Dismiss
If PRA Group cannot provide adequate chain of title documentation, file a Motion to Dismiss for lack of standing. Courts increasingly grant these motions when debt buyers cannot prove ownership.
The Virginia Appeals Court decision demonstrates this principle, finding that even viewed in the light most favorable to PRA, the scanty and incomplete evidence in the record cannot prove that PRA owns the debt through a chain of title, and PRA failed to provide a reasonable level of documentary proof that it held legal title.
State-Specific Chain of Title Requirements
Some states have specific laws requiring chain of title documentation in debt collection lawsuits.
States with Strict Requirements
Several jurisdictions mandate detailed chain of title proof:
District of Columbia: Requires an account-specific affidavit that includes the chain of title of the debt, completed by the plaintiff or plaintiff's witness, with business records attached to verify the information.
New York: Requires detailed affidavits and documentation in debt buyer lawsuits.
North Carolina: Has specific statutes addressing debt buyer documentation requirements.
Maryland: Requires chain of title documentation in collection lawsuits.
Check Your State Laws
Research your state's specific requirements. Many states have adopted consumer protection laws requiring debt buyers to prove ownership before suing. Your state Attorney General's website often provides information on debt collection laws.
Common PRA Group Tactics
Understanding PRA Group's typical responses helps you prepare.
Claiming Documentation Was Already Provided
PRA Group might claim they sent validation documentation already. Unless you received it via certified mail with your signature confirming receipt, this claim is suspect.
According to the 2023 CFPB Order, PRA must provide documents within 30 days of a consumer's request at no cost unless documents have been sent within the previous year.
Providing Generic Affidavits
Instead of actual chain of title documents, PRA Group might send an affidavit claiming they own the debt. An affidavit alone is insufficient. You need the underlying documents the affidavit references.
Ignoring Specific Requests
PRA Group might send partial documentation while ignoring specific chain of title requests. Respond in writing noting they failed to provide complete validation and renewing your request.
Threatening Legal Action
Threatening to sue while failing to validate the debt violates the FDCPA. Document these threats and include them in any FDCPA complaint.
Negotiating Settlement After Validation
If PRA Group provides adequate chain of title documentation proving ownership, you might consider settlement rather than fighting the debt.
Settlement Leverage
Even with proper documentation, you have leverage. PRA Group bought your debt for a fraction of face value—often 5 to 15 cents per dollar. They'll accept less than the full amount.
Typical settlement ranges:
- 30% to 40% of the balance for lump-sum payment
- 50% to 60% for payment plans
- Sometimes as low as 20% to 25% if the debt is very old
Pay-for-Delete Agreements
Request "pay-for-delete" where PRA Group agrees to remove the collection from your credit report in exchange for payment. Get this agreement in writing before paying anything.
Not all debt collectors agree to pay-for-delete, but PRA Group has been known to accept these arrangements, particularly for settled amounts.
Get Everything in Writing
Never make payments based on verbal agreements. Demand written settlement agreements specifying:
- Exact amount you'll pay
- Payment deadline
- Whether this settles the debt in full
- Credit reporting agreements
- Confirmation that PRA Group will not resell the remaining balance
Protecting Your Rights
Throughout the debt validation and collection process, protect yourself by following these practices.
Document Everything
Keep detailed records of:
- All letters sent and received
- Dates and times of phone calls
- Names of representatives you speak with
- Certified mail receipts
- Return receipts
- Copies of all documentation
Know Your Rights Under FDCPA
The Fair Debt Collection Practices Act prohibits debt collectors from:
- Calling before 8 AM or after 9 PM
- Contacting you at work if you've told them not to
- Harassing, threatening, or using abusive language
- Misrepresenting the amount you owe
- Falsely claiming to be attorneys or government representatives
- Threatening actions they don't intend to take or cannot legally take
Record Violations
If PRA Group violates the FDCPA, document each violation. You can sue for:
- Up to $1,000 in statutory damages per violation
- Actual damages (emotional distress, lost wages)
- Attorney fees and court costs
Consider Legal Help
Consumer protection attorneys often work on contingency for FDCPA cases, meaning you don't pay unless you win. Many offer free consultations to evaluate your case.
When to Seek Professional Help
While you can handle debt validation yourself, certain situations benefit from professional assistance.
Consider Hiring an Attorney If:
- PRA Group has sued you
- You've found multiple FDCPA violations
- The debt amount is large (over $5,000)
- You're facing wage garnishment or bank levy
- PRA Group continues collection despite your validation request
- You're considering bankruptcy
Consumer protection attorneys understand debt collection laws and chain of title requirements. They can often achieve better outcomes than consumers handling cases alone.
Conclusion
Chain of title documentation is your strongest defense against PRA Group collection attempts. Without proving they legally own your debt through an unbroken chain of assignments, they cannot legally collect.
The FDCPA gives you the right to demand validation within 30 days of first contact. Use this right by sending a detailed validation letter requesting specific chain of title documentation via certified mail.
If PRA Group cannot provide complete chain of title documentation, they must stop collection activities. If they continue collecting or sue without adequate proof, you have strong defenses and potential FDCPA violation claims.
Even if PRA Group provides proper documentation, you still have options, including settlement negotiation, pay-for-delete agreements, and challenging the amount owed.
Protect your rights by documenting everything, knowing FDCPA protections, and seeking professional help when needed. The burden of proof rests on PRA Group to demonstrate they own the debt and can legally collect it. Make them prove it.