Portfolio Recovery Associates LLC Settles CFPB Matter

Rhea-AI Summary

PRA Group, Inc. (NASDAQ: PRAA), a leader in managing nonperforming loans, announced a settlement with the U.S. Consumer Financial Protection Bureau (CFPB) on March 23, 2023. Under this agreement, PRA will pay a $12 million penalty and approximately $15 million to affected consumers, impacting less than 0.1% of active accounts. Most of the financial implications were already recognized in the December 31, 2022 financial statements. PRA's leadership emphasizes their commitment to compliance and consumer service, expressing satisfaction in resolving this matter to focus on their core mission of aiding consumer financial recovery.

Positive

• Settlement amount aligns with previous financial statements.
• Company's commitment to compliance and consumer service highlighted.

Negative

• Payment of $27 million may impact cash reserves.

NORFOLK, Va., March 23, 2023 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and servicing nonperforming loans, announced today that its subsidiary, Portfolio Recovery Associates, LLC (PRA), has reached an agreement with the U.S. Consumer Financial Protection Bureau (CFPB). As part of the settlement, PRA has agreed to pay a penalty of $12 million and approximately $15 million to impacted consumers, who represent less than one-tenth of 1% of PRA's active accounts. The majority of the financial impact of the settlement was reflected in our December 31, 2022, financial statements. This agreement is not expected to have a material adverse impact on the company's financial condition or results of operations.

PRA Group, Inc. President and Chief Executive Officer Kevin Stevenson said, "Our company was founded on the principles of treating customers with fairness and respect, and we have prided ourselves in upholding these values for more than 27 years. Although we have admitted to no wrongdoing as part of the resolution, and we continue to disagree with the CFPB's characterization of our conduct, we are pleased to have this matter resolved and behind us, allowing us to return our full attention to our impactful work with consumers, promoting their journey toward financial recovery."

Throughout this process, PRA's team worked collaboratively with the CFPB, demonstrating its dedication to helping consumers and to compliance excellence in the financial services industry. "Our organization is committed to strict compliance with consumer protection law, and to providing the highest standards of customer service," added Laura White, executive vice president and chief risk and compliance officer.

About PRA Group

As a global leader in acquiring and collecting nonperforming loans, PRA Group returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

News Media Contact:
Elizabeth Kersey
Senior Vice President, Communications and Public Policy
Elizabeth.Kersey@PRAGroup.com
(757) 641-0558

Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
IR@PRAGroup.com
(757) 431-7913

View original content to download multimedia:https://www.prnewswire.com/news-releases/portfolio-recovery-associates-llc-settles-cfpb-matter-301780145.html

SOURCE PRA Group

FAQ

What was the settlement amount for PRA Group with the CFPB?

PRA Group agreed to pay a total of $27 million, consisting of a $12 million penalty and approximately $15 million to affected consumers.

How many active accounts were impacted by PRA Group's settlement?

Less than 0.1% of PRA Group's active accounts were affected by the settlement.

When was the announcement made regarding the PRA Group settlement?

The settlement announcement was made on March 23, 2023.

Is the settlement expected to affect PRA Group's financial performance?

According to the company, the settlement is not expected to have a material adverse impact on PRA Group's financial condition or results of operations.

What is the stock symbol for PRA Group?

PRA Group is listed under the stock symbol PRAA.