FEBRUARY 27, 2018

Prescott Lovern, Sr. (Lovern) says PRA GROUP, INC. (PRA) (aka Portfolio Recovery Associates) is facing potential bankruptcy for their willing participation in MasterCard & Visa’s racketeering enterprise connected to illegal fees charged to cardholders’ credit cards, unknown to the cardholder. [Trillions of dollars in total Enterprise liability].

PRA buys large portfolios of unpaid and delinquent obligations from consumers to credit originators like banks, credit unions, auto-finance companies, and retailers. About 70% of the time, this debt is in the form of credit card debt. Visa (NYSE:V) and Mastercard (NYSE:MA) don’t assume the risk of default when the consumer gets one of their credit cards – the issuer of the card does, and it’s the issuer of the credit card keeping the illegal fees, charging them to the customer’s account. When the customer does not pay PRA is almost always buying this debt for pennies on the dollar [not all issuing banks].

Since PRA was founded in 1996, it has acquired more than 2,748 portfolios with a nominal face value around $70 billion for a total price of about $2.7 billion (roughly 3.5 cents on the dollar) (where PRA agrees in advance to buy any debt that is charged off over a period of time for a specific percentage of the debt’s face value). Here lies the problem.

The MasterCard / VISA credit card charged off debt includes the illegal fees charged to the credit card account. PRA then attempts to collect those illegal fees in violation of state & federal laws, including federal felonies. PRA is successful at collecting many of these illegal fees, and in the process they don’t tell the account owner about the illegal fees charged to their credit card account.

Shareholders and Investors should pay close attention to PRA’s upcoming 10 K to see if the officers & directors disclose this liability, as it is required to be disclosed under 303.

If PRA wants to challenge Lovern’s findings he will gladly meet with them at the F.B.I.

Stay tuned.



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