CFPB Opposes Debt Collector Bid To Undo 2023 Settlement

PRA Group (Portfolio Recovery Associates) is asking the Eastern District of Virginia to terminate its March 23, 2023 CFPB consent judgment, and the CFPB’s April 2026 opposition.

Key points:

• The case:

  • 2023 consent judgment resolved CFPB allegations that PRA violated a 2015 CFPB order by, among other things, collecting unsubstantiated debts, suing on time‑barred debts, and failing to provide documentation and required disclosures, and by related FCRA issues.

  • The 2023 order required PRA to pay about $24 million (roughly half consumer redress, half civil penalty) and imposed operational reforms.

• PRA’s current motion:

  • PRA asked the E.D. Va. to terminate or significantly modify the 2023 consent judgment, arguing that it is an “onerous” Biden‑era settlement that constrains its business in a changed regulatory environment.

  • PRA also points to industry challenges such as “finfluencers” and credit‑repair outfits as factors affecting its portfolio and operations, characterizing the order as disproportionate under current conditions.

• CFPB’s opposition:

  • The Bureau’s April 2026 filing urges the court to deny PRA’s motion, emphasizing PRA’s “long history of non‑compliance” with consumer protection laws and prior CFPB orders.

  • CFPB argues PRA has not met its burden under Rule 60(b) (or similar standards) to justify vacating or narrowing a negotiated, court‑approved consent judgment, stressing the public interest in finality of judgments and continued compliance monitoring.

  • The filing underscores that, even under President Trump’s CFPB leadership, debt‑collection enforcement (especially repeat‑offender oversight) remains a stated priority, notwithstanding rollbacks in other enforcement areas.

• Context and implications:

  • This move comes as the current CFPB has, in at least one instance, tried (unsuccessfully) to jointly unwind a prior consent order in Townstone, with a court stressing the strong public interest in finality of settlements—something PRA and CFPB are now litigating from opposite sides here.

  • For the collections industry, the case will be an important indicator of how receptive courts are to post‑change‑in‑administration attempts to re‑calibrate “Biden‑era” consent orders—either to roll them back (Townstone‑style) or to resist industry bids to loosen them (PRA).