Portfolio Recovery Associates

Portfolio Recovery Associates (PRA) is a company that buys unpaid debt—such as credit card balances or personal loans—from original lenders. Instead of working directly with borrowers, PRA attempts to collect these debts by contacting the debtors or through legal means. They often buy large portfolios of unpaid accounts at a discount, aiming to recover more than they paid. PRA operates within legal guidelines and provides a way for lenders to recover some funds from unpaid debts, while debtors may settle or negotiate payments with the company.