NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC

CourtDistrict Court, D. New Jersey
DecidedMay 21, 2025
Docket2:20-cv-20190
StatusUnknown

This text of NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC (NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC, (D.N.J. 2025).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

TODD M. NORTH,

Plaintiff, Case No. 2:20-cv-20190 (BRM) (JSA) v. OPINION PORTFOLIO RECOVERY ASSOCIATES, LLC,

Defendant.

MARTINOTTI, DISTRICT JUDGE Before the Court are two motions. First, Defendant Portfolio Recovery Associates, LLC (“PRA”) moves for summary judgment (“PRA’s Motion for Summary Judgment”) on the sole cause of action in Plaintiff Todd M. North’s (“North”) Amended Complaint (ECF No. 129), pursuant to Federal Rule of Civil Procedure 56 (ECF No. 142). North filed an opposition (ECF No. 143), and PRA filed a reply (ECF No. 144). Second, North moves for class certification (“North’s Motion for Class Certification”) pursuant to Federal Rule of Civil Procedure 23. (ECF No. 145.) PRA opposed (ECF No. 147), and North replied (ECF No. 148). Having reviewed and considered the submissions filed in connection with the Motion and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause having been shown, PRA’s Motion for Summary Judgment (ECF No. 142) is GRANTED, and North’s Motion for Class Certification (ECF No. 145) is DENIED as moot. I. BACKGROUND A. Factual Background1 This matter pertains to PRA’s repeated attempts to collect debts owed by North on two accounts, a line of credit obtained from WebBank/FingerHut (“WebBank Account”) and a Capital

One credit card account (“Capital One Account”), which North contends violated the Consumer Fraud Act (“CFA”), N.J. Stat. Ann. § 56:8-1, et seq.. (ECF Nos. 142-3 (Def. Statement of Material Facts (“SOMF”)) ¶¶ 4–13; 143-2 (Pl. Response to Def. SOMF) ¶¶ 4–13.) PRA is registered as a limited liability company in Virginia. (ECF Nos. 142-3 ¶ 1; 143 ¶ 1.) North is a citizen of New Jersey. (ECF Nos. 142-3 ¶ 3; 143-2 ¶ 3.) PRA “purchas[es] and tak[es] assignment of defaulted credit accounts originally extended by other creditors, which it then enforces against the borrowers through collection letters, lawsuits, and post-judgment collection efforts.” (ECF Nos. 142-3 ¶ 2; 143-2 ¶ 2.) PRA asserts North is a borrower who is delinquent on the WebBank Account. (ECF No. 142-3 ¶ 4.) North disputes this in part, offering instead that “Defendants allegedly purchased and attempted to take assignment of a WebBank/FingerHut account that had allegedly been

extended to Plaintiff North,” (ECF No. 143-2 ¶ 4). There is no dispute North paid the WebBank

1 The background facts in this subsection are taken from the parties’ admitted statements of material fact and accompanying exhibits. The Court deems supported factual contentions to be admitted unless sufficiently disputed by reference to record evidence, and similarly construes as undisputed all facts in Defendant’s Statement of Material Fact (“SOMF”) to which Plaintiffs object without citing to any record evidence. See New Jersey Local Civil Rule 56.1(a); Ullrich v. U.S. Sec’y of Veterans Affs., 457 F. App’x 132, 136–37 (3d Cir. 2012) (“[T]he party opposing summary judgment must support each essential element of the opposition with concrete evidence in the record . . . . A plaintiff’s mere belief or contention . . . is not enough to create a dispute of material fact sufficient to survive summary judgment . . . . Federal Rule 56 explicitly requires the party asserting the absence or existence of a genuinely disputed fact to support that assertion by citing to specific parts of the record. A court may consider other materials in the record, but need only consider cited materials and may consider undisputed any fact not properly addressed by the party opposing it.” (citations omitted)); Stouch v. Twp. of Irvington, Civ. A. No. 03-06048, 2008 WL 2783338, at *2 n.1 (D.N.J. July 16, 2008) (“deem[ing] [d]efendants’ uncontested facts as admitted, unless disputed by [p]laintiffs in their brief and supported by the evidence”). Account in full to PRA, used to purchase a massager on credit, and could not be used to pay for any services. (ECF Nos. 142-3 ¶¶ 5–7; 143-2 ¶¶ 5–7.) According to PRA, it purchased North’s “non-performing charged-off debt” following North’s “default and contractual breach” on repaying the WebBank Account. (ECF No. 142-3 ¶ 8.) North disputes being in “contractual

breach.” (ECF No. 143-2 ¶ 8.) PRA did not sell any merchandise or services to North. (ECF No. 142-3 ¶ 9.) The parties disagree whether PRA is a debt collector (ECF No. 142-3 ¶ 10) or assignee (ECF No. 143-2 ¶ 10). North contests he was delinquent on debts he incurred on the Capital One Account (ECF No. 142-3 ¶ 11), but the parties do not dispute North paid off the Capital One Account to PRA (id. ¶ 11; ECF No. 143-2 ¶ 11). PRA purchased North’s “nonperforming debt for the charged-off Capital One credit card account” following his default on repayment obligations. (ECF No. 142-3 ¶ 12; 143-2 ¶ 12.) The Capital One Account was only used to make purchases prior to PRA purchasing the debt, and PRA did not sell North any merchandise or services regarding the Capital One Account. (ECF No. 142-3 ¶ 13.) North nonetheless contends, “though PRA did not itself sell merchandise or services directly to Plaintiff, PRA engaged in subsequent

performance on the merchandise sold to Plaintiff through collection.” (ECF No. 143-2 ¶ 13.) North amended the Complaint on February 21, 2024 (id.), asserting PRA “commenced . . . collection activities against Plaintiff . . . when it was not properly licensed to do so under the [New Jersey Consumer Finance Licensing Act (“NJCFLA”), N.J. Stat. Ann. § 17:11C-3] or any other New Jersey consumer lending statute” (ECF Nos. 142-3 ¶ 17; 143-2 ¶ 17). To refute this allegation and demonstrate PRA has been licensed under the NJCFLA since 2015, PRA submitted a licensee report from the New Jersey Department of Banking and Insurance and a deposition of Ricky Vaughn, Regulatory Complaints Analyst at PRA (“Vaughn Deposition” (ECF No. 142-6, Ex. C)). (ECF Nos. 142-3 ¶ 18; 143-2 ¶ 18.) North disputes this evidence is probative of PRA’s date of NJCFLA licensure, and he contends PRA first received a license as a consumer lender on February 2, 2018. (ECF No. 143-2 ¶ 18 (citing ECF Nos. 143-1 (“Kim Declaration”) ¶ 2, 143-3 (“New Jersey Consumer Lender License Verification”) at 1).) North asserts PRA was first licensed as a consumer lender on February 2, 2018 (id. ¶ 20), and as a sales finance company on December 4,

2015 (id. ¶ 21). B. Procedural History North initiated this action against PRA in the Superior Court of New Jersey, Essex County, on August 6, 2019. (ECF Nos. 142-3 ¶ 14; 143-2 ¶ 14.) PRA removed it to this Court on September 13, 2019, based on federal diversity jurisdiction (ECF Nos. 142-3 ¶ 15; 143-2 ¶ 15), but the Court remanded the action after it determined it did not have subject matter jurisdiction (ECF Nos. 142- 3 ¶ 16; 143-2 ¶ 16). PRA again removed this action on December 22, 2020, under the Class Action Fairness Act (“CAFA”). (Id.) On August 30, 2021, the Court denied North’s renewed motion to remand. (ECF No. 19.) The original Complaint alleged three counts: (1) violations of the NJCFLA; (2) violations

of the CFA; and (3) unjust enrichment. (ECF No. 1-2, Ex. B.) On April 9, 2021, PRA moved for judgment on the pleadings (ECF No. 14), which this Court granted as to the NJCFLA and unjust enrichment claims but denied as to the CFA claim (ECF No. 21). Following years of procedural litigation,2 North filed an Amended Complaint alleging one count of violations of the CFA on

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NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-v-portfolio-recovery-associates-llc-njd-2025.