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Suit-readiness

Suit-readiness — Suit-readiness is the pre-filing determination that an account carries the documentation, ownership proof, balance support, and limitations-period clearance needed to sustain a collection lawsuit.

The term is firm and client vocabulary, not a defined regulatory concept, but the CFPB has specified its content. The Portfolio Recovery consent order of September 9, 2015 prohibits initiating a debt collection lawsuit without four things: Original Account-Level Documentation showing the consumer's name, the last four digits of the account number at charge-off, and the claimed amount (with a documented explanation and legal basis for any amount exceeding the charge-off balance); a chronological list of all prior owners with transfer dates; certified bills of sale referencing the specific debt; and either a document signed by the consumer opening the account or documentation reflecting a purchase, payment, or other actual use of the account. Bank clients typically encode these as a pre-suit checklist in placement instructions, and the firm's ability to evidence the check — not merely to have performed it — is what an oversight sample tests.

Primary sources

  1. In re Portfolio Recovery Assocs., LLC, 2015-CFPB-0023, ¶ 119 (Sept. 9, 2015)

See also

Where this appears

This is an informational reference, not legal advice, and using it creates no attorney-client relationship. Limitations periods turn on facts this page cannot know — which state's law governs, the contract type, when the claim accrued, and whether anything tolled or revived it. Confirm against the primary source and your own counsel before acting.