The Court of Appeals of Puerto Rico recently upheld a lower court's decision to dismiss a debt collection case involving Island Portfolio Services, LLC, and Javier R. Aponte Betancourt. The ruling, issued on June 23, 2026, confirmed that Island Portfolio failed to provide adequate notice to Aponte before initiating legal action to collect a debt of $8,136.46. This decision affects how debt collection agencies operate in Puerto Rico and emphasizes the importance of proper notification procedures.
The case originated when Island Portfolio Services, acting as an agent for Fairway Acquisitions Fund, filed a lawsuit against Aponte on July 27, 2022, to collect the outstanding debt. The agency claimed that Aponte had defaulted on a credit line extended by Banco Popular de Puerto Rico. Despite multiple attempts to notify Aponte of the debt, including sending a certified letter to what they claimed was his last known address, the court found that the notification was inadequate.
The dispute escalated when Aponte filed a motion to dismiss the case, arguing that Island Portfolio had not followed the legal requirements outlined in the Puerto Rico Collection Agency Law. Aponte contended that the address used for the notification was outdated and that he had not received the notice. After reviewing the evidence, the lower court sided with Aponte, leading Island Portfolio to appeal the decision.
The Court of Appeals, led by Judge Mateu Meléndez and joined by Judges Rivera Marchand and Boria Vizcarrondo, reviewed the case and affirmed the lower court's ruling. The judges determined that Island Portfolio had not complied with the Collection Agency Law, which mandates that agencies must notify debtors at their last known address before filing a lawsuit. The court stated, "the notice of collection sent by Island Portfolio did not constitute adequate notification to the last known address as required by the Collection Agency Law prior to filing a judicial claim."
This ruling reinforces the legal obligation for debt collection agencies to ensure they have the correct contact information for debtors before initiating legal proceedings. The court emphasized that proper notification is a fundamental aspect of due process, stating that "the last known address must be reasonably calculated to ensure that the debtor receives notice of the claim." The implications of this ruling are significant for both debtors and collection agencies in Puerto Rico. It sets a clear precedent that agencies must adhere strictly to notification requirements or risk having their cases dismissed. This decision could lead to increased scrutiny of collection practices, as agencies may need to invest more resources into verifying debtor information before pursuing legal action.
Furthermore, the ruling may encourage debtors to be more proactive in challenging collection efforts if they believe proper notification procedures have not been followed. It highlights the importance of ensuring that debtors are given a fair chance to respond to claims against them, which is a core principle of legal fairness.
Looking ahead, it remains to be seen whether Island Portfolio will seek further legal recourse or if this decision will stand as a definitive conclusion to the case. There are no indications of a related case pending at this time, but the ruling may prompt other debtors to examine their own situations and consider legal action if they believe they have been subjected to improper collection practices.