Kansas City Woman Wins $83 Million Against Debt Collection Agency

Posted on May 25, 2015 at 12:00pm by

The debt collection agency Portfolio Recovery Associates LLC has been ordered to pay a Kansas City woman nearly $83 million after a jury found that the company had maliciously persecuted her.

In addition to the $83 million, the company was ordered to pay $250,000 in damages for violating the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, debt collectors must avoid threatening and harassing behavior.

As one of the largest debt buyers in the country, Portfolio Recovery Associates sued the Kansas City woman in 2013 for unpaid credit card debt that did not even belong to her. After the evidence came forward, it turned out that the credit card debt belonged to another person in Kansas City with a similar name.

Portfolio Recovery Associates has denied any allegations against it and plans to appeal the decision.

Should I Hire An Attorney To Handle Debt Collectors?

Failing to pay debt collection agencies can result in lawsuits, wage garnishments, constant phone calls and a lowered credit rating. In this case, the woman was harassed for 15 months after receiving notice that she was being sued by the debt collection agency.

We have written on our blog before about debt collectors, and the conclusion of this lawsuit shows why it is important to hire an attorney when dealing with debt litigation or bankruptcy.

Depending on the situation and the assets held by a person, it might be possible to discharge some or all debts in bankruptcy. Contacting an attorney does not cost anything and might open up new options for individuals trapped in debt.

Our readers can learn more about bankruptcy and collection agencies by exploring our YouTube page.

The Sader Law FirmKansas City Bankruptcy Attorneys