Woman wins $83 million in lawsuit against debt collector

Woman wins $83 million in lawsuit against Bogus “debt collector”

A debt collection agency has been ordered to pay $83 million to a Missouri woman after a jury decided that the agency ‘maliciously prosecuted’ her to collect a debt she did not owe.

Maria Guadalupe Mejia, 51, won her case against Portfolio Recovery Associates LLC, one of the largest debt buyers in the U.S., after the company mistakenly sued Mejia for a credit card debt of $1,000 belonging to a man with a similar sounding name, according to  KCUR.

Jackson County Circuit Judge Joel P. Fahnestock struck down the debt collector’s pleadings after it failed to hand over information in the case.

The full damages, determined by the jury after five days of hearing evidence, dealt a $250,000 fine for violating the Fair Debt and Collection Practices Act (FDCPA) and punitive damages of $82,990,000 for the malicious prosecution of Mejia.

“This company has gained a reputation for take no prisoners, ‘If you mess with us we’re going to take you all the way, you’re going to have to spend a lot of money on this litigation, you’re going to have to go all the way to trial,'” said one of Mejia lawyers, Gina Chiala, according to KCUR. “And so, among consumer lawyers, they are known to be very aggressive in litigation and to not stop; even when they’re wrong, they’re just not going to stop.”

Michael McKeon, a spokesperson for Portfolio Recovery Associates, called the verdict “outlandish” and said it “defied all common sense.” McKeon said the company will file motions to dismiss the award to Mejia, believing it to be of an “inappropriate” size.

The debt collector added that if the verdict is not reduced, it “could have a material adverse effect on the Company’s financial condition and/or operations.”

Mejia has worked for 15 years at a dry cleaner’s shop before it recently closed, leaving her unemployed. She said she was terrified when the company filed a lawsuit against her, despite having argued they had the wrong person.

The company claims to have dropped the lawsuit against Mejia for the credit card debt when it realized it had made a mistake, though it did so after Chiala’s law firm, Slough Connealy Irwin & Madden, had already filed the countersuit against Portfolio Recovery Associates.

Mejia reportedly broke down in tears when the jury read its verdict. In a written statement, Mejia commented on the case:

“On February 6, 2013, my husband came to my place of employment and handed me the lawsuit Portfolio Recovery Associates, LLC had served him with at our home. They wanted me to pay them over $1,000. I did not owe this company any money. My husband and I were already struggling just to keep our children fed and the lights on. The lawsuit terrified me. I feared they would take my house and I feared they would arrest me. I was very shocked that they sued me for one year and three months even though I never had the credit card. And after they dismissed the case, they said they might sue me again.

“I am so thankful to the jury for giving me and my family justice. This should not happen to anyone and I hope the jury’s verdict will stop Portfolio from doing this to others. I am grateful that my name is totally cleared and my family and I can move on.”

PRA Group, Inc., which owns The Portfolio Recovery Associates, reported its 2014 total revenues of nearly $881 million and net income of $176.5 million. The punitive award to Mejia amounts to nearly half of the 2014 net income figure.

Leave your vote

More

Don’t Stop Here

More To Explore

Screen Shot 2025 07 08 at 9.35.01 PM

EMERGENCY PETITION FOR WRIT MANDAMUS VANISHES: Ninth Circuit Fraud, Tampering, Judicial Collusion, and a Federal Cover-Up Seems Unequivocal

Federal courts are now under scrutiny after a verified Writ of Mandamus vanished from the Ninth Circuit docket without explanation—raising grave concerns of judicial tampering, fraud, and systemic misconduct. Judge Sunshine Sykes defied clear jurisdictional divestiture by issuing rulings on a matter under appellate review, violating 28 U.S.C. § 144 and § 1651. This article exposes a disturbing pattern of ultra vires acts, denial of due process, and potential RICO violations implicating both district and appellate judges.Ask ChatGPT

lawful tender discharges the debt

When the Debt Is Discharged but the LIEN Remains: Why Auto and Home Loan Lenders Who Ignore Lawful Tender Are Committing Fraud and Commercial Crimes

This article delivers a devastating legal breakdown proving that lawful tender—once made and unrebutted—discharges auto loan debt under UCC §§ 3-601, 3-603, 3-310, 2-206, and 1-103, as codified in Cal. Com. Code §§ 3601, 3603, 3310, 2206, 1103, Fla. Stat. §§ 673.6011, 673.6031, 673.3101, 672.206, 671.103, and N.C.G.S. §§ 25-3-601, 25-3-603, 25-3-310, 25-2-206, 25-1-103. It exposes refusal to release a lien after lawful discharge as actionable fraud, conversion, embezzlement, and obstruction under state and federal law. With verified case law and commercial principles, it explains how silence equals acceptance and how creditors become commercially estopped. A must-read for secured parties, fiduciaries, and equity claimants demanding lien removal, declaratory relief, and commercial remedy.

Screen Shot 2025 06 28 at 4.55.33 PM

How a Perfected Security Agreement and UCC Filings Strip Servicers of Foreclosure Rights

A properly executed Security Agreement assigning all assets, rights, and interests to a private trust—paired with a UCC-1 financing statement and UCC-3 amendment claiming the Deed of Trust and Note—lawfully establishes the trust as the secured party and real party in interest. This perfected interest, under UCC §§ 9-203, 9-509, 3-301, and supported by controlling case law (e.g., Carpenter v. Longan, Ibanez, Veal), strips any servicer or third-party of standing to foreclose unless they possess the original Note, prove an unbroken chain of title, and rebut the trust’s perfected claim. Without that, all foreclosure attempts become void ab initio, commercial dishonor, and legal trespass on private trust property.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.

error: Content is protected !!