KANSAS CITY, Mo. (AP) - A Jackson County jury has assessed about $82 million in damages against a debt-collection firm that demanded payment from a woman who had not incurred the debt.
The jury this week awarded $251,000 in damages to Maria Guadalupe Mejia Alcantara of Kansas City and assessed $82 million in punitive damages against Portfolio Recovery Associates, LLC, a debt-collection firm, The Kansas City Star reported (https://bit.ly/1KaFLIt).
The case arose two years ago when Alcantara learned she was being sued by the company for not paying a credit card debt of about $1,130. She told the debt collection company the debt was not hers, but the firm continued to demand payment and notified her it was suing her.
“They wanted me to pay them over $1,000,” she said in a written statement after the verdict “I did not owe this company any money. My husband and I were already struggling to just to keep our children fed and the lights on. The lawsuit terrified me.”
Her lawyers filed a counter-claim lawsuit, accusing the company of malicious prosecution and violation of a federal fair debt collection act.
A Jackson County judge ruled in favor of Alcantara last October and said Portfolio Recovery had “acted in bad faith, abused the discovery process, and repeatedly violated this Court’s discovery orders.” The jury returned the award verdict on Monday.
Portfolio Recovery spokesman Michael McKeon called the verdict “outlandish” and said the company will ask the judge to reduce the assessed amount. It could also appeal or ask for a new trial.
“Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand,” McKeon said in an emailed statement.
Gina Chiala, Alcantara’s lawyer, said the punitive damages assessment was intended to send a message to debt collection companies that try to collect debts without supporting documentation.
“The jury issued a verdict that it thought would get this company’s attention,” Chiala said.
If the assessment or damage amounts are upheld, half of the $82 million will go to the Missouri Attorney General’s office for deposit in the victims’ compensation fund. The other half would be split by Alcantara and her lawyers, Chiala said.
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Information from: The Kansas City Star, https://www.kcstar.com
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