PHOENIX — Ann Muñoz, a former school bus driver who now cares for her husband with Parkinson’s disease, was ready for life’s challenges in retirement.

She takes care of her garden, her flock of chickens, and even her ducks. Muñoz saves money every year to give back to the community. She donates to food pantries every Thanksgiving and gifts to families from her local school’s “Angel Tree” every Christmas.

She has seen a lot. she does a lot of things.

She thought she was ready for anything.

Until last September, when a debt collector filed a lawsuit against him.

“This happened out of the blue. I was really surprised. I had no idea what was going on,” Munoz said.

The lawsuit seeks more than $2,700 for a Dell Financial Services account that was allegedly opened in 2011.

“It’s not my debt,” Munoz said. “I don’t know what this has to do with fraud, credit fraud, or what.”

Munoz’s case is one of tens of thousands of unique cases filed by a single company across the state. She plays a part in the big drama of consumer versus creditor, but in reality the creditor is not the creditor. But their profits are being charted by Wall Street even as human costs are rising.

Munoz came to the attention of a company called Portfolio Recovery Associates, which is listed on the Nasdaq as PRAA. Its business model is simple: it buys debts deemed “uncollectible” from companies for $1, then seeks to recover the full amount through phone calls and lawsuits. This business model is both simple and controversial. PRAA agreed to repay $5 million to consumers in North Carolina and was ordered to pay $24 million by a federal watchdog.

The company is one of the largest debt collection companies in the United States. Since 2022, PRAA has filed 21,000 claims totaling $47 million in Maricopa County alone.

We are an international company with operations in North America, South America, Australia and Europe. According to the 2024 report.

“We purchased a total portfolio of $285 million in the fourth quarter and $1.2 billion in 2023, the latter representing a 36% increase and the third-highest level in the company’s history.” CEO Vikram Attal said in a statement. To all of last year’s shareholders.

“The impact of our cash generation and operational efforts in our U.S. operations, particularly with respect to call center activity, post-judgment legal proceedings and offshoring efforts, is very encouraging and we believe we are making the PRA more robust.” It shows that the organization is on track to transform itself into an efficient and profitable company.

Munoz had never heard of them.

She said she remembers buying a Dell laptop in 2011 but believes she paid it off on time.

She no longer owns a computer, much less a receipt. She tried contacting Dell multiple times for more information, but was told Dell also no longer had any records.

She continued her investigation and soon discovered that Ann Munoz was not the only person Portfolio Recovery Associates had sued over the very same debt.

“They sent that notice to Anne K. Munoz of Memphis, Missouri,” Munoz said. “I’ve never lived in Missouri.”

The 12News I-Team discovered that Portfolio Recovery Associates filed a separate lawsuit in April in Missouri seeking payment of the same debt.

A few months later, the company abandoned the case and resubmitted the same information to Ann Munoz, of Vernon, Arizona.

The 12News I-Team asked Portfolio Recovery Associates how the company tracked the debt and why it filed two lawsuits for the same debt.

In response to questions from the I-Team, Elizabeth A. Carsey, PRA’s senior vice president for communications and public policy, said in an email that “as a matter of practice, we do not comment on specific legal matters.”

“However, please note that while we strive for the highest industry standards, we adhere to strict local, state, and federal regulatory and legal requirements,” Kersey continued in the email. “We also strive to act with integrity and always treat our customers with respect and empathy.”

The I-Team found that the lawsuit against Munoz is just one of thousands filed by Portfolio Recovery Associates against Arizonans last year.

Arizona has dozens of judicial courts throughout the state, including Round Valley Justice Court, where Munoz was charged. The court clerk provided records showing Munoz’s case is one of 16 portfolio recovery associates filed in that jurisdiction.

But in Maricopa County, the 12News I-Team obtained court data showing Portfolio Recovery Associates has filed more than 21,000 individual lawsuits since 2022.

These lawsuits claimed debts totaling more than $47 million from individuals.

Each case filed in the Court of Justice must be for less than $10,000. The I-Team’s analysis found that insurance claims average $2,200.

“We don’t know who these people are, but they are suing over debts that they couldn’t or didn’t pay for some reason years ago,” North Korea’s chief lawyer Jason Pickler said. Carolina Justice Center. “So, unfortunately, most people don’t respond to these lawsuits, and debt buyers can move toward obtaining default judgments.

They can turn a simple credit card debt into a civil judgment that can garnish your wages or apply against your real estate. It’s a scary situation. ”

Pickler’s team also represented thousands of people in North Carolina who were also sued by the PRA.

“We found that Portfolio Recovery Associates did not provide the necessary documentation to comply with state law when obtaining a default judgment, so we filed suit,” Pickler said.

In 2024, PRA settled the lawsuit and agreed to repay more than $5 million to North Carolina consumers.

The I-Team also asked specific questions about PRA’s efforts to verify and prove debts in each case filed throughout Arizona. Kersey’s emailed statement did not address those questions.

“As a custom, we do not comment on specific legal matters. Please note, however, that while we strive for the highest industry standards, we adhere to strict local, state, and federal regulatory and legal requirements. We also strive to act with integrity and always treat our customers with respect and empathy. ” Elizabeth Kersey, Senior Vice President, Communications and Public Policy, PRA Group. ”

An I-Team analysis of Maricopa County cases found that thousands of people have been awarded judgments totaling $4.7 million since 2022.

“We urge the state of Arizona to enact some rules and regulations that protect the vast majority of people who are sued for these types of debts, who do not respond to charges,” Pickler said.

In 2023, Consumer Financial Protection Bureau It was found that “major debt collection companies filed lawsuits even when there was a lack of documentation regarding the debt.”

In a March 2023 press release, the CFPB announced that it had ordered Portfolio Recovery Associates to pay more than $24 million for “continued illegal debt collection practices,” but this was not the first time. .

PRA had already been ordered by the CFPB in 2015 to “clean up its defective operations,” according to the filing.

“Since being caught red-handed in 2015, Portfolio Recovery Associates has continued to violate the law through intimidation, deception, illegal debt collection tactics and litigation,” CFPB Director Rohit Chopra said in a statement.

Among the many complaints against the company, the agency said PRA “takes necessary steps to establish the accuracy and validity of at least tens of thousands of debts disputed by consumers.” Even though no action was taken, they were collected.”

For Muñoz, these discoveries feel all too familiar.

“That’s what they did to me,” Munoz said. “And it’s not just me. There are other people out there. Other people need to know how to fight them, and I want to be able to do that too.”

For now, Munoz is preparing for his day in court.

She said she had to buy a new laptop and printer to prepare her case before a magistrate that the case against her should be dismissed.

Her hearing is scheduled for mid-January.

Any tips? Please email us at item@12news.com

If you are sued by Portfolio Recovery Associates or any other debt collection company, take it seriously.

“If you’re out there and you’re sued by a debt collector or a debt buyer, don’t ignore it. Try to respond. Try to file an answer,” North Carolina attorney Jason Pickler said.

If you want to dispute a claim against you, be aware of the deadlines to respond to your lawsuit. If you do not respond or appear in court, the debt collector can proceed to seek a default judgment.

“Ask for help. If you can’t afford a lawyer, there are legal services organizations in Arizona that provide free legal assistance, so make sure you take advantage of them,” Pickler said. .

Regional legal services We provide free services to those who qualify.

Apply by phone 602-258-3434 9 a.m. to 2 p.m. We are currently not accepting walk-ins.

24 hours online in AZLawHelp.org – Arizona Law Help

If you are not eligible for free legal aid, please seeA moderately resourced project” offers legal consultations as low as $75 per hour.

Contact us by phone: 866-637-5341

For more legal resources, visit here arizona legal help

Want to learn more about how to deal with debt collectors and whether your rights may be violated? Consumer Financial Protection Bureau Provide information and resources.

“It would also be great if the Arizona Legislature could help by enacting common-sense limitations that would make it more difficult for debt buyers to sue and obtain judgments on these debts,” Pickler said. said.

You can also find your constituency and area to contact your representative. Click here for contact information for members of Congress.

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