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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.
A medical debt collection agency is facing a Fair Debt Collection Practices Act and Fair Credit Reporting Act lawsuit in the District Court for the Central District of California after being accused of engaging in unlawful debt collection and inaccurate credit reporting practices. The case involves multiple defendants, including a medical debt collector and the major credit reporting agencies.
The background: The plaintiff, a California resident, alleges that the defendant debt collector attempted to collect an inflated medical debt stemming from an emergency room visit in September 2021. According to the complaint, the plaintiff had workplace insurance coverage at the time of treatment, and an Explanation of Benefits (EOB) from his insurance company indicated he was only responsible for $3,017.10 of the total bill.
- However, the plaintiff claims that the debt collector pursued him for more than $20,000, despite being provided with the EOB information. The lawsuit alleges that the original medical provider engaged in “phantom billing” – charging for services that were never rendered – and that the debt collector continued these unfair practices.
- The complaint further states that the debt collector reported inaccurate information to major credit reporting agencies, causing damage to the plaintiff’s credit score and financial standing. The plaintiff alleges that even after disputing the debt with both the collector and credit reporting agencies, the inaccurate information persisted on his credit reports.
The claims: The lawsuit brings forth multiple claims against the debt collector and three major credit reporting agencies:
- Violations of the Rosenthal Fair Debt Collection Practices Act (RFDCPA)
- Violations of the federal FDCPA
- Violations of the California Consumer Credit Reporting Agencies Act (CCRAA)
- Violations of the federal FCRA
The plaintiff accused the debt collector of using false, deceptive, and misleading representations in its collection efforts, attempting to collect amounts not permitted by law, and failing to conduct proper investigations of disputes.The credit reporting agencies are alleged to have failed in their duties to follow reasonable procedures to assure maximum possible accuracy of credit information and to conduct proper reinvestigations of disputed information.
