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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 collection operation is facing a Fair Debt Collection Practices Act class-action lawsuit because it allegedly attempted to collect on a debt where the plaintiff was a beneficiary of Medicare or Medicaid in which the suit alleges the defendant violated a section of the statute that you don’t often see in these types of lawsuits.
The background: The plaintiff received a Model Validation Notice from the defendant last January. The notice included an itemization table, indicating that the plaintiff had owed $1,009, of which $889.86 had been paid or credited to the account, leaving a balance of $119.14.
- The plaintiff is a beneficiary of Medicaid or Medicare insurance, according to the complaint.
- Because of this, the defendant is prohibited from attempting to collect on a balance, even if Medicaid or Medicare doesn’t cover the whole amount, according to the complaint.
The claims: The complaint accuses the defendant of violating Sections 1692e, 1692e(2)(A), 1692e(2)(B), 1692e(10), and 1692f of the FDCPA. It is rare to see a complaint claim a collector violated Section 1692e(b), which prohibits making a false representation of any services which may be lawfully received by any debt collector for the collection of a debt.
- The plaintiff was forced to spend time to ascertain what his options and responses could or should be, and suffered from distress, embarrassment, humiliation, disruption, and other damages because he was unaware why the defendant would attempt to collect on the balance, according to the complaint.
- The class seeks to include anyone else living in New York who received a collection communication from the defendant attempting to collect on a consumer debt related to medical services in which the original creditor agreed to accept the consumer’s Medicaid or Medicare benefits.
