The Connecticut Department of Banking has fined a collection operation $100,000 for calling a hospital’s emergency phone line in an attempt to collect on a debt. The enforcement action stems from repeated calls placed to a hospital after staff told the collector that the number was an emergency medical line and asked that the calls stop. The state also found licensing and third-party contact issues tied to the activity, resulting in an order to cease and desist and the maximum civil penalty allowed under state law.
According to the order, the Department of Banking concluded that the collector engaged in conduct that had the natural consequence of harassing, oppressing, or abusing persons in connection with the collection of a debt. The calls continued even after hospital staff explained that the line was reserved for emergency medical use and requested that the collector stop calling it. Regulators treated that behavior as a violation of Connecticut law and regulations that mirror federal Fair Debt Collection Practices Act standards.
The state also cited the company for acting as a consumer collection agency in Connecticut without the required license and for communicating with parties other than the debtor or an authorized party without prior consent. Because the company did not request a hearing after receiving the notice of intent, the allegations were deemed admitted under Connecticut administrative procedure. The Banking Commissioner then issued a final order requiring the company to cease and desist from the cited practices and imposed the $100,000 civil penalty, which must be paid within 45 days of the order being mailed.
