CFPB to Focus Efforts on Medical Debt Collections (1)
Posted: Friday, July 10, 2015
In a recent report, the Consumer Financial Protection Bureau ("CFPB") announced it is cracking down on the medical debt collection industry after receiving numerous consumer complaints regarding the handling of credit report disputes and the rights consumers have when faced with owing a debt.
Specifically, the CFPB is targeting Syndicated Office Systems, LLC (“SOS”) and has ordered the medical collection giant to pay $5.4 million in reciprocity to innocent consumers and to amend its collection procedures to comply with the Fair Debt Collection Practices Act (“FDCPA”) and the Fair Credit Reporting Act (“FCRA”). As a collector of debts owed to healthcare providers, including hospitals, doctors and medical clinics, when SOS’s collection tactics were investigated after receiving numerous complaints, the CFPB discovered the agency and its subsidiaries violated consumers’ rights by mistreating debtors and refusing to allow debtors to exercise their rights under the FDCPA and the FCRA.
In its formal complaint, the CFPB orders SOS to pay moeny to the consumers that were harmed by the abusive practices, correct all credit report errors on consumers’ credit files, cease all conduct in violation of the FDCPA and the FCRA, and change its practices and procedures to ensure that future violations do not occur.
If you believe you have suffered a violation of the FDCPA or the FCRA or would like additional information on these consumer statutes, contact SmithMarco P.C. for a completely free case review.