Court is in Session on Medical Debt Collections

This week’s episode of ACA Cast features a compliance overview of two cases resulting from consumer claims on medical debt collection.

First, Compliance Analysts Andrew Pavlik and Laura Dadd dive into Rhone v. Medical Business Bureau LLC, which resulted in a significant win for the accounts receivable management industry when the 7th Circuit Court of Appeals threw out a lower court’s decision and ruled that the Fair Debt Collection Practices Act does not require multiple debts owed to the same creditor to be aggregated when reported to a consumer reporting agency.

In the second case, Alleman v. Collection Professionals, Inc., a consumer claimed a “service fee” of $3 that was added to a medical debt by the debt collector’s online payment processing company violated the FDCPA.