Oklahoma law firms ordered to pay more than $650k for alleged illegal medical debt collection practices

The Consumer Financial Protection Bureau said two Oklahoma-based law firms will refund $577,135 to consumers, and pay a penalty, for allegedly misrepresenting attorney involvement in their medical debt collection practices.

The two firms are accused of leading consumers to believe letters and calls were from attorneys attempting to collect on a debt when no attorney had yet reviewed the account, according to a news release. The bureau said the law firms also "did not ensure the accuracy of the consumer information they furnished to credit reporting companies and used improperly notarized affidavits in lawsuits filed against consumers."

In doing these practices, the CFPB claims the firms violated the Fair Debt Collection Practices Act and the Fair Credit Reporting Act from January 2012 to August 2016.

Therefore, the CFPB has ordered Works and Lentz in Oklahoma City, Works and Lentz of Tulsa (Okla.), and their president, Harry A. Lentz Jr., to provide $577,135 in relief to harmed consumers, correct their business practices and pay a $78,800 penalty.

"Misrepresenting that a lawyer is involved in a debt collection action gives the collection a false weight," CFPB Director Richard Cordray said in the release. "Works and Lentz intimidated consumers with unfounded threats of potential lawsuits. Today we are putting a stop to that and getting consumers the relief they deserve."

In response to the CFPB's order, the law firms and their president provided the following statement to ACI International:

"While Works & Lentz does not believe it has violated any laws and has not admitted any liability, Works & Lentz has determined that it was in its best interest to resolve the matter with the CFPB. Litigation with the CFPB would have been costly, lengthy and risky due to Congress' granting the CFPB the authority to seek millions of dollars in fines, which it threatened to do here." 

According to the release, the law firms, which primarily collect medical debt on behalf of hospitals, physicians and other healthcare providers, annually attempt collection on approximately 700,000 debts totaling more than $500 million.

 

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