The lawsuit alleges Credit Service Co. engaged in predatory and illegal practices as it tried to collect medical debt.
The plaintiffs allege that the debt collector misrepresents Aurora, Colo.-based UCHealth’s debt as its own, something the debt collector is barred from doing under Colorado law, plaintiff attorney David Seligman told local news station KDVR.
“This company we allege behaves as if it owns the debt, they sue in their own name to collect on the debt, meaning they sue patients in their own name to collect the debt, they communicate with patients about their personal medical circumstances,” Mr. Seligman told The Denver Channel.
Credit Service Co. called the lawsuit “frivolous” and said it expects the court to dismiss the case. Further, the company said the “plaintiffs incorrectly allege that CSC is a medical-debt purchaser. It is not. We act as an assignee to many service providers that are owed money and need help with collections.”
Read the full report here.
More articles on legal and regulatory issues:
Texas hospital pays $48M to settle false claims allegations
Pennsylvania physician sentenced for involuntary manslaughter
Massachusetts home health agency to pay $10M to settle false claims charges
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.