Consumers warned against illegal medical debt collection practices

JACKSON, Tenn. — The Consumer Financial Protection Bureau is aiming to protect consumers from illegal medical debt collection practices.

Advisories have already been issued to help people avoid significant financial harm by paying a medical debt they don’t owe.

Toddnetta Trice with the Better Business Bureau of the Mid-South tells us some ways that debt collectors may violate the Fair Debt Collection Practices Act.

These include double billing, exceeding legal limits, falsified or fake charges, collecting unsubstantiated medical bills, and misrepresenting consumers’ rights to contest bills.

“A lot of times people do not know that they can negotiate their debts, they do not have to pay it full out a lot of times, so you can definitely look that up by calling the collector or the healthcare provider that you owe, and ask, ‘Hey, can I negotiate this debt? Do I have to pay the full thing up front?'” Trice said.

If you notice any of these red flags while communicating with a debt collector, you can submit a complaint at consumerfinance.gov/complaint or by calling (855) 411-2372.

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