The Consumer Financial Protection Bureau (CFPB) has outlined enforcement action against medical debt collector Phoenix Financial Services, alleging numerous debt collection and credit reporting violations.
“With medical debt looming over so many American families, we are taking action against companies seeking to illegally profit off patients,” CFPB Director Rohit Chopra said. “Given widespread inaccuracies in medical billing and credit reporting, the CFPB will be working to ensure that patients are not coerced into paying debts that they do not owe.”
The CFPB maintained it determined Phoenix Financial Services violated the Fair Credit Reporting Act and its implementing Regulation V by not conducting reasonable investigations of consumer disputes or having reasonable written policies and procedures regarding the accuracy and integrity of the information it furnished to consumer reporting companies.
The CFPB additionally alleged Phoenix Financial Services violated the Fair Debt Collection Practices Act by using false and deceptive means to collect debts and not ceasing collection of a debt upon notification by the consumer of a disputed debt collection claim.
According to the CFPB, the agency’s order requires Phoenix Financial Services to cease unlawful collection and credit reporting practices; establish and implement written policies and procedures ensuring it conducts reasonable investigations of disputes about information furnished to consumer reporting companies that include written policies and procedures related to the handling of consumer disputes; cooperate with CFPB examinations; provide redress to consumers; and pay $1.675 million in penalties, which the agency noted would be deposited into the CFPB’s victims relief fund.