WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) has released its annual debt collection report, highlighting widespread illegal practices in medical and rental debt collection. The report reveals how aggressive tactics, billing errors, and unethical practices are impacting millions of consumers, particularly those burdened by medical or rental debts. Many people don’t realize that they can enlist the services of a Washington, D.C. consumer fraud lawyer to help them remove false debt from their credit reports and take legal action against these predatory debt collection companies.
Medical Debt Collection
The report uncovers significant issues in medical debt collection, including attempts to collect on bills already paid through financial assistance programs. Nonprofit hospitals often fail to properly address bills for low-income patients, passing them to debt collectors instead. Poor communication between hospitals and collectors leaves patients bearing the burden of proving they don’t owe the debt.
The CFPB also highlights complaints regarding medical financing products offered by hospitals, which trap patients in unnecessary debt. These financing options circumvent financial assistance programs, leading to collectors aggressively pursuing payments that should not have been incurred.
Rental Debt Collection
Since August 2023, the CFPB has received over 1,700 complaints about rental debt collection. Rental debt, estimated at $9 billion, often includes improper collection fees or inflated charges tied to illegal rent price-fixing schemes. Debt collectors use these inflated amounts to pressure renters, which violates federal law.
CFPB Actions
The CFPB is working to enforce consumer protection laws, proposing rules to ban medical debt from credit reports and addressing illegal practices such as zombie mortgages and coerced debt collection.
What Can A Consumer Fraud Lawyer Do If I’m Being Asked To Pay Debts I Don’t Owe?
If you’re being asked to pay medical or rental debts that you don’t owe, a consumer fraud lawyer can provide essential help in protecting your financial rights and ensuring you’re not wrongfully burdened with debts.
First, the lawyer will review your case in detail, including any documentation you have received from creditors or collection agencies. They will analyze the medical bills or rental debt notices to identify errors or fraudulent charges. This may involve investigating whether the debt is the result of identity theft, clerical errors, or unauthorized services, such as treatments or rent charges you never agreed to.
If your debts are the result of fraud or a mistake, the lawyer will help you dispute the charges directly with the creditor or collection agency. They will communicate with the creditors, contesting the validity of the debt and demanding proof of the charges. In many cases, the creditor or agency may not have sufficient documentation or evidence to support their claims, allowing the lawyer to negotiate the removal of the debt.
If the issue escalates, and the fraudulent or erroneous debt is sent to collections or you are facing legal action, a consumer fraud lawyer will help defend you. They can challenge the debt in court, use discovery methods to obtain evidence, and seek to have the case dismissed or resolved in your favor.
Additionally, your lawyer will ensure that your rights are upheld under consumer protection laws such as the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). These laws prohibit creditors and debt collectors from using unfair practices to collect debts, and an attorney can help ensure these laws are enforced in your case.
If you’re being wrongfully pursued for medical or rental debt that you do not owe or never agreed to, please contact Eric Siegel Law for a professional legal consultation. We have lengthy experience successfully settling claims against powerful corporations, and fight to protect the rights of consumers like you.