Consumer complaint received 2023-07-02
Company: Penn Credit Corporation
State: VA
Product: Debt collection
Sub-product: Medical debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Collected or attempted to collect exempt funds

Complaint:
On XX/XX/XXXX, I sustained injuries from a car accident. On XX/XX/XXXX, I was treated at XXXX XXXX XXXX XXXX for the injuries I sustained. At the time of service, I provided my Medicare insurance card. As my insurance information was promptly provided, I was under the impression that my insurance was billed for the medical services rendered. I now know that despite having my insurance information, XXXX XXXX XXXX XXXX refused to bill my insurance. 

On XX/XX/XXXX, I gave birth to my son, via XXXX  XXXX, at XXXX XXXX XXXX XXXX. I stayed in the hospital for several days, after birth. At the time of admittance, and several times afterward, I provided my Medicare insurance card. As my insurance information was promptly provided, I again, was under the impression that my insurance was billed. I now know that despite having my insurance information, XXXX XXXX XXXX XXXX, again, refused to bill my insurance. 
On XX/XX/XXXX, my attorney XXXX XXXX, sent XXXX XXXX, agent at Penn Credit Corporation, my health insurance information, for XXXX XXXX XXXX XXXX to properly bill Medicare. XXXX XXXX XXXX XXXX failed to submit any claim to Medicare for neither the services rendered for the birth of my son or the auto accident. 

On XX/XX/XXXX, XXXX XXXX, sent a letter to both XXXX XXXX XXXX XXXX, and its debt collector, Penn Credit Corporation, in reference to the services rendering on XX/XX/XXXX, and corresponding account no. XXXX. 

The letter, which is attached, contained a copy of Virginia Code 8.01-27.5, which is entitled Duty of in-network providers to submit claims to health insurers ; liability of covered patients for unbilled health care services. The letter clearly stated, in accordance with Virginia Code 8.01-27.5, I have no obligation to pay XXXX XXXX XXXX XXXX or Penn Credit Corporation , as Medicare was not timely billed, and that XXXX XXXX XXXX XXXX and Penn Credit Corporation are prohibited from recovering payment for any of the health care services for which it was required to submit its claim. Although XXXX XXXX solely referenced the services rendered on XX/XX/XXXX, as he was solely retained to represent me in the automobile claim, the services provided in XXXX XXXX  still fall under the applicable Virginia code8.01-27.5, as Medicare was not timely billed. 

Upon checking my credit report on XX/XX/XXXX, Penn Credit Corporation has continued its collection efforts a collection account. I never received any notice, with all provisions, from Penn Credit Corporation in accordance with 12 CFR 1006.34. The reporting of this debt, the continued collection efforts, and the failure to provide me with my right to dispute are violations of the Virginia Consumer Protection Act, the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ). My credit score dropped nearly 20 points because of Penn Credit Corporation 's erroneous, irresponsible, and illegal debt collection and reporting practices. 

Prior to Penn Credit Corporation erroneously reporting this collection to my credit report, I was approved for {$2000.00}, lease to own credit, at XXXX XXXX XXXX. I intended to refurnish my daughters bedroom with this provisional credit, as a graduation present. After the collection was added to my credit report, my provisional credit was revoked and I was unable to proceed with the purchase. This experience was devastating and embarrassing.

As Penn Credit Corporation received communication directly from my attorney, which included Virginia Code 8.01-27.5, stating collection for services that are not timely billed with insurance are prohibited, Penn Credit Corporations violations of the Virginia Consumer Protection Act, Fair Debt Collection Practices Act and the Fair Credit Reporting Act are willful. I suffered from Penn Credit Corporations negligence, and consequently, Penn Credit Corporation should be sanctioned, monetarily, in accordance with all applicable laws.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation