Consumer complaint received 2018-04-25
Company: Medical Data Systems, Inc.
State: SC
Product: Debt collection
Sub-product: Medical debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
Hello, Medical Data Systems, located at XXXX XXXX XXXX, XXXX XXXX, XXXX, Alabama XXXX, appears to be in violation of the Fair Credit Reporting Act and also HIPAA. Medical Data Systems placed a negative collection account on my credit reports, that I have no knowledge of, without notifying me before placing the collection account. I was not allowed to validate this alleged debt prior to the company reporting it to the credit bureaus which is substantially damaging my credit. Prior to Medical Data Systems placing the negative item on my reports, they made no attempts to reach me in regards to the alleged debt. 

Upon notice of the collection account, I sent Medical Data Systems Inc. a debt validation letter via certified mail on two separate occasions (XX/XX/XXXX andXX/XX/XXXX). In the first letter, I requested Medical Data Systems provide me with all of the documents that were provided to them related to the alleged debt and my authority giving them access to the information. The company responded by sending an Authorization for Treatment and Release of Information form from XXXX XXXX Hospital that explicitly states that XXXX XXXX Hospital is  not permitted to share or disclose medical information with anyone besides the patient, along with what appears to be a detailed medical bill with procedures and medications that were administered. 

The second letter was a request for documented proof of the full chain of account assignment, ownership, or purchase ; a contract specifically signed by me and the authorized representative from Medical Data Systems stating that I agreed to pay this company for this alleged account ; and the method used to validate this alleged debt including my signature with permission for Medical Data Systems to access my HIPAA information. The company responded to the second letter with the same bill and a statement reading Regarding your demand for verification including original signed contracts, copies of state licenses, our agreement with the original creditor listed on this account, etc., there is no basis in law to substantiate your right to such information. 

In this case, there is no basis in law to substantiate this companys right to MY personal protected health information or the right to place a negative unverified collection against someone without adequately confirming the debt truly belongs to the individual FIRST. So again Medical Data Systems Inc. is violation of the Fair Credit Reporting Act and also HIPAA.  The company failed to send the appropriate documents to adequately prove the debt is mine and given the fact that the alleged debt is a medical debt, it is a direct violation of my HIPPA rights as I have not given this company permission to view or access my personal health information or medical records for any reasons. There is no signed contract between me and this company. I would like for this company to delete the negative listing from my credit reports.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation