Consumer complaint received 2024-10-06
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Southwest Recovery Services, Inc. (TX)

To Whom It May Concern : I am writing to formally file a complaint regarding a medical debt collection account that has been added to my credit report without my consent, from Southwest Recovery Services. Below are the details of my complaint : 1. Nature of the Account : The account in question is a collection account related to a medical service provider. However, I did not contract with this company in any official capacity, except through an initial verbal conversation. After further consideration, I rescinded any implied or verbal contract with the company, as I did not fully understand the terms at the time. No services were rendered under this verbal agreement.

2. Unauthorized Reporting of Medical Debt : I did not consent to this debt being added to my consumer credit report, and I believe this action violates my rights under federal law, specifically the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ). 

Under the FCRA ( XXXX XXXX. XXXX ( b ) ), information furnished to consumer reporting agencies must be accurate and verifiable. This includes ensuring that all information reported to credit bureaus has a legitimate contractual basis and is done with proper authorization. As I did not knowingly or willingly consent to this debt, it is not legitimate, and its reporting is inaccurate. 

Under the FDCPA ( XXXX XXXX. XXXX ), debt XXXX are required to validate any debt they are attempting to collect. This includes providing proof that a contract exists between the consumer and the third-party collection agency, not just with the original medical provider, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I have never agreed, either in writing or otherwise, to be pursued for collection by this third party. They have failed to provide me with a valid contract that justifies the collection and subsequent credit reporting. 

Additionally, under 15 U.S.C. 1681c ( a ) ( 6 ) of the FCRA, certain medical debts can not be reported if they have not been validated or verified as legitimate debts under proper contractual terms, especially when the consumer has not consented to the reporting of such debts.

3. No Legal Standing to Pursue Collection or Lawsuit : The collection agency does not have legal standing to sue me for this debt because no valid contract exists between me and the collection agency. Any contractual arrangement with the original medical provider was verbal and later rescinded, and I explicitly did not consent to having this debt transferred or reported. Without my consent, the collection agency lacks the legal right to pursue any further collection or legal actions.

4. Violation of Medical Privacy ( HIPAA ) : If this debt collection account is based on sensitive medical information, it may also be in violation of HIPAA regulations. Under 45 CFR 164.508, covered entities must have a patient 's authorization to disclose protected health information ( PHI ), such as medical debt, to third parties like debt collectors and credit reporting agencies. I did not provide any such authorization, and the reporting of this medical debt may constitute a breach of my medical privacy rights.

5. Request for Removal and Investigation : I request that the Consumer Financial Protection Bureau investigate this matter and take immediate steps to have this collection account removed from my credit report. I believe the reporting of this debt is inaccurate, unauthorized, and in clear violation of federal consumer protection laws. I also request that any penalties or fees associated with this debt be nullified.

I appreciate your prompt attention to this matter and look forward to your investigation and resolution. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Relevant Laws Included : Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681e ( b ) : Ensures accurate information is reported to credit bureaus.

15 U.S.C. 1681c ( a ) ( 6 ) : Medical debts must not be reported without proper validation.

Fair Debt Collection Practices Act ( FDCPA ) : 15 U.S.C. 1692g : Requires debt collectors to validate a debt and provide proof of a legitimate contract between the consumer and the third-party collection agency. 
Health Insurance Portability and Accountability Act ( HIPAA ) : 45 CFR 164.508 : Requires written authorization to disclose protected health information, which includes medical debts.