Consumer complaint received 2023-12-28
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: R.M. Galicia, Inc. (AZ)

Upon additional conversations and receiving additional documentation, it is clear the response Progressive Management Systems ( PMS ) submitted to me and the CFPB for case XXXX was misleading. PMS provided information to me indicating they are attempting to collect on unvalidated medical debts from multiple consumers, [ XXXX XXXX XXXX  ] stated that all patient balances went to Progressive Medical Systems, including those on payment plans. ( letter from PMS dated XX/XX/XXXX ) The sequence of events is as follows : XX/XX/XXXX I set up the 6-month payment plan through the original creditors website. The first payment was deducted from my credit card. 
XX/XX/XXXX The second payment was deducted from my credit card XX/XX/XXXX The third payment was deducted from my credit card XX/XX/XXXXXXXX XXXX XXXX XXXXXXXX referred the debt to PMS XX/XX/XXXX PMS generated a collection letter to me for the outstanding balance ( payments XXXX, XXXX, and XXXX ) XX/XX/XXXX The fourth payment was deducted from my credit card XX/XX/XXXX I received a voice mail from PMS and called them back promptly. They told me they were attempting to collect the amount of the last 3 payments on my payment plan ( including the one that had been deducted on XX/XX/XXXX ). I disputed the debt, as it was in good standing. The rep promised to research this and get back to me. 
XX/XX/XXXX I received the XX/XX/XXXX letter in the mail. I called back and the rep told me they were reducing the amount in collections by the amount of the fourth payment. 
XX/XX/XXXX After the call with PMS, I filed a CFPB complaint, XXXX XX/XX/XXXX PMS respond to CFPB complaint stating the original creditor cancelled my payment plan on XX/XX/XXXX and sent the account to PMS. This is clearly false, based on the timing of the first collection letter and the admission of multiple reps. 
XX/XX/XXXX I called PMS with questions about their response to the CFPB complaint. The rep refused to transfer me to XXXX XXXX, the respondent to the CFPB complaint. Instead, I spoke to XXXX, a manager at PMS. He said the debt had been referred to them on XX/XX/XXXX. I asked XXXX why my account, which was in good standing, was sent to PMS for collections. He told me he didnt know. I pointed out that, as a collection agency, knowing why a debt was sent to them is their job. XXXX promised to find out and said he would personally call me back. 
XX/XX/XXXX I received a letter from PMS dated XX/XX/XXXX, signed by XXXX XXXX. The letter states the following : - We sent your further dispute to the client, and they stated that all patient balances went to Progressive Management Systems, including those on payment plans. 
- PMS is willing to accept my remaining two payments at the frequency I previously been making them - In the corner of the letter, there is an indication accrued interest on the debt, although the original payment plan was interest-free. 
XX/XX/XXXX I called PMS back and spoke to XXXX. She confirmed the debt was originally sent to them on XX/XX/XXXX. She informed me that my account was, in fact, considered delinquent, despite their previous offers to take over the payment plan. Not wanting to risk my credit, I paid the amount in full. 

The amount of my debt was inconsequential. But the facts of a much bigger issue are clear : - PMS is pursing collection activities against countless customers of XXXXXXXX XXXX XXXXXXXX who were in good standing on payment plans- PMS is attempting to collect on payments that had already been made- When confronted, PMS offers to match the terms of the original payment plan - PMS then surreptitiously adds 3 % interest to the payment plan, even though the original plan was interest-free Progressive Management Systems is engaged in widespread attempts to collect on unverified debts. CFPB should investigate fully, rather than letting the company close this complaint without oversight.