Consumer complaint received 2023-02-22
Product: Debt collection — Medical debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: AR Solutions Inc (NE)

In XXXX of XXXX, XXXX XXXX was injured in an automobile accident in which the other driver was at fault. The insurance company of the other driver was XXXX XXXX Insurance. Although XXXX initially attempted to deny liability, after complains were submitted to the XXXX Department of Insurance and an arbitration was completed, XXXX was forced to accept 100 % liability for all damages, including healthcare costs associated with the accident. 

XXXX XXXX was seen as a patient at the XXXX XXXXXXXX XXXX on XX/XX/XXXX. It was made clear to the doctors and staff at the facility that she was seeking medical examination in connection with injuries sustained in the automobile accident and that there were insurance claims pending. The medical staff indicated their understanding and stated that they would submit all billing to the appropriate parties. XXXX XXXX 's health insurance ( XXXX XXXX XXXX ) initially paid and covered the majority of costs associated with examination at this facility. XXXX XXXX paid the required co-pays and other immediately required costs. Any further required payments should have been submitted to the XXXX Insurance company for payment. XXXX and XXXX XXXX have pursued the matter aggressively with XXXX to request that they pay all parties required. 

At an unknown time and for unknown reasons, The XXXX  XXXX XXXX sold a debt of a currently undetermined amount to an alleged debt collector identifying itself as " AR Solutions. '' The XXXX  XXXX XXXX has refused to provide further communications or explanation of this action to either XXXX XXXX or XXXX XXXX. XXXX Insurance company confirmed that they never received any claims information from XXXX  XXXX XXXX and it does not appear that the XXXX  XXXX XXXX made any efforts to contact any of the involved insurance companies to settle the alleged debt prior to selling the alleged debt to a collection agency. 

On XX/XX/XXXX, with no prior warning or explanation, AR Solutions initiated legal action against XXXX XXXX and XXXX XXXX. AR Solutions made no effort to contact either XXXX or XXXX XXXX about the alleged debt prior to initiating this legal action. AR Solutions also did not comply with their legal obligation to serve appropriate summons and complaint documentation to the defendants. Upon learning of the lawsuit as the result of a third party communication, XXXX XXXX attempted to contact AR Solutions to request documentation of the debt that was being alleged in their lawsuit. AR Solutions violated the Fair Debt Collections Practices Act by responding to XXXX XXXX 's request in a highly belligerent manner and supplying incomplete documentation that does not fully state the amount that AR Solutions is seeking. 

At this time we are asking the CFPB to open an investigation into this incident to determine if either XXXX  XXXX XXXX or " AR Solutions '' have violated any state or federal laws regarding this matter. We believe that the XXXX XXXXXXXX center did not act in good faith or make a sincere effort to settle the debt with XXXX XXXX Insurance, who is the party legally liable for all debts associated with this matter. We furthermore believe that AR Solutions has engaged in several violations of the Fair Debt Collections Practices Act, firstly by failing to contact us to notify us that they acquired the debt from the medical provider, secondly by failing to make a good faith effort to collect the debt before resorting to legal action and thirdly by initiating legal action without delivering a summons. Additionally, " AR Solutions '' can not clearly state the amount of the debt, as the one page document they have produced as evidence includes " fees '' that are not allowed by law and additional " costs '' that were only represented by question marks that someone hand wrote on the page. We were never given any fair opportunity by either the XXXX  XXXX XXXX or " AR Solutions '' to either pay the debt, dispute the debt or forward the debt to the legally liable party, XXXX XXXX Insurance. It does not appear that either XXXX XXXX XXXX or " AR Solutions '' made any effort to contact us or XXXX to resolve the debt before leaping into a legal action. We believe this constitutes an abusive and illegal debt collection practice known as " XXXX Service '' in which the debt collector files a lawsuit without notifying the defendant in the hopes of getting a default judgement.