Consumer complaint received 11/23/2016 about Debt collection (Medical) with United Consumers Inc (VA).
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint: On XXXX/XXXX/XXXX a claim through XXXX in the amount of {$1100.00} from provider " XXXX XXXX XXXX XXXX '' was processed with {$770.00} applied by XXXX, it was then reprocessed that same day as {$580.00} applied instead, the difference being an over payment in the amount of {$180.00}. The above " XXXX XXXX XXXX XXXX '' is an in-network provider. This overpayment amount {$180.00} is to be paid by the provider and neither by XXXX or myself. " XXXX XXXX XXXX XXXX '' should therefore pay this without ever billing anyone. For reference purposes to distinguish this from proper balance-billing, a different situation which is common, arises for when an out-of-network doctor appears for example unexpectedly in an ER or XXXX setting ( e.g. XXXX ) but the provider overall is in-network, where balance-billing is invoked. Customer/patient pays provider, XXXX reimburses provider and we are done. I have experienced this before and it works pretty smoothly. NOTE balance-billing is a proper example. The addressed situation in question is NOT applicable to balance billing and is the improper use of billing an overpayment to customers. 
The reason for this request of investigation into intentional fraud and extortion, is that 16 months later from the date of XXXX/XXXX/XXXX " XXXX XXXX XXXX XXXX '' has fraudulently applied the over payment amount of {$180.00} to be paid by me. There was never any correspondence sent to XXXX or myself at all within this time. Instead a collection agency ( United Consumers , Inc ) was improperly contracted by " XXXX XXXX XXXX '' to handle this. The use of a collection agency without notifying XXXX or myself prior is an act of a ) fraudulently passing an overpayment as a balance owed by a patient and b ) extorting patients for the overpayment amount since their credit score will be effected quickly. Based on other reports against " XXXX XXXX XXXX XXXX '', I believe that these overpayments are intentionally fraudulently applied as balances, especially the smaller amounts being sent to collection so that patients pay providers without questioning the activity. Since the data presented by the collection company corresponds to tangible sums of money and dates of service by the XXXX XXXX XXXX XXXX '' and documented by XXXX, a patient will be smoothly strong armed or squeezed into paying the amount before it goes to credit bureaus without raising an eyebrow. Naturally the collection companies remain neutral while XXXX is virtually unaware of the situation ( until contacted of course ). As of XXXX/XXXX/XXXX this current situation is in the process of being resolved ( hopefully ) via XXXX 's taskforce against " XXXX XXXX XXXX '' and " United Consumers, Inc ''. The collection company " United Consumers , Inc '' has provided only a timeline hold until XXXX XXXX XXXX. The provider " XXXX XXXX XXXX XXXX '' must be the XXXX to make the correction. They have intentionally placed a fraudulent overpayment as a balance to be collected, and I truly believe that they will not correct this issue unless there is oversight from CFPB or law enforcement.

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