Consumer complaint received 2025-06-20 00:00:00
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Healthcare Finance Direct LLC.
State: SC

Complaint narrative:
On XX/XX/XXXX, I noticed two unfamiliar charges of {$190.00} on my HSA debit card and called the number listed in the transaction. I spoke with a representative named XXXX at Healthcare Finance Direct ( HFD ), who could not initially locate an account under my name. After further discussion, I recalled that my adult son ( age XXXX at the time ) had used my HSA card in XXXX to make a one-time deposit for dental work. Once I mentioned his name, the representative confirmed there was an account associated with him. 

I added my son to the call via three-way. He clearly stated that the HSA card was authorized only for the initial {$490.00} deposit and that all future monthly payments should be charged to his own card. The representative acknowledged this, and my son provided his XXXX card, but it was rejected. I explained that my son was no longer my dependent and my HSA card must be removed from the account to avoid misuse. Despite this, the representative refused to remove the card, stating that a new accepted card would have to be added first. 

At that point, I requested that XXXX escalate the matter to his manager and have them contact either me or my son to confirm the cards removal. He agreed to escalate and promised that someone would follow up. No one ever called us back, and the card was never removed. 

As a result, unauthorized charges continued : - XX/XX/XXXX {$190.00} ( unauthorized ) - XX/XX/XXXX {$190.00} ( unauthorized ) - XX/XX/XXXX {$190.00} ( unauthorized ) On XX/XX/XXXX, I noticed another charge had gone through and contacted XXXX, which manages my HSA. They confirmed : - That HFDs transactions were previously blocked at my request. 

- That HFD continued trying to run transactions, which were rejected. 

- That the XX/XX/XXXX charge only succeeded because HFD changed the merchant descriptor from Healthcare Finance Dir to

HFD * PatientFin, allowing the charge to bypass the block. This shows a pattern of : - Continued use of a card after authorization was explicitly revoked - Refusal to honor requests to remove the card - Promising a callback and then failing to act - Intentional manipulation of transaction labeling to override banking security measures These charges also create a serious tax and legal issue under IRS rules. Because my son is no longer a qualified dependent, using my HSA funds for his medical expenses constitutes a non-qualified distribution. This puts me at risk of IRS penalties and taxes despite my documented efforts to prevent the misuse. This conduct appears to violate the Electronic Fund Transfer Act and is consistent with past enforcement actions taken against HFD by the states of Connecticut and California for similar violations and non-compliance. I ultimately had to cancel my HSA debit card entirely to stop further harm. I am re questing a formal investigation and enforcement action against Healthcare Finance Direct to prevent ongoing misuse and protect other consumers.

Company response to consumer: Closed with explanation