Consumer complaint received 2026-02-03 00:00:00
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: State Collection Service, Inc.
State: TX

Complaint narrative:
On XX/XX/XXXX, I received a collection notice from State Collection Service , Inc. ( SCSI ) for {$4000.00} allegedly owed to XXXX XXXX ( Reference # XXXX ). This is the SECOND collection agency attempting to collect the same debt, which appears to be a serious violation of the Fair Debt Collection Practices Act. 
DOUBLE COLLECTION ISSUE : On XX/XX/XXXX, I received a collection notice from XXXX XXXX XXXX XXXX XXXX for {$4000.00} for the same XXXX XXXX debt ( Account Reference # XXXX ). I sent XXXX a formal dispute letter via certified mail on XX/XX/XXXX. 
Now, just 12 days later, State Collection Service has sent a notice for the identical amount ( {$4000.00} ) for the same debt. The same debt can not be assigned to two collection agencies simultaneously. This creates confusion, potential double liability, and appears to violate federal debt collection laws.

Neither collection agency has clarified : Which agency actually has authority to collect this debt Whether the debt was transferred from XXXX to State Collection Service Whether XXXX has recalled the account Why two agencies are pursuing collection simultaneously ACTIVE INSURANCE APPEALS- DEBT IS DISPUTED : I currently have multiple active appeals pending with XXXX XXXX ( my XXXX XXXX insurer ) regarding coverage for emergency medical treatment : Original appeal filed XX/XX/XXXX ( received by XXXX XXXX XXXX XXXX ) Request to vacate improper dismissal filed XX/XX/XXXX ( XXXXXXXX XXXX XXXX XXXX XXXX  ) Reconsideration request filed with XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX acknowledged by XXXX XX/XX/XXXX ( XXXX XXXX XXXX Sr Case Manager ) XXXX XXXX XXXX acknowledged by XXXX XX/XX/XXXX ( XXXX XXXX  ) FEDERAL REGULATORY COMPLAINTS FILED : XX/XX/XXXX : Complaint filed with XXXX XX/XX/XXXX : California XXXX Case XXXX XXXX forwarded to XXXX XXXX XX/XX/XXXX : Formal complaint filed with XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX : CFPB complaint against XXXX Collection Agencies ( Case # XXXX ) XX/XX/XXXX : CFPB complaint against XXXX XXXX ( Case # XXXX ) THIS IS COVERED EMERGENCY CARE : The medical services in question were for emergency treatment of XXXX XXXX and XXXX  sustained on XX/XX/XXXX, while vacationing in rural Minnesota, approximately XXXX miles from the nearest XXXX XXXX facility. Under federal XXXX XXXX regulations ( 42 CFR 422.113 ), XXXX XXXX plans MUST cover emergency services regardless of : Geographic location Prior authorization requirements Network participation status My injuries constituted a clear medical emergency requiring immediate stabilization and XXXX XXXX  to prevent XXXX XXXXXXXX. XXXXXXXX XXXX denial violates federal law, and multiple federal agencies are now investigating. 
NO PROPER DENIAL RECEIVED FROM INSURANCE : XXXX XXXX never sent me a formal written denial of benefits. All Explanation of Benefits ( EOB ) statements showed " {$0.00} '' with the misleading statement : " The amounts are {$0.00} because the cost for this service or item is covered under another part of this claim. '' This statement suggested the claim WAS covered, not denied. I only learned of the denial verbally when XXXX contacted me on XX/XX/XXXX - over four months after services were rendered. Without proper written notice with appeal rights, XXXXXXXX XXXX dismissal of my appeal as " late '' was improper. 
XXXXXXXX XXXX ADMINISTRATIVE FAILURES : XXXX XXXX : Failed to verify insurance coverage before performing XXXX on XX/XX/XXXX Failed to obtain required authorization from XXXX Failed to inform me of any potential coverage issues or authorization requirements Assigned debt to collections while insurance appeals actively pending Apparently assigned debt to TWO agencies simultaneously PREMATURE AND IMPROPER COLLECTION : It is improper and potentially unlawful for State Collection Service to pursue collection while : Multiple insurance appeals are actively pending ( expected resolution within 30-60 days ) Federal regulatory complaints are under investigation Another collection agency ( XXXX  ) is apparently also assigned to collect the same debt The underlying insurance coverage determination has not been finalized UNEXPLAINED {$1800.00} CREDIT : State Collection Service 's notice shows : Original amount owed : {$5900.00} Credit applied : - {$1800.00} Current balance : {$4000.00} I have received NO explanation of what this {$1800.00} credit represents. This could indicate : Partial insurance payment ( suggesting appeals are working ) XXXX billing adjustment Error in original billing Payment applied from another source The lack of transparency about this credit, combined with the double collection attempt, creates significant confusion about what ( if anything ) is actually owed. 
ACTIONS TAKEN : On XX/XX/XXXX, I sent State Collection Service a formal dispute letter via certified mail demanding : Immediate cessation of collection activity Clarification of the double collection issue Complete debt validation Explanation of the {$1800.00} credit Written confirmation that account is on hold and not reported to credit bureaus I also sent an urgent letter to XXXX XXXX demanding they clarify which agency ( if any ) currently has the account and recall it from ALL agencies pending insurance resolution.

HARM CAUSED : This double collection attempt has caused : Extreme stress and XXXX  Confusion about actual liability Fear of duplicate credit reporting Hundreds of hours spent managing appeals and disputes Inability to know which agency to communicate with Potential credit damage if either agency reports SUMMARY : State Collection Service is attempting to collect a debt that : Is already assigned to another collection agency ( XXXX  ) Is actively disputed through multiple insurance appeals Is subject to federal regulatory investigation Involves covered emergency care under federal Medicare law Has never been properly denied by the insurance company Should not have been sent to collections while appeals are pending Has an unexplained {$1800.00} credit that may indicate partial payment This appears to violate the Fair Debt Collection Practices Act through double collection, collection of disputed debt, and collection during active insurance adjudication.

Company response to consumer: Closed with explanation