Consumer complaint received 2025-02-22 00:00:00
Product: Debt collection — Medical debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: Specialized Collection Systems, Inc.
State: TX

Complaint narrative:
Formal Legal Complaint Against Specialized Collection Systems , Inc. ( Specialized Collection Systems, Inc ) for Violations of Federal and Texas State Laws Complainant : Name : XXXX XXXX Address : XXXX XXXX XXXX XXXX, XXXX, TX XXXX Email : XXXX Phone : XXXX To : XXXX XXXX XXXX XXXX XXXX, CFPB, Texas Attorney Generals Consumer Protection Division, and the U.S. Department of Health & Human Services Addresses : Specialized Collection Systems , Inc, XXXXXXXX XXXX XXXX XXXXXXXX, TX XXXX Consumer Financial Protection Bureau ( CFPB ), XXXX XXXX XXXX XXXX, Washington, XXXX XXXX Texas Attorney Generals Consumer Protection Division, XXXX XXXX XXXX, XXXX, TX XXXX XXXX Department of Health & Human Services , Office for Civil Rights ( OCR ) XXXX XXXX XXXX XXXX, XXXX, Washington, XXXX XXXX Subject : Formal Complaint Against Specialized Collection Systems , Inc. for Violations of FDCPA, FCRA, Texas Finance Code, Texas Health & Safety Code, and HIPAA I am filing this formal complaint against Specialized Collection Systems , Inc. ( Specialized Collection Systems , Inc ) for multiple violations of federal and Texas state consumer protection laws, including unlawful debt collection practices, credit reporting violations, medical privacy breaches, and violations of health care billing laws. 

Chronological and Legal Violations : Notification from Consumer Financial Protection Bureau ( CFPB ) Regarding Complaints On XX/XX/XXXX, I received notification from the Consumer Financial Protection Bureau ( CFPB ) regarding the following two complaints : Complaint # XXXX Complaint # XXXX Company 's Response : " After a complete investigation, Specialized Collection Systems, Inc has mailed out documentation directly to the consumer at the address on file. Specialized Collection Systems , Inc welcomes the opportunity to speak directly with the consumer to resolve their account. The consumer can contact Specialized Collection Systems, Inc during normal business hours and request a call with the active supervisor. Thank you, Specialized Collection Systems, Inc Management. '' This response is insufficient as it does not address the legal violations outlined below. 

Violations of Texas Health & Safety Code Chapter 185 - Health Care Billing A. Failure to Provide a Legally Compliant Itemized Bill ( 185.002 ( a ) ) Law Requirement : Health care providers must submit a written, itemized bill before seeking payment, including : A plain language description of services provided. 

Billing codes and third-party reimbursement details. 

The exact amount owed by the patient. 

Violation : If Specialized Collection Systems , Inc or XXXX XXXX XXXX did not provide a fully compliant itemized bill before initiating collection, this constitutes a violation of 185.002 ( a ) and 185.002 ( e ).

B. Attempting Debt Collection Without Compliance ( 185.002 ( e ) ) Law Requirement : A provider may not pursue debt collection against a patient unless the required billing disclosure has been made. 

Violation : If Specialized Collection Systems , Inc pursued collection efforts without ensuring compliance with this billing requirement, they violated Texas Health Code 185.002 ( e ).

C. Licensing Violations for Non-Compliance ( 185.003 ) Law Requirement : The appropriate licensing authority must take disciplinary action if a health provider violates Chapter 185. 

Violation : XXXX XXXX XXXX and Specialized Collection Systems, Inc may be subject to licensing penalties if they attempted collection without adhering to itemized billing laws.

Violations of Texas Finance Code Chapter 392 - Debt Collection A. Failure to Provide Required Licensing and Surety Bond ( 392.101 ) Law Requirement : Debt collectors operating in Texas must be licensed and maintain a surety bond.

Violation : If Specialized Collection Systems, Inc failed to provide proof of their license and surety bond upon request, as initially demanded on XX/XX/XXXX, they violated Texas Finance Code 392.101.

B. Unfair or Misleading Collection Practices ( 392.304 ) Law Requirement : Debt collectors can not misrepresent the legal status of a debt or use deceptive tactics. 

Violation : If Specialized Collection Systems, Inc misrepresented debt validation rights or collection timelines, they violated Texas Finance Code 392.304.

C. Harassment or Abuse in Collection Practices ( 392.302 ) Law Requirement : Debt collectors can not engage in harassment or unfair intimidation tactics.

Violation : If Specialized Collection Systems, Inc engaged in misleading or coercive collection efforts, they violated Texas Finance Code 392.302.

Pattern of Consumer Complaints and Legal Actions Against Specialized Collection Systems , Inc .

Specialized Collection Systems , Inc. has a history of consumer complaints and multiple lawsuits filed against them, which demonstrate a pattern of deceptive, misleading, and unlawful debt collection practices : Date Filed Case Name Plaintiff Court Cause of Action XX/XX/XXXX XXXX XXXX Specialized Collection System, Inc. XXXX XXXX XXXX XXXX Fair Debt Collection Act XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Federal Question XX/XX/XXXX XXXX XXXX Specialized Collection Systems, LLC XXXX XXXX XXXX XXXX Fair Debt Collection Act XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX al XXXX XXXX XXXX XXXX Fair Credit Reporting Act XX/XX/XXXX XXXX XXXX Specialized Collection Systems Inc XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX Specialized Collection Systems , Inc. XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX. Specialized Collection Systems, IncXXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX al XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX Specialized Collection Systems , IncXXXX XXXX XXXX XXXX XXXX Fair Debt Collection Act XX/XX/XXXX XXXX XXXX Specialized Collection Systems, Inc. et al XXXX XXXX XXXX XXXX Diversity-Insurance Contract Failure to Comply If these violations are not resolved within 15 days, I will take further legal actions, including : Filing formal complaints with regulatory agencies. 

Pursuing civil litigation for statutory damages. 

Sincerely, XXXX XXXX XXXX, TX XXXX Email : XXXX Phone : XXXX

Company response to consumer: Closed with explanation