Consumer complaint received 2024-12-08 00:00:00
Product: Debt collection — Medical debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: I.C. System, Inc.
State: CA

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am filing a complaint against IC System XXXX for improperly reporting a fraudulent medical debt to credit bureaus and failing to contact me or verify the accuracy of the debt before sending it to collections. I believe their actions violate fair debt collection practices and have caused undue harm to my credit. 

Details of the Complaint Debt Collection Account : IC System XXXX opened a collection account on my credit on XX/XX/year>, for a medical debt. The agency never contacted me by mail, email, or telephone before reporting the debt to the credit bureaus, despite having all my correct contact information. 

Inaccurate XXXX XXXX : The amount reported by IC System XXXX does not match the amount billed by the medical provider. The collection agency admitted they did not verify the accuracy of the debt before sending it to collections. They stated that they don't have a copy of the bill for review. 

Underlying XXXX XXXX XXXX The medical debt in question arises from fraudulent billing practices by the medical provider, including : - Billing for unauthorized services that my PCP never ordered. 
- Billing for services not rendered or performed. 
- Billing for unnecessary services. 
- Bill for unbundling ( e.g., splitting services into separate bills to inflate costs ). 
- Falsifying my medical records to support unnecessary charges. 

Concerns of XXXX fraud at XXXX Imaging Specialists ( XXXX XXXX, CA ) : My PCP ordered XXXX ultrasound and one preventative mammogram but the radiologist, XXXX XXXX, billed for XXXX services in a single visit. For example, radiologist billed for a sonogram that was unauthorized and unnecessary, in addition to the authorized ultrasound that came out negative. Radiologist charged for a diagnostic mammogram in addition to the preventative mammogram for the same XXXX during the same visit. She billed me for the preventative mammogram by using unauthorized codes to inflate the bill. She created a second, false bill by alleging a second visit, which never occurred. She falsified my medical record to support her unauthorized services, by claiming that she found a suspicious lump. However, my PCP examined my XXXX after her report, and found that there was no XXXX lump of any kind. The medical provider has refused to correct the bill and has threatened to double the amount if unpaid, a practice I believe is illegal. This provider is currently under FBI investigation, with over XXXX other patients reporting similar fraudulent schemes. 

Impact on My Credit : The medical debt was reported to credit bureaus without my knowledge and began affecting my XXXX XXXX before I was notified. 

IC System XXXX failed to : - Verify the debt with the medical provider to ensure it was accurate or legitimate. 
- Attempt to contact me before or after reporting the debt. 
- When I contacted IC System XXXX, they confirmed they lacked a copy of the bill and had not verified its accuracy. Their failure to follow proper procedures has compounded the harm caused by the fraudulent medical provider.

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 non-monetary relief