Consumer complaint received 2025-11-17 00:00:00
Product: Debt collection — Medical debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Franklin Collection Service, Inc.
State: NJ

Complaint narrative:
XXXX. LETTER TO ORIGINAL FURNISHER / MEDICAL PROVIDER & COLLECTION AGENCY For : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NJ XXXX ( XXXX ) XXXX To : XXXX XXXX XXXX AND XXXX XXXX XXXXXXXX XXXX XXXX ( Original Medical Provider ) FORMAL NOTICE OF DISPUTE, NOTICE OF BILLING ERROR, AND DEMAND FOR IMMEDIATE CORRECTION Subject : Alleged Medical Debt Account XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Amount {$2300.00} Original Creditor : XXXX XXXX XXXX XXXX XXXX 's Collector : XXXX XXXX XXXX XXXX Classification : Medical / Health Care Date Assigned : XX/XX/XXXX Date of First Delinquency : XX/XX/XXXX I am formally disputing the above-referenced medical debt, which is being illegally reported to XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX of XXXX XXXX XXXX XXXX XXXX. This bill is invalid and uncollectible, as I was covered by XXXX at the time of service. Per federal requirements, medical providers must bill XXXX first, and XXXX beneficiaries can not be balance-billed for covered services. 

Therefore, this account is being reported in violation of federal and state law, the FDCPA, and the FCRA. 

I. LEGAL GROUNDS FOR DISPUTE A. XXXX REGULATIONS ( XXXX XXXX. XXXX ; XXXX Rules ) Federal XXXX law prohibits balance billing and requires providers to : XXXX XXXX correctly, and Accept XXXX reimbursement as payment in full. 

Attempting to collect from me directly, or assigning the bill to collections, is unlawful. 

B. FAIR DEBT COLLECTION PRACTICES ACT ( FDCPA ) Violations by XXXX XXXX XXXX include : XXXX. FDCPA XXXX False or Misleading Representations Reporting a Medicaid-covered bill as unpaid debt is a materially false representation of the legal status of any amount owed. 

XXXX. FDCPA XXXX ( b ) Failure to Validate Debt You have not provided : XXXX explanation of benefits ( EOB ) Billing history Proof XXXX was billed correctly Contract proving I owe the alleged balance You can not report or collect a debt that has not been validated. 

XXXX. FDCPA XXXX ( c ) Cease Communication Requirement Upon dispute and validation request, all collection efforts must stop immediately. 

XXXX XXXX XXXX XXXX ACT ( FCRA ) Violations by the original furnisher and any third-party collector : 1. FCRA 623 ( a ) ( 1 ) ( A ) Furnishing Information Known to Be Inaccurate You are reporting a medical debt that is : Medicaid-covered Not legally collectible Incorrectly billed 2. FCRA 623 ( a ) ( 2 ) Duty to Correct and Update Information After my dispute, the furnisher must mark the account as disputed, reinvestigate, and correct/delete inaccurate information.

3. FCRA 623 ( b ) ( 1 ) Duty to Investigate After Dispute Upon receiving my dispute from XXXX XXXX XXXX you are required to conduct a reasonable investigation and verify the debt.

A Medicaid-covered bill can not be verified as payable by the patient.

II. FORMAL DEMANDS I demand the following actions : 1. Immediate deletion Delete the medical collection account XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX from : Your internal collections records All third-party collection agencies All credit reporting agencies 2. Cease all collection efforts immediately Under FDCPA 805 ( c ), you must stop all attempts to contact, collect, threaten, or report this debt.

3. Provide all billing records Including : Medicaid EOB Itemized statements Proof Medicaid was billed properly Explanation of why the debt was assigned to collections in violation of Medicaid rules 4. Update all CRAs Notify XXXX XXXX XXXX that : The debt is invalid The debt is Medicaid-covered The account must be removed permanently 5. Compensation for damages ( if applicable ) I reserve the right to seek statutory damages under : FDCPA {$1000.00} per action FCRA Up to {$1000.00} per negligent violation / actual damages State consumer protection laws III. DEADLINE FOR RESPONSE You have 30 days to provide written confirmation of : Deletion Correction Cease-and-desist compliance Final resolution Failure to comply may result in complaints to : CFPB State Attorney General XXXX XXXX of XXXX XXXX XXXX for XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation