Consumer complaint received 2026-04-27 00:00:00
Product: Debt collection — Medical debt
Issue: False statements or representation — Told you not to respond to a lawsuit they filed against you
Company: Credit Management Services, Inc.
State: NE

Complaint narrative:
My name is XXXX XXXX. I am filing this complaint against Credit Management Services , Inc. regarding its handling of a {$350.00} medical collection account for radiology services provided to my son, XXXX XXXX, on XX/XX/XXXX. My son was covered by XXXX XXXX XXXX XXXX XXXX XXXX as primary insurance and XXXX as secondary insurance. On XX/XX/XXXX, I called Credit Management after being told the bill needed to be transferred back so it could be resubmitted through insurance correctly. I explained that my son had both coverages, that the claim needed to go through XXXX XXXX first and then XXXX, that there was an insurance processing problem involving the claim, and that litigation was already coming up. Credit Management took the insurance information, said it would note that I had been on a conference call with insurance, said it would pass the matter back for follow-up, and said it would call me back, but also told me the account would remain in active collections. XX/XX/XXXX Recorded call with Credit Management On XX/XX/XXXX, I spoke with a Credit Management representative named XXXX. During that call : XXXX read from Credit Managements notes that they had already been in contact and that the notes said please put on hold and continue to keep judgment on hold pending answers from insurance. She confirmed the account was actively in collections and that the answer date was XX/XX/XXXX. She told me the judgment was on hold and that they were waiting on insurance, acknowledging it could take XXXX to XXXX days to process. I explicitly told XXXX that this bill should never have been billed to me, that my son had both XXXX XXXX XXXX XXXX and XXXX XXXX XXXX time of service, and that this was an insurance processing issue rather than a simple personal debt. I read directly from the summons, including the part about responding. XXXX told me that I had contacted Credit Management, that my contact was well documented, and that they had been told to hold off on judgment pending insurance. She confirmed my correct phone number and other contact information and said Credit Management would call me back with updates once they heard more. Based on that exchange, I reasonably understood that the matter was being held while insurance was resolved. XXXX did not clearly tell me that Credit Management was still pursuing judgment anyway, and no one contacted me with the promised update before judgment was pursued. XXXX XXXX later told me that it did not receive this claim until XX/XX/XXXX, and that the first claim it received was denied for untimely filing on provider responsibility, not member responsibility. XXXX XXXX later said the provider submitted a timely filing override and the claim then processed with no member liability. This timing matters because judgment was sought before the claim was even denied in the form Credit Management later pointed to, and before the insurance issue had fully played out. On the XX/XX/XXXX XXXX XXXX XXXX, I read from the paperwork that judgment was requested on XX/XX/XXXX, even though XXXX XXXX said the claim had only been received on XX/XX/XXXX and was still being worked through as a timely filing issue. On XX/XX/XXXX, after judgment had already been entered, I called Credit Management again and spoke with XXXX. XXXX acknowledged that the summons had been filed on XX/XX/XXXX, that I had called on XX/XX/XXXX, and that Credit Management had gotten an update that the claim would be paid. He then changed the explanation and said Credit Management had been still asking for judgment but hold at judgment pending insurance, which was not how the XX/XX/XXXX call had been communicated to me. During that same XX/XX/XXXX call, XXXX said he had done medical billing and argued that even if an account had to be written off, it could still be sent to collections as bad debt. He also told me that Credit Management was only holding post-judgment, that it had not filed garnishment yet, and that the hearing would have taken place anyway. I believe Credit Managements communications were misleading and unfair. I was told on XX/XX/XXXX that judgment was on hold pending insurance, my contact was documented, and I would be called back, but judgment was still pursued and I was not contacted before that happened. Then, after judgment was entered, Credit Management changed its explanation and claimed it had been pursuing judgment the whole time. As a result, I now have a public judgment tied to a debt that was still being resolved through insurance and later processed with no member liability. I have also had to spend substantial time trying to correct the situation, and this public judgment potentially harms my professional reputation and my run for XXXX XXXX XXXX. I am requesting that the CFPB investigate Credit Management Services , Inc. for misleading and unfair collection conduct, including telling me the matter was on hold pending insurance while still pursuing judgment, failing to provide the promised follow-up before judgment was sought, and later contradicting what I had been told on the recorded XX/XX/XXXX call.

Company response to consumer: Closed with explanation