Consumer complaint received 2026-01-21 00:00:00
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Alliance Collection Agencies, Inc.
State: TX

Complaint narrative:
Product : Debt collection Sub-product : Medical debt Issue : Attempting to collect debt not owed Sub-issue : Debt is not yours Company Name : Alliance Collection Agencies , Inc . 
Date of incident : XX/XX/XXXX : On XX/XX/XXXX, I received a collection notice from Alliance Collection Agencies , Inc. for {$4000.00} allegedly owed to XXXX XXXX for medical services. I dispute this debt entirely because : ACTIVE INSURANCE APPEALS : I currently have multiple active appeals pending with XXXX XXXX ( my Medicare XXXX insurer ) regarding coverage for emergency medical treatment I received on XX/XX/XXXX, for fractured XXXX XXXX XXXX sustained XXXX miles from the nearest XXXX facility. Appeals timeline : XX/XX/XXXX : Original appeal filed ( received XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX : Request to vacate improper dismissal filed with XXXX XX/XX/XXXX : Reconsideration filed with XXXX XXXX XXXX XX/XX/XXXX : XXXX XXXX XXXX  acknowledged by XXXX ( XXXX XXXX XXXX XX/XX/XXXX : Health Plan Appeal acknowledged by XXXX ( XXXXXXXX XXXX  ) FEDERAL COMPLAINTS FILED : XX/XX/XXXX : Complaint filed with XXXX XX/XX/XXXX : California XXXX Case XXXX XXXX forwarded to XXXX XX/XX/XXXX : XXXX assistance appointment XXXX THIS IS COVERED EMERGENCY CARE : Under 42 CFR 422.113, Medicare Advantage plans must cover emergency services regardless of location or prior authorization. I sustained fractures requiring emergency XXXX while vacationing in rural Minnesota, XXXX miles from nearest XXXX facility. 
NO PROPER DENIAL RECEIVED : XXXX never sent me a formal written denial. All EOB statements said : " The amounts are {$0.00} because the cost for this service or item is covered under another part of this claim. '' I only learned of non-payment verbally from XXXX on XX/XX/XXXX. 
PROVIDER FAILED TO VERIFY COVERAGE : XXXX XXXX performed XXXX on XX/XX/XXXX, without verifying insurance authorization or informing me of potential coverage issues. Their administrative failure does not create a valid debt. 
PREMATURE COLLECTION : It is improper to pursue collection while multiple insurance appeals and federal regulatory complaints are actively pending with resolution expected within 30-60 days. 

I sent Alliance Collection Agencies a formal dispute letter on XX/XX/XXXX, via certified mail demanding they cease collection activity and provide debt validation. This collection attempt during active insurance appeals violates my rights under the FDCPA and may constitute an unfair debt collection practice.

What would be a fair resolution : Alliance Collection Agencies must immediately cease all collection activity This account must be placed on hold pending resolution of insurance appeals No negative information should be reported to credit bureaus Alliance must provide complete debt validation as requested The account should be returned to XXXX XXXX pending insurance adjudication I should receive written confirmation that collection activity has been suspended Additional details : I have never missed a legitimate payment obligation This debt is entirely dependent on insurance determination still in process Multiple federal agencies are currently reviewing XXXX 's coverage denial I was never properly notified of any denial or given opportunity to appeal within proper timeframes

Company response to consumer: Closed with explanation