Collection Agency Gets Away With It

Jack Southern had an accident that sent him to the emergency room. He paid his co pay and put the incident behind him. Then the CMRE collection agency sent him a demand for 500 dollars claiming it was the remaining balance.

Jack paid CMRE. Then an insurance statement arrived showing medicaid and Jack's co pay had covered the bill in full.

Jack tried to get CMRE collection agency to refund the phony collection bill but got no response. Then he called the local ABC news affiliate. Reporter Jackie Callaway placed two calls to CMRE and days later the company sent Jack a full refund.

Happy ending? Not. The TV station didn't refer Jack to a consumer attorney who could have pursued Jack's right to $1000 in statutory FDCPA damages from the phony bill. What is worse is no investigation of medicaid bill fraud took place. Lots of medical collectors get caught billing for claims medicaid or medicare already paid. Some go to jail for it.

Because the TV station didn't pursue it however, CMRE is free to try again.