CFPB Hits Medical Debt Collector With $1.68 Million Penalty

An Indiana medical debt collector will pay at least $1.68 million to resolve claims that it engaged in illegal debt collection and credit reporting practices, the Consumer Financial Protection Bureau said.

Phoenix Financial Services LLC allegedly sent letters seeking to collect on disputed debts without validating that the consumer owed the purported amounts, putting people at risk of paying debts they didn’t actually owe, according to a Thursday CFPB consent order.

The Indianapolis-based company also provided unverified information to consumer credit reporting companies in violation of the Fair Credit Reporting Act, the CFPB said.

“Given widespread inaccuracies in medical ...