Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

FDCPA Violation- Capital Accounts

Recommended Posts

Hello Everyone!  I am hoping someone can confirm that I am on the right path. 

I am in Texas and I have 2 collection accounts with Capital Accounts(based in TN).

 

 

1. $72 

2. $380

 

I sent a debt validation letter to the collection agency and they responded back with a ledger of the services. They are both for dental services from 2013 and 2015.   I believe they have violated a few fdcpa violations but wanted to confirm before I respond.

 

1. "Interest"- the CA responded stating that the original balances were for $50 and $305. They blatantly state that the additional fees/ amount are for interest. They continue to add on interest, changing the balance by only a few dollars (typically $1-3 depending on the CRA).  They did not send me anything that shows that the original agreement between myself and the dentist had stated that interest would accrue. Is this not a clear violation of FDCPA 807 False or Misleading Representations- I thought that CA is not allowed to add interest to medical debt, unless it was stated in the original agreement with the OC

 

2. HIPAA/ Medical Collections- The OC apparently faxed the collection agency a ledge of what services were done. I never gave authorization.  violation?

 

3. Stature of Limitations is 4 years for Texas. I know this typically means they cannot sue me BUT do I have any leverage here? Based on the ledger they sent

       (a), current balance is $72, original balance was $52, 04/11/2013 was date of last payment made to the OC by my health insurance and the OC sold it to the CA

       (b), current balance is $380, original balance was $305, 10/13/2015 was date of last payment made to the OC from insurance company, and they wrote it off as bad debt 05/17/2017 and      sold it to the CA.

 

I am familiar wit the medical collections forum, but wanted to see if  I have valid points when writing a response to the collection agency. 

 

Thoughts?

 

TIA!!

Share this post


Link to post
Share on other sites

Welcome to Creditboards!

We hope that you find what you're looking for here.

Some helpful tips:

  • Your post may not get a reply right away. Don't be discouraged, this is a very busy board. If it falls off of the first page, feel free to reply to your post yourself, with the word *bump* in the text. This will *bump* your post back up to the top of the board.
  • If you haven't yet, take a peek at out Newbies Section. Everything that you need to know is in that forum, for the most part. It's a lot of reading, we know, but this credit stuff can have a steep learning curve. In no time, you'll be posting like the pros!
  • If you find that someone is discourteous to you, use the REPORT button at the top right of every post - that will ensure that a moderator or admin looks at the post and decides if it is against the TOS.
  • Off -topic posts should go in the General Forum.

 

Again, welcome to the CreditBoards family!

CB Admin: LKH, Pam, radi8, :angel:breeze:angel: & MarvBear

 

Share this post


Link to post
Share on other sites

Follow the guides;

https://whychat.me/GUIDEBOOK.html

https://whychat.me/GUIDE HIPAA PROGRAM.html

 

Writing anything to any CA especially on a medical account is counter productive as your letter would be a de facto authorization for them to claim that you have waived your HIPAA privacy rights.

 

If they are reporting on your credit reports follow the guides and send each CRA the initial dispute letter;

https://whychat.me/hipaadisp.html

 

It is more than likely that the CA obtained your data from a data miner and not from the OC dentist.

Share this post


Link to post
Share on other sites
9 hours ago, Why Chat said:

Follow the guides;

https://whychat.me/GUIDEBOOK.html

https://whychat.me/GUIDE HIPAA PROGRAM.html

 

Writing anything to any CA especially on a medical account is counter productive as your letter would be a de facto authorization for them to claim that you have waived your HIPAA privacy rights.

 

If they are reporting on your credit reports follow the guides and send each CRA the initial dispute letter;

https://whychat.me/hipaadisp.html

 

It is more than likely that the CA obtained your data from a data miner and not from the OC dentist.

Thank you, I guess I was more concerned that if I went the next route of sending funds directly to the OC along with the applicable  letter-would Capital accounts do something shady and just Mark it as paid instead of deleting it. 
 

also, any leverage on the interest piece?

Edited by time2getserious

Share this post


Link to post
Share on other sites

There is no valid reason for you to pay anyone anything. You are WAAAY beyond the SOL (statute of limitations) for being sued (4 years)and almost at the 7 year obsolescence period for automatic deletion from your credit reports. 

 

The CA who contacted you has NO legal right to collect or report ANYTHING for this account. (I am assuming it was a regular dental bill and not a signed finance contract for dental services)

 

The interest issue along with your claim of FDCPA violations are not of any merit as you are dealing with a JDB (junk debt buyer) who has no valid claim for anything.

 

Sending $$ to the OC would be a waste of time and money as the OC has long since removed any account records from their files and has NO business relationship with the reporting CA

Share this post


Link to post
Share on other sites

Given that you are in Texas, skip the federal nonsense and focus on the Texas plan.  The relevant provisions are still the same as when we put it together more than a decade ago.  It works precisely because Texas law has teeth AND, properly utilized, you set the matter up for treble damages. 

 

Further, by avoiding reference to federal statutes, you effectively preclude any litigation from being removed to federal court even with the other party being officed outside of the State of Texas.  People forget that it was a Travis County court that slapped Lenahan to the tune of six figures relying solely upon Texas statutes...

Share this post


Link to post
Share on other sites
On 1/20/2020 at 11:14 AM, centex said:

Given that you are in Texas, skip the federal nonsense and focus on the Texas plan.  The relevant provisions are still the same as when we put it together more than a decade ago.  It works precisely because Texas law has teeth AND, properly utilized, you set the matter up for treble damages. 

 

Further, by avoiding reference to federal statutes, you effectively preclude any litigation from being removed to federal court even with the other party being officed outside of the State of Texas.  People forget that it was a Travis County court that slapped Lenahan to the tune of six figures relying solely upon Texas statutes...

Attached was the reply from the collection agency. I’ve already checked bonding for Texas and confirmed.  Am I able to invoke Texas finance Code. 392.304?

4A31CED7-9987-489F-B801-7B46F6A8BF72.jpeg

D607DEB0-AB1F-40DE-A376-C28A802B07B7.jpeg

051F4A33-43C4-44BC-96D8-F42BEEB0BE9A.jpeg

Share this post


Link to post
Share on other sites

1) NEVER send your disputes via email.  It lacks the tracking you will want should the matter move to litigation and it is also too informal for the purposes of being taken seriously. 

 

2) The fact that they are bonded does not relieve them of an obligation to follow Texas law or your ability to use the Texas plan.  It actually ensures you have the additional leverage of including the underwriter.

 

3) of the documents provided, the $52 being sought cannot be reported (the amount outstanding was from 2011).  Their own paperwork gives rise to an assertion that it is a matter that is now a decade old. 

 

4) only you can decide what your time is worth. 

 

5) and they also don't include anything that corroborates a claim that they are entitled to assess any manner of ongoing interest or fees...

 

6) You will have to make up your mind on paths to follow...the Texas plan works very effectively for those who take the time to have read the entire thread, eliminate references to federal law and lay the groundwork in a well-written letter. 

Share this post


Link to post
Share on other sites

If you wish to follow the HIPAA letter program then you can do so.

If you choose to take Centex's advice then you can not use the HIPAA letter program.

 

Your accounts are all past the legal collection date for any possible action that would involve the complex advice that she is giving you.

 

Your use of the HIPAA letter program would not interfere in any way shape or form with any conceivable "Texas Plan" that she is suggesting, however the reverse is true as any correspondence to the CA will impede your use of the HIPAA program as you would have provided them with a release of your HIPAA privacy rights that they do not now possess.

Share this post


Link to post
Share on other sites
2 hours ago, Why Chat said:

If you wish to follow the HIPAA letter program then you can do so.

If you choose to take Centex's advice then you can not use the HIPAA letter program.

 

Your accounts are all past the legal collection date for any possible action that would involve the complex advice that she is giving you.

 

Your use of the HIPAA letter program would not interfere in any way shape or form with any conceivable "Texas Plan" that she is suggesting, however the reverse is true as any correspondence to the CA will impede your use of the HIPAA program as you would have provided them with a release of your HIPAA privacy rights that they do not now possess.

you guys are gooooooood!! Thank you!

 

Share this post


Link to post
Share on other sites
11 hours ago, centex said:

1) NEVER send your disputes via email.  It lacks the tracking you will want should the matter move to litigation and it is also too informal for the purposes of being taken seriously. 

 

2) The fact that they are bonded does not relieve them of an obligation to follow Texas law or your ability to use the Texas plan.  It actually ensures you have the additional leverage of including the underwriter.

 

3) of the documents provided, the $52 being sought cannot be reported (the amount outstanding was from 2011).  Their own paperwork gives rise to an assertion that it is a matter that is now a decade old. 

 

4) only you can decide what your time is worth. 

 

5) and they also don't include anything that corroborates a claim that they are entitled to assess any manner of ongoing interest or fees...

 

6) You will have to make up your mind on paths to follow...the Texas plan works very effectively for those who take the time to have read the entire thread, eliminate references to federal law and lay the groundwork in a well-written letter. 

Thank you! I actually sent them a letter cmrr, and also filed a complaint with TN ( where they are located) and this was the response to the attorney general. I am drafting up a letter now to send via mail. Any chance that you can direct me to the Texas plan forum with a link? I have been searching but unsuccessful.

 

 

You are greatly appreciated, thank you again!

Edited by time2getserious
updated to ask about Texas plan link

Share this post


Link to post
Share on other sites
12 hours ago, centex said:

1) NEVER send your disputes via email.  It lacks the tracking you will want should the matter move to litigation and it is also too informal for the purposes of being taken seriously. 

 

2) The fact that they are bonded does not relieve them of an obligation to follow Texas law or your ability to use the Texas plan.  It actually ensures you have the additional leverage of including the underwriter.

 

3) of the documents provided, the $52 being sought cannot be reported (the amount outstanding was from 2011).  Their own paperwork gives rise to an assertion that it is a matter that is now a decade old. 

 

4) only you can decide what your time is worth. 

 

5) and they also don't include anything that corroborates a claim that they are entitled to assess any manner of ongoing interest or fees...

 

6) You will have to make up your mind on paths to follow...the Texas plan works very effectively for those who take the time to have read the entire thread, eliminate references to federal law and lay the groundwork in a well-written letter. 

Hi Centex, I drafted my response to Capital Accounts. Do you or any other experts mind reviewing to ensure I hit the points I needed?

 

To Whom it May Concern

 

I am certain that the information you have provided has violated my rights outlined in the Texas Finance Code.  Given the fact that you are attempting to do business in Texas my hopes are that you would be aware of the Texas Finance Codes, and laws specially related to debt collectors. 

 

I would like to bring to your attention a few things based on your claim of investigation. 

 

1. (Insert Provider name)- YOU provided a statement that reflects an alleged debt amount of $52 from 2011. The paperwork you have provided shows alleged debt that is now a decade old.  The Texas Finance Code Chapter 392 Section 307. Collection of Certain Consumer Debt by Debt Buyers  states (c) A debt buyer may not, directly or indirectly, commence an action against or initiate arbitration with a consumer to collect a consumer debt after the expiration of the applicable limitations period provided by Section 16.004, Civil Practice and Remedies Code.  The Civil Practices and Remedies Code § 16.004. has outlined a statute of limitations for collecting debt to 4 years.  You begin attempting to collect in 2017 per your letter. Legally you cannot collect and cannot report on this alleged debt. 

 

The information above shows a direct violation from Capital Accounts in the State of Texas and can be utilized as a platform to pursue civil penalties and seek injunctions and damages against the company. 

 

Further, 

 

2. (Insert Provider name) DDS. - the documents you provided failed to include any legally binding documentation that corroborates your claim of entitlement to assess any manner of ongoing interest or fees. You unlawfully added $76.46 in "accrued interest" per your letter. The Texas Finance Code Chapter 392 Section 303 Unfair or Unconscionable Means states: (a) In debt collection, a debt collector may not use unfair or unconscionable means that employ the following practices: (2) Collecting or attempting to collect interest or a charge, fee, or expense incidental to the obligation unless the interest or incidental charge, fee, or expense is expressly authorized by the agreement creating the obligation or legally chargeable to the consumer. Additionally, I would also like note that you stated $20.80 in "accrued interest" for the alleged debt to (Insert Provider name).

 

I would like to hope that your initial investigation was not thorough and Capital Accounts would not resort in fraudulent collections tactics in order to slander, and defame my character.   As bound by the Texas Finance Code, I request immediate deletion of all associated accounts reporting to the three major credit bureaus (Equifax, Experian, TransUnion) within 15 days of receipt of this letter and a letter sent to me confirming my demand. 

 

 

Regards,

 

Me, Me, Me!

 

Cc: Texas Office of Consumer Credit Commissioner


 

Share this post


Link to post
Share on other sites

If you send this letter to the CA you can not use the HIPAA letter program as you have provided them with a de facto release of your HIPAA privacy rights.

 

The "Texas" program may work to legally absolve you of any payments (which you are already past the legal time for collection) but I have not seen any indication that it works to get accounts deleted from your credit reports.

Share this post


Link to post
Share on other sites
33 minutes ago, Why Chat said:

If you send this letter to the CA you can not use the HIPAA letter program as you have provided them with a de facto release of your HIPAA privacy rights.

 

The "Texas" program may work to legally absolve you of any payments (which you are already past the legal time for collection) but I have not seen any indication that it works to get accounts deleted from your credit reports.

Thanks for that. So let us say I utilized the HIPAA letter program, my next steps would be to send a letter (as indicated on the forum) to the OC, along with the letter below, adding applicable insert A to pay

 

 

In regard to the bill on this account in the amount of ($___):
Insert correct insert here:( see inserts) (a) (b) or (c)

 

Please be advised that under Federal Statutes. the Fair Credit Reporting Act, (15 U.S.C. § 1681 et seq)and (name of your State)'s Consumer Credit Statutes,and subtitle D of the ARRA ,SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES;and SEC. 13407(1) BREACH OF SECURITY.—The term ‘‘breach of security’’ means, with respect to unsecured PHR identifiable health information of an individual in a personal health record, acquisition of such information without the authorization of the individual. you may be held liable for the actions of (collection agency name). Please note that the these liabilities are under the penalty rules of the Omnibus Final Rule effective 09/23/2013 interpreting and implementing various provisions of the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH Act) as issued 11/30/2009 

 

(a) Duty of furnishers of information to provide accurate information.  (1) Prohibition. (A) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.

 

In addition, the HIPAA and (name of your State)'s Medical Privacy Statutes and the penalty provisions of the ARRA section D, privacy provisions ,the penalty rules of the HITECH Act as issued 11/30/2009 and the Omnibus Final Rule effective 09/23/2013 and the FACT Act final rules effective July 1, 2010.are in effect in this situation. The Privacy Rules prohibits a covered entity from using or disclosing an individual's protected health information ("PHI") unless specifically authorized by the individual or otherwise allowed under the Privacy Rules. In general, PHI encompasses substantially all "individually identifiable health information" that is transmitted or maintained in any medium. "Individually identifiable health information" includes health information that is created or received by a health care provider, health plan, employer, or health care clearinghouse, and that relates to an individual's physical or mental health or condition, including information related to an individual's care or the PAYMENT for such care.

 

Your furnishing of my account information to (collection agency name), is not in compliance with HIPAA,or (name of your State}'s Privacy Act, and any subsequent reporting of this account on my credit reports to (credit reporting bureaus) is a clear violation of Public Law 104-191 ("HIPAA") since there can be no permissible business purpose in divulging protected health information to anyone on an account once there is no longer any payment due.In addition the new Omnibus Final Rule states:when patients pay out of pocket in full, they can instruct their provider to refrain from sharing information.This letter serves as that instruction 

 

You are required under the FCRA and FACTA to accurately report the status of any account to the credit bureaus, and you are prohibited under the HIPAA and State privacy regulations from doing so on a PAID account, as there is no longer any permitted business purpose.

 

Therefore I am requesting you promptly rescind all such account information furnished to (Capital Accounts LLC) and require them to purge their records of all reference to this account, and that you insure that any and all reporting of this account is immediately deleted from my credit reports.

 

This simple procedure to request the deletion of ALL reference to this account from the records of ( Capital Accounts LLC) and to require them to have this account information deleted in its entirety from my credit reports will resolve this problem completely.  
Sincerely,

 

signature (Your Name)

Share this post


Link to post
Share on other sites

No, it is more than likely that your initial dispute letter to the CRAs will get you a deletion.

The "ledgers" you posted shows a balance due of less than $500. They would have to be able to properly verify with a complete match of all the data (addresses etc.) in their active computer files in order to have the CRAs let the accounts stay on your reports. If you have followed the initial guide, opted out and deleted old addresses there should be a quick deletion.

 

The accounts show that there was no treatment activity on either of the accounts since 2015. The DOLA ( date of last activity) on a medical account refers to the date of medical service, not the last payment on an account. This is DIFFERENT from any other type of account which Centex has referred to in her posts, those accounts are subject to different standards.

 

IF you do not get a deletion from all the CRAs these accounts are appearing on, the next step would be to send the CA the medical DV;

https://whychat.me/ltrcavalhipaa.html

and then send the CRA(s) the follow up dispute

https://whychat.me/ltrcavalhipaa.html#DISPUTE

 

Sending any payment, even with the HIPAA letter to the OC dentist is a waste of $$ as they no longer have any active account to apply the money to.

 

Once you have followed ALL the steps in the HIPPA letter program and have clean reports you can do, as MANY posters on this forum have done over the past 15 years and send a contribution to one of the charities listed at the bottom of my website.

Share this post


Link to post
Share on other sites
37 minutes ago, Why Chat said:

No, it is more than likely that your initial dispute letter to the CRAs will get you a deletion.

The "ledgers" you posted shows a balance due of less than $500. They would have to be able to properly verify with a complete match of all the data (addresses etc.) in their active computer files in order to have the CRAs let the accounts stay on your reports. If you have followed the initial guide, opted out and deleted old addresses there should be a quick deletion.

 

The accounts show that there was no treatment activity on either of the accounts since 2015. The DOLA ( date of last activity) on a medical account refers to the date of medical service, not the last payment on an account. This is DIFFERENT from any other type of account which Centex has referred to in her posts, those accounts are subject to different standards.

 

IF you do not get a deletion from all the CRAs these accounts are appearing on, the next step would be to send the CA the medical DV;

https://whychat.me/ltrcavalhipaa.html

and then send the CRA(s) the follow up dispute

https://whychat.me/ltrcavalhipaa.html#DISPUTE

 

Sending any payment, even with the HIPAA letter to the OC dentist is a waste of $$ as they no longer have any active account to apply the money to.

 

Once you have followed ALL the steps in the HIPPA letter program and have clean reports you can do, as MANY posters on this forum have done over the past 15 years and send a contribution to one of the charities listed at the bottom of my website.

🙏🏾🙏🏾🙏🏾 Thank you.  Let me jump

back to the basics. Do you think it’s too late on the hipaa program if I’ve already received this letter from the CA
 

Or do you think it can be still done if I backtrack. 

 

PS- After all the knowledge you guys are giving me, I will absolutely donate 

Share this post


Link to post
Share on other sites

You can start the HIPAA program. It is NOT too late. ( provided you haven't SIGNED any letter you sent to the CA)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines