In Part one, we examined three of the requirements the CFPB’s Advisory Opinion on the Deceptive and Unfair Collection of Medical Debt imposed on debt collectors. Since that article was published, ACA International, the Association for Credit and Collection Professionals, filed a lawsuit in the U.S. District Court for the District of Columbia, asking the court for relief, in short, because the CFPB did not follow the constructs for issuing rulemaking required under the federal Administrative Procedure Act. Further, the rule contradicts the FDCPA by requiring certain actions by debt collectors that the law does not require. The complaint, filed on November 1, 2024, can be found here.  

In this part, we’ll look at the three other broad areas discussed in the Advisory Opinion.

Collecting amounts for services not received

The CFPB spends several pages on a practice described as upcoding, which occurs when medical billers use a billing code that results in a higher charge for services provided to the patient and indicates that a different procedure than that actually performed was received by the patient. The CFPB cites an article written by Commissioner William Hsiao of the California Heath and Human Services department, which in its first paragraph advocates a single payer healthcare system which would “vastly reduce fraud and abuse in claims by leveraging a uniform data system.” (last accessed 11/5/2024: Fraud and Abuse in Healthcare Claims) 

We won’t discuss the pros and cons of a single payer healthcare system in this article, but the point is that debt collectors do not know and cannot know whether the charges reported to them by their healthcare clients are generated by the right codes or the wrong codes. There are more than 11,163 CPT codes currently in use. Debt collectors currently are not required to know the codes or check the coding, and often do not receive paperwork from their clients upon placement that even contain CPT codes. Some providers would consider these codes as outside the information necessary to collect a debt. Yet the CFPB wants to hold debt collectors accountable for the billing practices of their clients. As I said in part one, the FDCPA does not require debt substantiation prior to notifying consumers about their debts, and it contains a process for providing validation to consumers who have disputed their debts. The advisory opinion undercuts this process. 

Misrepresenting the nature of legal obligations

Does the presentation of an amount due to a consumer by a debt collector rise to the level of a misrepresentation of a legal obligation if it turns out that the consumer may owe less? The CFPB contends in its advisory opinion that “the least sophisticated consumer presented with a demand for payment may believe that the full demanded amount is legally owed”, and it cites cases involving time barred debts and debts which may be subject to bankruptcy protection. Both of these cases were decided in the pre-Regulation F era. The CFPB-designed Model Validation Notice used by debt collectors today who want to invoke safe harbor for their initial validation notice, and even those who don’t use it but comply with Regulation F by using a notice that is substantially similar, makes it abundantly clear that consumers have the right to dispute their debt and provides a vehicle for doing so that could not be easier to implement. Unlike consumers of the late 20th century who had to rely naively on what the debt collector told them, 21st century consumers, even the least sophisticated ones, have tools in their back pocket or even in hand that can be used to immediately look up the meaning of any communication they receive from a debt collector if they need to. Countless sites and content creators answer the question, “how should I deal with a debt collector?” A simple statement of dispute can get them the information they need/want the debt collector to provide. The assumption that the CFPB seems to be making related to medical debt is that “every balance is always wrong.” 

Substantiation of medical debts

The inherent problem that the Advisory Opinion seems to seek to resolve is the fact that the cost of medical care has spiraled out of control, and the plethora of medical providers, medical systems, medical practitioners, manufacturers of medical devices and even the medicines that many of us take every day of our lives is regulated haphazardly, even unfairly. Putting all of those problems on the backs of debt collectors by requiring them to substantiate every amount they seek to collect for their clients is not going to solve the problem. In 2022, Americans spent about $12,600 per person on healthcare, more than $4000 per year more than people in countries like Switzerland and Germany, yet life expectancy for Americans is 4.5 years lower than the Germans and the Swiss, according to Investopedia.com. While the CFPB might be praised for trying to reduce costs for Americans, it seems that putting that burden on debt collectors is misplaced. Medical billing practices are confusing—we can all agree on that. Unfortunately, the CFPB does not have jurisdiction over medical providers and their billing practices. Forcing debt collectors to fix it from the caboose end of the train won’t work. 

To take us back to my original assertion—that trying to comply with this rule will be like trying to make turducken without a recipe—the analogy is valid. It’s going to taste bad; it’s going to fall apart in the roasting, and somebody is going to get sick in the end. Making turducken requires planning, study, practice, and a good team of sous chefs behind the scenes to make sure the ingredients are handled properly and are added at the correct portion at the correct time. That is what the development of this rule lacked. 

Tampa, Fla. — OneTouch Direct (OTD), a leading global business process outsourcing and collections company, announced today a significant expansion of their Bogotá, Colombia contact center. This strategic initiative is designed to capitalize on client growth opportunities as part of the company’s ongoing global expansion efforts.

The expansion adds 1,000 new seats to the Bogotá facility, enabling the company to enhance its service offerings and better meet the increasing demand from financial services clients supporting e-commerce, e-retail, banking, consumer auto, captive auto, entertainment media, telecom, government, public utilities, and the healthcare industry. Our Colombian nearshore contact centers in Medellín, Barranquilla, and Bogotá provide integrated omni-channel engagement solutions, specializing in care, customer service, collections, QA AI services, customer retention, back-office support, and unique specialty program solutions. 

Additionally, our Enhanced Local Area Networks (ELANs) provide seamless offshore and nearshore connectivity by ensuring that all traffic is routed through our strategically located domestic data centers. This architecture not only enhances security and data integrity but also optimizes performance by leveraging our robust domestic infrastructure. By directing international traffic through our high-capacity, state-of-the-art facilities, we guarantee consistent and reliable service, reduced latency, and better control over data flows. This approach also simplifies compliance with local regulations and standards, providing peace of mind while delivering top-tier connectivity solutions for our global clients.

“With this expansion, we are not only increasing our capacity but also enhancing our ability to deliver tailored solutions aligned the evolving needs of our clients,” said Chris Reed, COO and co-founder of OneTouch Direct. “Colombia has become a key market for us, and we are committed to investing in local talent and technology as we continue our global growth.”

“OneTouch Direct is strategically positioning itself for future global growth,” added Yvonne Torrijos, Chief Sales Officer of OneTouch Direct. “We are excited about the opportunities this expansion creates, allowing us to better serve our clients with enhanced capabilities at our Bogotá facility.”

About OneTouch Direct

OneTouch Direct is a global business process outsourcing and collections company offering integrated omni-channel customer communications designed to drive exceptional customer interactions and enhance our clients’ brands. Rooted in our passion and deep expertise, OneTouch Direct creates unified brand experiences that break the rules and foster meaningful relationships. Our innovative services, customized solutions, real-time analytics, and management expertise serve a global customer market base spanning North America, Europe, Asia Pacific, Latin America and the Caribbean. Partnering with some of the world’s most recognizable brands, we deliver solutions designed to meet our client’s present and future challenges. For over 20 years, our people-centric, data driven outsourcing solutions power better revenues and profitability across the full customer life cycle. For more information visit https://www.onetouchdirect.com/.

On October 31, the U.S. Court of Appeals for the Fifth Circuit Court of Appeals granted the appellants’ motion to expedite the appeal in Texas Bankers Association v. Consumer Financial Protection Bureau (CFPB). The suit brought by several trade associations challenges the CFPB’s Final Rule under § 1071 of the Dodd-Frank Act, the “Small Business Lending Data Collection Rule” (Final Rule). The court scheduled oral argument for February 3, 2025. However, in that same order, the court denied appellants’ motion for a temporary stay of the Final Rule’s compliance dates, stating that the motion for a stay pending appeal “remained pending.” This means that the compliance dates set forth in the CFPB’s Interim Final Rule remain for now, with the earliest date for the largest lenders being July 18, 2025.

As discussed here, on August 26, 2024, the U.S. District Court for the Southern District of Texas granted the CFPB’s motion for summary judgment on all Administrative Procedure Act (APA) challenges brought by the plaintiffs to the Final Rule. Specifically, the district court found that: (1) the CFPB did not exceed the authority granted to it under § 1071 in issuing the Final Rule; and (2) the CFPB did not act in an arbitrary and capricious manner in considering the Final Rule’s expected costs and benefits. As expected, the plaintiffs swiftly appealed the ruling.

Under the Fifth Circuit’s expedited briefing schedule: appellants’ opening brief is due on December 3, 2024; appellees’ brief is due on January 6, 2025; and appellants’ reply brief is due on January 16, 2025. As noted, oral argument is scheduled for February 3, 2025.

We will continue to provide updates as this case progresses through the appellate process.

The FCC set April 11, 2025 as the effective date for new rules designed to make it easier for consumers to revoke consent for calls and texts subject to the Telephone Consumer Protection Act and requiring callers honor these requests in a timely manner.

The new rules, adopted in February, require that callers honor do-not-call and consent revocation requests within a reasonable time, not to exceed 10 business days from receipt.

In February, the FCC also codified the Commission’s 2015 ruling that consumers can revoke consent under the Telephone Consumer Protection Act through any reasonable means. The rules also add to the FCC’s 2012 ruling that clarified that a one-time text message confirming a consumer’s request that no further text messages be sent does not violate the Telephone Consumer Protection Act as long as the confirmation text merely confirms the called party’s opt-out request and does not include any marketing information.

Englewood, Colo. — Harvest is excited to welcome Eric Hammond to the team in the role of Chief Technology Officer. Hammond brings a diverse background of experience in designing and implementing technology-based solutions to improve operational efficiencies in growth environments. Hammond was formerly a VP and Division Manager at Leidos and prior to that was a senior program manager and systems engineering manager at Raytheon and Lockheed Martin. Hammond has a proven track record of building teams and running complex technology projects under exacting standards. More importantly, Hammond recognizes the importance of cultivating and nurturing personal relationships, prioritizing human connections over technology, and consistently placing both internal and external customers at the forefront of his efforts.

“I am enthusiastic about contributing to the growth trajectory at Harvest Strategy Group. The senior team’s emphasis on teamwork and the integration of automation to achieve consistent results deeply resonates with me. I am particularly inspired by Harvest’s commitment to fostering strong partnerships with clients, agencies, and firms, as well as creating a collaborative environment where a shared vision for success prevails,” states Hammond. 

President and CEO Brad McCurnin adds, “The appointment of Eric to lead our information technology department brings invaluable experience and a deep understanding utilizing technology to support client needs. Eric’s proven track record not only enhances our strategic direction but also ensures that we leverage the latest technologies effectively, driving innovation and efficiency across the organization.”

About Harvest Strategy Group

Harvest Strategy Group, Inc. is a recognized leader in national collection solutions delivering best in class results for their clients, which include leading banks, finance companies, credit unions, and debt buyers. Utilizing a highly selective national network of collection attorneys and agency partners, Harvest’s model is driven by ProScore™, a proprietary legal recovery scoring model. Harvest’s account management team work with its recovery partners to ensure zero defect compliance and maximum recoveries are realized. 

MADISON, Wis. — As hurricane recovery efforts continue throughout the Southeast, State is supporting those providing direct assistance. The company has donated $10,000 to organizations assisting those in North Carolina and Florida, as well as a fund providing cash assistance to those impacted who work in the receivables management/revenue cycle industry. Many of their team members also have made contributions.

A portion of State’s donation went to a GoFundMe that was created by agency owners Rick Doane and Diane Doane Plowman to provide cash assistance to those impacted within the receivables management industry. Donations are still being accepted here to assist industry colleagues who were impacted.

“In addition to working closely with our clients located in the impacted areas, ceasing outbound contact campaigns and adjusting scripts, our team quickly jumped in to provide financial assistance to those impacted by the hurricanes,” said Tim Haag, State’s president and chief executive officer. “Our thoughts for a full recovery go out to everyone impacted by these disasters.”

About State

State improves the financial picture for healthcare providers by delivering increased financial results while ensuring a positive patient experience. Rooted in a tradition of ethics, integrity and innovation since 1949, State uses data analytics to drive performance and speech analytics with ongoing training to ensure patient satisfaction. A family-owned company now in its third generation of leadership, State assists healthcare organizations with services spanning the complete revenue cycle, including Pre-Service Financial Clearance, Early Out Self-Pay Resolution, Insurance Follow-Up and Bad Debt Collection. To learn more, visit: www.statecollectionservice.com.