Daily Digest – March 21. BofA Facing FDCPA Class-Action Lawsuit; HIPAA Violation Leads to $1.5M Fine

The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide. 

BofA FACING FDCPA CLASS-ACTION LAWSUIT OVER SECURITIZED DEBTS 

• A class-action lawsuit has been filed against Bank of America alleging violations of the Fair Debt Collection Practices Act, among other allegations. The plaintiffs claim that by selling the debts into a securitized trust, BofA gave up the right to collect the debts on its own.

NOT HAVING PROPER RELATIONSHIP COSTS HEALTHCARE PROVIDER $1.5M

• A healthcare organization, North Memorial Health Care, has been assessed a $1.55 million fine for HIPAA violations for, among other things, not having a proper business associated agreement with the company it was using to collect debts on its behalf, Accretive Health. The oversight was uncovered after North Memorial reported the theft of an unencrypted laptop from an employee of the business associate.

CFPB FINES DEBT RELIEF COMPANY $172M

• The CFPB has assessed a $172 million fine against a debt relief company, Morgan Drexen, and found two attorneys in contempt for their role in the scam. The company is accused of charing upfront fees to consumers and misrepresenting the services it provided.

HOSPITALS FACING COLLECTION-RELATED DILEMMA

• A growing number of healthcare providers are facing a difficult decision to maintain or forego their non-profit status, largely as a result of their collection strategies. By foregoing their non-profit status, hospitals can avoid having to wait 180 days before collecting on unpaid debts.

COLLECTORS GOING AFTER TEACHERS FOR NOT RETURNING PHONY BONUSES

• Debt collectors are being placed on the trail of 70 current and former employees of the Columbus City Schools district for not repaying fraudulent bonuses that were awarded based on phony student data.

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The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide.