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Debt Collection agency pays $2.5 million settement

Wednesday, October 03, 2012 - Posted by Philip Harvey

In Minnesota, a debt collection company settled a dispute by paying $2.5million to the Attorney General. Debt Collectors were allegedly seeking payments whilst in hospital emergency rooms (you can read more about this in a previous article here).

The Attorney General was accusing Accretive Health (a large US debt collection agency specialising in medical debts) of violations to a federal law. Hospitals are required by law to provide emergency care even where a patient cannot afford to pay.

As part of the settlement Accretive Health cannot have a contract with a hospital within the state for 2 years. For 4 more years after that, they will need consent from the Attorney General to resume business in the state. Accretive Health has not admitted wrong.

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