Uninsured Patient Class Action – Fair Debt Collection Practices Act
Carlson v. Long Island Jewish Med. Ctr., No. CV 04-3086 (E.D.N.Y. July 11, 2005)
Two
patients brought suit against a health system alleging that the health system
violated the Fair Debt Collection Practices Act (FDCPA) when it attempted to
collect payment on bills owed by the patients. The health system conducted
its collection practices through an unincorporated subdivision of the health
system. The patients alleged that they were targets of “aggressive, abusive,
and humiliating” collection activities and brought suit under the FDCPA.
The health system responded by filing a motion for summary judgment. The court
stated that the FDCPA does not restrict the activities of creditors seeking
to collect their own debts. However, when the creditor attempts to collect
its own debts by using a name other than its own, it can be held liable under
the FDCPA. The court held that, since the health system was operating under
a fictitious name that would cause a false impression that a third party was
collecting the debt, it could be sued under the FDCPA.