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.