CFPB Shuts Down Medical Debt Collection Agency Over Several Violations

CFPB says the collection agency's violations included trying to collect unverified medical debts.

A consumer protection law book lays on a table with a gavel next to it.
(Image credit: Zerbor, Getty Images)

The Consumer Financial Protection Bureau (CFPB) has ordered medical debt collection agency Commonwealth Financial Systems to cease operations and pay a $95,000 fine for illegally trying to collect unverified medical debts.

The CFPB said that Commonwealth, which specializes in collecting past-due medical debts and informs consumer reporting companies about consumer collection accounts, violated the law in several ways, These include a failure to conduct reasonable investigations after consumers disputed debts, a failure to inform consumer reporting agencies about disputes, and continuing to attempt to collect disputed debts without documentation proving the debts.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.