Evanston Man Wins Ruling Against Medical Collection Agency

Evanston resident Gregory Leeb has won a $1,000 settlement from Nationwide Credit Corp., which was ruled liable last week for sending collections letters to Leeb without verifying his debt.

Leeb thought his insurer, Cigna, would pay for a 2011 treatment at St. Francis Hospital in Evanston. But seven months, later he received a call from Nationwide demanding payment for the $327 bill. Nationwide also threatened to report the non-payment to credit bureaus.

Last week’s ruling upheld the decision of a lower court.

According to the Chicago Tribune:

Nationwide said in court filings that the form letter was a “bona fide error,” and therefore the company did not intentionally violate the law, and was not liable. The company admitted it had received two letters from Leeb disputing the debt. The court didn’t buy it.

Even in court, Nationwide acknowledged it had been contacted by Leeb stating to cease collection until his debt had been confirmed.

“Nationwide does not explain how intentionally sending a letter can be considered a clerical or factual mistake,” the appeals court ruled.

more via the Chicago Tribune