A North Carolina debt collection agency has agreed to pay $1.2 million to settle allegations that it engaged in improper practices when collecting medical debt, attorneys announced Aug. 22.
A class-action lawsuit claimed the agency violated the Fair Debt Collection Practices Act and the North Carolina Collection Agency Act by seeking to collect medical debt that was already eliminated through Chapter 7 bankruptcy. The practices allegedly occurred between 2012 and 2019.
The $1.2 million settlement resolves the allegations. The attorneys did not disclose the name of the debt collection agency.
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