A Tale of One Applicant's Claim Against Unfair Debt Collection Practices

• Publication year: 2021
• Author: YOUSSEF H. HAMMOUD, ESQ.

A Tale of One Applicant's Claim Against Unfair Debt Collection Practices

YOUSSEF H. HAMMOUD, ESQ.

JOSEPH E. RICHARDS, ESQ.

SANTA ANA, CALIFORNIA

Picture this #1: Applicant walks into the office of her attorney with a handful of bills for an ambulance ride and various medical treatments, as well as a letter from a collection agency. Applicant is afraid her credit score has been or will be negatively impacted due to loss of work from her work injury and the continuous collection attempts. Applicant is confused and scared because even though the workers' compensation insurance carrier has admitted liability and her attorney told her she isn't responsible for the medical bills, she is still getting collection letters and collection calls.

Picture this #2: Same facts as above, except applicant's claim is relatively new and the workers' compensation insurance carrier hasn't yet admitted liability.

INTRODUCTION

The Fair Debt Collection Practices Act (FDCPA) is a federal law designed to eliminate abusive, deceptive, and unfair debt collection practices. California has its own version of its federal counterpart, called the Rosenthal Fair Debt Collection Practices Act (RFDCPA). There are some differences between the two, including their definitions of who constitutes a "debt collector," but both laws essentially have the same goal: to provide broad protections to consumers against debt collectors engaging in unlawful collection practices.

HOW DOES THIS APPLY TO APPLICANT'S WORKERS' COMPENSATION CLAIM?

Injured employees receive all kinds of medical treatment for the injuries suffered. Sometimes treatment is through an MPN, but treatment is often emergent care or specialty care based on the type of injury, such as dialysis for an injured kidney. Despite medical providers being informed that the treatment is subject to a workers' compensation claim, medical providers frequently attempt to collect wrongfully on the charges incurred. (See WCAB v. Small Claims Court (1973) 38 Cal.Comp.Cases 748.)

Labor Code section 3751(b) states:

If an employee has filed a claim form pursuant to Section 5401, a provider of medical services shall not, with actual knowledge that a claim is pending, collect money directly from the employee for services to cure or relieve the effects of the injury for which the claim form was filed, unless the medical provider has received written notice that liability for the injury has been rejected by the employer and the medical provider has provided a copy of

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