Greg's Corner

BBB warns of medical debt scam

By Greg Collier

Medical debt is one of the leading causes of people who declare bankruptcy in the U.S. The cost of medical care in the US is notably high compared to other countries. Even with insurance coverage, individuals may face substantial out-of-pocket expenses, including deductibles, copayments, and coinsurance. For those without adequate insurance coverage, the burden of medical costs can be overwhelming.

This has led many medical facilities to employ collection agencies to go after outstanding debts. These debt collectors are often more than aggressive when pursuing these debts. They’re not above resorting to legal action, wage garnishment, or asset seizure. However, not every medical debt is legitimate, as the Better Business Bureau is warning that scammers are posing as medical debt collectors in order to extort money from their victims.

It makes sense, in a way, that scammers would do this. Scammers often employ high-pressure tactics to trick their victims into giving up their money. Posing as a debt collector, who also uses high-pressure tactics, allows scammers to appear more authentic to their victims.

According to the BBB, scammers are sending letters and making phone calls to their victims, claiming the victim owes money for a medical bill. The scammers threaten their victims with legal fees, ruining your credit, and even arrest. The scammers are hoping that the victim will be scared into handing over their financial information.

There are some easy ways to protect yourself from this scam. The first is to never give these callers any money right away. First, ask them for a debt verification letter that will detail where the debt supposedly came from. Debt collectors are required to provide those, while most scammers can’t. Then call the medical office where the bill supposedly originated from, and their billing office will be able to verify any charges or debts.