Valley Credit Service Sued Over Allegedly Unlawful Demand for Payment

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Valley Credit Service, Inc. is facing a proposed class action filed by a Virginia consumer who claims the defendant attempted to collect a debt for which she was not responsible. The lawsuit alleges that the plaintiff received treatment at Parkway Neuroscience & Spine Institute, the cost of which was covered by her insurance provider, Arches Health Plan. The plaintiff says she paid her $75.00 co-pay and that Parkway filed a claim with Arches for the cost of the procedure. The lawsuit goes on to explain that Arches became insolvent and was forced to liquidate. According to the complaint, the insurance company informed Parkway that it was not permitted to “balance bill any enrollee” in Arches’ health plans.

The defendant, however, sent the plaintiff a collection letter on Parkway’s behalf demanding the full amount of the alleged debt, the suit says. The plaintiff claims she is not responsible for paying the bill and that the defendant’s letter violated the Fair Debt Collection Practices Act by misrepresenting the amount of debt and attempting to collect an amount “not expressly authorized by agreement or law.”