The Adams County Circuit Court on August 5, 2024, held that an alleged medical debt that became the subject of a collection lawsuit was a “consumer debt” and that, therefore, the patient was entitled to the protections of the Wisconsin Consumer Act.
Hess Memorial Hospital sued a patient for approximately $3,000 in medical bills. The patient hired Attorney Briane Pagel and Lawton Cates. Attorney Pagel filed a counterclaim alleging that Hess Memorial had promised the patient would pay no more than $500 for the procedure and that, as a result, Hess’ actions in attempting to collect the debt violated two separate provisions of the Wisconsin Consumer Act.
Hess contended that the Consumer Act did not apply, but the judge disagreed, finding that both the statutory obligation of good faith and prohibitions on certain actions in debt collection applied to this debt. The Court noted that because the patient had received treatment without being required to pay at the time of treatment, there was an agreement to defer payment which entitled the patient to protection from abusive, harassing, and illegal debt collection practices.
The case will now be set for trial. If Hess is proven to have violated the Wisconsin Consumer Act, a jury could award damages including an award of damages for any mental or emotional distress the patient suffered as a result of the collection action. In addition, Hess could be ordered to pay the patient’s legal fees.
If you are struggling to pay medical debt or facing unwanted collection action, contact Lawton Cates for a free consultation with one of our consumer protection lawyers.
