Professional Account Services Inc. Calls for Settlement of $3.5 Million Class Action Lawsuit


A $3,500,000 settlement has been reached between Professional Account Services Inc. and consumers who claim the debt collector violated federal and Pennsylvania state debt collection laws in its efforts to collect the debts owed to healthcare providers by recording calls without consumers’ consent, misrepresenting themselves as a healthcare provider to debtors and not disclosing that they were a collection agent.

Class members include Pennsylvania residents whom Professional Account Services Inc. contacted by telephone between January 1, 2012 and January 1, 2016 regarding medical bills, and during the communication, Professional Account Services Inc. presented itself as the hospital or the creditor of the bill.

Professional Account Services, founded in 1987, offers accounts receivable collection services.

The company is not admitting any wrongdoing related to the claims in the class action, but has agreed to settle the consumer claims in an effort to avoid the ongoing costs and risk of litigation.

Of the $3.5 million settlement, $1.4 million was allocated for attorney fees and court costs. Another $100,000 was awarded to compensate the class representative plaintiff.

Once these and other costs are deducted from the Settlement Fund, Class Members who submit a valid claim for benefits are eligible to receive cash compensation from the remainder of the Settlement Fund, allocated on a pro-rata basis.

If funds remain due to uncashed checks, a second distribution will be made to those who cashed their initial check.

No payment estimate is available at this time.

The deadline for opting out of the Professional Account Services Inc. debt collection settlement or objecting to its terms is August 13, 2022.

Class members are invited to attend a final fairness hearing scheduled for September 29, 2022.

The deadline to file a claim for benefits under the Professional Account Services Inc. Debt Collection Settlement is August 13, 2022.


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