My Daughter Illegal Billing

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My daughter has a judgement against her. She called the collection agency before the court date and talked to someone and thought it was taken care of. They are now garnishing her check.

The bill was a medical bill for her daughter. She is on, and was covered by, Medicaid.

She has a letter from The Colo Dept of Health Care Policy & Financing. The letter has been sent to the Hospital and the collection agency. She called and talked to the State office and they told her the collection agency is breaking the law.

The letter is titled "NOTICE OF PROVIDER OF ILLEGAL BILLING ACTION". The letter mentions the Colorado Revised Statutes that prohibit this collection. CRS 25.5-4-301(1)(a)(I).

The letter from the the State said they must "cease all efforts to collect on all bills for this matter", and gave them 14 days to provide proof of corrective action.

My daughter is having a hard enough time making ends meet without this going on.

Any suggestions as to what I could do to help her would be greatly appreciated.

Thank you in advance,


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If they are garnishing her paycheck, they sued her at some point. Did she file an answer or anything or assume that "someone will take care of it." That is why you never assume. She should have filed an answer and attached the letter as an exhibit. She may not have many choices now other than a complaint to the state and hope that the state gets involved because it is probably too late to get the judgement vacated.

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