Gem Recovery Systems or GRS is a debt collection agency, which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
Gem Recovery Systems, Inc. (GRS) is a third-party collection agency based in New Jersey that specializes in collecting delinquent medical bills. GRS has received consumer complaints alleging violations of the Fair Debt Collection Practices Act (FDCPA), including failure to verify debts and attempting to collect debts not owed. If GRS has contacted you about past due financial obligations, make sure you understand your rights before taking action.
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According to the Better Business Bureau (BBB), Gem Recovery Systems, Inc. was founded and incorporated in 2001. The BBB established a profile page for GRS in 2009. GRS is listed as a collection agency.
According to its website, GRS is “a leader in the management of accounts receivable” and employs an “experienced staff …that provides a full range of accounts receivable management programs.” Originally formed in 1989, GRS states that its clients “can expect a professional, business-like approach to collecting what is owed to [their] company, physician group, or hospital,” while ensuring that “customers, patients, and payers…are treated with respect.”
GRS focuses exclusively on the collection of healthcare-related debts. Their collection services include self-pay collections for “patients…having a difficult time meeting their financial obligations” as a result of “the economy…[and]… new, high-deductible ‘consumer-driven’ health plans.” GRS’s denial management division processes “‘re-appeals’ of accounts that have been denied by managed care companies for administrative, technical[,] or medical reasons.” Finally, GRS’s insurance follow-up division addresses “unpaid insurance claims over 60 days.”
The Links page of the GRS website provides links to several professional associations, including the Healthcare Financial Management Association (HFMA); the American Association of Health Care Administrative Management (AAHAM); the American Hospital Association (AHA); the Centers for Medicare and Medicaid Services (CMMS); the Greater New York Hospital Association (GNYHA); the New Jersey Hospital Association (NJHA); the website for the Health Insurance Portability and Accountability Act (HIPAA); and the Hospital Association of New York State (HANYS). However, there are no links or references to consumer protection laws, resources, or enforcement agencies.
As of January 2019, the BBB has closed 4 complaints against GRS in the preceding three years, with 2 complaints closed in the previous 12 months. All of those complaints cited problems with billing and collection issues. The Consumer Financial Protection Bureau (CFPB) has not posted any complaint information about GRS. Justia lists at least 3 cases of civil litigation involving GRS.
Gem Recovery Systems, Inc.
800 Kinderkamack Rd., Suite 206 N
Oradell, NJ 07649
Telephone: (201) 722-8780
It is illegal for a debt collector to threaten to sue you or garnish your wages. It is also unlikely GRS would sue you for a debt you may not owe or they cannot validate. However, debt collection agencies are known to have summoned debtors to court and garnish wages after a default judgement. Contacting an attorney BEFORE this could possibly happen would be a smart move. We’ve helped thousands of consumers fight back against unscrupulous debt collection harassers. Find out if we can help you too today!
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Absolutely. Here are some Sample Complaints
In October 2017, in United States District Court for the District of New Jersey, a judge issued an Opinion and Order in a case alleging Gem Recovery Systems had violated certain provisions of the FDCPA. In this case, the plaintiff had originally filed a complaint in November 2016, in which she stated that the collection letter GRS had sent her the previous month violated her consumer rights. Although the letter contained the statement of consumer rights the FDCPA requires, the plaintiff claimed that the wording in the “immediately preceding paragraph ‘completely overshadowed’ and contradicted the subsequent notice of rights[,] in violation of the [FDCPA]. Additionally, [the plaintiff] allege[d] that [GRS] mailed the collection letter ‘in a window envelope which revealed [her] account information to the public,’ which also violated the” FDCPA. The case was litigated; GRS filed an Answer; the plaintiff responded; and when GRS failed to respond further, the court held a settlement conference. At the settlement conference, GRS accepted responsibility and served an Offer of Judgement, stating that GRS “hereby offers to allow Judgment to be entered against it in this action, as follows: 1. In the amount of [$1,001.00], in full satisfaction of the Plaintiff’s claims, and 2. [f]or costs incurred to the date of this offer, and 3. [f]or reasonable attorney fees incurred to the date of this offer in the amount to be determined by the Court, or through negotiation.” After some further litigation, the plaintiff accepted GRS’s offer, but they failed to reach an agreement for the amount of the attorney fees.
The October 2017 hearing was held to determine the amount of legal fees to be awarded to the plaintiff. The plaintiff requested $8,052.75 in attorney fees and litigation costs. The court considered four aspects in determining whether the plaintiff’s request was reasonable: a breakdown of the fee award; the “compensable period”; reasonable hourly rates; and reasonable hours expended to litigate the case. Ultimately, the court upheld the plaintiff’s request for attorney fees and litigation costs but reduced the award to $4,632.50 in attorney fees and $499.00 in litigation costs, for a total of $5,131.50. The fees awarded in this case were in addition to the $1,001.00 awarded to the plaintiff for the violations cited in the November 2016 case.
The Fair Debt Collections Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) are enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
The FDCPA regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt.
The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA). The complaint above illustrates how these laws can be extremely effective tools to hold accountable collection agencies who fail to adhere to their provisions.
These laws also provide individuals with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
Seek legal assistance to find the relief you may be entitled to if you are having difficulty resolving disputes with a debt collection agency
Your debt harassment checklist:
- You are receiving multiple calls per week from third party collection agencies
- You are receiving early morning or late night calls from debt collectors
- You are receiving calls at work from a debt collection agency
- Debt collectors are calling your friends, neighbors, or coworkers
- Collectors are threatening you with violence, lawsuit, or arrest
- A debt collector attempts to collect more than you owe
- You are being threatened with negative credit reporting
- A debt collector attempts to intimidate you
- Criminal accusations are being made towards you
- Use of obscene language during an attempt to collect
- Automated robocalls are being made to your phone in an attempt to collect
If you’ve been harassed by debt collectors and even one of these has happened to you, we can help. We will fight for your rights.
We can make them STOP!✋
The Lemberg Law legal team is committed to holding debt collectors accountable, so complete our form for a FREE case evaluation, or call 844-685-9200 NOW.
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