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Berger Montague Sues South Carolina’s Lexington Medical Center for Intercepting Patients’ Tax Returns

DATE: January 29, 2020
PRACTICE AREAS: Consumer Protection

Minneapolis, Jan. 29, 2020 – Berger Montague, working together with Dave Maxfield and Stone Law Firm, LLC, has filed a class action lawsuit against South Carolina’s Lexington Medical Center (“LMC”) on behalf of anyone from whom LMC has unlawfully collected debt. The case is Jones, et al. v. Lexington Health Services District, Inc. d/b/a Lexington Medical Center.

Lexington Medical Center uses South Carolina’s Setoff Debt Collection Program (“SDCP”) to intercept patients’ state tax refunds. LMC then uses the money to pay patients’ medical debts. In 2017 alone, LMC intercepted $19.2 million in consumer tax refunds using the SDCP program.

Plaintiffs allege that LMC engaged in these collection efforts despite receiving bankruptcy discharge and/or stay notices, meaning LMC knew that the debt it was collecting was uncollectable or void but seized Plaintiffs’ tax refunds regardless.

Berger Montague Attorney Joe Hashmall, who is working on the case, stated: “It is very important that individuals who go through the bankruptcy process get the fresh start that they are entitled to. These tax return seizes deprive people of this important opportunity.”

Berger Montague is a national class action and complex litigation law firm headquartered in Philadelphia with offices in Minneapolis, San Diego, and Washington, DC. The Firm litigates complex civil cases and class actions in federal and state courts throughout the United States. Berger Montague serves both public and private sector clients within the antitrust, securities, consumer, employment, environmental, civil and human rights, whistleblower, and insurance domains. In over 50 years of operation, the Firm has pioneered the use of class actions in America and recovered well over $35 billion for its clients and the class members it has represented.

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