Atlanta company misled consumers about collecting sensitive records, FTC says

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Be careful what you click on. Customers of an Atlanta medical billing company may have believed they were giving the OK for it to handle their payments or for them to view their balance. Instead, the company, PaymentsMD, used the OK to try to collect customers’ medical records from pharmacies, health insurance companies and healthcare providers for another business venture, according to federal authorities. It sought information on prescriptions, medical diagnoses and procedures, the results of lab tests and more, but the plan came crashing down when most of the healthcare companies refused to comply. Now, PaymentsMD and its former CEO/part-owner, Michael C. Hughes, have settled Federal Trade Commission charges that they misled consumers. The settlement requires the company to destroy any medical record information it collected. It also has to go forth and sin no more, when it comes to deceiving consumers about the way it collects and uses information.

Apparently, this is the second oops for the company. On its website, the company says that earlier this year bills were sent to wrong patients.


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