Published: November 13, 2008 09:45 pm         

Clinic ordered to cancel debt

The state attorney general’s office has entered into a settlement agreement with West Virginia Vein and Skin Centers which resulted in $20,530.54 in refunds and $72,582.18 in canceled debts for 52 West Virginia consumers.

The office opened an investigation of WVVSC, which has offices in Charleston and Beckley, after receiving a complaint questioning the addition of interest to the amount owed for services rendered by a consumer who was sued.

Further investigation disclosed that WVVSC, owned by George E. Lovegrove, M.D., had filed 52 debt collection suits in Raleigh County Magistrate Court on May 28, 2008.

In each suit, WVVSC added interest of 18 percent per annum to the amount owed for services rendered prior to filing the suit.

State and federal consumer protection laws prohibit a creditor from adding interest or other fees to the amount owed unless there is an intention to extend credit and the charges are disclosed in a special manner required by law.

In most instances, bills for medical services are due at the time services are rendered, although demands for payment are typically delayed while awaiting response from the consumer’s insurance company.

In the agreement, WVVSC promised it would comply with applicable state and federal law before adding interest or other fees to account balances in the future. WVVSC also agreed to dismiss all 52 lawsuits, refund all payments collected on the accounts in question and forgive the entire debt, including both interest and charges for services rendered.

“It is unfortunate that many consumers are not able to pay for medical services in full at the time bills are received and sometimes have difficulty even making acceptable payment arrangements.

Nonetheless, medical providers cannot increase the balance owed by adding interest or other fees unless there is a written credit agreement disclosing the fees and charges prior to the time the services are rendered. I commend Dr. Lovegrove for taking prompt remedial action to address our concerns as soon as this matter was brought to his attention.

Our office found no evidence that Dr. Lovegrove intended to do anything illegal,” Attorney General Darrell McGraw said.