Creditors Practice Section

This section was created for attorneys who are in the creditors practice field. It provides its members the opportunity to exchange information with other practitioners in this area of practice, provides timely CLE and legislative updates.

Chair
Portfolio Recovery Associates, LLC
120 Corporate Blvd
Norfolk, VA 23502
(888)772-7326
Immediate Past Chair
Buffaloe & Associates PLC
201 4th Avenue N #1300
Nashville, TN 37219
(615)256-2642

Supreme Court Rules Hospitals Can’t Maintain Liens After Bills Paid in Full

In a unanimous opinion, the Tennessee Supreme Court has decided that hospitals are required to release their hospital lien against a patient as soon as the patient and the patient’s insurance company have paid the full amount of the hospital charges. In West v.Shelby County Healthcare Corp., three patients who received treatment at the Regional Medical Center in Memphis’ (Med) emergency room filed suit in the Circuit Court for Shelby County challenging the Med’s practice of filing liens against its patients and declining to release these liens after they had been paid. The trial court dismissed the lawsuit, but the Court of Appeals reversed. The Tennessee Supreme Court granted the Med’s appeal, ruling that neither the laws authorizing hospital liens nor the Med’s contract with health insurance companies permitted the Med to maintain its lien after the patient’s debt to the Med has been fully extinguished with payments from the patient and the patient’s insurance company. The AOC has more.

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Circuits Split on Definition of ‘Applicant’

In her Journal column this month, Kathryn Reed Edge makes a prediction: "As the financial crisis wanes and fewer banks are plagued by their borrowers’ credit problems, we in the business are seeing the federal banking agencies gear up for an energetic assault on consumer compliance violations." And adding to the confusion that many bank compliance officers have in interpreting the Equal Credit Opportunity Act, she writes that two judicial circuits, the 6th and the 8th, "have split on a seemingly simple issue of the definition of 'applicant' under the ECOA." She explains the important differences and advises readers of her column "Bank On It" to watch the U.S. Supreme Court for an answer.

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