Payment Resolution Services Phone Harassment?

If you have been receiving letters or calls from Payment Resolution Services (PRS) demanding money for a medical bill or insurance overpayment, you are not alone. Consumers across the country have questioned whether these demands are legitimate, whether the amounts claimed are truly owed, and whether the collection methods cross legal lines. This guide answers those questions with verified facts, real complaint records, court filings, and a clear explanation of the consumer protection laws that apply to you.

What Is Payment Resolution Services (PRS)?

Payment Resolution Services, LLC (PRS) is a third-party debt collection agency operating in the healthcare sector. The company describes itself as offering collection services for hospitals and physician groups throughout the United States to resolve payment issues on their behalf.

PRS is associated with UnitedHealthcare’s subsidiary UMR, which is the nation’s largest third-party health plan administrator serving over 6 million members. Consumers and healthcare providers have reported receiving PRS letters on behalf of insurance companies including Aetna and UMR. PRS operates under NAICS Code 56 (Administrative and Support Services) and SIC Code 64 (Insurance Agents, Brokers, and Services).

Is Payment Resolution Services Legit or a Scam?

Payment Resolution Services is a real, registered company and is not a fraud operation in the traditional sense. It holds an A+ rating with the Better Business Bureau and has been BBB-accredited since 2012.

However, “legitimate” does not mean “always right.” Consumers and healthcare providers have raised consistent complaints that PRS pursues debts that were already resolved, debts that were never legally owed in the first place, and demands for overpayment returns years after claims were settled. Several individuals have explicitly described PRS as a scam because the company sought money that no insurance carrier had on record as outstanding.

As one business owner wrote in a verified BBB review: “THIS IS A SCAM. I am a business owner and received a letter from this company stating I owe an insurance company money — however when I called the insurance company, they have nothing on record of me owing anything.” (BBB Review, Payment Resolution Services, LLC)

If PRS is contacting you and the debt does not match your records, do not pay without first requesting written validation of the debt. That is your right under federal law.

Why Is Payment Resolution Services Calling Me?

The most likely reason PRS is contacting you involves a healthcare billing or insurance payment issue. PRS does not collect traditional consumer debts like credit cards or personal loans. Its collection work is concentrated in one specific area: pursuing what insurance carriers classify as “overpayments.”

Here is what that typically means for consumers and healthcare providers:

Insurance Overpayment Recovery: An insurance company pays a provider, then later audits the claim and decides it paid too much. PRS is brought in to demand the money back, sometimes years after the original claim was processed and considered closed.

Worker’s Compensation Cross-Billing: In documented court cases, PRS has pursued consumers for medical bills that were covered by accepted worker’s compensation claims. Under Arizona law, for example, a worker with an accepted comp claim is explicitly not responsible for any portion of related medical bills. PRS has attempted to collect these amounts anyway.

Disputed Medical Claims: PRS contacts patients and providers when an insurance carrier retroactively changes how it classifies a procedure code, even when the care was legitimately delivered and the original payment was accepted.

Coordination of Benefits Disputes: When a patient has multiple insurance policies, carriers sometimes argue that the other policy should have paid and attempt to claw back prior payments through collection agencies like PRS.

One thing consumers often misunderstand is that receiving a PRS letter does not mean you legally owe the amount claimed. The letter is a collection demand, not a court judgment. You have 30 days from the date of first contact to dispute the debt in writing, after which PRS must stop collection activity and provide written verification before proceeding.

Consumer Complaints Against Payment Resolution Services

Consumer complaints against PRS share a consistent pattern: demands for money that was never owed, collection letters arriving years after claims were resolved, and persistent automated letter series that continue even after the debtor demonstrates no balance exists.

BBB Complaint Records

The Better Business Bureau has documented multiple complaints against Payment Resolution Services, LLC (BBB profile: bbb.org/us/tn/franklin/profile/collections-agencies/payment-resolution-services-llc-0573-37001306).

Complaint #24356295 (Filed January 5, 2026): The consumer reported: “They keep calling me and trying to get my social security number and credit card information but they never actually seem to know what the company does or why I need to give them that info.” PRS responded by stating it does not contact members or patients directly. The consumer rejected this response, reporting that a woman identifying herself as working in PRS’s “outreach division” repeatedly called claiming the consumer was owed a large sum of money and requesting banking information. The consumer wrote: “I have received many calls from people at least claiming to be this company…they ask for my credit card and bank information and they claim to need my social security number.”

Complaint #24504985 (Filed February 9, 2026): A healthcare provider disputed a series of overpayment demands relating to a claim originally dated September 2020. The provider stated the claim was closed through the insurance appeals process in 2022, with final reimbursement received in May 2023. Despite this, PRS continued sending collection notices more than two years later, offering no explanation beyond a vague statement that procedure codes had been reclassified. The provider rejected every PRS response, stating: “PRS is not due anything, because the underlying claim that generated the ‘overpayment’ has been overwritten for multiple years.” PRS admitted in its responses that it does not purchase debt; the account was placed with PRS by the insurance carrier on December 30, 2025, despite the claim having been resolved years earlier.

Complaint #24814948 (Filed May 5, 2026): A business owner disputed four overpayment demands, stating the amounts were never received and the wire transfers in question had already been returned. PRS issued six separate responses over nearly a month, each time stating it was waiting for client confirmation. The consumer stated: “I am asking for the repayment request to be updated showing that I do not owe the money and never accepted the payment.” PRS confirmed in writing that it does not report to credit bureaus, but the matter remained unresolved through the complaint process.

Yelp Review

One Yelp reviewer wrote about PRS: “This payment resolution service is a sham, a scam. They send me the same bill twice. I try calling them and when I spoke with Lucy she would not help me.” (Yelp, Payment Resolution Services, Franklin, TN)

BBB Star Reviews

Anna S. (BBB): “THIS IS A SCAM. I am a business owner and received a letter from this company stating I owe an insurance company money — however when I called the insurance company, they have nothing on record of me owing anything.”

Ruby K. (BBB): “I received a notice that I owe $50 from 2024, with no documentation. I disputed this charge in a letter dated August 6, 2025.”

Lisa F. (BBB): “They keep requesting a refund (Sent 3rd notice) that has already been paid…I spoke with Dontae at PRS on 11/5/2024 and I was informed that he spoke to his supervisor and that account balance is 0$. I was given a reference number.” Despite this verbal confirmation, the written notice series continued.

Federal Complaint Data

According to FreeNetLaw’s analysis of federal complaint filings, Payment Resolution Services has accumulated 29 consumer complaints filed with the . Of those 29 complaints, 16 involve the single most common issue in debt collection: “Attempts to collect debt not owed.” That figure represents 55% of all PRS complaints centering on the allegation that the collector had no legal right to demand the payment it was seeking. PRS has a 93.1% timely response rate to those complaints, but a 33.3% consumer dispute rate, meaning one in three resolutions left the consumer unsatisfied.

In our practice, clients reach us frustrated precisely because they have already tried to resolve these matters directly. PRS’s automated letter series often continues even after a consumer provides proof that no balance exists, which is exactly the kind of pattern that draws FDCPA scrutiny.

Payment Resolution Services Phone Numbers and Call Patterns

Consumers report receiving calls and letters from the following verified PRS contact numbers:

• (800) 325-5340 (primary consumer-facing line)
• (866) 778-5340 (alternate outreach number)
• (855) 213-5830 (additional business line, confirmed by BBB profile)
• (615) 503-1000 (internal/corporate line)

PRS states in its own BBB responses that it does not contact members or patients directly and instead contacts only providers. However, one BBB complaint from January 2026 documents a consumer receiving repeated phone calls from a woman claiming to work in PRS’s outreach division and requesting financial account information. This directly contradicts PRS’s stated policy.

Additional patterns documented across complaint records include:

Sending three or more sequential letters on the same account without providing substantive documentation of why the debt exists. Running automated letter series that continue even after the consumer or provider has demonstrated the debt was resolved. Making demands for amounts that the originating insurance carrier cannot confirm are owed when the consumer contacts the insurer directly. Requesting Social Security numbers and credit card information by phone, conduct PRS itself disputes in its formal responses.

If PRS is calling you multiple times per week or sending repeated notices on a debt you do not recognize, document every contact with dates, times, and the name of the representative if provided. That documentation becomes the foundation of any FDCPA claim.

Federal Lawsuits Filed Against Payment Resolution Services

Case 1: McMahon v. Payment Resolution Services, LLC

Court: United States District Court, District of Arizona (Prescott Division) Case Number: 3:21-cv-08215-MTL Date Filed: September 27, 2021 Assigned Judge: Honorable Michael T. Liburdi Outcome: Settled and dismissed March 18, 2022 Source: CourtListener, https://www.courtlistener.com/docket/60492544/mcmahon-v-payment-resolution-services-llc/

What Happened: Plaintiff Steven McMahon, an Arizona resident, suffered a serious work-related injury in August 2019 and was hospitalized for several weeks. His employer’s worker’s compensation carrier, California Insurance Company, accepted his claim. Under Arizona law (A.R.S. Section 23-1062.01(D)), an injured worker with an accepted worker’s comp claim is explicitly not responsible for payment of any portion of related medical bills.

Despite this, PRS began sending McMahon collection letters in May 2021 on behalf of Aetna Health Insurance for $517.00, related to procedures performed because of his work injury. The complaint alleged that PRS knew or should have known the debt derived from an accepted worker’s compensation claim and was invalid, yet sent a collection letter formatted as a bill with a payment coupon and instructions for paying by phone, online, or mail.

McMahon alleged violations of FDCPA sections 15 U.S.C. 1692e(2)(A) (misrepresenting the legal status of a debt), 15 U.S.C. 1692e(5) (threatening action that cannot legally be taken), 15 U.S.C. 1692e(10) (using false and deceptive representations), and 15 U.S.C. 1692f (using unfair and unconscionable means to collect a debt).

The complaint stated that as a result of PRS’s collection effort, the plaintiff experienced emotional distress and was forced to pay out of pocket for psychotherapy and psychiatry appointments. He was diagnosed with PTSD and depression following his injury, and PRS’s conduct exacerbated his preexisting condition. The case proceeded through scheduling, discovery, and a Rule 26(f) conference before the parties reached a settlement in late February 2022. The case was formally dismissed on March 18, 2022.

Attorney Commentary: In cases we review involving medical debt and worker’s compensation, the FDCPA violation is particularly clear. A debt collector is strictly liable for attempting to collect an amount that is not legally owed. When a worker’s comp claim has been accepted, no personal liability attaches to the consumer. PRS sent a collection letter with payment instructions and an implicit threat of verification or judgment for a debt that Arizona law explicitly barred from being collected. That is a textbook FDCPA violation under sections 1692e and 1692f.

Case 2: The FDCPA Framework for Invalid Medical Debt Collection

Because PRS’s documented operations center specifically on healthcare overpayment recovery, the legal framework governing what it can and cannot collect is important context for every consumer receiving a PRS letter.

The Federal Trade Commission enforces the FDCPA against debt collectors, including those operating in the medical billing space. Under 15 U.S.C. 1692e, a debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. This includes misrepresenting the character, amount, or legal status of the debt, and threatening to take action that cannot legally be taken.

For medical debt specifically, the FTC has long maintained that collection of amounts not legally owed violates the FDCPA, regardless of whether the collector genuinely believed the debt was valid. A debt collector is responsible for ensuring the debt is legally owed before initiating collection activity.

The FTC’s enforcement position is documented in its annual FDCPA reports and in regulatory actions against medical debt collectors. According to the FTC, debt collectors who pursue unsubstantiated medical bills or bills already paid by insurance face liability under both the FDCPA’s misrepresentation provisions and its prohibition on unfair or unconscionable collection means (15 U.S.C. 1692f).

Source: Federal Trade Commission, FDCPA enforcement information, ftc.gov/enforcement/statutes/fair-debt-collection-practices-act

Attorney Commentary: One thing consumers often misunderstand is that a collection letter from a company like PRS is not proof that a debt exists. PRS is not the original creditor and does not independently verify the amounts it pursues. In many of the cases we review involving PRS, the consumer contacts the originating insurance company and finds no record of an outstanding balance. At that point, continuing to send collection demands is exactly the behavior the FDCPA was designed to stop.

Case 3: Arizona Worker’s Compensation Medical Debt Precedent

Court: United States District Court, District of Arizona Related Case Reference: Casillas v. Thunderbird Collections Specialists, Inc. (applying identical Arizona statutory framework) Applicable Law: A.R.S. Section 23-1062.01(D); FDCPA 15 U.S.C. 1692e and 1692f

What Happened: The McMahon v. PRS case cited above follows a line of Arizona federal court decisions holding that debt collectors who pursue medical bills covered by accepted worker’s compensation claims violate the FDCPA. The Arizona statute is explicit: an injured worker with an accepted comp claim is not responsible for payment of any portion of medical bills for services rendered on that claim.

Federal courts in Arizona have held that the FDCPA’s 1,000 dollar statutory damages provision applies separately to each defendant in such cases, and that consumers who are subject to unauthorized collection of worker’s comp-covered debt are entitled to actual damages including emotional distress, statutory damages up to 1,000 dollars per violation, and attorney’s fees.

Source: Consumer Financial Services Law Monitor, analysis of Arizona federal court decisions on FDCPA and worker’s compensation medical debt, consumerfinancialserviceslawmonitor.com (May 2023)

Attorney Commentary: We frequently see situations where a consumer received medical treatment, their worker’s comp claim was accepted, and they assumed the matter was fully resolved. Then, months or years later, a letter from a company like PRS arrives demanding payment. The consumer panics, sometimes pays, and never realizes they had a federal claim. If PRS sent you a collection letter for medical care covered by an accepted worker’s compensation claim, you may have already had your rights violated and should speak with a consumer protection attorney immediately.

FDCPA and TCPA Violations Reference Table

State-Specific Legal Protections

Consumers in several states have additional protections that work alongside the FDCPA when dealing with PRS.

Arizona: A.R.S. Section 23-1062.01(D) explicitly prohibits any party from seeking payment from an injured worker for medical treatment covered by an accepted worker’s compensation claim. A PRS letter for such a debt is not just arguably improper; it is categorically barred by state statute. Arizona consumers in this situation should preserve the PRS letters as evidence.

Tennessee: Because PRS is incorporated and headquartered in Tennessee, it operates under Tennessee state law requirements for debt collectors, including proper licensing and compliance with the Tennessee Consumer Protection Act (T.C.A. Section 47-18-101 et seq.), which prohibits unfair or deceptive acts in trade or commerce.

California: California’s Rosenthal Fair Debt Collection Practices Act (Civil Code Section 1788) extends FDCPA protections to cover original creditors and their agents. California consumers receiving PRS demands should note that the Rosenthal Act applies the same substantive standards as the federal FDCPA.

New York: New York General Business Law Section 601 independently prohibits abusive, deceptive, and unfair debt collection practices. New York consumers have a state-law claim in addition to FDCPA rights.

Texas: The Texas Finance Code Chapter 392 (Texas Debt Collection Act) mirrors the FDCPA and provides a private right of action for Texas consumers. Texas courts have held that misrepresenting the amount owed or the legal status of a debt independently violates this statute.

How to Stop Payment Resolution Services Phone Calls and Letters

If PRS is contacting you, these are your practical options, in order of priority:

Step 1: Do Not Ignore the Contact. Ignoring a collection notice has consequences. If a debt is valid and you do not respond, PRS could pursue legal action, though available complaint records suggest PRS operates primarily through letter series rather than litigation against individual consumers.

Step 2: Request Debt Validation in Writing. Under 15 U.S.C. 1692g, you have 30 days from the date of first PRS contact to send a written dispute requesting verification of the debt. Once you send this letter via certified mail with return receipt, PRS must stop all collection activity until it provides written verification of the debt’s validity. Keep a copy of everything you send.

Step 3: Contact the Original Creditor. Call the insurance company PRS claims sent the account to them. Ask whether they placed this account with PRS and whether your records show an outstanding balance. Multiple BBB complaints document that the originating insurer had no record of an outstanding debt even while PRS was actively pursuing collection.

Step 4: Review Applicable State Law. If the debt relates to medical care covered by worker’s compensation, disability insurance, or a government payer, consult an attorney before making any payment. You may have no legal obligation to pay.

Step 5: Document Everything. Save every letter from PRS. Note every call with date, time, phone number, and what was said. This documentation is essential if you later file an FDCPA complaint or retain an attorney.

Step 6: Send a Cease Communication Letter. Under 15 U.S.C. 1692c(c), you can instruct PRS in writing to stop all further communication. Once received, PRS may only contact you to confirm no further contact will occur or to notify you of a specific action (such as filing a lawsuit). Send this letter via certified mail.

Step 7: File a Complaint with the FTC. The Federal Trade Commission accepts consumer complaints about debt collector misconduct at ftc.gov/complaint. These complaints inform FTC enforcement priorities.

Step 8: Consult a Consumer Protection Attorney. If PRS violated the FDCPA, you are entitled to recover up to $1,000 in statutory damages per violation, your actual damages including emotional distress, and your attorney’s fees. Under the FDCPA’s fee-shifting structure, qualified attorneys handle these cases at no cost to the consumer. The firm pays nothing unless there is a recovery.

What Are Your Legal Rights?

Under the Fair Debt Collection Practices Act (FDCPA) – 15 U.S.C. 1692 et seq.

The FDCPA is a federal law that governs the conduct of third-party debt collectors like PRS. The FTC is the primary enforcement agency. Your rights include:

The Right to Validation: You can demand written proof that the debt is valid within 30 days of first contact. PRS must stop all collection activity until validation is provided.

The Right to Dispute: You can dispute the debt entirely. If you do, PRS must obtain verification and send it to you before resuming collection.

The Right to Cease Communications: You can demand in writing that PRS stop contacting you altogether.

Protection from Harassment: PRS may not call before 8:00 a.m. or after 9:00 p.m. in your time zone. It may not use obscene language, make repeated calls intended to harass you, or make false or misleading statements.

Protection from False Statements: PRS may not misrepresent the amount you owe, the legal status of the debt, or imply legal action is being taken when it is not.

The Right to Sue: If PRS violates the FDCPA, you can file a private lawsuit in federal or state court within one year of the violation and recover damages plus attorney’s fees.

Under the Telephone Consumer Protection Act (TCPA) – 47 U.S.C. 227

The TCPA, enforced by the Federal Communications Commission, governs how companies use telephones to contact consumers. If PRS used an autodialer or prerecorded message to call your cell phone without your prior express consent, you may be entitled to $500 to $1,500 per call.

If PRS is calling a number that is not associated with the person who actually owes the debt (a “wrong number” scenario), TCPA liability may apply. The FCC has confirmed that consumers can revoke consent at any time and that continued calls following revocation are violations.

FCC Consumer Information: fcc.gov/consumers/guides/stop-unwanted-robocalls-and-texts

Consumer Rights Law Firm PLLC

Consumer Rights Law Firm, PLLC is a law firm that specializes in helping clients who are facing harassment from debt collectors in any form, including telephone communication. Our firm helps clients focus on managing their debt and credit issues effectively, ensuring they take proactive steps toward financial stability. Rather than suffer alone, contact our office to begin the process to stop the Payment Resolution Services harassment. Our office has been assisting consumers since 2010. We have an A+ rating with the Better Business Bureau.

If you are interested in learning more about how to safeguard yourself and prevent harassment from Payment Resolution Services, call us at (877) 700-5790 for immediate assistance or visit our website at www.consumerlawfirmcenter.com

Success Stories

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Frequently Asked Questions

1. Who is Payment Resolution Services?
Payment Resolution Services (PRS) is a debt collection agency that contacts consumers to collect outstanding debts on behalf of various creditors.

2. Why is Payment Resolution Services contacting me?
They may be attempting to collect a debt they believe you owe. You have the right to request written validation.

3. Can Payment Resolution Services call me anytime?
No. They cannot call before 8 a.m. or after 9 p.m. under federal law.

4. Can PRS contact my employer?
They can verify employment but cannot discuss your debt without your permission.

5. Are they allowed to threaten legal action?
Only if they genuinely intend to take action. False threats are illegal.

6. Can I request proof of the debt from PRS?
Yes. You can request written debt validation within 30 days of the first notice.

7. What should I do if the debt is not mine?
You can dispute the debt in writing, and they must stop collection until they provide proof.

8. Can PRS report the debt to credit bureaus?
Yes, but only accurate information, and they must notify you if they plan to report it.

9. What happens if PRS violates debt collection laws?
You may have the right to file a complaint or pursue legal action for damages.

10. How can a lawyer help with PRS harassment?
A consumer rights attorney can stop the calls, dispute incorrect debts, and hold PRS accountable for illegal practices.