Accounts Management Inc on Your Credit Report: What to Know

If Accounts Management Inc (AMI) has appeared on your credit report or is contacting you, the debt almost certainly traces back to Avera Health, a large Catholic non-profit health system based in Sioux Falls, South Dakota.

AMI operates almost exclusively as Avera’s collection arm. If you’ve never been treated at an Avera-affiliated facility, an AMI account on your report is worth investigating immediately.

This guide walks through who AMI is, why they’re contacting you, and how to respond.

Who Is Accounts Management Inc?

Accounts Management Inc is a debt collection agency founded in 1983 and based in Sioux Falls, South Dakota. The company has a close operational relationship with Avera Health, one of the largest healthcare systems in the Dakotas. Consumer reviews and public records confirm that AMI’s president is a former Avera CFO and that the registered agent for AMI is Avera’s patient accounts attorney. Multiple consumers report that calls to AMI about Avera debts are transferred directly back to Avera.

AMI is not BBB-accredited. Despite an A+ BBB rating, the company carries a 1.1 out of 5 star rating across consumer reviews and has been named in more than 60 federal court cases and reportedly over 30,000 total lawsuits in the past two decades.

Why AMI Is on Your Credit Report

Because AMI operates primarily for Avera Health, the account on your credit report is almost certainly a medical bill from one of the following:

• Avera McKennan Hospital in Sioux Falls, SD.
• Avera-affiliated clinics and physician groups across South Dakota and surrounding states.
• Avera specialty and outpatient facilities.

If you were treated at an Avera facility and had an unpaid balance or a balance your insurance didn’t fully cover, that account may have been referred to AMI. If you’ve never been a patient at an Avera facility and AMI is on your report, that’s a strong signal for identity theft or a reporting error.

Watch for These AMI Complaint Patterns

Consumer complaints about AMI document specific practices worth knowing before you engage:

• Collecting after insurance paid: AMI has been criticized for continuing to pursue patients for debts that insurance later covered, without pulling the accounts back from collection.
• Pursuing divorced spouses for each other’s debts: Multiple complaints describe AMI going after the wrong spouse in a marriage or divorce, including in states that are not community property states.
• Sharing medical information between spouses: Complaints allege AMI sent account statements containing specific medical details about one spouse to the other spouse, which raises HIPAA concerns.
• Unauthorized interest on judgments: Complaints allege AMI has added interest to judgments in amounts that may violate South Dakota law.
• Contacting employers: Documented complaints describe AMI contacting consumers at their place of work.

If any of these patterns apply to your situation, document everything and consult a consumer protection attorney.

What AMI Cannot Do Under Federal Law

The Fair Debt Collection Practices Act (FDCPA) applies to AMI. Under federal law, they cannot:

• Threaten arrest or jail: Medical debt is not a criminal matter.
• Call at odd hours: Contact is only allowed between 8 a.m. and 9 p.m. in your time zone.
• Contact your employer after you say stop: Once you tell them, they have to stop.
• Sue on time-barred debts: Documented as a complaint pattern with AMI.
• Share medical details with unauthorized parties: HIPAA and FDCPA both apply here.
• Add unauthorized interest to judgments: This may also violate South Dakota state law.

The Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate information. File complaints at consumerfinance.gov if AMI violates your rights.

Medical Debt Credit Reporting Rules Apply

Because every AMI account is medical, specific credit reporting protections apply. The three major credit bureaus voluntarily agreed to these changes in 2022 and 2023:

• Medical debts under $500 are not reported on credit reports at all.
• Paid medical collections are removed from credit reports entirely.
• Unpaid medical debt has a one-year waiting period before it can be reported.

If your AMI account falls into any of these categories and is still showing on your credit report, dispute it immediately with the credit bureaus.

Verify Insurance Was Properly Billed First

Before paying anything, pull your explanation of benefits (EOB) from your insurance company for the dates of service on the AMI account. Confirm the claim was submitted, processed, and paid correctly by Avera and your insurer.

Given AMI’s documented pattern of continuing to pursue balances after insurance pays, this check is especially important. If insurance covered the bill and AMI is still collecting, the debt may not be legitimate.

How to Verify the Debt

Send a written debt validation request by certified mail within 30 days of first contact. Ask for the original Avera facility, the dates of service, an itemized breakdown of all charges, and confirmation of how your insurance claim was processed. If AMI is pursuing you for a spouse’s debt, specifically request documentation showing your legal liability for the account.

How to Check Your Credit Report for Errors

Pull your credit reports from all three bureaus at AnnualCreditReport.com. Is the balance correct? Is the account date accurate? Is it listed under the right Avera facility? Does it appear more than once?

Also verify the amount qualifies to be reported under the medical debt rules. Any inaccuracy or a balance that shouldn’t be there is grounds for a dispute with each credit bureau.

How Long Can AMI Legally Pursue the Debt?

South Dakota has a 6-year statute of limitations on written contracts and medical debts. Making a payment or acknowledging the debt in writing can reset the clock.

Given complaints about AMI threatening to sue on time-barred debts, always check the age of the original service date before responding. An account from more than 6 years ago may not be legally collectible.

Your Options for Resolving an AMI Account

Once you’ve verified the debt, consider these paths:

• Contact Avera directly: Because AMI is so closely tied to Avera, going directly to the hospital’s billing department sometimes produces faster results than negotiating with AMI. Avera, as a non-profit, also has charity care and financial assistance programs.
• Pay in full: Resolves the account. Paid medical collections are removed from credit reports under current bureau policies.
• Negotiate a settlement: AMI sometimes accepts reduced balances, especially on older accounts. Get any agreement in writing.
• Dispute if inaccurate: If insurance paid, the amount is wrong, or the debt isn’t yours, dispute with the credit bureaus.

If AMI Files a Lawsuit

AMI litigates aggressively. The reported volume of 30,000+ lawsuits over two decades makes them one of the most litigious medical collectors we’ve encountered.

If you are sued, do not ignore the complaint. Most lawsuits end in default judgments because the defendant never responded. If the judgment amount includes unauthorized interest or the debt was time-barred, consult a South Dakota consumer protection attorney immediately.

How to Contact Accounts Management Inc

Handle all communication in writing whenever possible. Here’s how to reach them:

• Address: Accounts Management Inc, 5132 S Cliff Ave, Ste 1, Sioux Falls, SD 57108
• Phone: (605) 322-4672

Bottom Line

AMI is not a typical third-party collector. It functions as the collection arm of a major regional hospital system, which means going directly to Avera Health often produces better results than negotiating with AMI.

Check your insurance records first, verify the debt is legitimate, and use the medical debt reporting rules to dispute accounts that shouldn’t be on your report. AMI’s litigation volume is significant, so don’t ignore anything that arrives certified or from a court.