Designed Receivable Solutions on Your Credit Report: Your Options

If Designed Receivable Solutions (DRSI) has appeared on your credit report, your bank statement, or in a letter, the debt is a healthcare bill from a California medical provider. DRSI focuses exclusively on medical collections and also operates under the name Designed Billing Solutions (DBS).

There is also a documented data breach: DRSI experienced a security incident and sent notification letters to affected consumers. If you received a letter from DRSI you didn’t recognize, that may explain the contact.

This guide covers who DRSI is, what their complaint record shows, and how to respond.

Who Is Designed Receivable Solutions?

Designed Receivable Solutions, Inc. (DRSI) is a healthcare-focused third-party debt collection agency founded in 2001 and based in Cypress, California. The company also operates as Designed Billing Solutions (DBS). Both names can appear on bank statements when payments are processed, which sometimes creates confusion about who actually charged an account.

DRSI is not BBB-accredited, holds a B BBB rating, and has accumulated over 400 CFPB complaints and 30 BBB complaints in the past three years. Despite the complaint volume, multiple consumer protection attorneys confirm DRSI is not known for filing lawsuits against consumers.

Why DRSI Is on Your Credit Report

DRSI collects exclusively for healthcare providers. Common account types include:

• Hospital emergency room bills: Springhill Emergency is a confirmed client. Emergency department bills are the most common DRSI account type.
• Physician and specialty groups: Outpatient and clinic balances.
• Insurance follow-up accounts: DRSI also handles follow-up on aged insurance claims for providers, which means they may contact consumers about balances left after insurance processing.

If you have no history of receiving medical services and DRSI is on your report, investigate immediately for identity errors or potential fallout from the data breach.

The Data Breach

DRSI experienced a data breach and subsequently sent notification letters to consumers whose information was compromised. If you received a letter from Designed Receivable Solutions or Designed Billing Solutions about a data breach and did not have an existing account with them, your personal information may have been exposed through a third-party patient data file.

Review your credit reports carefully for any unauthorized accounts or inquiries. File an identity theft report with the FTC at identitytheft.gov if you find accounts you don’t recognize. California residents can also contact the California Attorney General’s office about the breach.

The Two Operating Names

DRSI specifically notes on their website that credit card and bank statement charges may appear as either “Designed Receivable Solutions” or “Designed Billing Solutions.” If you see a charge from DBS that you don’t recognize, it may be a DRSI payment that has already been processed, not an unauthorized charge.

Conversely, if you see DRSI or DBS on your credit report, confirm which name is listed and dispute under the correct entity name if errors appear.

DRSI’s Charity Discount Program

DRSI explicitly offers a charity discount application for qualifying patients. Their FAQ states that charity discount matters are often already addressed by the healthcare provider before account assignment, but consumers can still apply through DRSI. Required documentation includes proof of income, proof of residency, proof of dependents, and certain bank records.

If you are facing financial hardship and DRSI is collecting a medical bill, contact them about the charity discount program before negotiating a settlement. A qualifying discount can reduce the balance significantly, which changes what any settlement should cost.

What DRSI Cannot Do Under Federal and California Law

The FDCPA and California’s Rosenthal Fair Debt Collection Practices Act apply to DRSI. Under these laws, 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 you at work after you say stop: Written cease-contact requests must be honored.
• Collect on debts already paid or covered by insurance: A documented complaint pattern.
• Use harassing language: Prohibited under both federal and California law.
• Fail to validate debts when requested: Required within 30 days of your written request.

File federal complaints at consumerfinance.gov. California residents can also file with the California Department of Financial Protection and Innovation (DFPI) and the California AG’s office.

Medical Debt Reporting Rules Apply

Because DRSI focuses exclusively on healthcare, specific credit reporting protections apply. All 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 DRSI account falls into any of these categories and is still showing on your credit report, dispute it immediately.

Verify Insurance Was Properly Billed

Before paying any DRSI balance, pull your explanation of benefits from your insurance company for the relevant service dates. Confirm the claim was submitted, processed, and that any patient responsibility matches what DRSI is claiming. DRSI handles insurance follow-up accounts, meaning some balances may represent amounts your insurer should have covered.

Send a written debt validation request by certified mail within 30 days of first contact. Ask for the original provider, the dates of service, an itemized bill, and confirmation of how the insurance claim was processed.

How to Check Your Credit Report for DRSI Errors

Pull your credit reports from all three bureaus at AnnualCreditReport.com. Is the balance correct? Is it listed under the right original provider? Does it appear under both Designed Receivable Solutions and Designed Billing Solutions as separate entries for the same debt? Is the amount under $500 and therefore should not be reported?

Any inaccuracy is grounds for a dispute with each credit bureau.

How Long Can DRSI Legally Pursue the Debt?

California has a 4-year statute of limitations on written contracts and open accounts, which covers most medical debt. Making a payment or acknowledging the debt in writing can reset the clock.

Your Options for Resolving a DRSI Account

Once you have verified the debt and insurance billing, consider your options:

• Apply for the charity discount: If you qualify based on income, this reduces the underlying balance before any settlement discussion.
• Go to the original provider: Contact the hospital or clinic directly. Many California healthcare providers have independent financial assistance programs.
• Pay in full: Paid medical collections are removed from credit reports under current bureau policies.
• Negotiate a settlement: DRSI may accept reduced amounts. Get any agreement in writing before paying.
• Dispute if inaccurate: If the debt was already paid, covered by insurance, or falls under medical debt reporting rules, dispute with the credit bureaus.

How to Contact Designed Receivable Solutions

Handle all communication in writing whenever possible:

• Address: Designed Receivable Solutions, Inc., 10833 Valley View St, Suite 415, Cypress, CA 90630
• Mailing address: 6101 Ball Road, Suite 207, Cypress, CA 90630
• Phone: (800) 518-7650

Bottom Line

DRSI is a California medical debt collector with a documented data breach and two operating names that create regular consumer confusion. Verify that any DRSI contact is legitimate, check whether a data breach notification applies to your situation, and ask about their charity discount program before settling for full price.

Medical debt reporting rules and California’s strong consumer protections give you more leverage here than with most collectors.