Professional Service Bureau on Your Credit Report: What to Know

Professional Service Bureau, Inc. (PSB) has collected medical debt for Minnesota healthcare institutions since 1972. Their two confirmed clients, Mayo Clinic and HealthPartners, are among the largest healthcare systems in the region.

PSB also operates under the name MARS, which stands for Managed Accounts Receivable Services, and functions as an Extended Business Office for their clients, meaning they may contact patients earlier in the billing cycle than most collection agencies.

A 1984 Minnesota Court of Appeals ruling found FDCPA violations against PSB after a collector called a consumer a “deadbeat,” threatened his family, and added unauthorized interest to a Mayo Clinic balance the clinic itself had not approved. This guide covers who PSB is, their documented history, and how to respond.

Who Is Professional Service Bureau?

Professional Service Bureau, Inc. is a third-party debt collection agency founded in 1972 and headquartered in Anoka, Minnesota. The BBB has accredited them since 2012. The company also operates as MARS (Managed Accounts Receivable Services).

They collect for healthcare providers, student loan clients, and utility companies, functioning as an Extended Business Office that integrates with client billing systems.

The CFPB has closed 9 complaints against PSB. The BBB has recorded 3 complaints in a three-year period. One federal PACER case appears in court records. PSB has a small complaint footprint for an agency that has operated for over five decades.

The 1984 Court of Appeals Case: Abuse and Unauthorized Interest

The most significant documented case against Professional Service Bureau is a 1984 Minnesota Court of Appeals ruling arising from a Mayo Clinic collection. The case involved a farm family that had accumulated approximately $500 in medical expenses, including the birth of two children and cancer treatment for two family members. The Mayo Clinic assigned the unpaid balance to PSB.

Mayo Clinic has a long-standing documented policy of not charging interest on delinquent debts and did not authorize PSB to collect interest on the account. PSB pursued the balance anyway and filed suit seeking both the principal and interest.

During ten collection calls, PSB representatives were abusive and threatening, called the consumer a “deadbeat,” and told him that “if he knows what’s good for him and his family, he’ll stay out of the state of Minnesota.” Representatives asked highly personal questions and used tactics designed to keep consumers on the phone to disrupt their daily routines.

PSB obtained a default judgment for approximately $700 after a miscommunication between the plaintiffs and their attorney. The plaintiffs then filed suit against PSB. The court found FDCPA violations.

Mayo Clinic Accounts: Interest Is Not Authorized

The 1984 case established a documented and specific fact about Mayo Clinic collections: Mayo Clinic does not charge interest on delinquent debts and does not authorize PSB to collect interest on referred accounts.

If PSB has sent you a collection notice for a Mayo Clinic balance that includes interest beyond the principal, you do not owe that interest. Request an itemized breakdown of the claimed balance and compare it against your Mayo Clinic billing statement. Any interest added beyond what Mayo Clinic billed is unauthorized under their own documented policy.

The Extended Business Office Model

PSB operates as an Extended Business Office for their healthcare clients, which means they may contact patients on behalf of the original provider before the account becomes severely delinquent. This is different from standard third-party collection. When PSB contacts you, the debt may still be actively managed by the original provider rather than having been formally assigned to collections.

Ask PSB in writing whether they are contacting you as an EBO acting on behalf of the provider or as a third-party collection agency. The distinction affects what validation they are required to provide and what your rights are under the FDCPA.

What PSB Cannot Do Under Federal Law

Based on their documented case history:

• Collect interest not authorized by the original creditor: The 1984 court ruling specifically found PSB collected unauthorized interest on a Mayo Clinic balance. Any interest on a PSB-collected Mayo Clinic account requires explicit authorization from Mayo Clinic.
• Use abusive or threatening language: Calling a consumer a “deadbeat” and threatening them and their family is a specific documented FDCPA Section 1692d violation from the 1984 case.
• Use tactics designed to keep consumers on the phone against their will: A documented finding in the 1984 ruling. Deliberately prolonging calls to disrupt a consumer’s daily routine is abusive conduct.
• Make false or misleading representations to collect a debt: A documented CFPB and FDCPA complaint category against PSB.
• Report medical debts under $500 or less than one year old: Current CFPB medical debt reporting rules apply to PSB’s healthcare collections.

Verify the Debt Before Paying Anything

Send a written validation request by certified mail within 30 days of first contact. For Mayo Clinic accounts specifically, request an itemized breakdown and compare every line item against your Mayo Clinic billing statement. If any interest appears in PSB’s claimed balance, request written documentation from Mayo Clinic authorizing that interest before paying.

For HealthPartners or other healthcare accounts, request the itemized bill and your insurer’s explanation of benefits and verify the post-insurance patient responsibility before paying.

How to Check Your Credit Report for PSB Entries

Search all three credit reports for “Professional Service Bureau,” “PSB,” and “MARS.” Confirm the original healthcare provider is identified, the balance matches what the provider billed after insurance, and no unauthorized interest has been added to the claimed amount.

Minnesota has a 6-year statute of limitations on medical bills and written contracts. The relevant statute is where you currently reside.

Your Options for Resolving a PSB Account

• Compare the PSB claimed balance against your provider’s billing statement line by line: The 1984 Mayo Clinic case shows PSB collecting interest Mayo Clinic never authorized. Any discrepancy between PSB’s figure and the provider’s figure requires documentation before payment.
• Clarify whether PSB is acting as an EBO or a third-party collector: The answer determines what validation they must provide and what rights apply.
• Document any abusive call conduct immediately: The 1984 case found FDCPA violations for name-calling, threats, and prolonged calls. Log date, time, and exact language used.
• Dispute medical entries under $500 or less than one year old with all three bureaus: Current CFPB rules make both immediately disputable.

How to Contact Professional Service Bureau

• Address: Professional Service Bureau, Inc., 911 Lund Boulevard, Suite 100, Anoka, MN 55303
• Phone: (877) 688-2268

Bottom Line

Professional Service Bureau has a 1984 Minnesota Court of Appeals ruling on record for collecting unauthorized interest on a Mayo Clinic balance, calling a consumer a “deadbeat,” and threatening him and his family. Mayo Clinic does not authorize interest on delinquent accounts, and PSB’s addition of that interest was specifically found unlawful.

Before paying any PSB balance tied to a Mayo Clinic account, compare their claimed total against your Mayo Clinic billing statement. If the figures differ, request written authorization from Mayo Clinic for any added interest before paying a dollar.