Coastal Medical Supply Settles 10 Consumer Billing Complaints
Summary
The Hawaii Office of Consumer Protection reached a settlement with Coastal Medical Supply, Inc., a distributor of durable medical equipment including CPAP and bilevel positive airway pressure machines and supplies. The Assurance of Voluntary Compliance resolves ten consumer complaints alleging unauthorized billing for supplies not ordered, with some accounts sent to debt collectors despite consumer disputes. As part of the settlement, Coastal Medical Supply agreed to cancel consumers' accounts and existing balances, implement a new customer complaint response procedure, provide restitution and injunctive relief, and contact the three major credit reporting bureaus on behalf of three consumers to request removal of collection items.
“The Assurance of Voluntary Compliance addresses ten complaints made by Consumers who reported receiving bills for supplies that they had not ordered, with some bills being sent to debt collectors despite the consumers' repeated attempts to address the issues with the company's customer service department.”
Durable medical equipment suppliers should audit their order intake and billing verification processes. HI OCP's settlement shows that sending unordered items and failing to resolve customer disputes before debt collection escalation can trigger enforcement action, even without a court finding of deceptive practice.
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GovPing monitors HI Office of Consumer Protection for new consumer protection regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The Hawaii Office of Consumer Protection entered into an Assurance of Voluntary Compliance with Coastal Medical Supply, Inc. following consumer complaints about unordered supplies and billing disputes escalated to debt collectors. The settlement requires account cancellation, balance elimination, and development of a formal customer complaint response procedure.
Medical equipment suppliers should review their order verification processes and customer service protocols. This settlement demonstrates regulatory focus on billing transparency and debt collection practices in the durable medical equipment sector. Companies receiving similar consumer complaints should consider proactive complaint resolution procedures to mitigate enforcement risk.
What to do next
- Cancel affected consumers' accounts and existing balances
- Implement a new customer complaint response procedure
- Contact major credit reporting bureaus to request removal of collection items for affected consumers
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Release: Coastal Medical Supply, Inc. Assurance of Voluntary Compliance
June 25, 2025 at 3:41 pm
Share Coastal Medical Supply, Inc. Assurance of Voluntary Compliance (pdf)
The Office of Consumer Protection has reached a settlement with Coastal Medical Supply, Inc., a distributer of durable medical equipment, including continuous positive airway pressure (CPAP) and bilevel positive airway pressure machines and supplies. The Assurance of Voluntary Compliance addresses ten complaints made by Consumers who reported receiving bills for supplies that they had not ordered, with some bills being sent to debt collectors despite the consumers’ repeated attempts to address the issues with the company’s customer service department. As part of the settlement, Coastal Medical Supply, Inc. agreed to cancel the consumers’ accounts and any existing balances on the accounts, as well as implement a new customer complaint response procedure. The settlement also provides for restitution, injunctive relief, and credit repair for affected consumers. To repair the possible negative effects on consumers, Coastal Medical Supply, Inc. contacted each of the three major credit reporting bureaus on behalf of three consumers to request the removal of collection items pertaining to Coastal Medical Supply, Inc.
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