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VanderSloots up donation to $1 million to help medical debtors, announce lawsuits will be filed against collection companies

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IDAHO FALLS — Frank and Belinda VanderSloot are spending another $500,000 to defend Idahoans against aggressive tactics by medical debt collectors.

The Melaleuca CEO made the announcement Thursday afternoon, bringing the total amount the couple is spending to $1 million.

“We’ve been blessed beyond any amount that anybody should be blessed with, and way beyond what we deserve,” Frank VanderSloot said in an interview with EastIdahoNews.com. “We’ve got these resources and want to try to help some of these people out.”

In April, the VanderSloots announced they were establishing a $500,000 fund called Idaho Medical Debt after EastIdahoNews.com posted a series of reports about Medical Recovery Services (MRS), a medical debt collection company based in Idaho Falls. MRS and its representing law firm, Smith, Driscoll & Associates, are owned by Bryan Smith. Smith employs Bryan Zollinger, a Republican Idaho state representative from District 33. The agency has been accused of being aggressive and unethical in their debt collection practices.

RELATED | VanderSloots create $500,000 fund to defend Idahoans against excessive tactics by medical debt collectors

Since starting the fund, VanderSloot says 483 people have reached out for help, and Idaho Medical Debt agreed to take on 140 cases. So far, 35 have settled “very favorable to the patients,” but 105 cases are still open.

“Most of these people have been playing defense, and in just a few weeks, many are going to go on the offensive and start suing the collection agency for their tactics,” VanderSloot said. “We’ve burned through about $400,000 of the original $500,000. We need to carry this through to fruition, and we’re going to.”

VanderSloot said the vast majority of “troublesome” cases involve MRS, but a handful deal with other collection agencies. He said he’s heard the same stories “over and over” of patients never receiving a bill, being told they don’t need to show up in court and having attorney fees drastically larger than the original medical bill.

In previous statements to EastIdahoNews.com, Smith has denied the allegations against him.

VanderSloot said he plans to ask the Idaho Legislature to pass meaningful laws that protect Idaho’s citizens from unsavory practices related to medical debt. Details of the legislation will be announced next week, and the VanderSloots anticipate donating additional money to lead a consumer advocacy and education campaign throughout the state.

Idaho Medical Debt still wants to hear from people who have been treated unfairly by any collection company in eastern Idaho. You can call (208) 534-2208, email idahomedicaldebt@gmail.com or post on the Idaho Medical Debt Facebook page to seek assistance.

In a statement to EastIdahoNews.com from Smith, his spokesman Mark Harris said, “This is more laughable nonsense from Frank Vander Sloot. After $500,000 in attorneys fees, his team has won no cases and every single charge he has made here is demonstrably false. Frank’s personal vendetta is both irrational and false. Medical Recovery Services has always operated at the highest level of ethical behavior. We’ve been open and transparent about how we operate.”

Watch the video above for our entire conversation with Frank VanderSloot.

EDITOR’S NOTE: In 2015, Melaleuca CEO Frank VanderSloot provided the seed money to launch EastIdahoNews.com. For a short time, he was an owner. He has never had anything to do with the operations of EastIdahoNews.com. Nearly two years ago, he totally divested his ownership.

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