Posted: 8/21/2006 2:10:46 PM EDT
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I had an injury and was waiting for my insurance company to figure out some bills. I finally paid the bill, and a few days later I get a collection company letter saying I owe the medical amount plus more money. WTF? I paid the bill and it was cashed by the medical office. Now, I get another letter saying I still owe a balance to the collection agency. Do I owe they anything from a legal stand point? |
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I'm not an expert (never went through this) but I have read of many similar situations. You are in the worst possible place on this at the moment. What happened is your Doctor (or whatever) sold the Outstanding Debt to the Collection Agency. They now have the Legal Debt that you owed. Once this happens, the Doctor should NEVER take a check, they should direct you to the Collection Agency. Unfortunately, they often just cash the check, mark your account current, and never call the Collection Agency. You can end up really screwed financially, as the Collection Agency can Legally ding your Credit History for non-payment. Remember, as far as the Courts are concerned, you now owe THE COLLECTION AGENCY, NOT the Doctor! No different than having your Mortgage sold to a new bank, you stop paying the old one and start paying the new one. Only the Collection Agency adds fees on top of what you really owed. You need to check out some other resources on what to do, I don't have the magic answer of how to fix this. Sometimes you can call the Doctor and they will fix it, sometimes you have to call the Collection Agency and tell them to check with the Doctor. It's a mess either way. But, you need to act quickly before the Collection Agency starts dinging your Credit History. Though, that CAN be fixed, nothing is permanent in those Credit records, no matter what anyone says, it CAN be fixed, you just have to push them long enough. AND, if you need them to fix your Credit after they ding it, you need to push to have it fixed at all 4 Credit Bureaus. (Yes, there is a 4th, I don't remember the name off the top of my head.) Try Googling for some online forums for Fixing Bad Credit or Settling Medical Debts. That should get you started in the right direction. Good Luck! Futuristic |
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Unless the agency has provided you with legal notice that they have purchased and own the debt, you are under no obligation to pay them any amount. Until they provide this proof, they are just agents attempting to collect the debt for the doctor and get a commission. You have a number of options, generally speaking. Each state has separate laws, so it may be worth while to contact your state Consumer Affairs (or equivalent) to find out the exact procedure. Contact the doctor and get a letter from him stating that your account is fully paid and in good standing. Then send a registered letter to the collection agency along with a copy of the doctor's letter and a copy of your payment check. Tell them that the debt they are attempting to collect does not exist and to cease all collection attempts unless they can proof otherwise or have information dated after the date of the doctor's letter and check date. Also, be firm and tell them to provide you with any and all information that they may have provided to any and all individuals, companies, organizations or credit agencies regarding the debt, and that if they have provided no information, to put this fact in writing. And that if they have provided any information to anyone, that they are supply proof that this information has either been removed or corrected and to provide proof of this. Generally you want to deny the debt is active, provide proof it was paid in full prior to them contacting you and that you want to dump any issues that may have arisen by sending it back to the collection agency to correct and provide documented proof of everything they did and what they did to correct it. There are strict laws (both Fed and State) that Collection Agencies must follow, including the amount of time to respond to letters, what information they have to provide and what they have to do to resolve problems. Failing to meet any of these requirements results in severe fines and penalty payments to both you and the Gov, but you have to follow the procedures step by step to have any recourse if they fail to stop collection activities and reverse any information they may have provided to others. |
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www.creditboards.com READ then read some more , then read more and then read more, If the doctor took the check , ignore the collection agency , Send the doctor a letter threating HIPPA violations as since he was paid he had no legal standing to send you medical info elsware and in the long run if Collection agency keeps trying to collect, sue the for Fair Debt collection practices act (FDCPA) violations, That is the short version , go to creditboards and read for a week , or forget EVERYTHING I have just said , this is definatly a case whare a little knowledge is more dangerous that none at all , but the laws ARE on your side you will just need to fight for them. |
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Go back to creditboards and read , or post over there , although I would probably be working on an intent to sue letter. If they called you after recieving a C&D letter they owe you $1000, or just ignore them and let them call more, Each time they do it's $1000 per Fair Debt Collection Practices Act (FDCPA). There are some guys over there that could buy some pretty nice class 3 stuff with the winnings from sueing collections agencies. Who cashed the check , doctor's office or collection agency? Also why would she say pay the collection agency if the bill is already paid? I think my advise is go post over there 
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This is really not a big deal 1) Contact the Doctor and make sure it is the SAME debt. 2) If it is the same debt ask him to contact the CA and inform that it is paid. And get a letter from him stating this is paid. Ask them about reporting to the CBRs. 3) If it is NOT the same debt, write the CA for validation of the Debt, an itemized statement with date of service and list of services. 4) If it is indeed a different debt contact the DR or Original Creditor about the Debt in in question. If this is the Debt in question and it was paid prior to the CA receiving it they will have to remove it from the CBR. I am NOT an ATTORNEY AND THIS IS NOT LEGAL ADVICE BUT I DO KNOW THE BIZ. Hope this helps. |