Collection Agency just showed up out of no where

[guiness56]

That is why it is on your CR. 

Contact the OC and find out what the charge is for and send a DV letter to the CA.

[Anonymous]

I see a lot of DV letter examples online.  Some long with a lot of details and legal language and others that are 1-2 sentences.  What is better?  I understand that a short letter just gets the job done, but I feel as if a longer letter may give me more information that I would need.

Any suggestions?

[guiness56]

Those longer letters are asking for things a CA is under no legal obligation to supply.

"I found this account XXXXXXXXXXX on my credit report.  Please validate."

[Anonymous]

Don't worry about jargon that says under FDCPA I have the right to know.. etc?

Sounds like short and sweet is the best approach.

thanks.

[guiness56]

The less they know that you know is good.  Plus the less information you give them is better.  They have to be able to validate by whats on your report.

If you need to wow them with your FDCPA knowledge, that can come later.

[Anonymous]

Thanks.  DV letter composed and sent.  Simple and to the point, one line.  Let's see what happens.  I'll keep you posted.

[guiness56]

Good luck.

[Anonymous]

Since this medical, the #1 thing this usually is for is some unpaid Patient Responsibility after an insurance claim was filed, and they got less money than their computer told them they would get back from that insurance, so that left you with a balance.

Most state laws require your insurer to send you an EOB (Explanation of Beneifts) form after a claim is paid to tell you what exactly your medical provider charged you, and how much the insurance paid, and how much is left over that you still owe.  Some physicians depending on their rules and what insurance agreements they have will actually ZERO OUT the PR after the insurance claim goes up and then they write off all that unpaid PR, and others will require you to send them a check for some small amount that the insurance did not pay.

The situation that happens the most often is that someone got a medical claim filed while also in the process of moving.   The provider doesn't mail out the bill for the PR until months later after you moved, and the bill doesn't get forwarded for some reason, so there's this unpaid PR sitting out there, and the provider doesn't bother to call/write or anything... they just eventually stuff it in collections.

Note this is NOT the same thing as your co-pay.   PR is whatever the insurer did not pay after the claim was filed.   Usually this is going to be your deductible.

[Anonymous]

BTW most people ignore the EOBs in the mail when they get them.   This is a very bad mistake.

You are supposed to compare the EOB with what your medical provider sends you for a bill.   If the Patient Responsibility showing on the EOB form is way different than what your medical provider is telling you that you owe, then you need to start asking questions to your insurer AND your medical provider and find out why the numbers are different.   They are usually always supposed to be the same.  

A lot of medical billing fraud is caught this way.

[RobertEG]

Neither the FDCPA nor the FCRA prevents a debt collector from reporting their collection to a CRA prior to any communications with you.

However, to prevent collections from adversely affecting you for any period of time without you being specfically advised of its reporting, FDCPA 809(a) requires that a debt collector send you a written collection (dunning) notice within 5-days of any initial communication regarding their collection.  Posting to your CR is considered and intial communication, and thus triggers their requirement to provide dunning notice of their collection within 5 days of any reporting to a CRA.  Thus, submarine collections should not linger in your credit report for more than a few days without you being specifcally advised of their collection activities.

Failure to provide timely dunning notice is not a disputable item under the FCRA.  It is a violation of their debt collection practices under the FDCPA.

If their reporting is considered inaccurate, such as in your case, then the remedy is to dispute its accuracy under FCRA 611(a) through the CRA, or directly with the debt collector under the direct dispute process of FCRA 623(a)(8).  You can additionally send a DV letter, but that only requires them to validate that they have collection authority, and tell you the name of the party who issued it to them, and the asserted amount of the debt.  It does not require them to investigate the accuracy of the collection authority.

If the OC account upon which the collection is based has additionally been reported by the OC to the CRA, then you can additionally file a dispute with the OC.

To make sure that you have the timely opportunity to take any of these actions, FDCPA 809(a) provides the initial requirement that you be provided dunning notice of the collection.