Best way to deal with Medical collections

[Anonymous]

I received a letter from a collection agency yesterday for an unpaid (under $200) medical bill.

This is the first I heard of it, so I don't know if a previous bill from the the clinic got lost. Anyway.

I have no concerns paying this in full, but I am very concerned about my "excellent" credit score, over this stupid little bill.

I called the clinic and they confirmed that the bill had gone to the collecor. They said I could pay the clinic directly if I wanted. I asked about how this might impact my credit score, but the lady didn't seem to have much information.

I then called the debt collector. They were friendly and proffessional for what its worth. Anyway, I asked them if they had reported this yet to the credit agencies. They said they had not yet, and if I paid in full before the next reporting batch at the end of the month that it would not be reported at all. I asked if they could provide that in wirting via fax or physical letter. The response was no, that there was nothing in writing that they could issue, but he re-iterated that if paid in full it would not go on the record.

I also asked if they owned the debt or if it was assigned to them, he said it was assigned to them, but they had not bought it.

Everything I read says don't trust the debt collector, don't take them at their word, so what do I do?

1: Pay the collection agency and hope they are being honest?

2: Pay the clinic and hope they call back the debt?

3: Something else?

Interestingly my wife is actually a provider for this clinic!! So she is trying to get some information...

Thanks for any advice.

[Anonymous]

---

@Anonymous wrote:

I received a letter from a collection agency yesterday for an unpaid (under $200) medical bill.

This is the first I heard of it, so I don't know if a previous bill from the the clinic got lost. Anyway.

I have no concerns paying this in full, but I am very concerned about my "excellent" credit score, over this stupid little bill.

I called the clinic and they confirmed that the bill had gone to the collecor. They said I could pay the clinic directly if I wanted. I asked about how this might impact my credit score, but the lady didn't seem to have much information.

I then called the debt collector. They were friendly and proffessional for what its worth. Anyway, I asked them if they had reported this yet to the credit agencies. They said they had not yet, and if I paid in full before the next reporting batch at the end of the month that it would not be reported at all. I asked if they could provide that in wirting via fax or physical letter. The response was no, that there was nothing in writing that they could issue, but he re-iterated that if paid in full it would not go on the record.

I also asked if they owned the debt or if it was assigned to them, he said it was assigned to them, but they had not bought it.

Everything I read says don't trust the debt collector, don't take them at their word, so what do I do?

1: Pay the collection agency and hope they are being honest?

2: Pay the clinic and hope they call back the debt?

3: Something else?

Interestingly my wife is actually a provider for this clinic!! So she is trying to get some information...

Thanks for any advice.

---

Pay the Clinic.. Once the Clinic is paid in full they have to stop collections.. Just get a receipt showing where you paid it in full. that way if there is ever a issue you have proof.

~ Shawn

[Anonymous]

Thanks for the response.

Some things I have read say the risk here is that the collection agency might still submit you to CA.

Is it true that if the clinic let's the debt collector know it is paid before they have reported me, that they legally can't after that? Or could they still send me to the CA at the end of the month?

[RobertEG]

Personally, I recommend:

In view of the new (executed in 2015) agreement between the CRAs and the office of the AGs of several states, and also incorporated into the CRA's "National Consumer Assistance Plan," if you are able to get the debt paid via insurance, the CRAs will delete any medical collection.

That is my recommended deletion method, as it requires no consent or involvement from either the creditor or debt collector.

Second in preference is to make a pay for deletion offer to the debt collector, which if accepted, becomes a contract provision that can be enforced once you pay.

Trailing in my recommeded steps is to offer payment to the creditor in exchange for their agreement to terminate their collection authority prior to your payment of the debt.

That process requires a showing of termination of assigned collection authority prior to payment of the debt, with subsequent deletion then based on CRA policy instructing debt collectors to delete if their collection authority is terminated with the debt remaining unpaid.  It requires enforcement of that policy, which can be problematic, as it is not a contract provision entered into with the debt collector and consumer.

I offer no comment upon or recommendation of the so-called HIPAA Process, as I dont personally agree with its basis interpretation of the requirments of the HIPAA statute.

[Anonymous]

---

@Anonymous wrote:
Thanks for the response.

Some things I have read say the risk here is that the collection agency might still submit you to CA.

Is it true that if the clinic let's the debt collector know it is paid before they have reported me, that they legally can't after that? Or could they still send me to the CA at the end of the month?

---

once paid they will pull you from collections.. If the debt is just asigend to the CA and the CA dont own the debt you shouldnt have no issues.. I would still go talk with the clinic and let them confirm that they will. Get all the documents with the dates and all that showing where you paid that bill on X date before it was ever reported to the CRA's as proof

Then if it still gets sent to the CRA's with the valid proof showing you paid it before it ever made it to them they will remove it..

However i really would go talk with the clinic.. I bet they will be more then happy to help you if it means the bill will be getting paid..

I had 1 that was sold off to a CA from doing some back xrays and i went back to that clinic and told them i couldnt pay them in full but i could do a payment plan.. They set me up on a payment plan for $45 a month and they got with the CA to stop collections while i was on the payment plan...

So it wont hurt to try and deal with the clinic first.

~ Shawn

[Anonymous]

This bill is not covered by insurance, so that option is out.

They claim they have not reported yet, so I can't do a pay for delete. They claim if I pay now then it will never be reported. They say they don't have a mechanism to put this in writing.

I can try #3 but they didn't seem very interested in doing anything but taking a payment.

[Anonymous]

---

@Anonymous wrote:
Thanks for the response.

Some things I have read say the risk here is that the collection agency might still submit you to CA.

Is it true that if the clinic let's the debt collector know it is paid before they have reported me, that they legally can't after that? Or could they still send me to the CA at the end of the month?

---

Go with RobertEG... He can help you better then i can.. I was just putting out what i had done to try and help

~ Shawn

[RobertEG]

A pay for not reporting agreement is just as legally binding as a pay for deletion agreement.

If they have not yet reported, then get their agreement not to report if you pay the debt by a certain date.

[Anonymous]

I asked for that. They refused saying they don't have any written agreements like that. He did assure me verbally that it would not be reported...

Based on that refusal what next?

[RobertEG]

Oral agreements are legally enforceable.

The fact that they wont reduce their agreement to writing does not mean that the oral agreement is not an enforceable oral contract.

Oral contracts are harder to enforce if contested, but if that is all you can obtain, I would go with it.

They are unlikely to go to court to contest a breach of oral contract civil action simply to avoid deletion of any later reporting.